Annual Action Plan
2026
1 OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
The 2026–27 Action Plan outlines the City of Santa Ana’s strategy for administering annual entitlement funds received from the U.S. Department of Housing and Urban Development (HUD), including the Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs. The Plan is adopted by the City Council and subject to HUD approval.
Consistent with HUD’s national objectives, these programs are designed to expand access to safe and affordable housing, foster suitable living environments, and advance economic opportunity— particularly for low- and moderate-income residents and individuals with special needs. Given the limited availability of federal resources, the Action Plan prioritizes neighborhoods and populations demonstrating the greatest need, directing investments toward high-impact strategies where data indicates the City can maximize measurable outcomes and long-term community benefit.
The funding priorities and goals reflected in this Action Plan are informed by the City’s 2025–2029 Consolidated Plan, which identified key community needs, established funding priorities, and set measurable five-year objectives to guide the use of HUD resources.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
The U.S. Department of Housing and Urban Development (HUD) Community Planning and Development (CPD) Outcome Performance Measurement Framework organizes program objectives into three national outcome categories: decent housing, a suitable living environment, and economic opportunity.
In the 2025–2029 Consolidated Plan, the City of Santa Ana identified six high-priority needs to be addressed through activities aligned with seven Strategic Plan goals.
Priority Needs
• Expand the supply of affordable housing
• Preserve the existing supply of affordable housing
• Increase access to and availability of public services • Expand access to and availability of homeless services and facilities EXHIBIT 1
Annual Action Plan
2026
2 OMB Control No: 2506-0117 (exp. 09/30/2021)
• Promote economic opportunity
• Improve public facilities and infrastructure
Consistent with HUD’s national objectives to provide decent housing, maintain a suitable living environment, and expand economic opportunities for low- and moderate-income residents, these priority needs will be addressed through HUD-funded activities aligned with the following measurable Strategic Plan goals:
Strategic Plan Goals
• Affordable Housing Development, Maintenance, and Preservation • Code Enforcement
• Public Service Programs
• Homeless Services and Facilities
• Economic Development Programs
• Public Facilities and Infrastructure Improvements
• Program Administration and Fair Housing Services
Together, these goals provide the framework for implementing federally funded activities and measuring progress toward meeting the City’s identified community development and housing needs.
3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.
4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.
Annually, the city meticulously prepares the Action Plan, detailing the initiatives to be undertaken with Community Planning and Development (CPD) funds. To ensure inclusivity and comprehensive input, the City actively engages various stakeholders in the development process, including residents, public members (including City staff), and private agencies providing essential services. These consultations encompass.
• Health service providers,
• Social services for: children, elderly, disabled, homeless and persons with AIDS • State and local health agencies
• Adjacent local governments
• Santa Ana and orange County Housing Authority.
The draft Action Plan, incorporating the City's proposed allocations of CDBG, HOME, and ESG funds, undergoes a thorough review process, open to public scrutiny for a period of 30 days. This transparent EXHIBIT 1
Annual Action Plan
2026
3 OMB Control No: 2506-0117 (exp. 09/30/2021)
approach ensures that community voices are heard and considered in shaping the city's developmental agenda.
5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.
The draft Action Plan incorporating the City's proposed uses of CDBG, HOME, and ESG funds shall be made available for public review for a 30-day period. In a manner similar to that set forth for the Consolidated Plan, the City encouraged participation from all residents, especially low- and moderate- income residents, minorities, non-English speakers and those with disabilities. The City made the plan accessible to all such groups from March 15, 2026 to April 15, 2026.
The City place an adequate supply of the draft Annual Action Plan for public review at the following locations: Community Development Agency 20 Civic Center Plaza, 6th Floor, Office of the City Clerk of the Council 20 Civic Center Plaza, Room 809, and Santa Ana Main Public Library 26 Civic Center Plaza, Santa Ana, CA 92702. In result of the City's efforts, 11 public comments were received.
Specifically, comments addressed the lack of childcare services in the City.
6. Summary of comments or views not accepted and the reasons for not accepting them All comments were accepted at the May 7, 2026 City Council meeting. However, the lack of services address in the comments were not are not identified as one of the six priority needs in the Consolidated Plan.
7. Summary
The Santa Ana Consolidated Plan identifies the top funding priorities over the five-year period of the Plan. These priorities were established through a Community Needs Assessment, housing market analysis, feedback from public meetings, community surveys and consultation with stakeholders.
Funding these priorities supports HUD’s principal goals and objectives. These goals are meant to provide availability, sustainability, and affordability for low- and moderate-income residents of the City of Santa Ana. The FY 2026-27 Annual Action Plan outlines the City’s priorities, objectives and strategies for the investment of CDBG, ESG, and HOME funds to address these needs over the fiscal year period of July 1, 2026 to June 30, 2027.
EXHIBIT 1
Annual Action Plan
2026
4 OMB Control No: 2506-0117 (exp. 09/30/2021)
PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator SANTA ANA Community Development Agency HOME Administrator SANTA ANA Community Development Agency
ESG Administrator SANTA ANA Community Development Agency Table 1 – Responsible Agencies
Narrative (optional)
The City of Santa Ana's Community Development Agency serves as the primary entity responsible for orchestrating the development of the Consolidated Plan. This pivotal department also shoulders the responsibility of preparing key documents such as the Annual Action Plan, Consolidated Annual Performance and Evaluation Report (CAPER), and oversees the administration of crucial programs including CDBG, HOME, and ESG.
