Agenda Item
City Council
Item #: 9.3. 2/14/2023 File #: 23-0022
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 Second Amendment to the Fiscal Year 2021-2022 Annual Action Plan to incorporate the HOME Investment Partnerships-American Rescue Plan Allocation Plan.
2. SUMMARY
Public Hearing to consider the approval of the Second Amendment to the 2021-2022 Annual Action Plan to incorporate the HOME Investment Partnerships-American Rescue Plan (HOME-ARP) Allocation Plan 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 2021- 2022 Annual Action Plan.
2. Approve the Second Amendment to the 2021-2022 Annual Action Plan and submit to the Department of Housing and Urban Development (HUD).
3. Authorize the City Manager or their designee to execute documents related to the Second Amendment of the 2021-2022 Annual Action Plan on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this Allocation Plan is $1,655,186 and will be funded through HOME (317).
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
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 HUD to distribute the funds to participating jurisdictions (PJ) that qualified for an allocation of HOME Funds in Fiscal Year (FY) 2021, of which City of Orange Printed on 2/10/2023Page 1 of 3
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Item #: 9.3. 2/14/2023 File #: 23-0022
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 that 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. In order to access the funds, the City must develop a HOME-ARP Allocation Plan (Plan) and amend its 2021-2022 Annual Action Plan for submittal to HUD. 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 and outlines how the City will use HOME-ARP funds. The Annual Action Plan outlines the intent of the use of Community Development Block Grant (CDBG) and HOME funds received by the City in a specific year.
City Council approved the HOME-ARP Allocation Plan at the Public Hearing on January 10, 2023.
The City is required to amend its 2021-2022 Annual Action Plan, hold a Public Hearing, and a 30-day public review period of the amendment before submitting the approved plan to HUD. Today’spublic hearing fulfills this requirement.
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 clientele, Mary’sKitchen did not provide services through the Continuum of Care agencies. The City terminated the license agreement with Mary’s Kitchen as safety concerns regarding how the organization was operating 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 to Mary’s Kitchen clientele without interruption. The City partnered with The Hub OC, a local non-profit, to establish the 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 is not a sustainable resource because of the high cost. The cost of operating the General Fund was used as a temporary solution to bridge the gap in funding to avoid interruption in services until another source of funding 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 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 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 delivery in temperature-controlled City of Orange Printed on 2/10/2023Page 2 of 3
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Item #: 9.3. 2/14/2023 File #: 23-0022
meals and includes the preparation of the meals off site and delivery 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 TBRA Program that will partner with affordable housing developments in the City. The TBRA Program guidelines and requirements are under development and will be presented to Council for consideration at a future date. The TBRA Program will be funded through the City’sannual HOME Program entitlement beginning in Fiscal Year 2023-2024 so as 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. By establishing a TBRA program, the City will be able to more timely expend its HOME funding, while addressing a need in the community.
Citizen Participation Process
As required by the City’sapproved Citizen Participation Plan, a Public Notice was published in the Orange City News on January 12, 2023 to inform residents of the Public Hearing on February 14, 2023 and availability of the draft Second Amendment to the 2021-2022 Annual Action Plan for a 30- day review and comment period. The notice advised residents that copies of the draft Second Amendment were also available on the City’swebsite from January 12, 2023 to February 11, 2023.
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.
Staff recommends the approval of the Second Amendment to the 2021-2022 Annual Action Plan to incorporate the HOME-ARP Allocation Plan and requests authorization to incorporate any comments received by the community at the Public Hearing into the Action Plan for submittal to HUD.
7. ATTACHMENTS
· Second Amendment to the 2021-2022 Annual Action Plan
City of Orange Printed on 2/10/2023Page 3 of 3
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