HomeMy WebLinkAbout19G - INCLUSIONARY FUND REPLENISHREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 4, 2018
TITLE:
CLERK OF COUNCIL USE ONLY:
F.15-T:50�-91
RECEIVE AND FILE REPORT ON EFFORTS
❑ As Recommended
TO REPLENISH THE INCLUSIONARY
❑ As Amended
HOUSING FUND USED TO CREATE THE
171 Ordinance on Reading
El Ordinance on 2nd Reading
SANTA ANA INTERIM HOMELESS
❑ Implementing Resolution
SHELTER
❑ Set Public Hearing For_
{STRATEGIC PLAN NO. 5, 31
CONTINUED TO
FILE NUMBER
CITY I�ANAGER
RECOMMENDED ACTION
Receive and file report on efforts to replenish the Inclusionary Housing Fund used at the Santa
Ana Interim Homeless Shelter.
DISCUSSION
At the September 18, 2018 City Council meeting, the City Council approved an agreement with
Mercy House Living Centers, Inc., to operate an interim Emergency Homeless Shelter in Santa
Ana for a period of one-year in the amount of $3.1 million. The source of funding for this
agreement includes fiscal year 2018/19 and 2019/20 Inclusionary Housing Funds. City Council
also directed staff to evaluate methods to replenish these funds. The efforts made thus far to
replenish the Inclusionary Housing Fund include:
The City submitted an application to the Orange County Continuum of Care (CoC), as the
designated Fiscal Agent for the County of Orange Homeless Emergency Aid Program
(HEAP) funds to receive $3 million to replenish the Inclusionary Housing Funds used for
capital improvements and emergency shelter services at the Link, Santa Ana's Interim
Homeless Shelter. HEAP was authorized by Senate Bill 850, which was signed into law by
Governor Brown in June 2018, to provide one-time funding to Continuum of Care (CoCs)
and Large Cities with populations over 330,000 for immediate emergency assistance to
people experiencing homelessness. Although the City was awarded $3,690,885.84 in
HEAP funding as one of the Big 11 Cities, these funds were designated by City Council for
the permanent shelter site. Therefore, the City submitted an application to the CoC for $3
million specifically to replenish the Inclusionary Housing Funds used for the Interim Shelter
at the Link. The CoC did not fund the City's request.
19G-1
Receive and File Report on Efforts to Replenish the Inclusionary Housing Fund
December 4, 2018
Page 2
2. Staff analyzed the SB2 bill and guidelines which establishes a fluctuating, yet permanent
on-going source of funding dedicated to affordable housing development. While actual
funding amounts are unknown at this time, the City anticipates receiving approximately
$1.9 million per year based on current estimates of SB2 revenue received by the State.
Options to use the funds to replenish the Inclusionary Housing Fund for work already
performed at the Link or to backfill other housing funds in the City's housing portfolio that
are SB2 eligible are being evaluated.
3. Staff is evaluating the option to use approximately $75,000 in unexpended 2017/18
Emergency Solutions Grant (ESG) funds recaptured for redistribution to replenish the
Inclusionary Housing Fund. HUD has various regulatory requirements that may not all this
and as such staff will continue to research.
Staff will continue to pursue options to replenish the Inclusionary Housing Fund following
the investment by City Council in September 2018.
STRATEGIC PLAN ALIGNMENT
Approval of this item allows the City to meet Goal #5 - Community Health, Livability, Engagement
and Sustainability, Objective #3 (facilitate diverse housing opportunities and support efforts to
preserve and improve the livability of Santa Ana neighborhoods).
FISCAL IMPACT
There is no fiscal impact associated with this action.
:2:A-- [ - y
Steven A. Mendoza -�
Executive Director
Community Development Agency
19G-2