Consolidated Plan Public Contact Information
David Flores, Housing Program Coordinator.
EXHIBIT 1
Annual Action Plan
2026
5 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
As part of the comprehensive 5-year Consolidated Planning process, the City of Santa Ana engaged in extensive consultations with representatives from diverse agencies, groups, and organizations deeply involved in various facets of community development. This inclusive approach aimed to address critical areas such as affordable housing, job creation for low- and moderate-income individuals, and provision of essential services to vulnerable populations, including children, elderly persons, individuals with disabilities, persons living with HIV/AIDS, and those experiencing homelessness.
To ensure robust participation and capture a wide range of perspectives, the City utilized multiple avenues for soliciting feedback, including:
• Stakeholder/resident surveys
• Individual stakeholder consultations
• Community meetings
• Public hearings
• 30-day public comment period
• Receipt of written comments
Through these channels, the City actively sought input from a broad spectrum of stakeholders, fostering dialogue and collaboration to address the diverse needs of the community. The consultation process encompassed engagement with various agencies, groups, and organizations dedicated to housing, community development, and economic empowerment. The invaluable insights garnered from these consultations played a pivotal role in shaping the objectives and goals outlined in the Strategic Plan, ensuring alignment with the community's priorities and aspirations. Below is a representation of the agencies, groups, and organizations consulted, reflecting the comprehensive nature of the engagement process.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City recognizes the importance of careful coordination and alignment among various service providers to maximize the effectiveness of the CDBG program. As a result, during the development of this Consolidated Plan, the City consulted with organizations that provide assisted housing, health services and other community-focused programs. Outreach efforts included surveys including specific questions associated with coordination, invitations to community meetings and follow-up phone interviews where appropriate.
EXHIBIT 1
Annual Action Plan
2026
6 OMB Control No: 2506-0117 (exp. 09/30/2021)
The City further recognizes the importance of continued coordination and alignment during the upcoming five-year planning period with these organizations and agencies. The City will strengthen relationships and alignment among these organizations in the implementation of the NOFA process for CDBG funds and through technical assistance provided to subrecipients of CDBG funds each year.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
Orange County's homeless Continuum of Care (CoC) is comprised of a network of public, private, faith- based, for-profit, and non-profit service providers who utilize several federal, state and local resources to provide services and facilities for homeless people. The regionâ¿¿s municipalities, including the City of Santa Ana, also provide resources for services that assist the homeless and those at-risk of becoming homeless. Non-profit service and facility providers play a critical role in the current CoC system and in addressing homeless needs within Santa Ana. These organizations provide a range of services throughout the County ranging from job training to creating permanent supportive housing opportunities. These services are available to homeless individuals and households.
The CoC guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. In conducting the Cityâ¿¿s Needs Assessment, Santa Ana carefully reviewed the CoC's current strategy and planning documents to ensure coordination in goals and objectives. Additionally, the City provided a questionnaire to the CoC as well as key service providers operating in Santa Ana to identify the CoC's perceived needs in the county and its objectives to address the needs of different homeless persons populations, specifically chronically homeless families and individuals, families with children, veterans, unaccompanied youth and persons at risk of homelessness.
The City will continue to actively work with the CoC as well as its partners throughout the County to coordinate on the planning and implementation of homeless services and programming.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS In the development of the Consolidated Plan, the City of Santa Ana consulted with numerous housing, social service, and homeless service providers whose work intersects with the goal of reducing and ending homelessness in Orange County and/ or Santa Ana. This consultation provided input on allocation methodologies and approach for ESG programs. The City of Santa Ana regularly coordinates with the Orange County CoC to align performance standards, evaluate outcomes of current initiatives, coordination program policies and procedures related to program design and HMIS administration.
EXHIBIT 1
Annual Action Plan
2026
7 OMB Control No: 2506-0117 (exp. 09/30/2021)
In addition, The City of Santa Ana participates in the Orange County ESG Collaborative, which includes Santa Ana, Anaheim, Garden Grove, and the County of Orange. The Collaborative works very closely with the Continuum of Care. To ensure funds are leveraged to create maximum impact, the Orange County ESG Collaborative has developed aligned values and priorities and makes ESG funding decisions.
2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
EXHIBIT 1
Annual Action Plan
2026
8 OMB Control No: 2506-0117 (exp. 09/30/2021)
Agency/Group/Organiz
ation
Agency/Group/Orga
nization Type
What section of the Plan
was addressed by
Consultation?
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Table 2 – Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a list of agencies, organizations and other stakeholders that have expressed an interest in City’s CDBG program and invited representatives from each entity to participate at multiple points in the planning process. All agencies were strongly encouraged to attend meetings and participate in surveys.
Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Community Development Department at the contact information provided for this Consolidated Plan.
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care
Table 3 – Other local / regional / federal planning efforts
Narrative (optional)
The City invited regional planning organizations, state agencies and adjacent units of local government to participate in the City’s surveys and community meetings. Additionally, Santa Ana conducted email outreach to all adjacent units of local government to share in the identification of EXHIBIT 1
Annual Action Plan
2026
9 OMB Control No: 2506-0117 (exp. 09/30/2021)
regional housing and community development needs. Throughout the implementation of the Consolidated Plan process, the City of Santa Ana consults and coordinates activities with local units of government and monitors state programs and regulations to leverage local HUD funding EXHIBIT 1
Annual Action Plan
2026
10 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting
Summarize As part of the Annual Action Plan process, the City of Santa Ana actively encouraged residents from across the City to participate in identifying needs and issues to inform the housing and community development needs assessment. In an effort to broaden engagement, the City facilitated two public hearings to gather feedback on annual needs and programming.
