HomeMy WebLinkAbout12 - PH-1 - FY2021-2022 Annual Action Plan Identify - 5/18/20211
CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 18, 2021 ITEM NUMBER: PH-1
SUBJECT: FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN IDENTIFYING
FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS GRANT
(HOME) PROGRAMS
DATE: APRIL 20, 2021
FROM: DEVELOPMENT SERVICES DEPARTMENT/HOUSING AND
COMMUNITY DEVELOPMENT
PRESENTATION
BY:
WILLA BOUWENS-KILLEEN, AICP, ZONING ADMINISTRATOR
MIKE LINARES, CDBG/HOME COORDINATOR
FOR FURTHER
INFORMATION CONTACT:
MIKE LINARES, CDBG/HOME COORDINATOR
714.754.5678
mike.linares@costamesaca.gov
WILLA BOUWENS-KILLEEN, AICP, ZONING
ADMINISTRATOR
714.754.5153
willa.bouwenskilleen@costamesaca.gov
RECOMMENDATIONS:
1. Hold a Public Hearing regarding the 2021-2022 Annual Action Plan.
2. Approve the recommended allocation of $1,121,215 for the Fiscal Year 2021-2022
Community Development Block Grant.
3. Approve the recommended allocation of $501,749 for the Fiscal Year 2021-2022
HOME Investment Partnerships Grant.
4. Adopt Resolution No. 2021-XX (Attachment 1) in order to:
Approve the 2021-2022 Annual Action Plan.
Authorize the City Manager, or the City Manager’s designee, to submit the
2021-2022 Annual Action Plan to the U.S. Department of Housing and Urban
Development.
2
Designate the City Manager, or the City Manager’s designee, as the official
representative of the City to administer the programs and to execute and submit
all required agreements, certifications, and documents required by HUD, and
execute all subrecipient agreements for the use of funds approved in the 2021-
2022 Annual Action Plan.
5. Provide direction to staff to amend the parameters for the City’s Housing
Rehabilitation Loan and Grant Program including:
Decrease the housing rehabilitation loan interest rate.
Increase the household income limit for the housing rehabilitation grant
program.
Increase the maximum grant amounts.
Revise program policies and procedures and return to the City Council for
approval.
BACKGROUND:
Costa Mesa is a recipient of two U.S. Department of Housing and Urban Development
(HUD) grant program funds, the Community Development Block Grant (CDBG) Program
and the Home Investment Partnerships Program (HOME). These two HUD programs
annually provide approximately $1.5 million to the City and can be used for various
activities that assist low- and moderate-income Costa Mesa residents.
The Housing and Community Development Division (HCD) of the Development Services
Department is responsible for administering the City’s CDBG and HOME grants. CDBG
and HOME-funded activities must reflect the needs outlined in the City’s Consolidated
Plan. The Consolidated Plan is a five-year planning document required by HUD for all
communities receiving federal community development grant funds. The current
Consolidated Plan was approved by the City Council in May of 2020 and covers Fiscal
Year (FY) 2020-2021 through FY 2024-2025. The Consolidated Plan can be found on
the City’s website (City of Costa Mesa Consolidated Plan).
Based on an analysis of housing/community needs, market analysis, and input from the
community, the following five-year goals and priorities have been identified for
implementation in the 2020-2024 Consolidated Plan:
Goal 1: Housing Preservation - To provide decent and affordable housing through a
variety of activities, including owner-occupied housing rehabilitation, code
enforcement, and rental housing acquisition/rehabilitation
Goal 2: Infrastructure and Facility Improvements - To enhance the suitability of the
living environment through improvements to public infrastructures and facilities
Goal 3: Homeless Continuum of Care - To provide supportive services and housing
assistance for homeless persons and homelessness prevention
3
Goal 4: Public Social Service- To provide services for low- and moderate-income
persons, and those with special needs, including fair housing services
Goal 5: Program Administration- To provide administration of the CDBG and HOME
programs, ensuring effective and efficient delivery of programs and services and
complying all HUD program requirements
The Consolidated Plan is a five-year strategic plan that identifies priority housing and
community needs, strategies to address needs, and programs/resources to address
these needs. The Annual Action Plan is the one-year expenditure plan for the use of
HUD’s annual allocation of funds. The City must submit the Annual Action Plan to comply
with HUD requirements and continue to receive these federal funds. HUD has notified the
City of Costa Mesa that it will receive $1,121,215 in CDBG funds for FY 2021-2022. This
grant amount is $15,269 less than the City’s current year CDBG allocation (a decrease
of 1.3 percent). The City’s 2021 HOME grant is $501,749, $4,071 less than the City’s
current year HOME grant (a decrease of 0.8 percent).
The City is required to provide a 30-day public comment period and hold a public hearing
before approving and submitting the Annual Action Plan to HUD.
ANALYSIS:
As a recipient of CDBG and HOME funds, the City of Costa Mesa is required to prepare
a five-year strategic plan known as the Consolidated Plan. The City Council approved the
current Consolidated Plan in May 2020 - its five-year cycle will end on June 30, 2025. The
2020-2024 Consolidated Plan identifies priority housing and community needs and five-
year goals to address these needs. The 2021-2022 Annual Action Plan outlines how the
City will utilize its annual allocation of CDBG and HOME funds for eligible activities that
address priority needs identified in the Consolidated Plan. The 2021-2022 Annual Action
Plan is the second year of the current Consolidated Plan’s five-year cycle.
2021-2022 Annual Action Plan
Both CDBG and HOME funds have specific program requirements. For example, CDBG
funds must be utilized to achieve one of three national objectives: 1) elimination of slums
and blight, 2) meet an urgent need (e.g., declared disaster), or 3) benefit low- and
moderate-income persons. HOME funds must be used to preserve or increase housing
opportunities for low-income residents living in Costa Mesa. Outlined below are the
programmatic recommendations for the use of FY 2021-2022 CDBG and HOME funds.
Lower income persons are defined by HUD as an individual with a household income
equal to or less than 80 percent of the County median income. Income limits are based
on family size and are adjusted annually by HUD. HUD 2021 Orange County income
limits are listed below:
4
Table 1 – HUD 2021 Income Limits for Orange County
Household Size Household Income at
50% of OC Median Income
Household Income at
80% of OC Median Income
1-Person $47,100 $75,300
2-Person $53,800 $86,050
3-Person $60,550 $96,800
4-Person $67,250 $107,550
5-Person $72,650 $116,200
6-Person $78,050 $124,800
7-Person $83,400 $133,400
8-Person $88,800 $142,000
CDBG Funds
HUD has notified the City that it will receive $1,121,215 in CDBG funds for FY 2021-2022.
Additionally, $211,300 in prior year funds will be available for CDBG-funded activities.
Staff is recommending funding in five primary program areas: 1) capital improvements, 2)
public services grants, 3) housing rehabilitation program, 4) community
improvement/code enforcement, and 5) program administration.
Capital Improvements
CDBG funds may be used to improve public facilities and infrastructure, provided the
primary beneficiaries are low- and moderate-income Costa Mesa residents. City HCD staff
solicited proposals for capital improvement projects from other City departments. The Public
Services Department requested $849,000 for the Wilson Street Pavement Rehabilitation
Program.
For FY 2021-2022, staff recommends allocating $565,777 in CDBG funds for the
proposed Wilson Street Pavement Rehabilitation project. The project entails
reconstructing failed pavement, including grinding down and overlaying the existing
pavement with rubberized asphalt and upgrading striping to include bike lanes. The
project will also include repairing existing sidewalks, wheelchair ramps, driveways, and
curb gutter to meet City and ADA standards. Public Services staff has identified Capital
Improvement funds to supplement CDBG funding for this project.
Public Service Grants
The City is allowed to earmark up to 15 percent of its annual CDBG allocation for public
service grants. Based on the City’s FY 2021-2022 CDBG grant allocation, a maximum of
$168,182 is available for public service grant funding. Public services are defined as social
service programs that primarily benefit low- and moderate-income residents.
The City is required by HUD to fund a Fair Housing Program, which provides education,
counseling and enforcement services for Costa Mesa households. Staff recommends
allocating $20,000 to fund the Fair Housing Foundation to provide these services and
comply with federal regulations, leaving $148,182 available for public service grants.
5
On February 2, 2021, the City released a request for PSG applications. On February 25,
2021, the City received eight applications requesting a total of $175,000 in public service
grants. On March 24, 2021, the City’s Housing and Public Service Grant Committee
(H&PSG Committee) convened to review grant applications and developed public service
grant funding recommendations for the City Council’s consideration. When developing
funding recommendations, the H&PSG Committee utilized the Council-approved
application rating criteria and funding limitations, including the minimum $15,000 grant
requirement. The H&PSG Committee recommends funding for seven of the eight
applications as shown in Table 2, below.
