On March 11, 2021, President Biden signed the American Rescue Plan (ARP) into law, which provides over $1.9 trillion in relief to address the continued impact of the COVID-19 pandemic on the economy, public health, State and local governments, individuals, and businesses.

To address the need for homeless assistance and supportive services, $5 billion was appropriated through the HOME Program to perform activities that must primarily benefit qualifying individuals and families who are homeless, at risk of homelessness or in other vulnerable populations that are housing insecure. Eligible activities include the following:

• Development and support of affordable housing;

• Tenant-based rental assistance (TBRA);

• Provision of supportive services; and
• Acquisition and development of non-congregate shelter units.

On September 20, 2021, HUD announced that the City of Garden Grove was awarded $3,037,211 in HOME-ARP funding, and would need to submit a HOME-ARP Allocation Plan that outlines how the City intends to use the funding to address the needs of HOME-ARP qualifying populations.

Prior to developing the HOME-ARP Allocation Plan, the City is required to conduct consultation with agencies and service providers whose clientele include the HOME-ARP qualifying populations to identify unmet needs and gaps in housing or service delivery systems. At a minimum, the City is required to consult with the following agencies: CoC(s) serving the geographic area; homeless and domestic violence service providers; veterans’ groups; public housing agencies; public agencies that address the needs of the qualifying populations; and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities. Additionally, the City is required to encourage citizen participation in the development of the HOME-ARP Allocation Plan and must have the plan available for public review and comment for at least 15 days, and hold at least one public hearing.

Once the consultation and public participation processes are completed, the City is required to submit the HOME-ARP Allocation Plan to HUD as a substantial amendment to the FY 2021-22 AAP for approval. Once the substantial amendment is approved by HUD, the City will be able to begin the implementation process for the proposed activities.  

Prior to developing the HOME-ARP Allocation Plan, the City consulted with organizations and public housing organizations that serve the qualifying populations that will be assisted through the HOME-ARP funding. The City distributed a survey through Survey Monkey to local agencies, service providers and stakeholders that serve the homeless, at-risk of homeless, and special populations that are housing insecure. In addition, individual interviews were conducted to illicit insight on the needs of these populations and the current service gaps. Respondents identified the following activities as the highest priorities among the qualifying populations: 

•  Highest priority – Supportive services.
•  Secondary priority – Development of affordable housing.
•  Largest gap – Lack of affordable housing opportunities.

On February 21, 2023, City Staff presented the draft HOME-ARP Allocation Plan to the Orange County Continuum of Care (CoC), service providers and public housing agencies to receive additional feedback and comments regarding the priorities and activities the City identified during the consultation and needs assessment. All comments were received during the CoC consultation session, and all of the comments were in support of the City’s proposed activities.  

The City opened the public comment period for the draft HOME-ARP Allocation Plan and the substantial amendment to the FY 2021-22 AAP from February 24, 2023 – March 14, 2023. Notices have been published in local English, Spanish and Vietnamese newspapers, and a public hearing is being conducted at the March 14, 2023 City Council Meeting. All public comments received during the public comment period and public hearing will be submitted to HUD in the final HOME-ARP Allocation Plan.

The HOME ARP Plan process requires that the City conduct a needs assessment that identifies any gaps within the current service delivery system and shelter and housing inventory. During the preparation of the needs assessment, the City used current data from the following sources: Point In Time Count; Housing Inventory Count; American Community Survey; Comprehensive Housing Affordability Strategy; Homeless Management Information System; and data available through the CoC. Given the City’s unsheltered homeless population increased by 70.6% from 2019 – 2022 and the number of individuals who are currently experiencing a severe housing cost burden (approximately 73.8%), the City is prioritizing the HOME-ARP funding on the following affordable housing activities: tenant-based rental assistance (TBRA) and the development of affordable and supportive housing.

The City intends to utilize the HOME-ARP funding as a vehicle to help the City’s homeless population access and secure permanent housing options after they have graduated from the Central Cities Navigation Center (CCNC) program, which is anticipated to be operational by fall 2023. Given the severe need for affordable housing opportunities for the homeless population, the City is planning to allocate $1,290,815 to develop a TBRA program that will assist the individuals exiting the CCNC with rental assistance and wrap-around supportive services. The TBRA program will help individuals maintain permanent housing and prevent individuals exiting the CCNC from returning to homelessness. It is anticipated that the TBRA program would serve approximately 160-170 individuals, and an RFP will be released in summer 2023 to select the operator of the TBRA program.

In addition, the City intends to use approximately $1,290,815 in HOME-ARP funding for the development of affordable and supportive housing for all qualifying populations. The City will work with a housing developer to design, construct and operate a rental housing development containing affordable housing units. At least 70% of the affordable rental housing units need to be designated to a qualifying population, while the remaining 30% can be designated to low-income residents. It is anticipated that an RFP will be released in summer 2023 to select an affordable housing developer. 

There is no impact to the General Fund.  The additional appropriations will be funded by American Rescue Plan, which are one-time distributions of funds.

It is recommended that the City Council:

• Conduct a public hearing to receive comments regarding the HOME ARP Allocation Plan and Substantial Amendment No. 1 to the FY 2021-22 AAP;

• Appropriate $3,037,211 in HOME-ARP funds (Fund 249) for TBRA and the development of affordable housing.  Any unused appropriation will be carried over to FY 2023-24;
• Direct staff to submit Substantial Amendment #1 to HUD; and
• Authorize the City Manager to execute agreements, and make modifications as appropriate thereto, on behalf of the City.