FY 2026/27 Annual Action Plan Citizen Participation
The City of Santa Ana has a citizen participation plan to guide the City's CDBG citizen participation process. All of Santa Ana’s citizens are encouraged to participate in the planning, development, and implementation of the Annual Action Plans. Organizations receiving direct CDBG funding are in regular contact with City staff. Other organizations are consulted as needed or have been present at various public hearings held by the City. Two public hearings are held each year by the City to discuss issues related to the Consolidated Plan as well as the Annual Action Plan. The first hearing focuses on the needs of the community and development of the Annual Action Plan and provides citizens with an opportunity to comment on the draft Annual Action Plan. The second public hearing focuses on performance as they relate to housing, homelessness, accessibility, and community development needs, such as infrastructure and public services. In all cases, a Notice of Public Hearing is published at least 15 days prior to the hearing to provide residents with adequate notice.
A draft 2026/27 Annual Action Plan was available for public comment for a minimum 30-day period (March 16 – April 20, 2023).
The Community Development Commission held a two special meetings on February 24 and February 25, 2026 to providing residents and interested parties another opportunity to comment on the 2026/27 Annual Action Plan prior to approval by the City Council on April 21, 2026 and submittal to HUD.
The table on the subsequent page documents the City’s approach to resident engagement.
EXHIBIT 1
Annual Action Plan
2026
11 OMB Control No: 2506-0117 (exp. 09/30/2021)
Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public Hearing
Minorities
Non-English
Speaking - Specify
other language:
Spanish and
Vietnamese
Persons with
disabilities
Non-
targeted/broad
community
Residents of Public
and Assisted
Housing
NA NA NA
Table 4 – Citizen Participation Outreach
EXHIBIT 1
Annual Action Plan
2026
12 OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative
Description Annual
Allocation: $
Program
Income:
$
Prior Year
Resources: $
Total:
$
CDBG public -
federal
Acquisition
Admin and Planning
Economic
Development
Housing
Public Improvements
Public Services 4,133,909.00 0.00 137,959.00 4,271,868.00 0.00 Based on 2025 FY
allocation from
HUD.
EXHIBIT 1
Annual Action Plan
2026
13 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative
Description Annual
Allocation: $
Program
Income:
$
Prior Year
Resources: $
Total:
$
HOME public -
federal
Acquisition
Homebuyer assistance
Homeowner rehab
Multifamily rental new
construction
Multifamily rental
rehab
New construction for
ownership
TBRA 1,153,539.02 12,076,988.00 13,230,525.02 0.00
Based on 2025 FY
allocation from
HUD.
ESG public -
federal
Conversion and rehab
for transitional
housing
Financial Assistance
Overnight shelter
Rapid re-housing
(rental assistance)
Rental Assistance
Services
Transitional housing 368,272.00 0.00 0.00 368,272.00 0.00 Based on 2025 FY
allocation from
HUD.
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
EXHIBIT 1
Annual Action Plan
2026
14 OMB Control No: 2506-0117 (exp. 09/30/2021)
EXHIBIT 1
Annual Action Plan
2026
15 OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan Santa Ana will comply with state requirements under AB1486 and AB1255 to inventory and support developers to access and utilize surplus municipal and state land for the construction of affordable housing. If such sites are identified, the City will consider the use of HUD funding or other resources to assist with site preparation and/ or development. At this time, no publicly owned land or property is expected to be used to address the needs.
Discussion
Assuming continued level funding, the City expects to utilize CDBG, HOME, and ESG funds during the five-year period beginning July 1, 2025, and ending June 30, 2030, to achieve the goals of the Strategic Plan
EXHIBIT 1
Annual Action Plan
2026
16 OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Goal 1: Affordable
housing
development,
maintenance
2025 2029 Affordable
Housing
Citywide Expand the
supply of
affordable
housing
Preserve the
supply of
affordable
housing
CDBG:
$1,432,961.00
HOME:
$1,043,155.02
Rental units constructed: 25
Household Housing Unit
Rental units rehabilitated: 8
Household Housing Unit
Homeowner Housing
Rehabilitated: 5 Household
Housing Unit
Direct Financial Assistance to
Homebuyers: 2 Households
Assisted
2 Goal 2: Code
enforcement
2025 2029 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Preserve the
supply of
affordable
housing
CDBG:
$825,000.00
Housing Code
Enforcement/Foreclosed Property
Care: 2088 Household Housing
Unit
EXHIBIT 1
Annual Action Plan
2026
17 OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
3 Goal 3: Public
service programs
2025 2029 Non-Homeless
Special Needs
Non-Housing
Community
Development
Citywide Access to and
supply of public
services
CDBG:
$620,086.00
Public service activities other than
Low/Moderate Income Housing
Benefit: 1480 Persons Assisted
4 Goal 4: Homeless
services and
facilities
2025 2029 Homeless Increase access
to and supply of
homeless servi
ESG:
$368,272.00
Tenant-based rental assistance /
Rapid Rehousing: 9 Households
Assisted
Homeless Person Overnight
Shelter: 63 Persons Assisted
Overnight/Emergency
Shelter/Transitional Housing Beds
added: 3 Beds
Homelessness Prevention: 11
Persons Assisted
5 Goal 5: Economic
development
programs
2025 2029 Non-Housing
Community
Development
Citywide Promote
economic
opportunity
CDBG:
$100,000.00
Businesses assisted: 10 Businesses
Assisted
6 Goal 6 Public
facility and
infrastructure
improve
2025 2029 Non-Housing
Community
Development
Citywide Improve public
facilities and
infrastructure
CDBG:
$1,400,000.00
