Item 135/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 4/22/2025
Subject: Approval of the 2025-2030 Consolidated Plan and the Fiscal Year 2025-26 Action Plan. (Action Item)
OBJECTIVE
To conduct a Public Hearing regarding the 2025-2030 Consolidated Plan and FY 2025 -26 Action Plan (Attachment No. 1), as required by the U.S. Department of Housing and Urban Development (HUD), and authorize submittal to HUD.
BACKGROUND
In 1995, the U.S. Department of Housing and Urban Development (HUD) established the Consolidated Plan (Plan) as a comprehensive planning document for state and local governments that receive entitlement grants. The Plan is intended to assist jurisdictions in assessing their affordable housing and community development needs, analyzing local market conditions, and making data -informed investment decision s. The consolidated planning process provides a framework for a community-wide dialogue that identifies housing and community development priorities. These priorities guide the strategic allocation of funding from HUD's Office of Community Planning and Development (CPD) grant programs.
Submission of the Plan is a requirement for receiving annual federal funding through key programs, including the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grants (ESG). This requirement is mandated under Title I of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended.
DISCUSSION
The Plan is a three -part document that consists of : 1) the Housing and Community Development Needs Assessmen t, 2) the Five Year Strategic Plan, and 3) Year-One Action Plan.
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The Housing and Community Needs Assessment provides a profile of the community and its development needs through the presentation and analysis of local demographics, housing market and inven tory conditions, and an inventory of existing affordable housing.
The Five-Year Strategic Plan outlines the jurisdiction’s available community development resources and identifies its Housing and Community Development goals and priorities for the upcoming five-year period.
Lastly, the Year-One Action Plan provides specific information describing the jurisdiction’s proposed programs, projects, and activities designed to address the goals and priorities outlined in the jurisdiction’s Plan. The Year-One Action Plan contains programmatic budgets for FY 2025-26.
Various methods of data collection were utilized in the preparation of the Plan , including:
surveying of residents, program beneficiaries, agencies, service providers, non -profit organizations, housing developers, and C ity department s. Additionally, the following documents were used for the preparation of the Plan: 2016-2020 American Community Survey (ACS), 2024 Orange County Homeless Count and Survey Report, 2024 Point in Time Summary Veterans for CA-602, 2024 Point in Time Summary Homeless Populations, HUD’s 2024 CoC HAP Housing Inventory Count, 2020 census data (base year), HUD Comprehensive Housing Affordability Strategy (CHAS) 2016 -2020, and the City’s 2021 -2029 Housing Element.
The followin g is a brief outline of the Housing and Community Development goals and priorities that have been identified and guide the City’s community and economic development activities over the next five years:
Provide decent and affordable housing;
Address the needs of homeless individuals and those at risk of homelessness; Provide community and supportive services;
Address public facilities and infrastructure needs;
Promote economic development employment opportunities; and Provide for planning and administration activities to address housing and community development needs in the City.
Approximately $2.9 million in HUD funds will be available during F Y 2025-26. This budget includes approximately $677,348 of carryover, or previously unallocated HUD funds from prior years’ entitlement allocations, and a new entitlement allocation of $2.3 million in HUD funds, as depicted below:
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HUD Funds FY 2025-26
Allocation Prior Year Carryover Total Funding
CDBG $1,516,657 $650,000 $2,166,657
HOME $600,296 $0 $600,296
ESG $157,000 $27,348 $184,348
Total $2,273,953 $677,348 $2,951,301
Program and funding recommendations for FY 2025-26 are based upon the Priority Objectives and input received during the public engagement period conducted during the preparation of the 2025-2030 Plan. During FY 2025 -26, HUD funds will address a wide range of Garden Grove housing and community development needs as follows:
Public Services: Funding in the CDBG public service category is strictly limited by HUD regulatory formula to 15% of the total allocation, or $273,000 for FY 2025-26.
Special Resource Team – Fund the Special Resource Team $48,000 to assist 200 homeless individuals with essential services an d referrals to emergency shelter.
Senior Center Services – Fund the H. Louis Lake Senior Center $155,000 to assist 500 seniors.
Meals on Wheels Program – Fund Meals on Wheels Orange County $20,000 to assist 140 seniors with home delivered and congregate meals. Workforce Activation and Readiness Program (WARP) – Fund StandUp for Kids $50,000 to provide 18 transitional aged youth with workforce development assistance.
Public Facilities and Infrastructure: A total of $700,000 in CDBG funds is recommended for the Glen Street Rehabilitation Project and is projected to assist approximately 6,335 individuals.
Owner Occupied Housing Rehabilitation: Approximately $160,000 in CDBG funds will be allocated to Habitat for Humanity of Orange County and Azure Development to complete 20 owner-occupied rehabilitation projects for single-family homeowners in Garden Grove.
Economic Development: Approximately $669,500 in CDBG funds is recommended for economic development activities.
Boost Progra m – Upwards is allocated $130,000 to assist 16 childcare agencies in Garden Grove to build capacity and expand operations. MicroBiz Program – Grow America is allocated $539,500, which includes $250,000 in prior year resources and $200,000 in revolving loan funds, which will be used to provide technical assistance to 40 Garden Grove micro - enterprises.
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Affordable Housing: An allocation of $250,000 in HOME funds is recommended to continue tenant-based rental assistance for the Homeless Emergency Assistance and Rental Transition (HEART) Program administered by Interval House.
Emergency Solutions Grant: In January 2025, the Orange County Emergency Solutions Grant Collaborative, comprised of staff from the cities of Garden Grove , Santa Ana, Irvine and Anaheim, issued a multi -year Request for Proposals for ESG funding. The FY 2025 -26 proposed funding levels and projections for each eligible activity are below:
Street Outreach - Fund Volunteers of America $49,000 and StandUp for Kids $20,000 to provide outreach and essential services to 55 homeless individuals. Emergency Shelter – Fund Interval House $25,000 to provide 25 homeless individuals with shelter and essential services.
Rapid Rehousing - Fund StandUp for Kids $42,328 to assist 5 homeless households with rental assistance and essential services. This budget includes $27,348 in prior year resources.
Homeless Prevention - Fund StandUp for Kids $31,700 to provide 3 at-risk households with rental assistance and essential services. Homeless Management Information System – Fund Orange County United Way $5,256 to manage the County’s Coordinated Entry System and Homeless Management Information System.
Administration: Approximately $436,000 in CDBG, HOME, and ESG funds is recommended for staff and material costs for program management, project development and monitoring, public communication, HUD reporting, and financial administration
Prior to finalizing the Plan and FY 2025-26 Action Plan, the City is required to provide a 30 - day public review and comment period. A public notice announcing the commencement of the public review and comment period was published on March 21, 2025, in the Orange County News, Viet Bao, and La Opinion. The review and comment period for the 2025-2030 Plan will end on April 22, 2025 after the scheduled Garden Grove City Council meeting.
FINANCIAL IMPACT
There is no financial impact to the General Fund. The proposed FY 2025-26 Action Plan will allow the City to access approximately $2.3 million in new entitlement grants from HUD, and $677,348 in unexpended prior year funds. The allocation of HUD funds effectively leverages competitive grants and the City’s General Fund.
RECOMMENDATION
It is recommended that City Council open the Public Hearing, accept comments, and, following discussion, take the following actions:
Direct staff to submit the 2025-2030 Consolidated Plan and FY 2025-26 Action Plan to HUD for approval; and
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Authorize the City Manager , or designee, to execute agreements, and make modifications as appropriate thereto, on behalf of the City.
ATTACHMENT(S)
1. Draft 2025-2030 Consolidated Plan and FY 2025-26 Action Plan