Attachment 2 summarizes the H&PSG Committee’s ratings, rankings, and grant
recommendations for the City Council’s consideration. Attachment 2 also includes a
summary of grant applications and a three-year funding history of CDBG public service
grants. The H&PSG Committee’s grant recommendations are also listed in the proposed
CDBG budget below. Complete public service grant applications are posted on the City’s
website (Costa Mesa 2021-22 Public Service Grant Applications).
Housing Rehabilitation Administration
Staff is proposing to allocate $41,688 in CDBG funding for staff and other direct costs
associated with the City’s HUD-funded – including HOME funds -- housing rehabilitation
program. Examples of eligible costs include staff costs associated with the preparation of
work specifications, property inspections, and loan/grant application processing. See the
discussion under the HOME funds section for further details regarding the Housing
Rehabilitation program.
Code Enforcement
CDBG funds may be used for code enforcement activities provided the program primarily
benefits low- and moderate-income persons, and that such activities “together with public
or private improvements, rehabilitation, or services to be provided, may be expected to
arrest the decline of the area.” The crux of this regulation is that any CDBG-funded code
enforcement activity must have a direct nexus to rehabilitating or improving housing in an
eligible area. For FY 2021-2022, staff recommends an allocation of $335,810 in CDBG
funds to support the work effort of two full-time and one part-time community improvement
officers. Activity will be limited to eligible low and moderate-income Census Tract Block
Groups identified by HUD. The goal of community improvement activities in these areas
is to connect property owners, residents and other members of this community with
resources and programs to resolve substandard blighted housing conditions in an overall
effort to improve the quality of life within these neighborhoods.
Administration
HUD allows the City to allocate up to 20 percent of its annual grant for planning and
program administration. Based on the City’s FY 2021-2022 grant and staff’s proposed
allocations, a maximum of $224,243 is available for program administration. Eligible
program administration expenditures include program staff salaries and benefits, contract
services, legal services, and direct program operating costs.
6
Table 2: Proposed FY 2021-2022 CDBG Budget
AVAILABLE FUNDS
2021-2022 CDBG Allocation $1,121,215
Prior Year Funds $211,300
TOTAL: $1,332,515
PROPOSED PROGRAMS/PROJECTS
Code Enforcement
Salary & Benefits - 2 FT & 1 PT Officers $335,810
Subtotal: $335,810
Capital Improvement Projects
Wilson Street Pavement Rehabilitation $565,777
Subtotal: $565,777
Public Service Grants (15% Maximum)
City of Costa Mesa – Senior Services Counselor $30,000
Community SeniorServ-Lunch Café $15,000
Community SeniorServ-Meals on Wheels $15,000
Families Forward $20,000
Mercy House/Bridge Shelter $25,000
Project Hope Alliance $20,000
Youth Employment Services $20,000
Fair Housing Foundation ** $20,000
Subtotal: $165,000
Housing Rehabilitation
Housing Rehabilitation Administration $41,688
Subtotal: $41,688
Administration (20% Maximum)
CDBG Program Administration $224,240
Subtotal: $224,240
TOTAL: $1,332,515
** Required by HUD
HOME Funds
HUD has notified the City that its FY 2021-2022 HOME grant allocation will be $501,749,
a decrease of approximately 0.8 percent from the current year grant. Additionally, $50,000
in anticipated program income will be available for HOME-funded activities.
The City must reserve a minimum of 15 percent of annual HOME funds for a housing
project to be undertaken by a qualified nonprofit housing developer known as a
Community Housing Development Organization (CHDO). The City is also allowed to use
a maximum of 10 percent of HOME funds for program administration. Staff is proposing
to allocate FY 2021-2022 HOME funds for four activities: 1) Single-family housing
rehabilitation loans and grants program, 2) Tenant Based Rental Assistance program, 3)
CHDO reservation (required), and 4) program administration.
Housing Rehabilitation Program
7
The City of Costa Mesa single-family rehabilitation loan program was adopted in the mid
1980’s, funded by The Department of Housing and Urban Development (HUD) CDBG
Funds, to provide financial assistance to qualified owner-occupied single family home
properties. The single-family rehabilitation grant funding began in 1991, also using CDBG
funds.
In 1997, the City Council approved the use of HOME funds as an additional funding
source to expand the program through funds made available pursuant to the federal
HOME Investment Partnerships Act and HOME Investment Partnerships Program. The
program was virtually the same except that rehabilitated properties after rehabilitation
value could not exceed 95 percent of HUD median purchase price for the City.
HOME funds may be used to assist single-family homes, including condominiums, and
townhomes. The subject property must be owner-occupied and serve as the principal
residence of the eligible low to very low income household applying to participate in the
Program. Program funds are used to correct nonconforming uses, remedy code
violations, and repair and improve deteriorating properties in an effort to provide decent
and safe housing. From July 1, 2019 through June 30, 2020, 19 grants were issued. Staff
is recommending allocating $276,310 for the City’s Housing Rehabilitation Loan and
Grant Program. Staff is also recommending modifications to the current program
described below.
Staff Recommended Changes to the Program
The initial HOME-funded Housing Rehabilitation Program offered a loan with zero percent
interest that was due and payable at the time of sale or transfer of a subject property. In
2013, the City Council modified the Loan and Grant Program to increase the interest rate
from zero percent (0%) to three percent (3%) simple interest per annum. Additionally,
grants were limited to households earning 50 percent of HUD median income levels for
Orange County versus the 80 percent maximum allowed by the HOME program. The
purpose of these program modifications was to realize a return on the public’s investment
in the community’s housing stock and to focus resources on lower-income homeowners
such as seniors and persons with disabilities. While the desired outcomes were achieved,
the program modifications also changed the general program outputs.
Loan Program Interest Rate
The City’s loan program interest rate (three percent simple interest) does not provide an
incentive to many potential program participants. Many homeowners can qualify for a
market-rate mortgage or home improvement loan with a lower interest rate or other
favorable terms in the current housing market. Most Orange County cities of similar size
as Costa Mesa, which offer a HUD-funded rehabilitation program, offer a zero percent
deferred payment loan.
Staff has observed that loan applicants are hesitant to borrow funds without a cap on the
accrued interest. For example, a typical $50,000 loan will accrue $1,500 in interest per
year. If a program participant repays the home loan after five years, the accrued interest
8
is $7,500; $15,000 if the home loan is repaid after ten years. Many potentially eligible
program participants have expressed concern at the interest rate and the lack of a cap
on accrued interest associated with the program.
Eligible Household Income Limits
Most units rehabilitated with the City’s grant program are mobile homes. By limiting grants
to households with incomes under 50 percent of the HUD median income level for Orange
County, many HOME-eligible lower-income homeowners are excluded from participating
in the City’s program, especially owners of single-family homes, who tend to have higher
incomes – this often includes homeowners referred to the program by Community
Improvement staff as a means of addressing a substandard housing issue.
Grant Program Caps
Grant program limits have not been adjusted for inflation for close to ten years. Currently,
grants are capped at $10,000 for mobile homes and $14,000 for single-family units. An
additional one-time grant (up to $10,000) is available if additional funds are necessary to
address all code deficiencies of a unit. Additionally, a grant to address lead-based paint
issues is also available. Lead-based paint grants range from $5,000 to $10,000.
Staff Recommendations
Staff regularly receive inquiries from residents regarding the City’s housing rehabilitation
assistance program, including the loan program. However, once program details are
provided, including the application of the three-percent simple interest, residents
consistently opted not to proceed with the loan. The most common reason for choosing
not to pursue the loan is the ultimate loss of equity after the repayment of accrued interest
on the City’s housing rehabilitation loan. Since 2013, the City has made two loans under
the current program guidelines, compared to 23 loans in the seven years prior to June
2013 under different program guidelines. As such, staff believes that the interest rate in
particular is a barrier to the loan program’s effectiveness.
To address these program limitations, staff is recommending the following modifications
to the City’s Housing Rehabilitation Program:
1) Replace the rehabilitation loan’s three percent interest (3%) with zero percent (0%)
interest. A rehabilitation loan will be due and payable when the improved property
is sold or transferred. Additionally, the borrower must maintain the improved
property as their primary residence for the loan term.
2) Adjust the grant program income limits to allow households with incomes up to 80
percent of the HUD median income level for Orange County to be eligible for
rehabilitation grants.
3) Increase the grant amount for mobile homes from $10,000 to $12,500, and for
single-family units from $14,000 to $17,500.