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 1400 Persons Assisted
EXHIBIT 1
Annual Action Plan
2026
18 OMB Control No: 2506-0117 (exp. 09/30/2021)
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
7 Goal 7: Planning,
administration, and
fair housing
2025 2029 Program
Administration
Citywide Expand the
supply of
affordable
housing
Preserve the
supply of
affordable
housing
Improve public
facilities and
infrastructure
Increase access
to and supply of
homeless servi
Access to and
supply of public
services
Promote
economic
opportunity
CDBG:
$826,782.00
HOME:
$115,353.02
ESG:
$27,620.00
Other: 1 Other
Table 6 – Goals Summary
Goal Descriptions
EXHIBIT 1
Annual Action Plan
2026
19 OMB Control No: 2506-0117 (exp. 09/30/2021)
1 Goal Name Goal 1: Affordable housing development, maintenance Goal Description
2 Goal Name Goal 2: Code enforcement
Goal Description
3 Goal Name Goal 3: Public service programs
Goal Description
4 Goal Name Goal 4: Homeless services and facilities
Goal Description
5 Goal Name Goal 5: Economic development programs
Goal Description
6 Goal Name Goal 6 Public facility and infrastructure improve Goal Description
7 Goal Name Goal 7: Planning, administration, and fair housing Goal Description
EXHIBIT 1
Annual Action Plan
2026
20 OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-35 Projects – 91.220(d)
Introduction
To address the high priority needs identified in the Strategic Plan to the 2025-2029 Consolidated Plan, the City will invest CDBG, HOME, and ESG funds in projects that preserve affordable housing, provide fair housing services, provide public services to low-income residents, prevent homelessness, and improve businesses. Together, these projects will address the housing, community, and economic development needs of Santa Ana residents.
Projects
# Project Name
1 CDBG Administration
2 CDBG Code Enforcement
3 CDBG Economic Development
4 CDBG Public Services
5 CDBG Housing Rehabilitation
6 CDBG Fair Housing
7 CDBG Public Facility and Infrastructure
8 ESG Homeless Activities
9 HOME Program Administration
10 HOME Affordable Housing
11 HOME CHDO
12 HOME Home Buyers Assistance
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
As grant resources become increasingly scarce, it is important for the City to determine areas and population segments with the greatest level of need for a particular program or activity and to be able to invest federal, state, and local resources in high leverage opportunities where data suggests that the City will be able to maximize the impact of every dollar. The 2025-2029 Consolidated Plan is a roadmap to guide the City’s housing, community, and economic development investments during the next five years. All investments of HUD funding are used to address the priority needs listed in the City’s five-year Consolidated Plan. The limited funding resources continue to provide challenges to fully address the EXHIBIT 1
Annual Action Plan
2026
21 OMB Control No: 2506-0117 (exp. 09/30/2021)
level of need identified in the Consolidated Plan.
EXHIBIT 1
Annual Action Plan
2026
22 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
EXHIBIT 1
Annual Action Plan
2026
23 OMB Control No: 2506-0117 (exp. 09/30/2021)
1 Project Name CDBG Administration
Target Area Citywide
Goals Supported Goal 7: Planning, administration, and fair housing Needs Addressed Expand the supply of affordable housing Preserve the supply of affordable housing
Improve public facilities and infrastructure
Increase access to and supply of homeless servi
Access to and supply of public services
Promote economic opportunity
Funding CDBG: $751,782.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
NA
Location Description City of Santa Ana
20 Civic Center Plaza, Santa Ana CA 92701
Planned Activities Program Administration
2 Project Name CDBG Code Enforcement
Target Area
Goals Supported Goal 2: Code enforcement
Needs Addressed Preserve the supply of affordable housing Funding CDBG: $825,000.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
NA
Location Description
Planned Activities Code Enforcement Services
Project Name CDBG Economic Development
EXHIBIT 1
Annual Action Plan
2026
24 OMB Control No: 2506-0117 (exp. 09/30/2021)
3 Target Area
Goals Supported Goal 5: Economic development programs
Needs Addressed Promote economic opportunity
Funding CDBG: $100,000.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
Approximately 20 qualified businesses will be assisted
Location Description
Planned Activities Provide economic development assistance to microenterprise businesses, all of which will be CDBG income qualified. 4 Project Name CDBG Public Services
Target Area Citywide
Goals Supported Goal 3: Public service programs
Needs Addressed Increase access to and supply of homeless servi Funding CDBG: $620,086.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
Location Description
Planned Activities The City will provide funding for staff and nonprofit organizations to provide and deliver a range of public services and functions to low- and moderate-income and special needs residents throughout the City.
5 Project Name CDBG Housing Rehabilitation
Target Area Citywide
Goals Supported Goal 1: Affordable housing development, maintenanc EXHIBIT 1
Annual Action Plan
2026
25 OMB Control No: 2506-0117 (exp. 09/30/2021)
Needs Addressed Expand the supply of affordable housing Preserve the supply of affordable housing
Funding CDBG: $500,000.00
Description
Target Date 12/31/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
Approximately 10 LMI homeowner households will be assisted Location Description
Planned Activities Conduct critical rehabilitation to homeowners to ensure properties are safe and suitable and meet federal housing quality standards and health, safety and applicable building standards.
