AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 21-000898
MEETING DATE:	12/07/21
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	All Districts
SUBMITTING Agency/Department:	OC Community Resources (Approved)
Department contact person(s):	Dylan Wright (714) 480-2788
	Julia Bidwell (714) 480-2991

Subject: FY 2022-23 Funding Allocation Policy and Process

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

No Legal Objection

Public Hearing

3 Votes Board Majority

Budgeted: N/A

Current Year Cost: N/A

Annual Cost: N/A

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: N/A	County Audit in last 3 years: No

Prior Board Action: 12/08/2020 #34,07/14/2020 #34

RECOMMENDED ACTION(S):

Conduct a public hearing and consider public comment for the FY 2022-23 Funding Allocation Policy and Process.

Adopt the FY 2022-23 Funding Allocation Policy and Process for OC Community Resources Housing and Community Development Activities.

SUMMARY:

Conducting a public hearing and adoption of the FY 2022-23 Funding Allocation Policy and Process will support compliance with federal requirements and notify the public of the process to be used for distributing federal housing and community development funds.

BACKGROUND INFORMATION:

The Funding Allocation Policy and Process (FAPP) is a planning document required by the County of Orange (County) that outlines the methods used by the Urban County Program to distribute federal and local funds to applicants that request funding allocations for housing and community development activities that benefit low- and moderate-income communities and individuals. These funds are included under the following programs based on availability: Community Development Block Grant Program, Home Investment Partnership Program, Emergency Solutions Grant Program, Orange County Housing Authority Operating Reserves and Strategic Priority Affordable Housing funds.

The Urban County Program is comprised of 12 cities with populations under 50,000 (participating cities), two cities with populations over 50,000 (metropolitan cities) and unincorporated areas of Orange County. The 12 participating cities include Brea, Cypress, Dana Point, Laguna Beach, Laguna Hills, Laguna Woods, La Palma, Los Alamitos, San Juan Capistrano, Seal Beach, Stanton and Villa Park. These cities are not eligible to receive Community Planning and Development program funds directly from the U.S. Department of Housing and Urban Development (HUD) and have opted to participate in the Urban County Program. The cities of Placentia and Yorba Linda, with populations of over 50,000, are eligible to participate directly with HUD as entitlement jurisdictions, but have elected to join the Urban County Program as metropolitan cities.

The primary purpose of the FAPP is to set forth the policies the Urban County Program will utilize to distribute federal and local funds for eligible housing and community development activities. The policies include the use of High and Low Priority designations that have been set forth in the FY 2020-24 Consolidated Plan with overall priority given to projects that meet High priority needs.

The FY 2022-23 FAPP is the beginning of the annual funding cycle and includes recommendations for the third year of the three-year funding cycle for Housing Rehabilitation and one-year funding cycle for Public Facilities and Improvements(PF&I) activities. Housing Rehabilitation activities will be monitored for performance to determine recommendation for a second (or third) year of funding. PF&I activities will be recommended for an award following the release of a Request for Proposal (RFP) in approximately December 2021 and the evaluation of RFP responses.

Consistent with the FAPP policies, the following public service and administrative activities are recommended exempt from the competitive funding process: County obligations for administration; community centers; the County’s emergency shelter programs; other low-threshold emergency shelters located in participating cities and fair housing activities.

There are no major policy changes to the FY 2022-23 FAPP from the prior year FAPP other than recommendation to complete a new RFP solicitation for PF&I activities. Additionally, the CDBG City Managers' Subcommittee, a subcommittee of the Orange County City Managers Association, was consulted on the FY 2022-23 FAPP and concurred with staff recommendations.

On July 14, 2020, the Board of Supervisors (Board) approved the FY 2020-24 Citizen Participation Plan governing the process for notifying the public regarding the allocation of federal housing and community development funds and any amendments made to the allocation of those funds. The previous year's FAPP was approved by the Board on December 8, 2020. In compliance with federal regulations, the Citizen Participation Process began with the release of the public notice informing the public that the draft FY 2022-23 FAPP was available for public review and comment for a 30-day period beginning on October 22, 2021, and ending on November 24, 2021. A digital version is also available on the web at https://www.ochcd.org/community-development.

Printed copies of the FAPP were also made available by contacting OC Housing and Community Development staff. The public notice was advertised in the following local newspapers: 1) The Orange County Register (English); 2) La Opinion (Spanish); and 3) Vien Dong Daily (Vietnamese). No public comments have been received to date.

Board approval of the recommended actions will support the County’s efforts on building a responsive System of Care in Orange County that reflects community input and investments from diverse stake holders while supporting the availability of shelter beds and increasing access to community resources and housing programs. The recommended actions in this Agenda Staff Report also contribute to the overall System of Care in addressing the needs of those experiencing homelessness in Orange County.

Compliance with NEPA: As defined under the National Environmental Policy Act per 24 CFR 58.34 (a)(3), the proposed activity is exempt.

Compliance with CEQA: This action is not a project within the meaning of CEQA Guidelines Section 15378 and is therefore not subject to CEQA, since it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. The approval of this agenda item does not commit the County to a definite course of action in regard to a project since the actions approve a plan for the allocation of funding for a future project to be considered. This proposed activity is therefore not subject to CEQA. Any future action connected to this approval that constitutes a project will be reviewed in compliance with CEQA.

FINANCIAL IMPACT:

The FAPP outlines the methods for the distribution of federal and local funding only. There is no financial impact resulting from the recommended actions.

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

Health Care Agency

ATTACHMENT(S):

Attachment A - FY 2022-23 Funding Allocation Policy and Process
Attachment B - FY 2020-24 Citizen Participation Plan
Attachment C - FY 2020-24 Consolidated Plan
Attachment D - Public Notice