Agenda Item
City Council
Item #: 7.2. 1/10/2023 File #: 22-0682
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Jeff Adams, Interim Community Development Director
1. SUBJECT
Public Hearing to consider the approval of the HOME Investment Partnership-American Rescue Plan Allocation Plan prior to submittal to the Department of Housing and Urban Development.
2. SUMMARY
Public Hearing to consider the approval of the HOME Investment Partnerships-American Rescue Plan (HOME-ARP) Allocation Plan to access the funds to continue services and resources to those experiencing homelessness.
3. RECOMMENDED ACTION
1. Authorize staff to incorporate public comments received at the Public Hearing into the HOME- ARP Allocation Plan.
2. Approve the HOME-ARP Allocation Plan.
3. Authorize the City Manager or their designee to make any necessary changes to the Allocation Plan and submit the Allocation Plan to the Department of Housing and Urban Development (HUD).
4. Upon approval of the HOME-ARP Plan from the Department of Housing and Urban Development (HUD), accept into the City’srevenue budget $1,572,426.70 in HOME Investment Partnerships Program American Rescue funds into revenue account number 317.0000.45120.30206, Federal HUD Grants - HOME-ARP Grant.
5. Upon approval of the HOME-ARP Plan from the Department of Housing and Urban Development (HUD), authorize the appropriation of $1,572,426.70 from the HOME Fund (317) unreserved fund balance to expenditure account 317.9640.51670.30206 - HOME-ARP Consulting Services.
6. Authorize the City Manager or their designee to execute documents related to the HOME-ARP Allocation Plan on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this Allocation Plan is $1,572,426.70 and will be funded through HOME (317).
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
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Item #: 7.2. 1/10/2023 File #: 22-0682
a: Expend fiscal resources responsibly
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectation
6. DISCUSSION AND BACKGROUND
Background
On March 11, 2021, the American Rescue Plan (ARP) was passed in response to the COVID-19 pandemic. Congress appropriated $5 billion in ARP funds to be administered through the HOME Investment Partnerships Program (HOME) and authorized the Department of Housing and Urban Development (HUD) to distribute the funds to participating jurisdictions (PJ) that qualified for an allocation of HOME Funds in Fiscal Year (FY) 2021, of which the City of Orange was a recipient.
The intent of HOME-ARP is to address the need for homelessness assistance and supportive services to benefit qualifying individuals and families, including veterans who are experiencing homelessness, at-risk of homelessness, or are part of a vulnerable population such as those fleeing domestic violence. Eligible activities for the use of the HOME-ARP funds include:
1. Development and support of affordable housing;
2. Tenant-based rental assistance (TBRA);
3. Provision of supportive services;
4. Acquisition and development of non-congregate shelter units.
The City received an allocation of $1,655,186 in HOME-ARP funds. To access the funds, the City must develop a HOME-ARP Allocation Plan (Plan). The Plan describes the consultation and public participation process that the City engaged in as part of the process and requirement of developing the Plan. Additionally, the Plan outlines how the City will use HOME-ARP funds.
Discussion
For nearly 20 years, Mary’sKitchen, a non-profit, had a license agreement with the City to provide homeless individuals with a hot meal, shower facilities, mail services, and laundry services on City Property. While limited social services were also available to the clientele, Mary’sKitchen did not provide services through the Continuum of Care agencies. The City terminated the license agreement as safety concerns regarding how the organization was operating the facility continued to increase.
In the Spring of 2022, pursuant to an agreement reached in federal court, the City agreed to provide the services that were being offered at Mary’sKitchen to its clientele without interruption. The City partnered with The Hub OC, a local non-profit, to establish the Homeless Hub Resource Center (HRC) to administer the services in a temporary location on the parkway along Struck Avenue. To date, expenses for the services have been paid using Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, as well as the City’sGeneral Fund. It is important to note that with the CARES funding almost completely exhausted, the City utilized General Fund dollars to supplement the cost of operations and resources, but the General Fund is not a sustainable funding source due to the high costs associated with the HRC. The General Fund was used as a temporary solution to bridge the gap in funding to avoid interruption in services until another funding source could be identified.
The City’splan is focused on using HOME-ARP funds to reimburse the General Fund for qualifying expenses related to the HRC’s services and resources provided to the qualifying population.
Furthermore, the plan is to continue to fund the HRC’squalifying expenses until the HOME-ARP City of Orange Printed on 1/5/2023Page 2 of 4
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Item #: 7.2. 1/10/2023 File #: 22-0682
Furthermore, the plan is to continue to fund the HRC’squalifying expenses until the HOME-ARP funds have been exhausted. Costs related to the HRC’s operations include staff salaries, facility cleaning, showers, laundry, hygiene products, facility supplies, utilities, restroom/sink rentals and most important, food and water. The Hub OC has an arrangement for food services with Abound Food to provide hot meals and includes the preparation of the meals off site and delivered in temperature-controlled containers to be distributed at the site. The Hub OC also works strategically with partner agencies and organizations to provide on-site appointments or referrals to a variety of services that include, but are not limited to medical, dental, mental health care, social services, veterinary services, and shelter. The Hub OC also utilizes its subsidiary non-profit Full Circle to provide clothing, and the Youth Center of Orange to provide childcare so that parents can focus on getting the assistance they need to help them into stable employment or housing.
To meet the housing requirement of the HOME-ARP grant and address some of the housing assistance needs within the city, the plan proposes to establish a Tenant Based Rental Assistance (TBRA) Program that will partner with Valencia Gardens, an affordable housing development adjacent to the HRC. The TBRA Program guidelines and requirements are under development and will return to the City Council at a future date for consideration. The TBRA Program will be funded through the City’s annual HOME Program entitlement to preserve the HOME-ARP funds for the operation of the HRC. Historically, the City has had difficulty finding qualifying projects for its HOME funding therefore, by establishing a TBRA program, the City will be able to more timely expend its HOME funding, while addressing a need in the community.
As required by the City’sapproved Citizen Participation Plan, a Public Notice was published in the Anaheim Bulletin on December 1, 2022 to inform residents of the Public Hearing on January 10, 2022 and availability of the draft HOME-ARP for review and comment. The notice advised residents that copies of the draft plan were also available on the City’swebsite from December 1 to December 16, later extended to December 19. Additionally, the notice stated that hard copies of the document would also be available at the counters of the Community Development Department, Orange Main Public Library, and City Clerk Office.
If approved, staff will return to Council with a Substantial Amendment to the 2021 Action Plan to include the HOME-ARP funding required by HUD. The Action Plan is an annual document required by HUD that outlines the City’sintention for the use of a specific year’sfunding in accordance with the City’sapproved Consolidated Plan and provides a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plan.
In addition, staff will return with a Substantial Amendment to the City’scurrent Consolidated Plan for 2020-2024. The Consolidated Plan identifies housing and community needs, establishes priorities based on community feedback, and outlines a strategy to address the identified needs. The Amendment to the Consolidated Plan will be to include the City’sstrategy to add a TBRA program to support affordable housing needs.
Staff recommends the approval of the HOME-ARP Allocation Plan and requests authorization to incorporate any comments received by the community at the Public Hearing into the Plan for submittal to HUD.
7. ATTACHMENTS
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Item #: 7.2. 1/10/2023 File #: 22-0682
· Draft HOME-ARP Allocation Plan
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