6 Project Name CDBG Fair Housing
Target Area
Goals Supported Goal 7: Planning, administration, and fair housing Needs Addressed Expand the supply of affordable housing Preserve the supply of affordable housing
Improve public facilities and infrastructure
Increase access to and supply of homeless servi
Access to and supply of public services
Promote economic opportunity
Funding CDBG: $75,000.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
Location Description
Planned Activities
7 Project Name CDBG Public Facility and Infrastructure
Target Area
Goals Supported Goal 6 Public facility and infrastructure improve EXHIBIT 1
Annual Action Plan
2026
26 OMB Control No: 2506-0117 (exp. 09/30/2021)
Needs Addressed Improve public facilities and infrastructure Funding CDBG: $1,400,000.00
Description
Target Date 6/30/2028
Estimate the number
and type of families that
will benefit from the
proposed activities
Location Description
Planned Activities
8 Project Name ESG Homeless Activities
Target Area
Goals Supported Goal 4: Homeless services and facilities Needs Addressed Increase access to and supply of homeless servi Funding ESG: $368,272.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
Location Description Approximately 315 individuals and 45 households experiencing homelessness and 55 individuals at risk of experiencing homelessness will be assisted. It is also anticipated that five emergency shelter or transitional housing beds will be added.
Planned Activities Emergency Shelter & Outreach
- Interval Housing - $86,324
- SAPD HEART Program - $63,209
Rapid Rehousing
- Volunteers of America Los Angeles - $63,324
- WISEPlace $63,324
HMIS – Orange County United Way - $64,471
Administration- $27,620
Project Name HOME Program Administration
EXHIBIT 1
Annual Action Plan
2026
27 OMB Control No: 2506-0117 (exp. 09/30/2021)
9 Target Area Citywide
Goals Supported Goal 1: Affordable housing development, maintenance Needs Addressed Expand the supply of affordable housing Funding HOME: $115,353.02
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
Location Description Provide funding to staff and City agencies to overs and manage HOME program to ensure compliance with HUD rules and
regulations.
Planned Activities
10 Project Name HOME Affordable Housing
Target Area Citywide
Goals Supported Goal 1: Affordable housing development, maintenance Needs Addressed Expand the supply of affordable housing Funding HOME: $865,154.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
The City anticipates to create a total of 10 affordable housing units for home ownership. FY26 funding will be leveraged with prior years HOME funding and private investment.
Location Description
Planned Activities Through an RFP process, identify eligible new construction, acquisition, or rehabilitation activities to increase the supply of affordable housing within the City of Santa Ana.
11 Project Name HOME CHDO
Target Area Citywide
Goals Supported Goal 1: Affordable housing development, maintenanc Needs Addressed Expand the supply of affordable housing EXHIBIT 1
Annual Action Plan
2026
28 OMB Control No: 2506-0117 (exp. 09/30/2021)
Funding HOME: $173,030.00
Description
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
TBD
Location Description
Planned Activities In collaboration with an eligible CHDO, the City will support the acquisition, development, or rehabilitation or affordable rental housing.
12 Project Name HOME - Home Buyer Assistance
Target Area Citywide
Goals Supported Goal 1: Affordable housing development, maintenance Needs Addressed Expand the supply of affordable housing Funding HOME: $143,356.39
Description Down payment assistance
Target Date 6/30/2027
Estimate the number
and type of families that
will benefit from the
proposed activities
The City anticipates to create a total of 2 affordable housing units for home ownership.
Location Description Citywide
Planned Activities Through this program, eligible buyers can receive financial help— often as loan or low-interest, deferred-payment loans—to cover down payments, closing costs, or both. Assistance is typically targeted to first-time homebuyers who meet income limits (generally at or below 80% of the area median income).
EXHIBIT 1
Annual Action Plan
2026
29 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City has not established specific target areas in which to focus the investment of CDBG funds. For the 2026 Program Year, the City will invest 100 percent of non-administrative funds to directly benefit low-and moderate-income individuals throughout the City. Infrastructure improvements and public facilities will be focused on areas with a concentration of residents with low- and moderate-incomes or sites that serve a presumed group. Housing assistance will be made available to income-qualified households throughout the City.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically HUD allows CDBG grantees to implement certain activities, such as initial construction or expansion of community facilities and infrastructure that benefit certain neighborhoods, but not the entire City, provided the service area for the facility or infrastructure is primarily residential, and where at least 51 percent of residents are low- and moderate-income.
It is the City’s intent to fund activities in the areas and for the populations most directly affected by the needs of low-income residents and those with other special needs. Where appropriate the Annual Action Plan will direct investment to an area benefit neighborhood. The area benefit category is the most used national objective for activities benefiting a residential neighborhood. An area benefit activity is one that benefits all residents, where at least 51 percent are low- and moderate-income. Public infrastructure improvements are an area benefit activity when they are in a predominantly low- and moderate-income neighborhood.
Discussion
EXHIBIT 1
Annual Action Plan
2026
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The 2025-2029 Strategic Plan provides the framework for investing CDBG and HOME funds in Santa Ana.
