Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  21-000240

 

MEETING DATE:

06/22/21

legal entity taking action:

Board of Supervisors and Orange County Housing Authority

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:  Approve FY 2021-22 Annual Action Plan and Contracts for FY 2021-22

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Public Hearing

 

 

3 Votes Board Majority

 

 

 

    Budgeted: N/A

Current Year Cost: N/A

Annual Cost: FY 2021-22 $6,127,805

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: See Financial Impact Section

County Audit in last 3 years: No

 

 

    Prior Board Action: 12/08/2020 #34, 06/23/2020 #68

 

RECOMMENDED ACTION(S):

 

 

1.

Per Title 24 Code of Federal Regulations Section 91.105, conduct a public hearing and consider public comments for inclusion in FY 2021-22 Annual Action Plan.

 

2.

Approve the FY 2021-22 Annual Action Plan as identified in Attachment A.

 

3.

Approve the federal allocation of U.S. Department of Housing and Urban Development new, reprogrammed and program income Community Development Block Grant; HOME Investment Partnership Act; Emergency Solutions Grant funds; and state and local funds in a total aggregate amount of $6,127,805, in the FY 2021-22 Annual Action Plan as identified in Attachment A.

 

4.

Approve substantial amendment to the FY 2020-21 Annual Action Plan to allow the City of Yorba Linda to redirect funds to Small Business Relief program.

 

5.

 

Approve providers and projects for Public Services, Housing Rehabilitation and Public Facilities and Improvements activities as identified in Attachment B.

 

 

Public Services:

 

a.

Abrazar, Inc.

 

b.

City of Laguna Beach

 

c.

Orange County Fair Housing Council, Inc. DBA Fair Housing Council of Orange County

 

d.

Health Care Agency (Emergency Shelter)

 

Housing Rehabilitation:

 

a.

City of Brea

 

b.

City of Cypress

 

c.

City of Seal Beach

 

d.

County of Orange

 

Public Facilities and Improvements:

 

a.

City of Laguna Woods

 

b.

City of Los Alamitos

 

c.

City of San Juan Capistrano

 

d.

City of Stanton

 

e.

County of Orange

 

Metropolitan Cities of:

 

a.

City of Placentia

 

b.

City of Yorba Linda

 

6.

Authorize OC Community Resources to utilize up to $100,000 in federal HOME Investment Partnerships Program funds and/or Operating Reserve funds in FY 2021-22 to fund Tenant-Based Rental Assistance activities to be performed by the Orange County Housing Authority and return to the Board of Supervisors in the Annual Action Plan process to approve future annual allocations.

 

7.

Authorize the OC Community Resources Director or designee and the Executive Director of the Orange County Housing Authority or designee to execute Amended and Restated Memorandum of Agreement Between County of Orange and Orange County Housing Authority for Tenant-Based Rental Assistance activities for the term of July 1, 2021, through June 30, 2025, in an amount not to exceed $100,000 for FY 2021-22 in a form substantially similar to Attachment EE. 

 

8.

Approve Contract renewals for Public Services, Housing Rehabilitation and New Contracts for Public Facilities & Improvements activities identified in Attachment D.

 

9.

Authorize the OC Community Resources Director or designee to sign and submit all contracts, ministerial administrative documents for implementation of the FY 2021-22 Annual Action Plan including all U.S. Department of Housing and Urban Development Grant Agreements and forms and adjust funding for the FY 2021-22 Annual Action Plan and individual contracts and agreements as noted in Attachment B, in accordance with funding availability and make any non-material changes as may be required by U.S. Department of Housing and Urban Development.

 

10.

Pursuant to Contract Policy Manual Section 3.3-114, authorize the OC Community Resources Director or designee to exercise a contingency cost increase in an amount not to exceed a total of 10 percent of the contract amount for the first year of the contract, for the entire term of the contract, including renewals, and within the scope of work set forth in the contract. The use of this contingency contract cost increase is subject to approval requirements established by the County Procurement Officer.

 

11.

Designate the Director of Housing and Community Development or designee to act as the certifying officer as provided in 24 Code of Federal Regulations Part 58, its related federal authorities listed in Sections 58.5, 58.6 and 58.13, as well as Section 102 of National Environmental Policy Act and its related provisions in 40 Code of federal Regulations parts 1500 through 1508 and authorize the Director of Housing and Community Development or designee to execute all documents related to the administration, management and implementation of the Section 102 of National Environmental Policy Act.

 

 

 

 

SUMMARY:

 

Conducting a Public Hearing and approving the FY 2021-22 Annual Action Plan will satisfy U.S. Department of Housing and Urban Development federal requirements to provide a one-year plan outlining the FY 2021-22 allocation of funding for specific housing and community development programs, promote fair housing opportunities and provide approval of federal, state and local resources allocated for these activities. 

