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Fiscal Year 2019 - 2020 Emergency Solutions Grants Program June 4, 2019 Page 3 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting on March 27, 2019, the Community Redevelopment and Housing Commission (CRHC) recommended that the City Council approve the FY 2019-20 Emergency Solutions Grants Program by a vote of (9:0). DISCUSSION The Emergency Solutions Grants (ESG) Program provides funds to assist sheltered and unsheltered homeless individuals, as well as those at risk of homelessness to quickly regain stability in permanent housing after experiencing a housing crisis and/or homelessness. The United States Department of Housing and Urban Development (HUD) has changed the program's focus from addressing the needs of homeless individuals in emergency or transitional shelters to assisting people to regain stability in permanent housing. In 2015, an Orange County ESG Collaborative was formed between the cities of Anaheim, Santa Ana and Garden Grove. In December 2016, the Collaborative released a combined ESG Notice of Funding Availability (NOFA) for FY 2017-18 to support the Orange County Continuum of Care's goal to end homelessness. The NOFA aligned values and priorities to create maximum impact and to leverage funds. The NOFA included two possible one year renewals and reserved the right to redistribute funding. The Collaborative chose to exercise the renewal option for both FYs 2018-19 and 2019-20 funding. While funding recommendations are made collaboratively, ESG funds are to be used to provide eligible activities within each jurisdiction for which they are funded. Subrecipients awarded funding in FY 2018-19 and interested in FY 2019-20 funding, were required to re -submit a budget and program summary for FY 2019-20 ESG funding. The proposed FY 2019-20 ESG program funding includes $493,582 toward homeless services in Santa Ana. Exhibit 1 identifies the breakdown of FY 2019-20 recommendations. The funding recommendations are based upon applications received, performance and current needs identified by staff. The allocation is broken down by category to provide more detail on funds allocated to eligible ESG activities. A template of the grant agreement that will be executed with each organization after approval by City Council is provided as Exhibit 2. The memorandum of understanding with the Santa Ana Police department is provided as Exhibit 3. In FY 2019-20, $200,000 in ESG funds will be included as a second year source of funding for the operation of the Link Shelter. These funds will count towards Agreement number A-2018-221 and were previously identified as a possible source of funding anticipated to be available in the September 18, 2018 staff report to City Council. The grant agreement that will be executed with Mercy House after approval by City Council is provided as Exhibit 4. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement & Sustainability, Objective #6 (Focus projects and programs on improving the health and wellness of all residents). 60D-2