The U.S. Department of Housing and Urban Development (HUD) requires a public hearing be conducted prior to the approval of the FY 2023-24 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, 2023. Each year’s Action Plan must address the Priority Objectives adopted by the City Council on June 23, 2020 for the 5-Year Consolidated Plan for the use of HUD Funds. The Draft FY 2023-24 Action Plan is available on the City’s webpage for public review until April 25, 2023 (ggcity.org/neighborhood-improvement/reports).

Approximately $3.7 million in HUD funds will be available during FY 2023-24. This budget includes approximately $1.2 million of carryover, or previously unallocated HUD funds from prior years’ entitlement allocations, and a new entitlement allocation of $2.5 million in HUD funds, as depicted below:

Program and funding recommendations for FY 2023-24 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 2023-24, 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 $277,603 for FY 2023-24.

• Special Resource Team – Fund at $110,000 to assist 975 homeless individuals with essential services and referrals to emergency shelter.
•  Senior Center Services – Fund at $147,603 to assist 300 seniors.
•  Meals on Wheels Program – Fund at $20,000 to assist 155 individuals.

Public Facilities and Infrastructure:  Approximately $800,000 in CDBG funds is recommended for the Marchand Avenue Street Rehabilitation Project and is projected to assist approximately 1,215 individuals. Additionally, roughly $800,000 in unexpended prior year resources will be carried over to complete the Josephine/Acacia Street Rehabilitation project.

Owner Occupied Housing Rehabilitation:  Approximately $135,000 in CDBG funds will be allocated to Habitat for Humanity of Orange County to complete 20 owner-occupied rehabilitation projects for single-family homeowners in Garden Grove.

Economic Development:  Approximately $318,679 in unexpended prior year CDBG funds is recommended for the Jobs 1^st Program and is projected to create/retain about 15 jobs. Another $102,000 in unexpended prior year resources will be allocated to implement a new pilot program centered on providing childcare agencies with technical assistance and business support. The pilot program is anticipated to assist 17 childcare agencies in Garden Grove build their capacity and expand.

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 administered by Interval House.

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 $50,000 to assist 75 homeless individuals with essential services.

• Emergency Shelter – Fund Interval House and Illumination Foundation a combined $51,870 to assist 45 homeless individuals with shelter and essential services.
• Rapid Rehousing - Fund Illumination Foundation $30,089 to assist 6 homeless households with rental assistance and essential services.
• Homeless Prevention - Fund Mercy House $20,000 to assist 5 households who are at-risk of homelessness with rental assistance and essential services.
• Homeless Management Information System - Fund 211 Orange County $5,094 to manage the County’s Coordinated Entry System and Homeless Management Information System.

Administration:  Approximately $456,596 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 24, 2023 in local English, Spanish, and Vietnamese language newspapers.

The proposed FY 2023-24 Action Plan will allow the City to access $2.5 million in new entitlement grants from HUD and an estimated $1.2 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 2023-24.

It is recommended that the City Council:

• Conduct a public hearing and accept comments;

• Direct staff to submit the FY 2023-24 Action Plan to HUD for approval; and

• Authorize the City Manager to execute agreements related to HUD funding, and make modifications as appropriate thereto, on behalf of the City.