 

 

BACKGROUND INFORMATION:

 

FY 2021-22 Annual Action Plan

 

The FY 2021-22 Annual Action Plan (AAP) covers the period of July 1, 2021, through June 30, 2022, the second year of the five-year Consolidated Plan (ConPlan) period. The AAP includes a total funding amount of $6,127,805 for the allocation of federal Community Development Block Grant (CDBG), HOME Investment Partnership Act (HOME), Emergency Solutions Grant (ESG) and state and local funds. The recommended providers for the Board of Supervisors’ (Board) selection and associated projects and activities with the proposed project funding amounts are identified in the FY 2021-22 Summary of Specific U.S. Department of Housing and Urban Development (HUD) Annual Objectives and Proposed Project Funding, Attachment B. These projects and activities address overall housing and community development needs throughout Orange County, including activities that also support the County’s efforts in addressing homelessness.

 

A summary of the prior year AAP projects that were completed and reported in the FY 2019-20 Consolidated Annual Performance and Evaluation report to HUD are as follows:

 

Project Type

Services

Anticipated Outcomes

Public Services

• Services and case management for the individuals experiencing homelessness and those at risk for homelessness

• Senior Services

• Operating cost of homeless/AIDS patients programs

• 12,525 people provided with various services, 9,346 persons experiencing homelessness,

• Rapid Rehousing of 2,808 People

Housing Rehabilitation

• Projects that strengthen, preserve and enhance the physical character and quality of life in Orange County’s low - and moderate-income neighborhoods, including the housing stock

• Rehabilitation of 210 units

Public Facilities and Improvements

• Senior Centers

• Homeless Facilities

• Neighborhood Facilities

• Water/Sewer Improvements

• Street Improvements

• Sidewalk Improvements

• 65,245 people helped by completion of improvements

Affordable Housing with HOME Funds

• Expand Affordable Housing Opportunities

• 75 people provided tenant based rental assistance

 

On December 19, 2019, the Board adopted the Funding Allocation Policy and Process (FAPP) for FY 2020-21. The FAPP included the funding process for eligible Exempt/Public Services, Housing Rehabilitation (HR) and Public Facilities and Improvements (PF&I) activities.

 

On November 20, 2019, OC Community Resources (OCCR) released a Request for Proposals (RFP), seeking qualified providers for HR and PF&I, that were on a three-year and one-year funding cycle respectively. All proposals were approved by the Board on June 23, 2020. 

 

On December 9, 2020, OCCR released a RFP seeking qualified providers for PF&I only that were on a one-year funding cycle. This is the second year of the three-year funding cycle for the HR contracts approved in 2020. 

 

Exempt/Public Service activities are on a three-year funding cycle which began in FY 2020-21, and all three eligible Exempt/Public Service activities are being recommended for funding.

 

The FY 2021-22 AAP includes funding for two Metropolitan Cities, Placentia and Yorba Linda.  The Metropolitan Cities submitted a combined 11 proposals, of which all were deemed eligible.

 

The FY 2021-22 AAP also includes funding for the FY 2021-22 Emergency Shelter Program run by the Health Care Agency (HCA) and Memorandum of Understanding with the Orange County Housing Authority for Tenant-Based Rental Assistance funding.

 

All of the contractors’ performances have been confirmed as satisfactory, and OCCR has verified there are no concerns that must be addressed with respect to contractors' ownerships/names, litigation statuses or conflicts with County interests:

 

All contracts contain language that will permit the immediate reduction of services or termination of the Agreement due to fiscal non-appropriation without penalty.

 

On April 23, 2021, OCCR released a 30-day Public Notice and comment period for the proposed FY 2021-22 AAP. The Notice was published in the Orange County Register, La Opinion and Nguoi Viet; an electronic version was available at the OC Housing and Community Development website; and printed copies were also made available at the OC Housing and Community Development office.  No comments were received to date.

 

On May 18, 2021, OCCR released a 30-day Public Notice and comment period for the proposed third Amendment to the City of Yorba Linda's FY 2020-21 contract.  The Notice was published in the Orange County Register, La Opinion and Nguoi Viet; an electronic version was available at the OC Housing and Community Development website; and printed copies were also made available at the OC Housing and Community Development office. The comment period closed on June 18, 2021.  No comments were received to date.

 

Substantial Amendment to FY 2021-22 Annual Action Plan

 

On June 23, 2020, the Board approved FY 2020-21 AAP, which included two projects from the City of Yorba Linda, Americans with Disabilities Act Improvements and Neighborhood Rehabilitation.  The City of Yorba Linda has requested to redirect the balance of funds from these two projects for their Small Business Relief Program.

 

FY 2020-24 Citizen Participation Plan

 

The FY 2020-24 Citizen Participation Plan (CPP) provides the framework and process by which the County's consolidated planning efforts comply with HUD's citizen participation requirements. The CPP includes the methods the County will utilize to notify residents and stakeholders regarding the investment of Federal funding and any substantial changes to those investments.

 

Included in the CPP previously approved by the Board on June 23, 2020, is the definition of a Substantial Amendment as required by HUD to define what criteria will be used to determine if a change to the AAP or ConPlan warrants further action by the Board and HUD. A Substantial Amendment will be required if any one of the following criterion apply.

 

1.

A new activity is not previously listed and described in the ConPlan/AAP;

 

2.

