The City of Garden Grove receives annual entitlement grants from HUD funding sources, including an annual HOME Investment Partnership (HOME) grant and a Community Development Block Grant (CDBG). On March 26, 2019, the City Council adopted the FY 2019/2020 AAP, which includes the use of HOME and CDBG funds for the period from July 1, 2019 through June 30, 2020. HUD rules require a substantial amendment be made to the AAP if an activity is to be carried out that was not previously described in the AAP.  This Substantial Amendment proposes to add two activities to the City of Garden Grove’s Fiscal Year 2019-20 AAP which were not contemplated at the time the AAP was originally created.  Those activities are the Homeless Emergency Assistance and Rental Transition (HEART) Program and the La Bonita Storm Drain Improvements.

At Council’s direction to create housing opportunities for those experiencing homelessness in Garden Grove, staff has created the HEART program.  The HEART Program provides a 12-month rental assistance program for individuals or families that meet the following criteria:

• Meet the 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 12-month program.

Substantial Amendment Number 1 proposes to include and fund this activity in the City of Garden Grove’s Fiscal Year 2019-20 AAP.

The La Bonita Storm Drain Improvements, which are funded in part with $471,000 in CDBG funds, began construction in FY 2018/19 and were anticipated to be completed during that same program year.  Therefore, this activity was not included in the 2019/20 AAP.  However, this project was not completed until August 2019 and must be included in the 2019/20 AAP.

On August 5, 2019, a Public Hearing was held before the Neighborhood Improvement and Conservation Commission to accept public comment on this Substantial Amendment.  No public comment was received and the Commission voted to transmit the Substantial Amendment to Council for their direction to submit Substantial Amendment Number 1 to HUD.

It is envisioned that two service providers will be selected and each will receive $300,000 to operate HEART.  Of each $300,000 award, $250,000 in HOME funds will be allocated for rental assistance payments, utility allowance, security deposits and related move-in costs; and $50,000 in LMIHTF funds will be 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.  It is expected that this level of funding will enable approximately 20 households to transition from homelessness to permanent housing.

HOME and LMIHTF funds are available and will not impact any planned project or activity, nor impact the General Fund.

The La Bonita Storm Drain Improvements have already been budgeted and allocated to this activity.  Therefore, there will be no impact to the General Fund or to other activities. 

It is recommended that the City Council:

• Conduct a public hearing and accept public comments regarding the proposed Substantial Amendment Number 1; 

• Approve Substantial Amendment Number 1; and

• Direct staff to submit Substantial Amendment Number 1 to the U.S. Department of Housing and Urban Development.