CITY OF POMONA
COUNCIL REPORT
April 18, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Benita DeFrank, Neighborhood Services Director SUBJECT: PUBLIC HEARING APPROVING THE HOME-AMERICAN RESCUE PLAN (HOME-ARP) ALLOCATION PLAN AND AMENDING THE FY 2021-22 ANNUAL ACTION PLAN AND FY 2021-22 CITY OPERATING BUDGET RECOMMENDATION:
It is recommended that the City Council take the following actions:
Conduct a Public Hearing
Adopt the following resolution:
RESOLUTION NO. 2022-65 (ATTACHMENT NO. 1) - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, APPROVING THE HOME-AMERICAN RESCUE PLAN (HOME-ARP) ALLOCATION PLAN AND AMENDING THE FY 2021-22 ANNUAL ACTION PLAN AND FY 2021-22 CITY OPERATING BUDGET TO INCREASE REVENUE ESTIMATES AND APPROPRIATIONS IN THE AMOUNT OF $3,190,091 FOR THE HOME-ARP PROGRAM Authorize the City Manager to execute appropriate applications and certification documents for the HOME-ARP Allocation Plan for submittal to the U.S. Department of Housing and Urban Development (HUD).
EXECUTIVE SUMMARY:
On March 11, 2021, Congress approved a $1.5 trillion American Rescue Plan (ARP). This plan contains $5 billion for affordable rental housing and homeless assistance through the Home American Rescue Plan (HOME-ARP). Approximately $197 million in HOME-ARP funds was allocated to thirty cities in Los Angeles County. These formula block grant funds, provide cities with flexible funding to reach populations experiencing homelessness, or those currently at risk of homelessness and address local affordable housing, non-congregate shelter, and supportive service needs within respective communities.
These funds are not the traditional HOME Program funds, but are also administered through the U.S. Department of Housing and Urban Development (HUD) and intended to address homelessness. Eligible uses of HOME-ARP funds include the following activities:
Administration and Planning;
Development and Support of Affordable Rental Housing;
Tenant-Based Rental Assistance;
Supportive Services for Qualifying Populations; and
Acquisition and Development of Non-Congregate Shelter (NCS) FISCAL IMPACT: The adoption of Resolution No. 2022-65 will amend the Fiscal Year 2021-22 Operating Budget by $3,190,091. Revenue will increase by $3,190,091 and appropriations by an equal amount.
PROGRAM
REVENUE ACCOUNT #
REVENUE ESTIMATES
EXPENDITURE ACCOUNT #
APPROPRIATE ($)
Home American Rescue Plan (HOME-ARP)
190-1702-40850-00000
$478,513
Salaries & Benefits
(190-1702-51012-00000)
$478,513
190-1791-40850-00000
$350,000
Controllable Contract Services
(190-1791-52285-00000)
$350,000
190-1791-40850-00000
$2,361,578
Acq/Rehabilitation
(190-1791-66201-00000)
$2,361,578
PREVIOUS RELATED ACTIONS: On May 17, 2021, the City Council adopted the FY 2021-22 Annual Action Plan. On June 7, 2021, the City Council adopted the FY 2021-22 City Operating Budget.
PUBLIC NOTICING REQUIREMENTS: Notice (ATTACHMENT NO. 2) was published on April 1, 2022 in the Inland Valley Daily Bulletin for the April 18, 2022 public hearing.
DISCUSSION:
In September of 2021, the City of Pomona was notified of its award of $3,190,091 in HOME-ARP Program Funds. Guidelines for the program require that funds be used to primarily benefit individuals and families classified as “qualifying populations”. Qualified populations as defined by HUD include persons that are: 1) Homeless; 2) At-Risk of Homelessness; 3) Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking; and 4) Other Populations where providing supportive services or assistance would prevent the family’s homelessness.
