The U.S. Department of Housing and Urban Development (HUD) requires a public hearing be conducted prior to the approval of the FY 2022-23 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, 2022. 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 2022-23 Action Plan is available on the City’s webpage for public review until March 22, 2022 (ggcity.org/neighborhood-improvement/reports).

Approximately $5.6 million in HUD funds will be available during FY 2022-23. This budget includes approximately $2.5 million of carryover, or previously unallocated HUD funds from prior years’ entitlement allocations, and a new entitlement allocation of $3 million in HUD funds, as depicted below:

Program plans and funding recommendations for FY 2022-23 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 2022-23, 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 $304,598 for FY 2022-23.

• Special Resource Team – Fund at $122,292 to assist 1,000 homeless individuals with essential services and referrals to emergency shelter.
•  Senior Center Services – Fund at $162,306 to assist 300 seniors.
•  Meals on Wheels Program – Fund at $20,000 to assist 230 individuals.

Public Facilities and Infrastructure:  Approximately $800,000 in CDBG funds is recommended for the Josephine/Acacia Street Project and is projected to assist approximately 3,050 individuals. Additionally, roughly $1,300,000 in unexpended prior year resources will be carried over to complete the Josephine/Acacia Storm Drain and Community Center Bridge rehabilitation projects.

Owner Occupied Housing Rehabilitation:  Approximately $100,000 in CDBG funds will be allocated to Habitat for Humanity of Orange County to complete 16 owner-occupied rehabilitation projects for single-family homeowners in Garden Grove. Approximately, $75,000 in unexpended prior year resources will be carried over to complete pending FY 21-22 Home Repair Program projects.

Economic Development:  Approximately $400,000 in CDBG funds is allocated to the Jobs 1^st Program and is projected to create/retain about 20 jobs. Additionally, $200,000 in unexpended prior year resources will be carried over to fund additional JOBS 1st Program loans and grants.

Affordable Housing:  The City recommends allocating $250,000 in HOME funds to continue tenant-based rental assistance for the Homeless Emergency Assistance and Rental Transition (HEART) Program that Interval House administers. Approximately, $1,000,000 in unexpended prior year resources will be carried over to complete the Valley View Senior Villas Tenant-Based Rental Assistance Program and the Stuart Drive Permanent Supportive Housing project.

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 Moving Forward Psychological Institute at $30,000 to assist 50 homeless individuals with essential services.

• Emergency Shelter – Fund Interval House and Illumination Foundation a combined total of $73,000 to assist 51 homeless individuals with shelter and essential services.
• Rapid Rehousing - Fund Illumination Foundation at $31,963 to assist 4 homeless households with rental assistance and essential services.
• Homeless Prevention - Fund Mercy House at $20,000 to assist 6 households who are at-risk of homelessness with rental assistance and essential services.
• Homeless Management Information System - Fund 211 Orange County at $5,195 to manage the County’s Coordinated Entry System and Homeless Management Information System.  

Administration:  Approximately $502,916 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.

The proposed FY 2022-23 Action Plan will allow the City to access $3 million in new entitlement grants from HUD and an estimated $2.5 million in unexpended previous year’s funds. The allocation of HUD funds effectively leverages competitive grants and the City’s General Funds.  The FY 2022-23 budget will be amended in accordance with the approved Action Plan. 

It is recommended that the City Council:

• Conduct a public hearing and accept comments;
• Approve the Fiscal Year 2022-23 Action Plan; 
• Authorize submittal of the Action Plan to the Department of Housing and Urban Development; and

• Authorize the City Manager to execute agreements for administering the Action Plan, and to make modifications as appropriate, on behalf of the City.