TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Russell Bunim, Community Development Director
1. Subject
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Acceptance of funds allocated by the State of California under Senate Bill 104 to the City for support of the Hub Resource Center. Resolution No. 11534.
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2. Summary
Resolution No. 11534 acknowledges that the City of Orange has received the total allocated funding from the State of California Department of Housing and Community Development in the amount of $3,000,000 allocated under the Senate Bill 104 (Budget Act of 2023) for support of the Hub Resource Center.
3. Recommended Action
recommendation
1. Adopt Resolution No. 11534. A Resolution of the City Council of the City of Orange acknowledging the receipt of funds allocated by the State of California under Senate Bill 104 to the City for support of the HUB Resource Center.
2. Accept into the City’s revenue budget $3,000,000 in grant funds from the Budget Act of 2023 to:
312.6001.45290.30206 SB2-Building Homes & Jobs Act State Grant Funding HRC
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4. Fiscal Impact
None.
5. Strategic Plan Goals
Goal 3: Enhance and promote quality of life in the community
e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. Discussion and Background
Section 93 of Senate Bill 104 (SB 104) amended Section19.54 of the Budget Act of 2022 and 2023 and added items of appropriation to the California State Legislature’s spending plan. The amendment included specific allocations to the City of Orange in Sections 19.564(a)(32) for $1,000,000 and Section 19.564(a)(66) for $2,000,000 for the support of the Hub Resource Center. The budget allocations were granted in response to a budget request for the Hub Resource Center submitted by Townsend Public Affairs on behalf of the City to Senator Thomas Umberg and Assemblyman Avelino Valencia.
On December 12, 2023, the City received the funding, totaling $3,000,000 from the SB 104 allocations through the California Department of Housing and Community Development (HCD), the pass-through entity authorized under Section 19.564 of the Budget Act of 2023 to determine the best method of allocating the funds to recipients. HCD informed staff that a standard agreement would not be required for the receipt of funds.
Section 19.564 delegates to the City (as a recipient) the authority to establish the allowable uses of the funds for the purpose of supporting the Hub Resource Center. On February 27, 2024, staff reached out to the Offices of Senator Tom Umberg and Assemblyman Avelino Valencia for additional guidance and clarification on the parameters for use of the funding. On February 28, 2024, Senator Umberg’s Office stated that the City should align expenses with the language in the actual law and budget statute, which states that the funding is for the “support” of the Homeless Resource Center and in alignment with the information that was provided to the Senate Budget Committee, which states:
“City of Orange, Homeless Resource Center: This request would allocate to the City of Orange a one-time General Fund disbursement of $2 million for the Homeless Resource Center. The Homeless Resource Center’s partnership is guided by the proven Continuum of Care model and meets the daily needs of the unhoused population. This model aims to move them through a process that helps them recognize their issues and concerns, while providing resources for overcoming them, and then offers a path towards reintegration. With the ultimate goal of getting the unhoused population into a stable housing situation by providing services that help remove barriers to housing, including childcare, counseling, addiction recovery, job skills and placement, medical, dental, and vision care.”
Staff will return at a future date for City Council consideration, a proposed determination of eligible expenses for support of the Hub Resource Center.
7. ATTACHMENTS
• Resolution No. 11534