| | | | | | | | Agenda Item - 3.e.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | City Manager
| Dept.: | Community and Economic Development
| | Subject: | Approval of Substantial Amendment No. 4 to the 2019-20 Annual Action Plan for the use of Housing and Urban Development funding. (Action Item) | Date: | 8/11/2020 |
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| | | | | | | | OBJECTIVE
The purpose of this memorandum is to request City Council to consider the Substantial Amendment No. 4 to the Fiscal Year 2019-20 Annual Action Plan (AAP), and authorize transmittal of the amendment to the U.S. Department of Housing and Urban Development (HUD). |
| | | | | | | | BACKGROUND
On March 27, 2020, the U.S. President signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act. A portion of these relief funds were allocated to HUD entitlement cities. As a result, the City received a supplemental allocation of $1,194,311 in CDBG-CV funds and $602,486 in ESG-CV funds to assist low-income Garden Grove residents affected by the Novel Coronavirus (COVID-19).
On June 9, 2020, HUD awarded the City a second allocation of ESG-CV (ESG-CV2) funds in the amount of $3,635,163 through the CARES Act. This Substantial Amendment No. 4 proposes to expand the following programs to assist homeless Garden Grove residents affected by COVID-19 through Street Outreach, Emergency Shelter, Rapid Rehousing, and Homeless Prevention programs.
The Substantial Amendment No. 4 to the FY 2019-20 AAP is required to program the $3,635,163 of ESG-CV2 funds. |
| | | | | | | | DISCUSSION
On July 10, 2020, a Request for Proposals to expand homeless services through the allocation of ESG-CV2 funds was issued. These activities included:
- Street Outreach to connect the homeless population to services and resources;
- Emergency Shelter that assists individuals and families who are literally homeless with housing and essential services;
- Rapid Rehousing to assists individuals who are literally homeless with rental assistance and wrap around stability services to get individuals into permanent housing; and,
- Homeless Prevention, which assists individuals who are at risk of becoming homeless, with rental assistance and financial stability services to maintain their permanent housing.
Proposals were received from the following Orange County service providers: Interval House, Mercy House, Families Forward, Orange County Asian and Pacific Islander Community Alliance, Inc., Colette’s Children’s Home, Stand Up for Kids, and Illumination Foundation. An internal committee conducted a comprehensive review and evaluation of each these respective proposals. It was determined that all the proposers have staffing capacity and expertise to administer successful ESG Programs.
To that end, allocation of the ESG-CV2 funds took into consideration data collected by 211 Orange County (211OC) as well as expanding homeless resources services to transitional youth, women and children, and Garden Grove’s diverse population. For Garden Grove residents, the 211OC data shows the greatest need for food and housing of 45% in 2019 and a dramatic increase to 61% during COVID for emergency shelter and rental assistance. Provided is a general breakdown of ESG-CV2 funding recommendations to the Orange County service providers and further detailed in Attachment No. 1:
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Service Provider(s)
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Proposed Allocation
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1. Collette’s Children’s Home
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$300,000
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2. Families Forward
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$99,500
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3. Illumination Foundation
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$1,064,800
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4. Interval House
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$800,044
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5. Mercy House
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$484,000
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6. OCAPICA
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$396,000
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7. Stand Up for Kids
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$102,303
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8. CityNet
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$25,000
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9. Administration
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$363,516
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Total ESG-CV2 Allocation
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$3,635,163
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It is recommended that City Council approve Substantial Amendment No. 4 to the FY 2019-20 AAP to program the $3,635,163 of ESG-CV2 funds.
Due to an oversight, staff is also requesting approval to allocate the remaining $99,163 of unallocated ESG-CV1 funds for Community Action Partnership of Orange County (CAPOC). CAPOC will be providing Homeless Prevention services including rental assistance, utility deposits and payments, housing search and placement, case management, job training, legal service, and additional housing stabilization service as needed. These ESG-CV1 funds were allocated in March 2020 and this allocation to CAPOC will be incorporated into Substantial Amendment No. 4. |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. The additional appropriation will be funded by Federal CARES Act, which is a one-time distribution of ESG-CV2 funds in the amount of $3,635,163. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Appropriate $3,635,163 in ESG-CV2 (Fund 227) for street outreach, emergency shelter, rental assistance, and homeless prevention. Any unused appropriation will be carried over to FY 2021-22 up to the timeline for use established by the CARES Act to be used for the same programs.
- Appropriate $99,163 in ESG-CV1 (Fund 227) for homeless prevention. Any unused appropriation will be carried over to FY 2021-22 up to the timeline for use established by the CARES Act to be used for the same programs.
- Direct staff to submit the Substantial Amendment to HUD.
- Authorize the City Manager to execute agreements, and make modifications as appropriate thereto, on behalf of the City.
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