The affordable housing development, maintenance, and preservation goal identified in the Strategic Plan that will be addressed by the CDBG Housing Rehabilitation, CDBG Down Payment Assistance, HOME Affordable Housing, and HOME CHDO projects.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 41
Special-Needs 0
Total 41
Table 9 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 25
Rehab of Existing Units 13
Acquisition of Existing Units 3
Total 41
Table 10 - One Year Goals for Affordable Housing by Support Type
Discussion
Santa Ana residents have a significant need for high quality and affordable housing. In Program Year 2026, the City anticipates assisting five owner occupied households to rehabilitate their homes and three households to purchase a home. This assistance will be provided to eligible households with low- to moderate-incomes.
EXHIBIT 1
Annual Action Plan
2026
31 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-60 Public Housing – 91.220(h)
Introduction
SAHA is a Housing Choice Voucher (HCV) only entity. It administers tenant- and project-based and special purpose vouchers. There are 10 project-based voucher sites. Special purpose vouchers include Mainstream Five-Year (MS5) and Veteran Affairs Supportive Housing. Additionally, SAHA administers Foster Youth to Independence and Emergency Housing Vouchers. SAHA’s mission is to “provide affordable housing for the most vulnerable members of our community to use as a platform to obtain self-sufficiency and independence from our assistance.” Actions planned during the next year to address the needs to public housing SAHA administers the Housing Choice Voucher (HCV) program which ensures low-income families have access to stable and affordable housing.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The SAHA administers the FSS program. This is a voulntary program available to families in recipet of a HCV program to households become economic independent through financial literacy. The Housing Authority also support a resident adviosry board.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The SAHA is not designated as troubled.
Discussion
EXHIBIT 1
Annual Action Plan
2026
32 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City of Santa Ana places a high priority on assisting households experiencing or at risk of experiencing homelessness, and households with other non-homeless special needs. According to the results of the January 2024, PIT Count in approximately7,322 individuals were experiencing homelessness. The City of Santa Ana conducted their own PIT Count for the City and were able to a total 501 individulas were experiencing homelessness.
Analysis of available data and consultation with organizations providing services for special needs populations revealed a need for a range of services including but not limited to those concerned with disabled adults. The City strives to meet these needs through the access to public housing, expanded access to affordable housing, and public services and services specifically for individuals and households experiencing and at risk of experiencing homelessness.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies and carried out locally by government agencies and a wide variety of community- based organizations and faith-based groups. Consistent with this approach, the City supports the CoC and its member organizations that address homelessness. In alignment with this strategy, the City established the homeless services goal. The street outreach aspects of that goal will be implemented through the activities of the Interval Housing, Covenant House, and SAPD HEART program.
Addressing the emergency shelter and transitional housing needs of homeless persons The City established the homeless services goal to address the need to increase access to and the supply of homeless services and facilities. The emergency shelter aspects of that goal will be implemented through the activities of the Interval Housing, Covenant House, and SAPD HEART program.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were EXHIBIT 1
Annual Action Plan
2026
33 OMB Control No: 2506-0117 (exp. 09/30/2021)
recently homeless from becoming homeless again
In alignment with the CoC strategy, the City established the homeless services goal. The rapid rehousing and homelessness prevention aspects of that goal will be implemented through the activities of the Volunteers of America Los Angeles, and WISEPlace.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
The County in collaboration with the CoC maintains Discharge Coordination Policies for the systems of care it administers, such as discharge from the Corrections, Foster Care, and the Mental Health systems.
The City supports the CoC’s advocacy for development of consistent policy implementation by hospital administrators for best practices, such as recuperative care, and co-location of health services near affordable housing developments. During the program year 2025 the City will direct ESG funds to Volunteers of America Los Angeles and WISEPlace to provide rapid rehousing, and homelessness prevention services to qualified households.
Discussion
EXHIBIT 1
Annual Action Plan
2026
34 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing differ from impediments to fair housing choice in that barriers are typically lawful and impediments to fair housing choice are usually unlawful.
The City’s 2021-2029 Housing Element includes an identification and prioritization of significant contributing factors that impede fair housing and/or result in disproportionate housing needs. Through discussions with stakeholders and fair housing advocates, community feedback, and the assessment of fair housing included in the Housing Element, the City identified the following fair housing issues:
- Displacement risk
- Lack of safe and sanitary housing
- Housing overcrowding
- Low household incomes
- Exposure to environmental hazards
- Lack of quality education and job training
The primary factor contributing to these housing issues is the limited availability of resources to subsidize housing development to the point that units are affordable to low- and moderate-income households. The elimination of local Redevelopment Agencies by the State of California resulted in the loss of a crucial resource for the development and preservation of affordable housing. This was the most significant public policy change impacting affordable housing and residential investment. While there are mechanisms whereby certain affordable housing assets tied to the former Redevelopment Agencies may be utilized today, these resources are finite and scarce.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City’s 2021–2029 Housing Element outlines actions to reduce barriers to affordable housing by:
• Promoting construction of 723 ADUs through preapproved plans and multilingual outreach. • Enforcing the Affordable Housing Opportunity & Creation Ordinance (AHOCO) requiring affordable units in qualifying housing developments.
• Updating zoning guidelines to encourage diverse unit sizes and affordability levels for low- income households.
• Monitoring and preserving at-risk affordable housing developments. • Providing down payment assistance loans for low- and moderate-income households. • Supporting neighborhood associations, particularly in disadvantaged census tracts.
EXHIBIT 1
Annual Action Plan
2026
35 OMB Control No: 2506-0117 (exp. 09/30/2021)
• Completing residential infrastructure improvements through the Capital Improvement Plan. • Encouraging affordable housing development near transit with incentives for projects serving extremely low-income households.