Approval of proposed program modifications may not only remove the accrued interest
barrier, but broaden the resident pool that can qualify for grants, and provide sufficient
funding to account for the increasing costs of construction labor and materials. Ultimately,
9
the proposed modifications may encourage property and neighborhood improvement,
especially in the lower-income areas of the City. Due to the amount of staff time that will
be necessary to modify program policies and procedures, and forms and documents,
staff seeks the City Council’s authorization to pursue program changes. Staff will return
to the City Council for approval of the modified program.
Tenant Based Rental Assistance (TBRA)
The current fiscal year is the first year of the City’s pilot TBRA program. The TBRA
program provides financial assistance to households to help them afford housing costs
for market-rate rental units. HOME TBRA programs differ from other types of rental
housing subsidy activities in three ways:
TBRA helps individual households rather than subsidizing a rental project.
TBRA assistance can move with the tenant.
The level of subsidy is based on the income of the household, the unit the
household selects, and the City’s rent standard (typically established by the local
Housing Authority).
The 2020-2021 Annual Action Plan allocated $150,000 to initiate a TBRA program. In
November 2020, the City Council approved an agreement with Families Forward to
administer the TBRA program on behalf of the City for two years. The recommended
$150,000 will be available to provide rent subsidies in conjunction with the second year
of the Families Forward contract.
Community Housing Development Organization (CHDO) Funds
HOME program regulations require that a minimum of 15 percent of the City’s annual grant
allocation be reserved for a CHDO (a community-based nonprofit development entity).
Based on the City’s FY 2021-2022 HOME grant, $75,265 is the minimum CHDO set-aside
requirement. No CHDO-eligible project is identified at this time.
Administration
The City is allowed to use up to ten percent of its annual grant for HOME program
administration. Based on the City’s FY 2021-2022 grant, $50,174 is available for HOME
program administration. Eligible administration expenditures include program staff
salaries and benefits, contract services, and legal services.
10
Table 3: Proposed FY 2021-2022 HOME Budget
AVAILABLE FUNDS
2021-2022 HOME Allocation $501,749
Lien/Loan Repayment $20,000
Investment Earnings $30,000
TOTAL: $551,749
PROPOSED PROGRAMS/PROJECTS
Housing Rehabilitation
Housing Rehab Loans & Grants (1 loan & 10 grants) $276,310
Subtotal: $276,310
Tenant Based Rental Assistance
Rental Assistance (4 households) $150,000
Subtotal: $150,000
CHDO Reserve (15% Minimum)
CHDO Reservation – Project to be determined $75,265
Subtotal: $75,265
Administration (10% Maximum)
FY 2021-2022 HOME Program Administration $50,174
Subtotal: $50,174
TOTAL: $551,749
Fiscal Year 2021-2022 is the second year of the 2020-2024 Consolidated Plan cycle. The
Action Plan serves as the link between the objectives and goals listed in the Consolidated
Plan with activities to be carried out during a 12-month period that address priority needs.
The period covered by the 2021-2022 Action Plan begins July 1, 2021, and ends June
30, 2022.
Noticing Requirements
As required by HUD, a notice was published in local newspapers on April 16, 2021,
inviting the public to review and comment on the draft 2021-2022 Annual Action Plan. The
comment period began April 17, 2021, and will conclude on May 17, 2021. The notice
also announced the May 18, 2021 City Council public hearing. At the time of this report,
no comments have been received.
ALTERNATIVES CONSIDERED:
The City Council can choose not to fund the proposed activities recommended by staff
and allocate CDBG or HOME funds to other eligible activities. The City Council can also
direct staff to not submit the Action Plan; however, if the City does not submit the Action
Plan, HOME funds will most likely be returned to the U.S. Treasury, and the City’s CDBG
funds will be distributed proportionally among other Orange County jurisdictions that
receive CDBG funds.
11
FISCAL REVIEW:
This action does not have a fiscal impact to the General Fund. In FY 2021-22, HUD will
be submitting $1,121,215 in CDBG funds and $501,749 in HOME Funds to cover the
programs outlined above.
LEGAL REVIEW:
The City Attorney’s Office has reviewed and approved this agenda report and the
attached resolution as to form.
CITY COUNCIL GOALS & PRIORITIES:
Goal 5: Diversify, stabilize and increase housing to reflect community needs.
CONCLUSION:
The draft 2021-2022 Annual Action Plan is prepared according to HUD regulations and
outlines how the City will utilize FY 2021-2022 CDBG and HOME funds to meet the
objectives and goals of the federal CDBG and HOME programs. Staff recommends that
the City Council hold a public hearing to obtain public input and adopt the Resolution
approving the draft 2021-2022 Annual Action Plan.
______________________________ ______________________________
MIKE LINARES WILLA BOUWENS-KILLEEN, AICP
CDBG/HOME Coordinator Zoning Administrator
______________________________ ______________________________
JENNIFER LE CAROL MOLINA
Director of Economic and Development Finance Director
Services
______________________________
KIMBERLY HALL BARLOW
City Attorney
Attachments: 1 – Resolution
2 – 2021-2022 CDBG Public Service Grant Recommendations
3 – Draft 2021-2022 Annual Action Plan
CITY COUNCIL AGENDA REPORT
Supplemental Memo
MEETING DATE: MAY 18, 2021 ITEM NUMBER: PH-1
SUBJECT: FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN IDENTIFYING
FUNDING PRIORITIES FOR THE COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS GRANT
(HOME) PROGRAMS
DATE: MAY 18, 2021
FROM: DEVELOPMENT SERVICES DEPARTMENT/ PLANNING DIVISION
PRESENTATION BY: MIKE LINARES, CDBG/HOME COORDINATOR
FOR FURTHER INFORMATION
CONTACT:
MIKE LINARES, CDBG/HOME
COORDINATOR
714.754.5678
mike.linares@costamesaca.gov
On February 25, 2021, the City received a letter from the U.S. Department of Housing
and Urban Development (HUD) notifying the City it would receive $1,121,215 in
Community Development Block Grant (CDBG) funds this year.
On May 3, 2021, HUD notified the City that there had been an error and that the CDBG
allocation would be $ 1,137,737 (an increase of $16,522). On May 11, 2021 the City was
notified that the original February allocation was the correct CDBG allocation amount. As
such, staff reflected the February 2021 CDBG allocation in the original staff report and
Annual Action Plan.
On May 13, 2021, the City was notified that the May 2021 CDBG allocation amount was
correct and is awaiting an official letter from HUD to clarify this discrepancy. Given that
HUD is still determining the exact CDBG allocation, staff recommends that the City
Council include in its motion the following provision which authorizes the City Manager
(upon final award by HUD) to appropriate any additional CDBG funds (beyond those
described in the staff report) to the Wilson Street pavement rehabilitation project.
• Authorize the City Manager (upon final award by HUD) to appropriate any
additional CDBG funding to the Wilson Street pavement rehabilitation project.
'�,kulmWk
JE N
--\-
DireWbr of Econom' and Development
Services
2021-2022
ANNUAL
ACTION PLAN
City Council Meeting
May 18, 2021
v v
2
CONSOLIDATED PLAN
•The Consolidated Plan is a 5-year strategic plan approved
by the City Council in May 2020
•FY 2020-21 through FY 2024-25
•Identifies strategies (projects & programs) to address community
needs
•Annual Action Plan is adopted to allocate CDBG and
HOME funds awarded by HUD to programs identified in
the 5-year Consolidated Plan
CONSOLIDATED
PLAN
PRIORITY NEEDS
AND GOALS
Consolidated Plan Goal & Description
1
Housing Preservation
To provide decent & affordable housing through a variety of
activities, including owner-occupied housing rehabilitation,
code enforcement & rental housing acquisition/ rehabilitation
2
Infrastructure and Facility Improvements
To enhance the suitability of the living environment through
improvements to public infrastructures & facilities
3
Homeless Continuum of Care
To provide supportive services & housing assistance for people
experiencing homelessness & homeless prevention
4
Public Social Services
To provide services for low- & moderate-income persons &
those with special needs (including fair housing services)
5
Program Administration
To provide administration of the CDBG & HOME programs,
ensuring effective & efficient delivery of programs & services &
complying all HUD program requirements
v v
4
FY 2021-2022 FUNDING
•Total of $1.62 M from HUD this year
•Community Development Block Grant -CDBG
‒$1,121,215
‒Approximately 1.3% less than current FY ($15,269)
•HOME Investment Partnerships Grant -HOME
‒$501,749
‒Approximately 0.8% less than current FY (-$4,071)
5
2021-2022 CDBG FUNDING
1.Housing Rehabilitation:
$41,688
2.Public Service Grants:
$165,000
3.Capital Project:
$565,777
4.Code Enforcement:
$335,810
5.Administration:
$224,240
Code
Enforcement
25%
Capital Project
43%
Housing Rehab
Admin
3%
Public Service
Grants
12%
Administration
17%
CDBG Recommendations
6
PUBLIC SERVICE GRANTS
•$165,000 available for Public Service Grants
•8 applications (plus Fair Housing program)
•Requesting $195,000
•Housing & Public Service Grant Ad-hoc Committee
•March 24, 2021 meeting
•Developed funding recommendations
•7 of the 8 applications were recommended, plus funding the
Fair Housing Foundation (HUD required)
v
7PUBLIC SERVICE GRANTS
Applicant Name Population
to Serve
Amount
Requested
Avg.