Eligible Activities include:
Administration and Planning;
Development and Support of Affordable Rental Housing;
Tenant-Based Rental Assistance (TBRA);
Supportive Services for Qualifying Populations; and
Acquisition and Development of Non-Congregate Shelter (NCS) Prior to receipt and use of HOME-ARP funds, the City is required to engage in a consultation and public participation process in order to develop a HOME-ARP Allocation Plan that meets the requirements for use of HOME-ARP funds. Additionally, the City must submit to HUD a substantial amendment to its Fiscal Year 2021 Annual Action Plan for inclusion of HOME-ARP activities.
Citizen Participation and Consultation
The HOME-ARP Allocation Plan is a direct result of consultation with a wide spectrum of public and private agencies. Before developing the HOME-ARP Allocation Plan, the City conducted extensive public outreach activities beginning October 2021. Informational postcards were mailed to over 43,500 households, informing them of community meeting dates and requesting their input via a Community Needs Survey. The engagement efforts included virtual stakeholder focus groups, community meetings, workshops, tabling events, online social media, resident survey, agency polls, and digital information through the Neighborhood Services Department/Housing Division webpage. In addition, the City is holding this public hearing in order to garner additional input and feedback on recommended uses of HOME-ARP funds. Survey and poll results are provided in the HOME-ARP Allocation Plan (ATTACHMENT NO. 3).
HOME-ARP Allocation Plan and Preliminary Recommendations for Funding The City of Pomona has taken critical steps to increase opportunities for housing, provide access to stable housing to lower income residents, and reduce the number of people experiencing homelessness. Although there has been immense progress on implementing new programs and policies, conducting the Needs Assessment and Gap Analysis, gave the City the opportunity to revisit planning efforts and determine the allocation of HOME-ARP funding based on current unmet housing needs. It is particularly imperative to examine what the unmet housing needs were/are during the COVID-19 pandemic to build and create new strategies that align with the current realities and resources Pomona residents are facing.
More importantly, an assessment of unmet needs relative to the “qualified population” indicate, that the City can use various approaches to provide further sources of affordable housing production and opportunity, which include:
Sheltered and unsheltered homeless populations – In Pomona there are not enough shelter beds for every unsheltered person, every night. For sheltered persons, there is a severe lack of supportive transitional or permanent supportive housing to help them transition away from homelessness.
Currently housed and at risk of homelessness – Increasing housing costs continue to strain households at risk of homelessness. A lack of quality housing options is the primary issue.
Households requiring services or housing assistance to prevent homelessness – Identify and act upon opportunities to expand and strengthen the Housing Authority’s rental assistance programs, which include implementing programs that address special population needs (e.g. youth), provide access to rental assistance whether it be a voucher, subsidized rental, or affordable mortgage. Others may require short-term assistance due to an unexpected expense to get back on their feet. Access to accessible housing may be necessary to keep persons with disabilities safely housed.
Households at greatest risk of housing instability or in unstable housing situations. – Overcrowded or rent overburdened households require safe, affordable housing options.
Affordable Housing - Identify innovative affordable housing development approaches to address homelessness and extremely low-income households to develop an incentive program to promote the building of accessory dwelling units and utilize them to assist households experiencing housing displacement.
Therefore, based on feedback from required consultation and public participation, along with an assessment of gaps in current shelter and housing inventory, staff recommends allocating HOME-ARP funds to: 1) Acquisition, Rehabilitation and/or Development of Non-Congregate Shelter; and 2) Supportive Services for Qualifying Populations. These eligible HOME-ARP activities are considered high priority needs of the City’s qualified populations.
COUNCIL PRIORITIES & GOALS:
This item supports 2021 City Council Priority # 3 – Increased Opportunity and Housing Stability; Goal J – Encourage the development and maintenance of quality housing opportunities for all.
ATTACHMENTS:
Attachment No. 1 – Resolution No. 2022-65
Attachment No. 2 – Public Notice
Attachment No. 3 – DRAFT HOME-ARP Allocation Plan
Prepared by:
Beverly Johnson
Housing Services Manager
Approving the HOME-ARP Allocation Plan and Amending the Fiscal Year (FY) 2021-22 Annual Action and FY 2021-22 City Operating Budget to Appropriate HOME-ARP Funds