In May 2019, the City Council directed the creation of housing opportunities for those experiencing homelessness in Garden Grove. To that end, a pilot 12-month tenant-based rental assistance program was created and named the Homeless Emergency Assistance Rental Transition (HEART) program.  In September 2019, two (2) service providers were selected through a Request for Proposal process to administer the new HEART Program, Interval House and Mercy House respectively.

The HEART Program provides a rental assistance program for individuals or families that meet the following criteria:

• Meet the Department of Housing and Urban Development’s (HUD) definition of “literally homeless”;

• Have a strong tie to Garden Grove (last housed or work in Garden Grove, or have children enrolled in a Garden Grove school);

• Place low on the Vulnerability Index and Service Prioritization Decision Assistance Tool (VISPDAT); and,
• Enroll in and participate in a Life Enrichment Program tailored to meet their individual needs to ensure a successful transition to permanent housing at the conclusion of the Program.

In FY 19-20, the pilot HEART Program was deployed and 47 households were assisted with rental assistance, security deposit payment, and/or utility deposit payment. This program has been successful in providing assistance to homeless, or at-risk of becoming homeless, households to locate and maintain permanent housing.

Continuation of the HEART Program for FY 20-21 is highly recommended based on its past success. The Heart Program parameters will include the following:

• Appropriation of $500,000 in HOME funds and $100,000 in LMIHAF funds be allocated for the operation of the HEART program.
  
•  Services to be provided by Interval House and Mercy House, with an award of $300,000 each for operations of HEART program.
  
• The $300,000 award will be broken down into $250,000 in HOME funds, which will be allocated for rental assistance payments, utility allowance, security deposits and related move-in costs; and $50,000 in LMIHAF funds allocated to cover staff costs for the provision of the Life Enrichment Program to ensure successful transition to permanent housing at the conclusion of the program.

This level of funding will enable approximately 20 households to transition from homelessness to permanent housing.

Staff has reviewed both sub-recipients and have concluded that both are qualified by virtue of experience and expertise to accomplish the services requested. In addition, both sub-recipients have a clear understanding of the City’s objectives for the program.

There is no impact to the General Fund.  The HOME and LMIHAF funds that will be used to subsidize the HEART Program are available and will not affect any planned project or activity.

It is recommended that the Housing Authority:

• Appropriate $100,000 in LMHITF funds to the FY 20-21 budget for the HEART Program; and

It is recommended that the City Council:

• Appropriate $500,000 in HOME funds to the FY 20-21 budget for the HEART Program,

• Appropriate $100,000 in LMHITF funds to the FY 20-21 budget for the HEART Program, and

• Authorize the City Manager to execute the Subrecipient Agreements and make minor modifications as appropriate.