Rating
Score
FY 21-22 Grant
Recommendation
Mercy House – Bridge Shelter Homeless
Persons $25,000 91.9 $25,000
City of CM Senior Social Services Seniors $30,000 85.2 $30,000
Project Hope Alliance Youth $20,000 80.9 $20,000
Families Forward Homeless
Persons $30,000 79.1 $20,000
Community SeniorServ – Meals on
Wheels Seniors $15,000 78.6 $15,000
Community SeniorServ – Lunch Café Seniors $15,000 78.4 $15,000
Youth Employment Services Youth $25,000 77.0 $20,000
Fair Housing Foundation** Low/Mod $20,000 NA $20,000
**Required by HUD TOTAL $165,000
8
PUBLIC SERVICE GRANTS
• Seniors - $60,000
• Homeless Services –
$45,000
• Youth – $40,000
• Low/Moderate – $20,000
Seniors
37%
Homeless
Services
27%
Low &
Moderate
12%
Youth
24%
Public Service Grant Recommendations
v v
9
CDBG ALLOCATION REVISIONS
•February 25, 2021 – $1,121,215
•May 3, 2021 – $1,137,737
• Increase of $16,522 (1.5%)
•May 11, 2021 –HUD indicated the February allocation is correct
•May 13, 2021 –HUD indicated the May allocation is correct
•Official letter from HUD is pending to clarify this discrepancy
•Staff recommends the City appropriate any additional
CDBG funds (as modified by HUD) to the Wilson
Street pavement project
10
2021-2022 HOME FUNDING
1. Housing Rehabilitation:
$276,310
2. Tenant Based Rental
Assistance (TBRA):
$150,000
3. Community Housing
Development
Organization (CHDO)
Reserve: $75,265
4. Administration: $50,174
Housing Rehab
50%
TBRA
27%
Housing/CHDO
14%
Admin
9%
HOME Recommendations
v v
11
HOUSING REHAB PROGRAM REVISIONS
•Recommended rehab program modifications
•Decrease from 3% to 0% interest, deferred payment loan
•Adjust household income limit for grants to 80% of median
income
- Increase household income limit from 50%
•Increase grant amounts
- Mobile home grants from $10,000 to $12,500
- Single-home units from $14,000 to $17,500
•Staff is requesting Council authorization to move forward with
program modifications
v v
12
RECOMMENDATIONS
•Hold a Public Hearing
•Approve the Annual Action Plan and recommended
allocation for FY 2021-2022 CDBG & HOME funds
-Include authority to appropriate additional CDBG funding from HUD
(upon final award) to the Wilson Street pavement rehab project
•Direct staff to amend the City’s Housing Rehabilitation
Loan & Grant Program
2021-2022
ANNUAL
ACTION PLAN
City Council Meeting
May 18, 2021
Resolution No. 2021-xx Page 1 of 3
RESOLUTION NO. 2021-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, APPROVING AND AUTHORIZING SUBMISSION OF THE 2021-2022
ANNUAL ACTION PLAN FOR THE APPLICATION AND EXPENDITURE OF
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIPS ACT FUNDS TO THE UNITED STATES DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT
THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY FINDS AND
DECLARES AS FOLLOWS:
WHEREAS, the City of Costa Mesa participates in the United States Department
of Housing and Urban Development’s (“HUD”) Community Development Block Grant
(CDBG) Program and also participates in HUD’s Home Investment Partnerships Program
(HOME); and
WHEREAS, in order to receive annual allocations from these HUD programs, the
City is required to prepare a five-year strategic plan outlining the use of the grants and
strategic vision for affordable housing and community development in the City known as
the Consolidated Plan; and
WHEREAS, the City’s current Consolidated Plan, was adopted on May 19, 2020,
and will expire on June 30, 2025; and
WHEREAS, the federal regulations (Title 24 Code of Federal Regulations Part 91)
delineate the required content of the Consolidated Plan, including an annual application
and expenditure plan for CDBG and HOME funds, known as the Annual Action Plan; and
WHEREAS, the City is required to prepare and submit the 2021-2022 Annual
Action Plan by August 16, 2021, in order to continue to receive CDBG and HOME funds
from HUD; and
WHEREAS, the City is eligible to receive $1,121,215 in 2021-2022 CDBG funds,
which can be used for social service grants, housing rehabilitation, public facilities, and
administration, and is also eligible to receive $501,749 in 2021-2022 HOME funds, which
can be used for housing and administration as set forth in the 2021-2022 Annual Action
Plan (Exhibit A); and
Attachment 1
Resolution No. 2021-xx Page 2 of 3
WHEREAS, the City made the 2021-2022 Annual Action Plan available for the
required 30-day public review period between April 17, 2021 and May 17, 2021; and
WHEREAS, the City has published a notice of a public hearing the 2021-2022
Annual Action Plan; and
WHEREAS, in the 2021-2022 Annual Action Plan, the City has considered all
public comments which have been received either in writing or at the public hearing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA
HEREBY RESOLVES as follows:
Section 1. The City Council hereby approves the 2021-2022 Annual Action Plan,
attached hereto as Exhibit “A” and incorporated herein by reference.
Section 2. The City Council hereby authorizes the City Manager, or the City
Manager’s designee, to submit the 2021-2022 Annual Action Plan to HUD and execute
all certifications and assurances contained therein to approve minor changes and provide
additional information as may be required.
Section 3. The City Council hereby designates the City Manager, or the City
Manager’s designee, as the City's official representative to administer the programs and
execute and submit all required agreements, certifications, and documents required by
HUD. The City Council further authorizes the City Manager, or City Manager’s designee,
to execute all subrecipient agreements with the nonprofit organizations receiving
allocations of CDBG funds approved in the 2021-2022 Annual Action Plan.
Resolution No. 2021-xx Page 3 of 3
PASSED AND ADOPTED this 18th day of May, 2021.
_____________________________
John Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
________________________ _____________________________
Brenda Green, City Clerk Kimberly Hall Barlow, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY
that the above and foregoing is the original of Resolution No. 2021-XX and was duly
passed and adopted by the City Council of the City of Costa Mesa at a regular meeting
held on the 18th day of May 2021, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 18th day of May 2021.
_________________________________
BRENDA GREEN, CITY CLERK
2021-2022 PUBLIC SERVICE GRANT APPLICATION SUMMARIES
HOMELESS SERVICES
Families Forward – Housing Program
Proposed Service: The program will provide housing and support services for
homeless Costa Mesa families with children
Amount Requested: $30,000 for program staff
CM Residents to be Assisted: 26
Committee Recommendation: $20,000 (Avg rating of 79.1 out of 100 pts. / 4th of 8 apps)
Mercy House – Costa Mesa Bridge Shelter
Proposed Service: Costa Mesa Bridge Shelter provides short-term shelter,
supportive and housing navigation services for homeless
individuals
Amount Requested: $25,000 for cost of food served at the shelter
CM Residents to be Assisted: 166
Committee Recommendation: $25,000 (Avg rating of 91.9 out of 100 pts. /1st of 8 apps)
Attachment 2 1 of 6
Attachment 2
2021-2022 PUBLIC SERVICE GRANT APPLICATION SUMMARIES
SENIOR SERVICES
City of Costa Mesa - Senior Social Services
Proposed Service: Counseling and referral services for seniors provided by
social worker at the Costa Mesa Senior Center
Amount Requested: $30,000 for program staff salaries
CM Residents to be Assisted: 250
Committee Recommendation: $30,000 (Avg rating of 85.2 out of 100 pts. / 2nd of 8 apps)
Community Senior Serve - Meal on Wheels
Proposed Service: This senior meal program will provide home-delivered
meals and quick assessment for homebound seniors to
ensure health and safety
Amount Requested: $15,000 for raw food cost
CM Residents to be Assisted: 35
Committee Recommendation:* $15,000 (Avg rating of 78.6 out of 100 pts. / 5th of 8 apps)
* If approved, grant will be combined into 1 grant of $30,000 to support the 2 meal programs offered by the
applicant
Community Senior Serve – Lunch Café
Proposed Service: The program provides seniors with hot lunch 5 days per
week at the Costa Mesa Senior Center. Using a “grab-n-go”
program model during COVID-19 required closure of the
Senior Center
Amount Requested: $15,000 for raw food cost
CM Residents to be Assisted: 150
Committee Recommendation:* $15,000 (Avg rating of 78.4 out of 100 pts. / 6th of 8 apps)
* If approved, grant will be combined into 1 grant of $30,000 to support the 2 meal programs offered by the
applicant
Attachment 2 2 of 6
2021-2022 PUBLIC SERVICE GRANT APPLICATION SUMMARIES
YOUTH SERVICES
Project Hope Alliance – In-Place Case Management for Homeless CM Students
Proposed Program: Wrap-around services for NMUSD students experiencing
homelessness. Funds will be used to provide one-on-one
case management, mentoring, tutoring, college and FAFSA
application assistance, job search assistance, basic needs
support like food.
