TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Russell Bunim, Community Development Director
1. Subject
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Third Amendment to the Fiscal Year 2021-2022 Annual Action Plan and Amendment to the HOME Investment Partnerships-American Rescue Plan.
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2. Summary
A third Amendment to the Fiscal Year 2021-2022 Annual Action Plan and Amendment to the HOME Investment Partnerships-American Rescue Plan is needed to increase the award amount allocated to the City of Orange.
3. Recommended Action
recommendation
1. Approve the Third Amendment to the 2021-2022 Annual Action Plan and submit to the Department of Housing and Urban Development.
2. Approve the Amendment to the HOME-ARP Allocation Plan and submit to the Department of Housing and Urban Development.
3. Authorize the City Manager or their designee to prepare and execute documents related to the Third Amendment of the 2021-2022 Annual Action Plan and Amendment to the HOME-ARP Allocation Plan on behalf of the City.
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4. Fiscal Impact
The total expenditure for this amendment is $1,862 and will be reimbursed by the HOME-ARP Fund (317).
100-0000-50999-256012-20 General Fund - Miscellaneous Expenses
5. Strategic Plan Goals
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. Discussion and Background
The American Rescue Plan Act of 2021 (ARP) allocated $5 billion to jurisdictions that qualified for the HOME Investment Partnerships Program (HOME) in Fiscal Year 2021. The HOME-ARP program is intended to support housing, services, and shelter for individuals experiencing homelessness, those at risk of homelessness, victims of domestic violence, and other vulnerable populations.
The City of Orange was deemed eligible to receive an allocation of $1,655,186, which was approved by the U.S. Department of Housing and Urban Development (HUD) following the adoption of the City of Orange HOME-ARP Allocation Plan on May 8, 2023.
On June 3, 2025, HUD notified the City of an administrative correction to the original allocation. As a result, the City’s entitlement was adjusted to a total award of $1,657,048, an increase of $1,862.
HOME-ARP Allocation Plan (Allocation Plan)
The Allocation Plan outlines the City’s approach to the consultation and public participation process in accordance with the requirements for developing the plan and details how HOME-ARP funds will be utilized.
The approved Allocation Plan designates HOME-ARP funds to support eligible expenses associated with the Hub Resource Center (HRC), operated by The Hub OC, a local nonprofit organization. The HRC delivers essential services to the City’s unhoused and most vulnerable populations including laundry, restrooms, food, and water. In addition, The Hub OC collaborates with various partner agencies to provide on-site appointments and referrals for a broad range of services such as medical, dental, and mental health care; social services; veterinary care; and housing and shelter referrals.
To receive the adjusted funding amount, the City is required to amend its Allocation Plan to reflect the updated use of funds. The proposed amendment increases the allocation for supportive services from $1,581,927 to $1,583,789, utilizing the additional $1,862 to reimburse eligible expenses previously covered by the General Fund. The administrative and planning allocation of $83,259 remains unchanged, resulting in a revised total allocation of $1,657,048.
2021-2022 Annual Action Plan (AAP)
In addition to the Allocation Plan, the City is required to amend its 2021-2022 Annual Action Plan (AAP). The AAP serves as a comprehensive summary of the strategies, activities, and federal and non-federal resources allocated each year to address the priorities and objectives outlined in the City’s Consolidated Plan (Con Plan). The Con Plan establishes the City’s housing and community development goals, ensuring alignment with the objectives of the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs.
The 2021-2022 AAP represents the funding year in which the original HOME-ARP entitlement was awarded. The Third Amendment to the AAP reflects an increase in HOME-ARP funding for supportive services from $1,581,927 to $1,583,789 (Attachment 2).
Previous amendments to the 2021-2022 AAP include:
1. First Amendment - Increased funding for:
• ADA Wheelchair Access Ramp Project: from $68,430 to $138,430
• El Modena Library ADA Improvements: from $65,000 to $180,000
• Beverly Neighborhood Street Rehabilitation: from $611,830 to $638,722
2. Second Amendment - Incorporated the original HOME-ARP allocation of $1,655,186.
Citizen Participation Plan
The City’s Citizen Participation Plan (CPP) serves as a framework to ensure participation from the community and interested stakeholders in the development of the Annual Action Plan (AAP). In accordance with the adopted CPP, an increase exceeding 20% of the original allocation to an approved project or activity constitutes a substantial amendment, triggering a 30-day public review period and a public hearing before the City Council.
The proposed $1,862 increase to the HOME-ARP allocation does not meet the threshold for a substantial amendment, as it represents less than 20% (or $316,385.40) of the original HOME-ARP funds designated for supportive services to prevent homelessness. Therefore, this amendment requires only City Council approval prior to submission to HUD for final authorization.
Staff recommends the approval of the Third Amendment to the 2021-2022 Annual Action Plan and Amendment to the HOME-ARP Allocation Plan in order to receive the additional funding.
7. ATTACHMENTS
• HOME-ARP Grant Agreement
• Third Amendment to the 2021-2022 Annual Action Plan