DISCUSSION
Approximately $3.3 million in HUD funds will be available during 2018-19. This budget includes $825,000 in prior year’s HUD funds and new anticipated allocations of $2.5 million in HUD funds.
Program plans and funding recommendations for 2018-19 are based upon the Priority Objectives established, and public input received, during the community and housing development needs assessment conducted during the preparation of the 2015-2020 Consolidated Plan. During 2018-19, HUD funds will address a wide range of Garden Grove housing and community development needs:
Affordable Housing Improvement and Rehabilitation: Utilizing $953,000 in HUD funds, the City will rehabilitate 30 single-family homes and assist developers in acquiring and/or rehabilitating seven (7) dedicated affordable rental units.
Emergency Service Grants: $160,857 in funding is recommended for the five HUD approved emergency service programs: Street Outreach, Emergency Shelter, Homeless Prevention, Rapid Rehousing, and Data Collection.
Public Services: Funding in the Community Development Block Grant (CDBG) public service category is strictly limited by HUD regulatory formula to $281,110 during this program year. Staff recommends allocating every dollar available to assist low/moderate income Garden Grove residents.
Economic Development: $150,000 in HUD funds is allocated for a Small Business Loan Program to create six (6) new jobs for low/moderate income Garden Grove residents.
Program Planning and Administration: Approximately $374,814 in CDBG, HOME, and ESG funds is recommended for staff salary and material costs for program management, project development and monitoring, public communication, HUD reporting, and financial administration. An additional $23,775 is recommended for associated overhead costs incurred by fellow City departments in the administration of HUD funded programs. Staff recommends $34,932 in funding for the Fair Housing Foundation to help the City fulfill its obligation to affirmatively further fair housing.
Public Improvements: Approximately $1.3M in current and prior year’s CDBG funds is recommended to address and improve the City’s public infrastructure needs in low and moderate income neighborhoods.
The City’s exact allocations for CDBG, HOME and ESG funding are not yet known. The funding recommendations contained in the Action Plan are estimated based on the prior year’s allocations. Once the exact allocations are known, the proposed funding amounts for the activities included in the Action Plan will be adjusted accordingly.
All HUD citizen participation requirements have been met. Public notices regarding the Draft Action Plan, including an invitation to share comments at this public hearing, were published on or before February 22, 2018 in local English, Spanish, and Vietnamese language newspapers, which exceeds HUD’s 30-day minimum public comment period.