The U.S. Department of Housing and Urban Development (HUD) requires a public hearing be conducted prior to the approval of the FY 2021-22 Annual Action Plan to receive and utilize HUD grants.  The City must submit an Annual Action Plan to HUD forty-five (45) days prior to the start of the fiscal year, or by May 15, 2021. Each year’s Action Plan must address the Priority Objectives adopted by the City Council in 2020 for the 5-Year Consolidated Plan for the use of HUD Funds. The Draft FY 2021-22 Action Plan is available on the City’s webpage for public review until April 27, 2021 (ggcity.org/neighborhood-improvement/reports).

Approximately $5.8 million in HUD funds will be available during FY 2021-22. This budget includes approximately $2.8 million of carryover, or previously unallocated HUD funds from prior years’ entitlement and CARES Act allocations, and a new entitlement allocation of $3 million in HUD funds, as depicted below:

Program plans and funding recommendations for FY 2021-22 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 2020-2025 Consolidated Plan. During FY 2021-22, HUD funds will address a wide range of Garden Grove housing and community development needs as follows:

Public Services:  Funding in the CDBG public service category is strictly limited by HUD regulatory formula to 15% of the total allocation, or $300,174 for FY 2021-22.

• Special Resource Team – Fund at $120,080 and assist homeless individuals with essential services and referrals to emergency shelter.
•  Senior Center Services – Fund at $160,094 and assist 300 seniors.
•  Meals on Wheels Program – Fund at $20,000 and assist 230 individuals.

Public Facilities and Infrastructure:  Approximately $1.5 million in CDBG funds is recommended for the Josephine/Acacia and Garden Grove Park rehabilitation projects that are projected to assist approximately 10,874 individuals.

Owner Occupied Housing Rehabilitation:  Approximately $180,000 in CDBG funds will be allocated to Habitat for Humanity of Orange County to complete 30 owner-occupied rehabilitation projects for single-family homeowners in Garden Grove.

Economic Development:  Approximately $465,758 in CDBG funds is allocated for the Jobs 1^st Program and is projected to create/retain approximately 153 jobs.

Affordable Housing:  Utilizing approximately $2.75 million in HOME funds, the City plans to develop a permanent supportive housing project for the homeless in Garden Grove. In addition, the City recommends allocating $515,000 to continue tenant-based rental assistance for the Valley View Senior Villas tenants, as well as the Homeless Emergency Assistance and Rental Transition (HEART) Program that Mercy House and Interval House administer.

Emergency Solutions Grant:  In 2020, the Orange County ESG Collaborative (comprised of staff from the cities of Garden Grove, Santa Ana, Irvine and Anaheim) issued a multi-year Request for Proposals for ESG funding. Below are the proposed funding levels and projections for each eligible activity:

• Street Outreach - Fund City Net at $25,000 to assist 200 homeless individuals with essential services.

• Emergency Shelter – Fund Interval House and Illumination Foundation at $62,153 and assist 52 homeless individuals with shelter and essential services.
• Rapid Rehousing - Fund Interval House at $30,000 and assist 3 homeless households with rental assistance and essential services.
• Homeless Prevention - Fund Mercy House at $25,000 to assist 10 households who are at-risk of homelessness with rental assistance and essential services.
• Homeless Management Information System - Funded at $47,869, 211 Orange County will manage the County’s Coordinated Entry System and Homeless Management Information System. Approximately $22,869* of this allocation is comprised of unallocated ESG-CV2 funds.

Administration:  Approximately $661,667 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.

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 26, 2021 in local English, Spanish, and Vietnamese language newspapers, exceeding HUD’s 30-day minimum public comment period.

The proposed FY 2021-22 Action Plan will allow the City to access $3 million in new entitlement grants from HUD and an estimated $2.8 million in unexpended previous year’s funds. The allocation of HUD funds effectively leverages competitive grants and the City’s General Funds.  Funds will be included as part of the upcoming biennial budget for FY 2021-22.

It is recommended that the City Council

• Conduct a public hearing and accept comments;
• Direct staff to submit Fiscal Year 2021-22 Action Plan to the Department of Housing and Urban Development (HUD) for approval; and
• Authorize the City Manager to execute agreements related to HUD funding, and to make modifications as appropriate, on behalf of the City.