Amount Requested: $20,000 for program staff salaries
CM Residents to be Assisted: 200
Committee Recommendation: $20,000 (Avg rating of 80.9 out of 100 pts. / 3rd of 8 apps)
Youth Employment Services (YES) – Comprehensive Youth Job Readiness Program
Proposed Program: Program provides pre-employment counseling, mock
interview skills training, job counseling, and job referrals
for youths
Amount Requested: $25,000 for program staff salaries
CM Residents to be Assisted: 300
Committee Recommendation: $20,000 (Avg rating of 77.0 out of 100 pts. / 7th of 8 apps)
Attachment 2 3 of 6
2021-2022 PUBLIC SERVICE GRANT APPLICATION SUMMARIES
LOW- AND MODERATE-INCOME SERVICES
MOMS Orange County – MOMS’ Maternal-Child Health Coordination Program
Proposed Program: The Home Visitation Program provides monthly one-on-
one education, infant health and developmental
screenings, mental health education and support,
parenting education, to pregnant women, new mothers,
and babies up to age 13 months. The program primarily
serves low-income pregnant women who are more likely
to experience preterm birth and to develop gestational
diabetes and maternal depression, their babies who are
more likely to be born at a low birth weight and admitted
to the NICU after birth.
Amount Requested: $15,000 for program staff salaries
CM Residents to be Assisted: 125
Committee Recommendation: $0 (Avg rating of 72.1 out of 100 pts. / 8th of 8 apps)
Fair Housing Foundation – Fair Housing Program (HUD-REQUIRED)
Proposed Service: Program will provide fair housing education, counseling
and enforcement services in compliance with federal
program regulations
Amount Requested: $20,000 for program staff salaries and related program
and admin costs
CM Residents to be Assisted: 186 (Households)
HUD REQUIRED:$20,000 (Not rated – required program)
Attachment 2 4 of 6
2021-2022 CDBG PUBLIC SERVICE GRANT
Housing Public Service GRant Committee Recommendations
Applicant
Amount
Requested
Population
to Serve Rater 1 Rater 2 Rater 3 Rater 5 Rater 6 Rater 8 Rater 9 Avg
Current Yr
Grant
Funding
Recommendation
1 Mercy House 25,000$ Homeless 98.0 91.0 85.0 85.0 89.0 98.0 97.0 91.9 25,000$ 25,000.00$
2 City of Costa Mesa 30,000$ Seniors 89.0 89.0 91.0 66.0 91.0 88.5 82.0 85.2 30,000$ 30,000.00$
3 Project Home Alliance 20,000$ Youth 88.0 75.0 85.0 65.0 87.0 80.0 86.0 80.9 NA 20,000.00$
4 Families Forward 30,000$ Homeless 79.0 83.0 70.0 78.0 69.0 87.0 88.0 79.1 35,000$ 20,000.00$
5 Community SeniorServ-Meals on Wheels 15,000$ Seniors 79.0 76.0 79.0 74.0 76.0 88.5 78.0 78.6 17,700$ 15,000.00$
6 Community SeniorServ-Lunch Café 15,000$ Seniors 79.0 77.0 80.0 70.0 77.0 88.5 77.0 78.4 17,700$ 15,000.00$
7 Youth Employment Services 25,000$ Youth 79.0 76.0 83.0 68.0 80.0 76.0 77.0 77.0 25,000$ 20,000.00$
8 MOMS OC 15,000$ Low/Mod 71.0 67.0 77.0 67.0 69.0 78.0 76.0 72.1 NA -$
9 Fair Housing Foundation *20,000$ Low/Mod 20,000$ 20,000.00$
Total Requested:195,000$ Total Recommended 165,000.00$
Total Available:165,000$ Total Available:165,000.00$
Amount Under/(Over)(30,000)$ Amount Under/(Over)-$
* Required by HUD
Attachment 2 5 of 6
CDBG PUBLIC SERVICE GRANTS
THREE-YEAR FUNDING HISTORY
(Including 6 Month of Current FY)
ORGANIZATION NAME
Funded Actual Planned To Actual Funded Actual Planned To Actual Funded Actual Planned To Actual Funded Actual Planned To Actual
Senior Citizen Services Amount Spent Serve Served Amount Spent Serve Served Amount Spent Serve Served Amount Spent Serve Served
City of Costa Mesa Parks & Comm Svcs NA NA NA NA $25,000 $23,147 250 248 $20,000 $19,400 250 220 $30,000 $15,000 250 134
Council on Aging $17,000 $17,000 42 51 $15,000 $14,986 42 50 $15,270 DECL $45 NA NA NA NA NA
Community SeniorServe-Congregate Meals**
Community SeniorServe-Home Delivered Meals**
Youth Services
Youth Employment Services $16,000 $16,000 200 276 $16,000 $16,000 225 292 $15,180 $15,180 250 271 $25,000 $12,500 300 15
Other Low-Income Services
Fair Housing Foundation *$19,435 $19,435 325 206 $19,000 $19,000 250 178 $15,000 $15,000 250 220 $15,000 $8,023 175 85
Homeless Services
Collette's Children's Home $16,000 $16,000 18 19 NA NA NA NA $15,175 $4,599 13 6 NA NA NA NA
Families Forward $16,000 $16,000 26 37 $19,025 $19,025 26 31 $14,385 $14,385 26 28 $35,000 $0 26 27
Mercy House Homelessness Prevention ++$15,000 $14,321 8 17 $13,000 $12,849 8 9 NA NA NA NA
Mercy House Rapid Rehousing++$15,000 $14,845 4 14 $13,000 $7,067 5 4 NA NA NA NA
Mercy House - Bridge Shelter NA NA NA NA NA NA NA NA NA NA NA NA $25,000 $3,000 200 110
Second Chance Orange County NA NA NA NA $10,000 $10,000 10 42 $14,385 DECL 20 DECL NA NA NA NA
Trellis International $15,000 $14,991 80 109 NA NA NA NA NA NA NA NA NA NA NA NA
NA - No application submitted
* Prior to FY 13/14 this program was funded under CDBG Administration
** Received combined funding for FY 17/18
++ Prior to FY 18-19 programs were combined into 1 grant.
DECL - Declined grant funding
2020-2021 (after 6 months)
$17,700 180 275$35,400
2019-2020
$20,775 $20,775 250 435
2018-20192017-2018
$25,000 $30,000 205 197
$25,000 $20,228 8 23
$30,000$25,000 200 240
F:\DEVELOPMENT SERVICES\REDEVELOPMENT\COMMITTEES\1-Housing & PSG Committee\1MEETING INFORMATION\MEETINGS\03-24-2021 Meeting\Funding Hist 21-22 3/13/21
Attachment 2 6 of 6
City of Costa Mesa
2021-2022
Annual Action Plan
Draft 4/12/21
Attachment 3
Annual Action Plan
i
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Contents
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ........................................................................ 1
PR-05 Lead & Responsible Agencies – 91.200(b) ...................................................................................... 3
AP-10 Consultation – 91.100, 91.200(b), 91.215(l) ................................................................................... 4
AP-12 Participation – 91.105, 91.200(c) ................................................................................................. 10
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2) ........................................................................................... 12
Annual Goals and Objectives
AP-20 Projects Annual Goals and Objectives .......................................................................................... 19
AP-35 Projects – 91.220(d)...................................................................................................................... 19
AP-38 Project Summary .......................................................................................................................... 20
AP-50 Geographic Distribution – 91.220(f) ............................................................................................. 29
Affordable Housing
AP-55 Affordable Housing – 91.220(g).................................................................................................... 30
AP-60 Public Housing – 91.220(h) ........................................................................................................... 31
AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................................ 32
AP-75 Barriers to affordable housing – 91.220(j) ................................................................................... 34
AP-85 Other Actions – 91.220(k)............................................................................................................. 36
Program Specific Requirements .................................................................................................................. 39
Attachments
Attachment 1: Public Hearing and Comment Period Public Notice
Attachment 2: Map of CDBG Eligible Areas
Attachment 3: Analysis of Impediments to Fair Housing Plan (excerpt)
HUD Certifications and SF-424
Annual Action Plan
1
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
The City of Costa Mesa is a recipient of federal Community Development Block Grant (CDBG) and Home
Investment Partnerships Grant (HOME) funds; these funds are awarded to the City by the U.S.
