AGENDA STAFF REPORT

Agenda Item AGENDA STAFF REPORT ASR Control 22-001217
MEETING DATE:	01/24/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	1, 3, 4, 5
SUBMITTING Agency/Department:	OC Community Resources (Approved)
Department contact person(s):	Dylan Wright (714) 480-2788
	Julia Bidwell (714) 480-2991

Subject: Approve Community Development Block Grant CARES Act Contracts

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $1,618,872

Annual Cost: $809,436

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: FED: 100% (CDBG-CV)	County Audit in last 3 years: No

Prior Board Action: 11/8/2022 #27, 6/22/2021 #72, 3/9/2021 #28, 7/14/2020 #34

RECOMMENDED ACTION(S):

1.	Approve Community Development Block Grant CARES Act contracts for reallocated funds up to a total of $2,428,308 as consistent with previously approved Substantial Amendment 2 to the FY 2021-22 Annual Action Plan.
2.	Approve providers and projects for Public Services, Housing Rehabilitation, Public Facilities Improvements and Economic Development activities as identified in Attachment A.
Public Services:
a.			City of Laguna Beach
b.			City of Los Alamitos
Housing Rehabilitation:
a.			City of Seal Beach
Public Facilities and Improvements:
a.				City of Brea
b.				City of Laguna Woods
c.				City of Stanton
Metropolitan Cities Economic Development:
a.		City of Placentia
b.		City of Yorba Linda
3.		Authorize the County Procurement Officer or Deputized designee to execute Community Development Block Grant CARES Act contracts Attachments B through I for reimbursement for services that have been provided for the prevention, response and recovery to the COVID-19 pandemic for a Contract term of January 25, 2023, through August 31, 2023.
4.		Authorize the OC Community Resources Director or designee and submit ministerial administrative documents for the reallocated Community Development Block Grant Cares Act funding and make any non-material changes to the Contracts in Attachments B through I and the forms related thereto, as may be required by U.S. Department of Housing and Urban Development.

SUMMARY:

Approval of the Community Development Block Grant CARES Act contracts funded by previously reallocated Community Development Block Grant CARES Act funding will support cities and the County that have provided activities that benefit low- and moderate-income persons through housing, jobs, a public service, or access to new or significantly improved infrastructure during the COVID-19 pandemic.

BACKGROUND INFORMATION:

On July 14, 2020, the Board of Supervisors (Board) approved the Community Development Block Grant CARES Act (CDBG-CV1) funding to be used by small participating cities, Metropolitan cities and the county as part of the Urban County Program for various activities to prevent, prepare for and respond to the Coronavirus pandemic (COVID-19). Not all of these funds were expended.

On March 9, 2021, the Board approved CDBG-CV3 funding to be used for rental assistance, rehabilitation and shelter to prevent, prepare for and respond to COVID-19. Not all of these funds were expended.

On June 22, 2021, the Board approved the FY 2021-22 Annual Action Plan (AAP) which included the CDBG-CV proposed project funding.

On November 8, 2022, the Board approved Substantial Amendment 2 to the FY 2021-22 Annual Action Plan reallocating $2,428,308 in CDBG-CV funding for existing programs and small participating cities and the County that previously were successful in spending their CDBG-CV funding and to cities that implemented existing Housing Rehabilitation programs and permanent supportive and affordable housing programs; to the extent permanent supportive housing is not funded, allocating funding to cities that implemented Metropolitan City Community Development Block Grant Corona Virus programs and regional homeless activities that support small and or metropolitan cities.

OC Community Resources is returning to the Board to request approval of contracts using the unspent CDBG-CV funding towards eligible activities as outlined in the November 8, 2022, Substantial Amendment 2 to the FY 2021-22 AAP (Attachment K). All eligible participating small and Metropolitan cities that implemented existing programs and were successful in spending their CDBG-CV funding or that implemented existing Housing Rehabilitation programs were contacted. OC Community Resources is recommending funding contracts for the County and all participating cities that were previously approved by the County, are eligible for funding and requested additional funding.

This Agenda Staff Report (ASR) is adding the reallocated CDBG-CV funding contracts to the FY 2021-22 AAP (Attachment J).

The Substantial Amendment 2 to FY 2021-22 AAP was previously publicly noticed and published in the newspapers for 30-day public review from October 3, 2022, to November 3, 2022. The CDBG City Managers' Subcommittee was also consulted on the reallocation of CDBG-CV funding at that time and concurred with staff recommendations.

Board approval of the recommended actions will support the County’s efforts to build 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 ASR 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 authorize herein is the approval of for the 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 future activities and to add HOME Investment Partnership American Rescue Plan funds for permanent supportive housing to the AAP. 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:

Appropriations and Revenue for these contracts are included in Fund 15G FY 2022-23 Budget and will be included in the budgeting process for future years.

Funding: Federal 100% CDBG-CV totaling $2,428,308 in reallocated CDBG-CV funds added to the FY 2021-22 AAP for the Cities and County as listed below:

City of Brea - $100,000

City of Laguna Beach - $500,000

City of Laguna Woods - $200,000

City of Los Alamitos - $30,000

City of Seal Beach - $300,000

City of Stanton - $500,000

City of Placentia - $150,000

City of Yorba Linda - $150,000

County of Orange - $498,308

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A - Summary of Objectives CDBG-CV Contracts for the reallocation of funds
Attachment B - City of Brea 012-23010714-CV
Attachment C - City of Laguna Beach 012-23010715-CV
Attachment D - City of Laguna Woods 012-23010627-CV
Attachment E - City of Los Alamitos 012-20310627-CV
Attachment F - City of Seal Beach 012-23010639 - CV
Attachment G - City of Stanton 012-23010767-CV
Attachment H - City of Placentia 012-23010698-CV
Attachment I - City of Yorba Linda 012-23010701-CV
Attachment J - FY 2021-22 Annual Action Plan
Attachment K - Substantial Amendment 2 to FY 2021-22 Annual Action Plan