HUD requires a Public Hearing prior to the approval of the 2017-18 Action Plan in order for the City to receive and utilize HUD grants. The City must submit the Action Plan to HUD by May 16, 2017. Each year’s Action Plan must address the Priority Objectives adopted by the City Council in 2015 for the 5-Year Consolidated Plan for the Use of HUD Funds. The full Draft Action Plan has been available in the Community and Economic Development Department and the City's Website for public review since March 24, 2017.

Approximately $3.9 million in HUD funds will be available during 2017-18. This budget includes $1.4 million in carried forward, or previously unallocated HUD funds from prior year’s allocations and new anticipated allocations of $2.5 million in HUD funds.  These funding levels are based on projected allocations from HUD.  Funding levels will be adjusted once the exact allocations have been determined by HUD.

Program plans and funding recommendations for 2017-18 are based upon the Priority Objectives and input received during the public comment period on community and housing development needs conducted during the preparation of the 2015-2020 Consolidated Plan. During 2017-18, HUD funds will address a wide range of Garden Grove housing and community development needs as follows:

Affordable Housing Improvement and Rehabilitation:  Utilizing $2.3 million in HUD funds, the City will rehabilitate 30 ownership units, help developers to acquire and/or rehabilitate 10 dedicated affordable rental units, help developers to construct 10 dedicated affordable rental units and provide rental assistance to 4 low-income families.

Public Improvements:  The Action Plan proposes to utilize $820,000 in CDBG funds to install a shade structure over the play area of the Buena Clinton Family Resource Center and to make street improvements at Twintree/Buaro Streets and at Dorothy/Coleman/Stanrich Streets.

Emergency Service Grants:  To prepare this Action Plan, the Orange County ESG Collaborative (comprised of staff from the cities of Garden Grove, Santa Ana and Anaheim, and the County of Orange) issued a Request for Proposals for Emergency Solutions Grant funding. Funding is recommended for six emergency service programs that will prevent and address homelessness.

Public Services:  Funding in the CDBG public service category is strictly limited by HUD regulatory formula to $289,743 this year. Staff recommends allocating every dollar available.

Economic Development:  $100,000 in HUD funds is allocated for a Small Business Loan Program to create new jobs.

Program Planning and Administration:  Approximately $477,330 in CDBG, HOME, and ESG funds is recommended for staff and material costs for program management, project development and monitoring, public communication, HUD reporting, and financial administration, with an additional $23,797 for associated overhead costs. These allocations are just under the caps allowed by HUD. Staff recommends $34,932 for the Fair Housing Foundation to help the City fulfill its obligation to affirmatively further fair housing.

CITIZEN PARTICIPATION

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 March 17 and 24, 2017, in local English, Spanish, and Vietnamese language newspapers, exceeding HUD’s 30-day minimum public comment period.  A summary of the comments received thus far are included in Appendix A of the Draft Action Plan.

The proposed 2017-18 Action Plan will allow the City to access an estimated $2.5 million in new entitlement grants from HUD and $1.4 million in unexpended previous year’s funds. The allocation of HUD funds effectively leverages competitive grants and the City’s General Funds.

It is recommended that the City Council:

• Conduct the Public Hearing and accept comments;

• Approve Fiscal Year 2017-2018 Action Plan for the use of U.S. Department of Housing and Urban Development Funds; and

• Authorize the City Manager to negotiate and execute related documents and agreements.  Some project-specific agreements may be brought before City Council for approval.

By:  Allison Wilson, Neighborhood Improvement Manager