Department of Housing and Urban Development (HUD). As a recipient of CDBG and HOME funds, the
City must prepare a five-year strategic plan known as the Consolidated Plan. The Consolidated Plan
identifies and prioritizes housing and community needs and establishes five-year goals and objectives
to address identified needs. The City's current Consolidated Plan was approved by the City Council in
May 2020 and covers Fiscal Year 2020-2021 through Fiscal Year 2024-2025.
The Annual Action Plan is the component of the Consolidated Plan that is revised annually. It links the
goals and objectives identified in the City's 2020-2024 Consolidated Plan and the planned annual
expenditure of CDBG and HOME funds over twelve months. The period covered by the 2021-2022
Annual Action Plan begins July 1, 2021, and ends June 30, 2022. The City refers to this time frame as a
Fiscal Year (FY).
HUD has notified the City that it will receive $1,121,215 in CDBG and $501,749 in HOME funds for FY
2021-2022. In addition to these annual allocations, the City has $211,300 in prior year uncommitted
CDBG and HOME program income funds available for programming. Program income, generated by the
repayment of prior funded housing rehabilitation loans, will also be available to fund eligible activities.
The City will use CDBG resources to fund capital improvements (e.g., street improvements), code
enforcement, social services, and program administration. HOME funds will be used to undertake
owner-occupied housing rehabilitation, tenant-based rental assistance, affordable housing, and program
administration.
2. Summarize the objectives and outcomes identified in the Plan
Based on an analysis of housing and community needs, market analysis, and input from the community,
the following five-year goals and priorities have been identified for implementation in the 2020-2024
Consolidated Plan:
Goal 1: Housing Preservation – To provide decent and affordable housing through a variety of
activities, including owner-occupied housing rehabilitation, code enforcement, and rental
housing acquisition/rehabilitation
Goal 2: Infrastructure and Facility Improvements – To enhance the suitability of the living
environment through improvements to public infrastructures and facilities
Goal 3: Homeless Continuum of Care - To provide supportive services and housing assistance for
the homeless and near homeless
Annual Action Plan
2
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Goal 4: Public Social Service - To provide services for low- and moderate-income persons, and
those with special needs, including fair housing services
Goal 5: Program Administration - To provide administration of the CDBG and HOME programs,
ensuring effective and efficient delivery of programs and services and complying with all HUD
program requirements
Activities funded with CDBG and HOME funds will address the goals and objectives identified in the
City's Consolidated Plan.
3. Evaluation of past performance
FY 2020-2021 (the current fiscal year) is the first year of the City's 2020-2024 Consolidated Plan cycle -
most planned activities will be completed by June 30, 2021; consequently, there is no past performance
to evaluate for the current Consolidated Plan cycle. The City has consistently met planned goals during
past Consolidated Plan cycles.
4. Summary of Citizen Participation Process and consultation process
FY 2020-2021 (the current fiscal year) is the first year of the City's 2020-2024 Consolidated Plan cycle -
most planned activities will be completed by June 30, 2021; consequently, there is no past performance
to evaluate for the current Consolidated Plan cycle. The City has consistently met planned goals during
past Consolidated Plan cycles.
5. Summary of public comments
See Attachment 1.
6. Summary of comments or views not accepted and the reasons for not accepting them
See Attachment 1.
7. Summary
The Action Plan serves to implement the Consolidated Plan objectives developed to address priority
housing and community needs using federal resources {i.e., CDBG and HOME). The Annual Action Plan
provides specific information regarding the resources and activities the City will utilize to address
priority needs and specific objectives identified in the Consolidated Plan during 12 months. The 2021-
2022 Action Plan begins July 1, 2021, and ends June 30, 2022. The Annual Plan will also serve as the
City's application to HUD for $1,121,215 in CDBG and $501,749 in HOME funds for FY 2021-2022.
The Action Plan is also the expenditure plan for HUD grant funds, prior year grant funds, and anticipated
program income resources.
Annual Action Plan
3
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan
Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant
program and funding source.
Agency Role Name Department/Agency
CDBG Administrator COSTA MESA Housing & Community Dev/Development Services
HOME Administrator COSTA MESA Housing & Community Dev/Development Services
Table 1 – Responsible Agencies
Narrative (optional)
The City's Housing and Community Development (HCD) Division of the Development Services Department is primarily responsible for preparing
the Consolidated Plan, Annual Action Plan, and for the administration of CDBG and HOME funds.
Consolidated Plan Public Contact Information
Mike Linares, CDBG/HOME Coordinator: 77 Fair Drive, Costa Mesa, CA 92628 (714) 754-5678 - mike.linares@costamesaca.gov.
Annual Action Plan
4
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
The Annual Action Plan preparation process requires jurisdictions to contact and consult with other
public and private agencies and residents when developing respective plans. For the FY 2021-2022
Annual Action Plan, the City consulted with the public and private agencies listed below. Also listed
below are the steps taken by the City to solicit the input of community residents.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between
public and assisted housing providers and private and governmental health, mental health
and service agencies (91.215(l))
The City of Costa Mesa does not own or manage public housing. Similarly, the City does not administer
the Housing Choice Voucher or Section 8 Certificate rental assistance programs. The rental assistance
voucher/certificate programs are administered in the City of Costa Mesa by the Orange County Housing
Authority (OCHA). The City is a member of the OCHA Cities Advisory Committee, which provides OCHA
staff with direct input regarding program policies.
The City's Network for Homeless Solutions (NHS) is a task force comprised of representatives of various
City departments, nonprofit service agencies, and representatives of faith-based service providers. The
main focus of the NHS is to find workable solutions to address the needs of the homeless, especially
those with close ties to Costa Mesa. Additionally, the City works closely with other Orange County HUD-
grantee communities to develop regional plans and share program management data.
Describe coordination with the Continuum of Care and efforts to address the needs of
homeless persons (particularly chronically homeless individuals and families, families with
children, veterans, and unaccompanied youth) and persons at risk of homelessness.
Since 2014, the Network for Homeless Solutions (NHS) has directly addressed homeless issues in Costa
Mesa. As outlined above, the NHS is a working group of City staff, representatives of service providers,
and faith-based organizations. The NHS is focused on establishing direct links to services for the
homeless, especially those with strong ties to Costa Mesa, facilitating access to services and housing
options. The NHS also serves as a liaison to the business community and resident groups.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in
determining how to allocate ESG funds, develop performance standards for and evaluate
outcomes of projects and activities assisted by ESG funds, and develop funding, policies and
procedures for the operation and administration of HMIS
The City is not a recipient of Emergency Solutions Grant (ESG) funds; therefore, it does not assist the OC-
CoC with determining ESG allocations, evaluating the outcomes, or developing policies and procedures
for administering the regional Homeless Management Information System (HMIS).
Annual Action Plan
5
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
2. Describe Agencies, groups, organizations and others who participated in the process
and describe the jurisdiction’s consultations with housing, social service agencies and other
entities (see Table 2):
Annual Action Plan
6
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Table 2 – Agencies, groups, organizations who participated
1 Agency/Group/Organization Orange County Housing Authority
Agency/Group/Organization Type Public Housing Authority (PHA)
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided data regarding households receiving HUD rental
assistance and regarding households on the waitlist for housing
assistance
2 Agency/Group/Organization City of Costa Mesa
Agency/Group/Organization Type Housing
Services-homeless
Other government - Local
What section of the Plan was addressed by Consultation? Housing Need Assessment
Homeless Needs - Chronically homeless
Homeless Needs - Families with children Homelessness Strategy
Non-Homeless Special Needs Anti-Poverty Strategy
Lead-based Paint Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Various City departments, commissions, and City Council provided
a variety of data and information. Also played a key role in
identifying priorities and the allocation of HUD funds
3 Agency/Group/Organization 211 Orange County
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Homeless Management Information System (HMIS)
Annual Action Plan
7
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided data regarding regional homeless, housing/service gaps
for homeless, and HMIS management
4 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by Consultation? Impediments to Fair Housing
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided data regarding fair housing issues in the community and
input regarding impediments to fair housing, and assisted in
developing action steps to address impediments to fair housing
5 Agency/Group/Organization Mercy House Transitional Living Centers
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency assisted with the development of the City's homeless
strategy and implementation of service/housing programs to assist
the homeless and those at risk of becoming homeless
6 Agency/Group/Organization Families Forward
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Families with children
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency helped identify needs and assisted with the
implementation of the City's homeless service/housing strategy
with a focus on homeless families with children
Annual Action Plan
8
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
7 Agency/Group/Organization Project Home Alliance
Agency/Group/Organization Type Services-youth
What section of the Plan was addressed by Consultation? Youth Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency helped identify the needs of school-age children, especially
during the pandemic
8 Agency/Group/Organization Youth Employment Services
Agency/Group/Organization Type Services-Employment
What section of the Plan was addressed by Consultation? Economic Development Youth Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency helped identify needs and provided input regarding the
City's youth, specifically employment needs/opportunities for
youth age 16 to 24
9 Agency/Group/Organization Community SeniorServ
Agency/Group/Organization Type Services-Elderly Persons
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Anti-Poverty Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the
consultation or areas for improved coordination?