A proposal is made to amend the description of an existing activity in such a way that the newly described purpose, scope or beneficiaries differ significantly from the original activity's purpose, scope or beneficiaries; or

 

3.

An increase in the amount of federal Community Planning Development and/or local funds* is allocated to an existing activity when/if the following apply:

 

 

a.

An increase in funding for a public service activity is in an amount greater than 50 percent over the current funded amount.

 

 

b.

An increase in funding for public facility improvements/housing rehabilitation is in an amount greater than 50 percent over the current funded amount.

 

*Local funds do not require a public 30-day notification as required for a substantial amendment to federal funding.

 

Any amendment not considered substantial as defined above may be considered Non-Substantial.  OCCR will utilize this definition in conjunction with the Board's approval of the FY 2021-22 AAP and accompanying contracts to conduct the community development business of the County.

 

In an effort to efficiently utilize CDBG funds within the time frames required by HUD, OCCR will consider the re-programming of unspent CDBG balances from completed and cancelled CDBG-funded activities to other eligible activities as a Non-Substantial Amendment.  In the event that any of these administrative re-programming actions fall under the Substantial Amendment criteria, the proposed actions are subject to the Citizen Participation Process, approval by the Board and subsequent approval by HUD.

 

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:

 

Revenue and Appropriations for this item will be included in fund 15G, Fund 117 and Fund 15U in the FY 2021-22 Budget.

 

Funding includes:

Federal: 69% CDBG Funds, 25% HOME Funds, 4% ESG Funds

 

Other:  2%

 

$  2,879,760

New CDBG Funds

 

$     718,705

CDBG Reprogrammed and Program Income

 

$     635,767

New CDBG Metropolitan City Funds

 

$  1,384,437

HOME Funds

 

$    135,000

HOME Program Income

 

$    224,136

Federal ESG Funds

 

$    100,000

Operating Reserves

 

$      50,000

15U

 

 

The proposed contracts include a provision stating the contracts are subject to, and contingent upon, applicable budgetary appropriations being approved by the Board for each fiscal year during the term of the contracts. If such appropriations are not approved, the contracts may be immediately terminated without penalty to the County.

 

 

 

STAFFING IMPACT:

 

N/A

 

 

ATTACHMENT(S):

 

Attachment A - 24 Code of Federal Regulations Section 91.105
Attachment B - FY 2021-22 Annual Action Plan
Attachment C - Substantial Amendment City of Yorba Linda AAP
Attachment D - FY 2021-22 Summary of Specific HUD Annual Objectives and Proposed Project Funding
Attachment E - HCD CDBG #21-23-0011-PS Abrazar, Inc. Combined
Attachment F - HCD CDBG # 21-23-0011-PS Abrazar, Inc. Redline Combined
Attachment G - HCD CDBG # 21-23-0014-PS City of Laguna Beach Combined
Attachment H - HCD CDBG # 21-23-0014-PS City of Laguna Beach Redline Combined
Attachment I - HCD CDBG #21-23-0013-PS Orange County Fair Housing Council, Inc. DBA Fair Housing Council of Orange County Combined
Attachment J - HCD CBDG  # 21-23-0013-PS Orange County Fair Housing Council, Inc. DBA Fair Housing Council of Orange County Redline Combined
Attachment K - HCD # 21-23-0002-HR City of Brea Combined
Attachment L - HCD CDBG #21-23-0002-HR City of Brea Redline Combined
Attachment M - HCD CDBG #21-23-0003-HR City of Cypress Combined
Attachment N - HCD CDBG #21-23-0003-HR City of Cypress Redline Combined
Attachment O - HCD CBDG #21-23-0005-HR City of Seal Beach Combined
Attachment P - HCD CBDG #21-23-0005-HR  City of Seal Beach Redline Combined
Attachment Q - HCD CBDG #21-23-0029-PFI  City of Laguna Woods Combined
Attachment R - HCD CBDG #21-23-0029-PFI  City of Laguna Woods Redline Combined
Attachment S - HCD CBDG #21-23-0010-PFI City of Los Alamitos Combined
Attachment T - HCD CBDG #21-23-0010-PFI City of  Los Alamitos Redline Combined
Attachment U - HCD CDBG #21-23-0019-PFI City of San Juan Capistrano Combined
Attachment V - HCD CDBG #21-23-0019-PFI City of San Juan Capistrano Redline Combined
Attachment W - HCD CDBG #21-23-0034-PFI City of Stanton Combined
Attachment X - HCD CDBG #21-23-0034-PFI City of Stanton Redline Combined
Attachment Y - HCD CBDG #21-23-0018-HCD City of Placentia Combined
Attachment Z - HCD CBDG #21-23-0018-HCD City of Placentia  Redline Placentia
Attachment AA - HCD CDBG #21-23-0024-HCD City of Yorba Linda Combined
Attachment BB - HCD CDBG #21-23-0024-HCD City of Yorba Linda Redline Combined
Attachment CC - Public Notice and Affidavit of Publication 
Attachment DD - Memo RFP Bid #012-202301
Attachment EE - Amended and Restated Memo Agreement HCD and OCHA for TBRA