• Implementing rent stabilization and just-cause eviction protections. • Administering the Housing Choice Voucher Program and special-purpose vouchers while maintaining high program performance.
• Funding home rehabilitation grants through nonprofit partnerships. • Expanding local housing preferences and anti-displacement strategies, including exploring right-of-first-refusal policies and collective ownership models for mobile home parks.
Discussion:
EXHIBIT 1
Annual Action Plan
2026
36 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions – 91.220(k)
Introduction:
In the implementation of the 2025 Annual Action Plan, the City will invest CDBG, HOME, and ESG resources to address obstacles to meeting underserved needs, reduce the number of poverty-level families, develop institutional structure, and enhance coordination between agencies. Priority needs established in the 2025-2029 Consolidated Plan form the basis for establishing objectives and outcomes in the Action Plan. Those needs are as follows:
- Expand the supply of affordable housing
- Preserve the supply of affordable housing
- Improve public facilities and infrastructure
- Increase access to and supply of homeless services and facilities - Access to supply of public services
- Promote economic opportunity
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state, and other local sources, the lack of availability of home improvement financing in the private lending industry, and the high cost of housing. The City will continue to work to leverage public and private resources through grant and partnership opportunities. The City will continue to promote fair housing practices for sale and rental housing and to facilitate community awareness of fair housing. The City of City will continue to use CDBG funds to contract with the Fair Housing Council of Orange County for this program year to provide fair housing and tenant/ landlord services to residents.
Actions planned to foster and maintain affordable housing In the implementation of the 2025 Annual Action Plan, the City will invest CDBG and HOME funds to preserve and maintain affordable housing through the CDBG Housing Rehabilitation, CDBG Down Payment Assistance, HOME Affordable Housing, HOME CHDO, and Fair Housing projects.
Actions planned to reduce lead-based paint hazards
To reduce LBP hazards, the City’s CDBG Housing Rehabilitation and CDBG Down Payment Assistance projects will conduct LBP testing and risk assessments for each property assisted that was built prior to January 1, 1978, and will incorporate safe work practices or abatement into the scope of work reduce EXHIBIT 1
Annual Action Plan
2026
37 OMB Control No: 2506-0117 (exp. 09/30/2021)
LBP hazards in accordance with 24 CFR Part 35.
Actions planned to reduce the number of poverty-level families The implementation of CDBG, HOME, and ESG activities meeting the goals established in the Strategic Plan and this Annual Action Plan will help reduce the number of poverty-level families by supporting:
- Affordable housing development, maintenance, and preservation - Code enforcement
- Public service programs
- Homeless services and facilities
- Economic development programs
- Public facilities and infrastructure improvement
- Planning, administration and fair housing
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs, such as the Earned Income Tax Credit and Head Start, provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally, in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps), and Medi-Cal. Together, these programs provide individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition, and transportation.
Actions planned to develop institutional structure
The institutional delivery system in Santa Ana is highly functioning and collaborative, particularly the relationship between local government and the nonprofit sector, which is comprised of a network of capable organizations that are delivering a full range of services to residents. Strong City departments anchor the administration of HUD grant programs, housing, and community and economic development activities that are implemented by the City support to enhance the institutional structure. The City will collaborate interdepartmentally, with residents, and with nonprofit agencies receiving CDBG, HOME, and ESG funds through the 2026 Annual Action Plan to ensure the needs of low-and-moderate-income residents are met as envisioned within the 2025-2029 Consolidated Plan.
Actions planned to enhance coordination between public and private housing and social service agencies
City staff works closely with the other organizations to improve regulatory compliance, monitoring, cooperation and partnerships among agencies and technical capacity of organizations involved in project delivery. To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and EXHIBIT 1
Annual Action Plan
2026
38 OMB Control No: 2506-0117 (exp. 09/30/2021)
moderate-income residents in upland—particularly the CDBG low- and moderate-income areas.
Discussion:
EXHIBIT 1
Annual Action Plan
2026
39 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:
In the implementation of programs and activities under the 2025 Annual Action Plan, the City will follow all HUD regulations concerning the use of program income, forms of investment, and overall low-and- moderate-income benefit for the CDBG program.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0
5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 70.00%
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is EXHIBIT 1
Annual Action Plan
2026
40 OMB Control No: 2506-0117 (exp. 09/30/2021)
as follows:
The City of Santa Ana does not use HOME funds in any other manner other than those described in Section 92.205(b).
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
The City incorporates a recapture requirement into written agreements and long-term affordability covenants for homebuyer assistance activities administered by the City as required by 24 CFR
92.254. For any homebuyer assistance activity implemented by subrecipients or CHDOs, this recapture requirement shall also be used. HOME affordability requirements are imposed based on the amount of direct HOME subsidy pursuant to HUD regulations as follows:
Assistance under $25,000: 5-year affordability period
Assistance between $25,000 - $50,000: 10-year affordability period Assistance over $50,000: 15-year affordability period
The amount subject to recapture is the direct HOME subsidy received by the homebuyer. Direct HOME subsidy includes the HOME investment that enabled the homebuyer to purchase the property. This includes down payment assistance, closing costs, or other HOME assistance provided directly to the homebuyer or the difference between the fair market value of the property (as determined by appraisal) and a reduced sales price, but excludes any HOME assistance provided to develop the unit.