Agency helped identify needs and provided input regarding the
City's special needs populations, specifically seniors and frail
elderly
Identify any Agency Types not consulted and provide rationale for not consulting
The City made an effort to have an open consultation process. No agency/service type was knowingly excluded from the process .
Annual Action Plan
9
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Other local/regional/state/federal planning efforts considered when preparing the Plan
Name of Plan Lead Organization How do the goals of your Strategic Plan
overlap with the goals of each plan?
Continuum of Care Orange County 211 Provides regional and local point in
time homeless survey data,
development of the regional 10-Year
Plan to End Homelessness, and
development of the regional Discharge
Plan
City of Costa Mesa 2013-2021 Housing
Element
City of Costa Mesa Provides housing priorities and program
goals
City of Costa Mesa Capital Improvement
Plan
City of Costa Mesa Identifies priority capital improvement
projects which may be CDBG-eligible
5-Yr. & 1 Yr. PHA Plan Orange County Housing Authority Identifies OCHA resources to
address the housing needs of lower-
income renter householders in the
County and City
Analysis of Impediments to Fair Housing Orange County HUD Grantee Cities and
the County of Orange
Countywide document that identifies
fair housing impediments within
participating cities and outlines a plan
to address fair housing issues
Table 3 – Other local / regional / federal planning efforts
Narrative (optional)
Annual Action Plan
10
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation
Summarize citizen participation process and how it impacted goal -setting
The City took several steps to obtain community residents' and stakeholders' input to develop the 2021-2022 Annual Action Plan. Consultation
efforts included public meetings (resident advisory committee and City Council) and notices.
Specifically, for the 2021-2022 planning process, the City utilized its internet webpage and newspaper notices to inform residents and
stakeholders of the opportunities to provide input and review/comment on the draft Action Plan. All City Council meetings were noticed
in local English and Spanish language newspapers of general circulation. Additionally, the draft 2021-2022 Annual Action Plan was posted
on the City's website for public review and comment for the 30-day public comment period held from April 17, 2021, to May 17, 2021
(see Attachment 1). Due to COVID-19 public health and safety protocols, hard copies of the draft Action Plan were not available for
public review.
Citizen Participation Outreach
Sort
Order
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of
comments not
accepted and reasons
URL (If
applicable)
1 Public Meeting Non-
targeted/broad
community
Citizen Advisory
Committee - 9
committee
members,
discussed priority
public service
needs (3/24/21)
3 individuals
spoke in support
of grant
applications
submitted for
CDBG funding
None NA
Annual Action Plan
11
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Sort
Order
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Summary of
comments not
accepted and reasons
URL (If
applicable)
2 Newspaper Ad Non-English
Speaking –
Specify other
language:
Spanish
Non-
targeted/broad
community
30-day public
comment period
(4/17/21 to
5/17/21)
TBD
TBD
NA
3
Public Hearing
Non-
targeted/broad
community
5/18/21 Regular
City Council
meeting
TBD
TBD
NA
Table 4 – Citizen Participation Outreach
Annual Action Plan
12
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
For FY 2021-2022, HUD has notified the City it will receive $1,121,215 in CDBG and $501,749 in HOME funds. In addition, $211,300 in prior year
uncommitted CDBG funds and $50,000 in anticipated HOME program income are available for programming. The City's application for funds is in
the federal Standard Form 424 (SF-424).
Fluctuations in CDBG and HOME funding make it difficult to estimate the amount available over the five years of the Consolidated Plan. With the
loss of redevelopment funding, the only anticipated funds that may be available to implement the Consolidated Plan are the general fund and
Housing Authority (former redevelopment successor agency) for homeless services and housing voucher/certificate resources via OCHA.
Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 2 Expected
Amount
Available
Remainder
of ConPlan
$
Narrative
Description Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG Public -
federal
Acquisition
Admin &
Planning
Economic
Develop
Housing Public
Improvements
Public Services 1,121,215 0 211,300 1,332,515 3,000,000
Annual CDBG
allocation from
HUD and prior
year funds
Annual Action Plan
13
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Program Source
of Funds
Uses of Funds Expected Amount Available Year 2 Expected
Amount
Available
Remainder
of ConPlan
$
Narrative
Description Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
HOME Public -
federal
Acquisition
Homebuyer
assistance
Homeowner
rehab
Multifamily
rental new
construction
Multifamily
rental rehab
New
construction for
ownership TBRA 501,749 $50,000 0 551,749 1,500,000
Annual HOME
allocation from
HUD,
anticipated
program
income, and
prior year
funds
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how
matching requirements will be satisfied
In 2019, the City acquired a vacant warehouse using various funding sources to repurpose the structure into a homeless shelter. CDBG primarily
funded rehabilitation of the warehouse; however, the City has obtained a $2.5 million grant from the County of Orange that was used for shelter
construction. Additionally, the City has entered a partnership with Newport Beach to support the ongoing operations of the shelter. Newport
Beach will contribute approximately $1 million toward shelter operations. The City will also use approximately $1.4 million in County and City
funds for shelter operations.
For the foreseeable future, the City will also continue to allocate General Fund and the local Housing Authority (as the City's Successor Agency)
Annual Action Plan
14
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
resources for homeless services. During the current fiscal year, approximately $1.2 million has been allocated for this purpose.
The City also has a small CalHome owner-occupied housing rehabilitation loan program. CalHome-funded rehab loans are leveraged with HOME
funds, which provides a source of match for the City's HOME program. If available, the City will use CalHome to fund rehab loans during FY 2021-
2022. The CDBG program does not have a match requirement.
Annual Action Plan
15
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
If appropriate, describe publically owned land or property located within the jurisdiction that
may be used to address the needs identified in the plan
Costa Mesa is considered a built-out community with little vacant land available for new
development. The City has begun to recycle land to accommodate growth. The City's Housing
Element identifies City-owned properties and considers various options for the sites. Development
opportunities are identified in the Housing Element and are mirrored in the 2020-2024 Consolidated
Plan.
In 2019, the City utilized over $6,000,000 in non-HUD funds to purchase a property that has been
rehabilitated to provide 50 to 100 emergency shelter beds for homeless adult men and women. The
addition of these shelter beds will help address priority needs identified in the City's Consolidated
Plan.
Discussion
Funding resources to implement the City's 2021-2022 Annual Action Plan are limited. For FY 2021-2022,
the City will receive $1,121,215 in CDBG funding and $501,749 in HOME funding. Prior year funds for
CDBG and HOME may also be available. In recent years, HOME housing rehabilitation loan repayments
have provided the City with additional funding; however, this source of revenue is susceptible to the
fluctuations of the economy and is unpredictable.
The City will also continue to support OCHA's efforts to secure new rental assistance resources. For the
foreseeable future, the City will continue to support homeless service programs serving individuals with
strong ties to Costa Mesa with local funds. City, State, and funds from Newport Beach have been used
to repurpose a commercial warehouse into a 100-bed bridge shelter. Local and Newport Beach funds
will be used to operate the shelter.
Annual Action Plan
16
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
1 Housing
Preservation
2021 2022 Affordable Housing Citywide Housing
Preservation
CDBG:
$377,498
HOME:
$351,575
Homeowner Housing
Rehabilitated: 11
Housing Units
Code Enforcement/
Foreclosed Property
Care: 200 Housing
Units
Rental Units
Rehabilitation: 1
Housing Unit
2 Infrastructure
and Facility
Improvements
2021 2022 Non-Housing
Community
Development
Citywide
CDBG
Target
Area
Public Facilities
and
Infrastructure
CDBG:
$565,777
Public Facilities or
Infrastructure: 6,155
Persons Assisted
3 Homeless
Continuum of
Care
2021 2022 Homeless Citywide Homeless
Services and
Housing
CDBG:
$45,000
HOME:
$150,000
Tenant-based rental
assistance/Rapid
Rehousing:
4 Households Assisted
Annual Action Plan
17
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
Addressed
Funding Goal Outcome Indicator
Public Service:
192 Persons Assisted
4 Public Social
Services
2021 2022 Non-Homeless
Special Needs
Citywide Public Services CDBG:
$120,000
Public Service: 1,121
Persons Assisted
5 Program
Administration
2021 2022 Program
Administration
Citywide Planning and
Administration
CDBG:
$224,240
HOME:
$50,174
N/A
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Housing Preservation
Goal Description To provide decent and affordable housing through a variety of activities, including owner-occupied housing rehabilitation, code
enforcement, and rental housing acquisition/ rehabilitation
2 Goal Name Infrastructure and Facility Improvements
Goal Description To enhance the suitability of the living environment through improvements to public infrastructures and facilities
3 Goal Name Homeless Continuum of Care
Goal Description To provide supportive services and housing assistance for the homeless and near homeless
4 Goal Name Public Social Services
Goal Description To provide services for low- and moderate-income persons and those with special needs, including fair housing services.
