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Home My WebLink About29A - 15-16 ACTION PLANREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JANUARY 19, 2016 TITLE: 2015 -2016 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT (STRATEGIC PLAN NO. 5) CITY MANAGE CLERK OF COUNCIL USE ONLY: :Y7.:0 ", ❑ As Recommended ❑ As Amended ❑ Ordinance on 1® Reading ❑ Ordinance on 2n° Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Approve a Substantial Amendment to the 2015 -2016 Annual Action Plan for the reallocation of HOME Investment Partnership Grant and Community Development Block Grant funds, and authorize its submission to the U.S. Department of Housing and Urban Development. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting of January 13, 2016, by a vote of 4:0 (Gomez absent), the Community Redevelopment and Housing Commission conducted a public hearing and recommended that the City Council approve a Substantial Amendment to the 2015 -2016 Annual Action Plan for the reallocation of HOME Investment Partnership Grant and Community Development Block Grant funds, and authorize its submission to the U.S. Department of Housing and Urban Development. DISCUSSION In May 2015, the City submitted an Annual Action Plan for fiscal year 2015 -2016 to the U.S. Department of Housing and Urban Development (HUD). The Annual Action Plan is the document whereby the City formally applies to HUD for the annual federal grant allocations and describes how those grant funds will be utilized. Since the approval of the Annual Action Plan, a new HOME rental housing project, and two new Community Development Block Grant (CDBG) eligible park improvement projects have been identified. Rental Housing Project The Santa Ana Arts Collective rental housing project will utilize HOME funds in an amount up to $2,779,282, which includes City administrative costs and project loan to undertake construction of new affordable housing located at 1666 N. Main Street (Exhibit 1). On November 3, 2015 City Council awarded a pre -loan commitment to Meta Housing Corporation for the project. The project will adaptively reuse a late modern five -story office building and site into a community gallery and affordable family development designed for artists of all disciplines. The project will include 37 one - bedroom units, 7 two- bedroom units, and 19 three - bedroom units for a total of 63 affordable rental units. It will also include a community art gallery, an art garden on the ground floor, a maker 29A -1 2016 -2016 Annual Action Plan- Substantial Amendment January 19, 2016 Page 2 space, digital and media lab, music room, performing arts room, and activity programs, This promotes the City's goal of providing long -term affordable housing and meeting the affordable housing goals as identified in the City's Strategic Plan, Housing Element and Consolidated Five - Year Plan. In addition, this substantial amendment for HOME funds may Include future rental housing projects as they are approved by City Council. Park Improvement Projects The 6th and Lacy Street Open Space project will utilize CDBG funds in the amount of $900,000 for the acquisition of 0.42 acres of new open space. The Rant and Myrtle Street Open Space project will utilize $843,000 for the acquisition of 1,09 acres of open space (Exhibit 2). On November 17, 2015 City Council directed staff to move forward with the administrative process required to acquire real properties to provide for new open space using CDBG funds. These projects would add an additional 1,51 acres of park space to low and moderate - income areas of Santa Ana. This promotes the City's goals of providing Increased open space In the City's Strategic Plan and public facilities /Infrastructure improvements in the City's Consolidated Five - Year Plan, The rental housing and park improvement projects described above were not previously identified In the 2015 -2016 Annual Action Plan, and a Substantial Amendment to the Plan (Exhibit 3) is needed to reallocate and recognize funding for these projects. Legal notice for this CDBG and HOME substantial amendment was published in the Orange County Register, La Opinion, and Nguoi Viet News on December 14, 2015. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5, (Community Health, Livability, Engagement and Sustalnability). FISCAL IMPACT There is no fiscal impact associated with this action, K K Ily R�en ers Executive I rector Community Development Agency :1311 » ►UMi Exhibits; 1. 1666 N. Main Street Location Map 2. 6th /Lacy Street and Raitt /Myrtle Street Open Space Location Maps 3. 2015 -2016 Annual Action Plan Substantial Amendment Draft 29A -2 1666 NORTH MAIN STREET Location Map Q I_._J FE 51 NAL u COMMERCIAL 17TH STREET COJ a W < —2 3 0 LU O W u J v W LU LU u LU LU w cc: cc: F- F- I— U-) < U') V) < < 16TH STREET 0 u m comm. LU < u 0 2 0 < 0 Ln 0 :D EOU 15TH STREET F F=]F� 29A-3 EXHIBIT 1 EXHIBIT 1 6 l / Lacy Street and Raitt /Myrtle Open Space Locaton Maps orn ana LUCY arreer wu IPP a E 6th 5t E 6th St E 6th St 1 2 3 z ---7th St A5t n° N j Myrtle ona Haitt Street 1) 710E 6TH STREET 2) 714E 6TH STREET 3) 720E 6TH STREET 4) 41S S RAITT ST 5) 423 S RAITT ST EXHIBIT 2 29A -4 2015/16. 2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN I SUBSTANTIAL AMENDMENT TO THE 2015/16 ACTION PLAN TABLE OF CONTENTS PAGE Introduction....................... ............................... .............................2 Amendments................................................................................................ ..............................3 CitizenParticipation ..................................................................................... ..............................3 Exhibits Exhibit 1- Public Hearing Notice /Summary of Comments and Responses ... ..............................4 Exhibit 2- Proposed Activities ....................................................................... ..............................7 12/14/2015 1 SUBSTANTIAL AMEN DM ENT TO THE 2015.2016 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT TO THE ! 2015/16- 2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2015/16 ACTION PLAN SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2015 -2016 ACTION PLAN INTRODUCTION This document is a Substantial Amendment to the City of Santa Ana's Fiscal Year 2015 -16 Annual Action Plan, which was submitted to the U.S. Department of Housing and Urban Development (HUD) on May 15, 2015. Title 24 Section 91.505 of the Code of Federal Regulations stipulates that participating jurisdictions shall amend their approved plans whenever they make one of the following decisions: 1. To make a change in its allocation priorities or a change in the method of distribution of funds; 2. To carry out an activity, using funds from any program covered by the Consolidated Plan (including program income) not previously described in the action plan; or 3. To change the purpose, scope, location, or beneficiaries of an activity. The Regulation further requires that jurisdictions identify in their citizen participation plans the criteria they will use for determining what constitutes a substantial amendment. Consistent with these requirements, the Citizen Participation Plan adopted by the City of Santa Ana as a component of its 2015/16 — 2019/20 Consolidated Five Year Plan identifies three criteria that will require a substantial amendment: 1. Changes in the use of CDBG funds from one eligible activity to another; 2. An activity is undertaken that was not previously included in the Consolidated Plan or subsequent action plans. 3. More than 30 percent of the most recent annual federal grant allocation is reallocated to other eligible program activities within the fiscal year. The proposed amendment meets one of these three criteria, and therefore requires a substantial amendment. 