Continued below in number 3.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
The recapture provision ensures that the entire amount of the City's direct HOME subsidy to homebuyers is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability (e.g., the home is sold, the home is foreclosed, the assisted owner is no longer residing in the assisted residence, or for any other breach of the agreement with the City). The HOME-assisted homebuyer may sell their unit at any time during the period of affordability, to any willing buyer, and at the price the market will bear.
The recapture provision requires that the City’s direct HOME subsidy and any interest due under the HOME loan (that has not previously been repaid) is returned to the City from net proceeds, subject to the limitation that if there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City may only recapture the net proceeds, if any. Net proceeds are defined as the sales price minus superior loan repayment (other than HOME funds), and any closing costs.
In the event of a mortgage default, a provision in the written agreement and long-term affordability EXHIBIT 1
Annual Action Plan
2026
41 OMB Control No: 2506-0117 (exp. 09/30/2021)
covenant stipulates that the City has the right of first refusal before foreclosure and may use additional HOME funds or other resources to acquire the housing in order to preserve the housing’s affordability. The home then will be resold to an eligible buyer with a new long-term affordability covenant that imposes a period of affordability in accordance with the total HOME investment, including the direct homebuyer assistance provided to the homebuyer at the initial sale, plus any additional HOME funds invested to purchase the property out of foreclosure.
Recaptured funds will be used for any HOME eligible activity. If the funds were provided as a grant or zero interest loan, then the recaptured funds will be receipted into IDIS and treated like program income, except that no portion of the funds will be used for administrative costs. If the recaptured funds were provided as an interest-bearing loan, then the funds will be receipted (principal and interest) into IDIS as program income. Up to ten percent of the program income may be used for administrative costs. These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before committing HOME funds from the City’s line of credit.
When the City uses a resale restriction, the City allows property sales to eligible income households, provided the sales price does not exceed an affordable housing cost to the proposed transferee ("Permitted Transfers"). If a homebuyer wishes to transfer the property during the affordability period, they must notify the City beforehand by submitting a Notice of Intent to Transfer. This notice should include the identity of the proposed transferee, their household income, and the proposed sales price so that the City may determine that the homebuyer’s household income and the sales price meet the affordable housing cost criteria.
The term of the period of affordability is determined according to the amount of HOME funds invested (see chart above under Recapture) and a long-term affordability covenant will be recorded against the property in the County real estate records. The covenant will impose a resale formula that provides a fair return on investment (including the homeowner’s investment and cost of capital improvements) and ensure the housing will remain affordable to a reasonable range of low-income homebuyers. See above
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
NA
5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).
NA
6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific EXHIBIT 1
Annual Action Plan
2026
42 OMB Control No: 2506-0117 (exp. 09/30/2021)
category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)).
NA
7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR
92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a).
NA
Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)
1. Include written standards for providing ESG assistance (may include as attachment) ESG funds will be used for eligible activities under five program components: street outreach, emergency shelter, homelessness prevention, rapid re-housing assistance, and Homeless Management Information System (HMIS) costs, as well as allowable administrative costs and activities. ESG applications go through an open and transparent proposal process. The Community Development Agency is responsible for ensuring that the ESG program is implemented in accordance with all Federal rules and regulations.
2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.
Orange County, in collaboration with the CoC and other ESG entitlement jurisdictions including the City of Santa Ana will utilize assessment and evaluation instruments developed in consultation with the HIMIS lead agency and previously funded HPRP grantees. The County ensures ongoing coordination of program design and eligibly standards. The City will provide funding for the administration of the HMIS data entry system.
3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).
On November 20, 2024, the City of Irvine released a combined ESG Request for Proposals (RFP) in partnership with the Cities of Anaheim, Garden Grove, and Santa Ana to support the Orange County Continuum of Care’s goal to end homelessness. This RFP was marketed to nonprofit organizations (including community and faith-based organizations) operating throughout Orange County. The RFP included four possible one-year renewals. Current subrecipients awarded funding for renewal years EXHIBIT 1
Annual Action Plan
2026
43 OMB Control No: 2506-0117 (exp. 09/30/2021)
will be required to submit a new budget and program summary. the Collaborative reserves the right to redistribute funding and/or issue a new RFP at its discretion.
4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.
The City consults and works with the County and CoC homeless services staff as well as local homeless service providers, advocacy groups, facilities and other stakeholders in determining its strategic approach, policies and funding decisions. A previously homeless individual participated on the ESG funding review panel. Individuals who were previously homeless provide assistance in outreach and engagement services and provide feedback to Staff. In addition, the CoC’s strategy reflects the participation of all 34 cities in Orange County as well as individuals who are homeless or previously homeless, schools, and a host of other organizations and stakeholders.
5. Describe performance standards for evaluating ESG.
The City utilizes the HUD Monitoring ESG handbook to monitor each program’s performance to ensure that goals are on track and funds are used for eligible activities. On a quarterly basis, invoices are reviewed to ensure program compliance. In addition, the quarterly financial invoices are monitored by City Accounting staff. On-site monitoring of non-profit organizations is done by staff and by consultants for both program and financial records on an as-needed basis, or at least every three years. The City works closely with the CoC and other ESG jurisdictions in the County to standardize processes and approaches as much as possible.
In the implementation of programs and activities under the 2026 Annual Action Plan, the City will adhere to regulations set forth by the Community Planning and Development (CPD) agency within HUD.
EXHIBIT 1
Annual Action Plan
2026
44 OMB Control No: 2506-0117 (exp. 09/30/2021)
EXHIBIT 1