HUD requires a Public Hearing prior to the approval of the 2016-17 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, 2016. 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 Development Department and the City's Website for public review from March 7 , 2016.

Approximately $4 million in HUD funds will be available during 2016-17. This budget includes $1.4 million in carried forward, or previously unallocated HUD funds from prior year’s allocations and new allocations of $2.6 million in HUD funds.

Program plans and funding recommendations for 2016-17 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 2016-17, HUD funds will address a wide range of Garden Grove housing and community development needs as follows:

Affordable Housing Improvement and Rehabilitation:  Utilizing $1.8 million in HUD funds, the City will rehabilitate 18 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 20 low-income families.  

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 four 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:  $1.2 million in HUD funds is allocated to repay the City’s Section 108 loan obligation for earlier investments in the Harbor Boulevard Tourism Corridor. 

Program Planning and Administration:  Approximately $476,303 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 $24,782 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 February 26 and March 4 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 2016-17 Action Plan will allow the City to access an estimated $2.6 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.

Staff recommends that the City Council conduct the Public Hearing, accept comments, and following discussion:

• Approve the 2016-17 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 Mills, Neighborhood Improvement Manager