01/13/2016 29A -6 SUBSTANTIAL AMENDMENT TO THE 2015 -2016 ANNUAL ACTION PLAN 2015/16- 2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN I SUBSTANTIAL AMENDMENT TO THE 2015/16 ACTION PLAN AMENDMENTS The City is amending the 2014 -2015 Action Plan to include the following projects: • HOME Rental Housing Project Name: HOME Rental Housing Project Description: This project will provide HOME funds to undertake construction of rental housing projects. Estimated Cost: $2,779,282 CDBG Public Facilities and Infrastructure Improvements Project Name: Park Improvements -6th and Lacy Street Open Space Project Description: This project will provide CDBG funds to undertake the acquisition of 0.42 acres of new open space for the purpose of park construction. Estimated Cost: $ 900,000 • CDBG Public Facilities and Infrastructure Improvements Project Name: Park Improvements — Raitt and Myrtle Street Open Space Project Description: This project will provide CDBG funds to undertake the acquisition of 1.09 acres of new open space for the purpose of park construction. Estimated Cost: $ 843,000 The total estimated cost of the substantial amendment is $4,522,282. CITIZEN PARTICIPATION In accordance with 24 CPR 91.105(c)(3) for local governments, the substantial amendment Public Notice for the use of CDBG and HOME funds was released for citizen review and comments on December 14, 2015. During the 30 -day public comment period from December 14, 2015 through January 13, 2016 the Public Notice for the Draft Substantial Amendment was made available during regular business hours between 8:00 a.m. and 5:00 p.m., Monday through Friday in the offices of the Community Development Agency, 20 Civic Center Plaza, 6th Floor, Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809, the Main Public Library, 26 Civic Center Plaza, Santa Ana, California and on the city's website. The Community Redevelopment and Housing Commission of the City of Santa Ana will hold a public hearing on January 13, 2016, at 4:30 p.m. at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, CA 92701. Following the 30 -day public comment period and public hearing, the City Council of Santa Ana will hear and vote on the Substantial Amendment to the 2015 -16 Action Plan on January 19, 2016. A copy of the public hearing notice is presented in Exhibit 1. A summary of citizen comments received at the public hearing and responses to these citizen comments are presented in Exhibit 1. 01/13/2016 29A -7 SUBSTANTIAL AMENDMENT TO THE 2015-2016 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT TO THE 1 2015/16- 2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2015/16 ACTION PLAN EXHIBIT 1 SUMMARY OF PUBLIC COMMENTS 8L PROOF OF PUBLICATION 30 -DAY COMMENT PERIOD AND PUBLIC HEARING SUMMARY OF PUBLIC COMMENTS SUMMARY OF PUBLIC COMMENTS RECEIVED DURING 30 -DAY COMMENT PERIOD AND STAFF RESPONSE No public comments received. 01/13/2016 REDEVELOPMENT & HOUSING COMMISSION PUBLIC HEARING: No public comments received. 01/13/2016 29A -8 SUBSTANTIAL AMENDMENT TO THE 2015 -2016 ANNUAL ACTION PLAN 2015/16- 2019 /20 CITY OF SANTA ANA CONSOLIDATED PLAN I SUBSTANTIAL AMENDMENT TO THE 2015/16 ACTION PLAN THE REGISTER 625 N GRAND AVE, SANTA ANA, CA 92701 Telephone (714) 796 -7000 1 Fax (714) 79 &6059 PROOF OF PUBLICATION (2075.5 0.C.PJ State of California ) County of ORANGE ) ss Notice Type: HRG- NOTICE OF HEARING Ad Description: 201 5-201 6 ACTION PLAN I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or Interested In the above entitled matter. I am the principal clerk of the printer and publisher of the THE REGISTER, a newspaper published In the English language In the city of SANTA ANA, county of ORANGE, and adjudged a newspaper of general circulation as dented by the laws of the State of California by the Superior Court of the County of ORANGE. State of California, under date 11/18/1905, Case No. A21046. That the notice, of which the annexed Is a printed copy, has been published In each regular and entire Issue of said newspaper and not in any supplement thereof on the following dates, to -wit 12114/2015 Executed on: 12/14/2015 At SANTA ANA,CA t certify (or declare) under penalty or perjury that the foregoing Is true and correct. -- TM1le space rar flung zmmp only CNS #: 2824541 01/13/2016 5 SUBSTANTIAL AM EN DM ENT TO THE 2015 -2016 ANNUAL ACTION PLAN 29A -9 SUBSTANTIAL AMENDMENT TO THE 1 2015/16- 2019/20 CITY OF SANTA ANA CONSOLIDATED PLAN 2015/16 ACTION PLAN 01/13/2016 EXHIBIT 3 PROPOSED ACTIVITIES 29A -10 SUBSTANTIAL AMENDMENT TO THE 2015 -2016 ANNUAL ACTION PLAN Grantee Name: Santa Ana, CA Project Name; IHOME Rental Housing Description: 1 11131 5 Project #: I JU0GCode: ICA63342 SANTA ANA This project will provide HOME funds to undertake construction of rental housing 24 CFR 92.205 (a) (1). Location: (Priority Need Category Select one: Rental Housing Explanation: Expected Completion Date: 6 /3Wb2.Ohive Cateciory Q Decent Housing Q Suitable Living Environment Q Economic Opportunity Specific Objettives,' Outcome Categories 1 Improve access to affordable rental housing V [❑ Availability/Accessibility R Affordability 2 - ~- 3 w ❑ Sustainability w 10 Housing Units w Proposed 11 10 Housing Units C Underway NE Complete ''.',. u H Accompl. Type: ® Accompl. Type: v -- d a _ -_ - o E L 0 D' Accompl. Type: V Accompl. Type: w Q Proposed Outcome Performance Measure Actual Outcome Matrix Codes ,► Matrix Codes r. Matrix Codes v Matrix Codes - "► Matrix Codes V Matrix Codes 01/13/2016 EXHIBIT 3 29A -11 Grantee Name: Santa Ana, CA Project Name: JQtX of Santa Ana - Public Facilities Im -6th and Lac Street Open S ace Description: IDIS Project #: UOG Code: CA63342 SANTA ANA This project will provide CDBG funds to undertake the acquisition of 0.42 acres of new open space for the purpose of park construction. Program qualifies as for Low /Moderate -Area Benefit per 24 CFR 570.208 (a) (1). Location: !: Priority Need Category Southwest corner of 6th Street and Lacy Street. Select one: Public Facilities _,'► Explanation: Expected Completion Date: 6 /3W.Alve Cateoory Q Decent Housing QQ Suitable Living Environment Q Economic Opportunity s Specific Objectives Outcome Categories 1 Improve the services for low /mod Income persons ❑W Availability/Accessibility ❑ Affordability 2 3. ❑ Sustainability vi 11 Public Facilities v Proposed 1 11 Public Facilities '® c Underway" NE Complete +, w Accompl. Type: `► Accompl. Type: N ®. O E L O a u Accvmpl. Type: Accompl. Type: r Proposed Outcome Performance Measure Actual Outcome 03F Parks, Recreational Facilities 570201(c) ® Matrix Codes Matrix Codes IV Matrix Codes *" Matrix Codes w- Matrix Codes '► m CDBG IV I Proposed Amt. $ 900,000 Fund Source: V i R JActual Amount Fund Source: V - Fund Source: w E i '.. Accompl. Type: ''r" - Accompl. Type: IF to O L IL Accompl. Type: yr Accompl. Type: w 01/13/2016 EXHIBIT 3 29A -12 Grantee Name: Santa Ana, CA Project Name: I City of Santa Ana - Public Facilities Imp -Raitt and M rtle Street Open Space Description: YDYS Project #: UOG Code: CA63342 SANTA ANA This project will provide CDBG funds to undertake the acquisition of 1.09 acres of new open space for the purpose of park construction. Program qualifies as for Low /Moderate -Area Benefit per 24 CFR 570.208 (a) (1). Location: '- -Priority Need Category Northeast corner of Raitt Street and Myrtle Street. Select One: Public Facilities �'.. Explanation: Expected Completion Date: 6/3 -06e ive Catecory O Decent Housing Q Suitable Living Environment Q Economic Opportunity Specific 'objectives '• Outcome Categories 1 Improve the services for low /mod income persons �► Availability /Accessibility El Affordability 2 3 ^P Sustainability v, 11 Public Facilities r Proposed 1 11 Public Facilities V _ c - Underway dE Complete 7 Accompl. Type: ♦ Accompl. Type: r U v a o E L C Accompl. Type: ♦' Accompl. Type: yr a Proposed Outcome Performance Measure Actual Outcome 03F Parks, Recreational Facilities 570.201(c) w Matrix Codes w Matrix Codes W Matrix Codes -W Matrix Codes r Matrix Codes M CDBG w Proposed Amt. $ 843,000 Fund Source: V. i O - Actual Amount >- Fund Source: V Fund Source: V E i Accompl. Type: 'If Accompl. Type: '�► Oi O 0. '.. Accompl. Type: '+r 'Accompl. Type: '"/ 01/13/2016 EXHIBIT 3 29A -13 29A -14