5 Goal Name Program Administration
Goal Description To provide administration of the CDBG and HOME programs, ensuring effective and efficient delivery of programs and services
and complying with all HUD program requirements
Table 7 - Goal Descriptions
Annual Action Plan
18
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable
housing as defined by HOME 91.215(b):
It is estimated that seven extremely low-income (0%-30%), three low-income (a.k.a., very low-income 30%-50%), and one moderate-income
(a.k.a. low-income 50%-80%) households will benefit from HOME-funded activities during FY 2021-2022. If a Community Housing
Development Organization (CHDO) project comes to fruition, the unit(s) will most likely be geared toward extremely low-income and very
low-income households.
Annual Action Plan
19
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Projects
AP-35 Projects – 91.220(d)
Introduction
FY 2021-2022 CDBG and HOME funding are allocated for the 15 activities listed below.
Projects
# Project Name
1 Housing Rehabilitation
2 HOME Administration
3 CHDO Housing
4 HOME Tenant Based Rental Assistance
5 Housing Rehabilitation Administration
6 Special Housing Code Enforcement
7 City of Costa Mesa Senior Social Services
8 Community SeniorServ Meal Programs
9 Fair Housing Foundation
10 Families Forward
11 Mercy House Homelessness Prevention
Program 12 Project Hope Alliance
13 Youth Employment Services Program
14 CDBG Administration
15 Wilson Street Pavement Rehabilitation
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved
needs
The City recognizes that special needs populations (i.e., seniors, disabled, and households with
extremely low-income) are more likely at risk to become homeless because they have limited incomes
and have other issues that require housing and supportive services; therefore, the City considers
supportive services a high priority for funding. Additionally, funding to provide housing and supportive
services for those already homeless is considered a high need to merit funding.
Annual Action Plan
20
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-38 Project Summary
Project Summary Information
Table 9 - Project Summary
1 Project Name Housing Rehabilitation
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $276,310
Description HOME funds for owner-occupied housing rehabilitation loans and grants.
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
11 low- and moderate-income homeowners (1 loan and 10 grants)
Location Description Citywide
Planned Activities Housing rehabilitation loans and grants to address deferred property improvements and
building code deficiencies
2 Project Name HOME Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Planning and Administration
Funding HOME: $50,174
Annual Action Plan
21
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Description HOME funds for program oversight and coordination
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa CA
Planned Activities HOME Program oversight and coordination
3 Project Name Housing/CHOO Project
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding HOME: $75,265
Description HOME-CHOO funds reserved for eligible housing project (to be determined)
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
1 housing unit - Goal entered for data input purposes only
Location Description TBD
Planned Activities TBD
4 Project Name Tenant-Based Rental Assistance Program
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Annual Action Plan
22
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Funding HOME: $150,000
Description The Tenant Based Rental Assistance (TBRA) Program will assist low-income residents with short-
term rental assistance to make renting affordable
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
4 households
Location Description Citywide
Planned Activities Home program income funds will be used to provide tenant-based rental subsidies
5 Project Name Housing Rehabilitation Administration
Target Area Citywide
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $41,688
Description CDBG funds staff costs associated with the direct delivery of owner-occupied housing
rehabilitation loans and grants
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
N/A - The number of households to be assisted is accounted for under the HOME program - this
activity is to pay for a portion of the administrative expenses associated with the HOME-funded
Housing Rehabilitation Program
Location Description Citywide
Planned Activities Staff costs associated with the delivery of housing rehabilitation loans and grants
Annual Action Plan
23
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
6 Project Name Special Housing Code Enforcement
Target Area CDBG Eligible Areas
Goals Supported Housing Preservation
Needs Addressed Housing Preservation
Funding CDBG: $ 335,810
Description Enforcement of housing and building codes
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
200 housing units
Location Description 77 Fair Drive, Costa Mesa, CA- City Hall
Planned Activities Inspection and enforcement of housing and building codes
7 Project Name City of Costa Mesa Senior Social Services
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $30,000
Description Counseling and case management for seniors
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
250 Seniors
Annual Action Plan
24
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Location Description Program available citywide but based out of the Costa Mesa Senior Center located at 695 W. 19th
Street, Costa Mesa CA
Planned Activities Counseling and case management for seniors
8 Project Name Community SeniorServ Meal Programs
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $30,000
Description Funding for congregate meals at Costa Mesa Senior Center and home-delivered meal
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
185 Seniors
Location Description 695 W. 19th Street, Costa Mesa CA (Costa Mesa Senior Center) and Citywide
Planned Activities Weekday senior lunch Costa Mesa Senior Center or grab-n-go program and home-delivered meals
for homebound seniors
9 Project Name Fair Housing Foundation
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $20,000
Description Fair housing outreach, education, and enforcement services
Target Date 6/30/2022
Annual Action Plan
25
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Estimate the number and type of
families that will benefit from the
proposed activities
186 Individuals
Location Description Citywide
Planned Activities Community outreach, education, and enforcement of fair housing laws
10 Project Name Families Forward Housing Program
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Funding CDBG: $20,000
Description Rapid rehousing and support services for families with minor-aged children that are
experiencing financial instability or homelessness
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
26 individuals
Location Description Citywide
Planned Activities Funds to support families with minor-aged children to transition from crisis to financial stability
and self-sufficiency - services include housing, counseling, career coaching, life-skills education,
access to our food pantry, and assistance with childcare
11 Project Name Mercy House - Costa Mesa Bridge Shelter
Target Area Citywide
Goals Supported Homeless Continuum of Care
Needs Addressed Homeless Services and Housing
Annual Action Plan
26
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Funding CDBG: $25,000
Description Mercy House operates the Costa Mesa Bridge Shelter, which provides shelter, supportive
services, and housing navigation services to homeless men and women living on the
streets of Costa Mesa
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
166 homeless individuals
Location Description 3175 Airway Ave. Costa Mesa CA
Planned Activities Funds will be used to cover for a portion of shelter operations
12 Project Name Project Hope Alliance
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $20,000
Description Case management for students (K to 12) experiencing homelessness
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
200 youths
Location Description Citywide
Planned Activities One-on-one case management, mentoring, tutoring, college and FAFSA application assistance, job
search assistance, and basic needs support (food, clothing, and hygiene kits) for students from
Kindergarten to age 24
Annual Action Plan
27
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
13 Project Name Youth Employment Services Program
Target Area Citywide
Goals Supported Public Social Services
Needs Addressed Public Services
Funding CDBG: $ 20,000
Description Comprehensive employment training and support for low-income Costa Mesa youth – the
Comprehensive Youth Job Readiness Program helps youths find and keep a job by providing job
readiness training, employment search, and ongoing support services
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
300 youth
Location Description Citywide
Planned Activities CDBG grant funds will be used to support the salaries of the Youth Job Readiness Program staff,
which implement all components of the program and work directly with youth to help prepare
them for successful employment
14 Project Name CDBG Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Planning and Administration
Funding CDBG: $224,240
Description CDBG program oversight
Target Date 6/30/2022
Annual Action Plan
28
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Estimate the number and type of
families that will benefit from the
proposed activities
N/A
Location Description 77 Fair Drive, Costa Mesa CA
Planned Activities Program oversight and coordination
15 Project Name Wilson Street Pavement Rehabilitation
Target Area CDBG Target Area
Goals Supported Infrastructure and Facility Improvements
Needs Addressed Public Facilities and Infrastructure
Funding CDBG: $565,777
Description Street pavement rehabilitation
Target Date 6/30/2022
Estimate the number and type of
families that will benefit from the
proposed activities
Per HUD data, 6,155 individuals live in project area Block Groups – 4,050 are reported as low-
income (65.80% low-moderate service area)
Location Description Census Tract: 639.05 Block Groups: 2 & 3 and Census Tract: 639.06 Block Groups: 1 & 2
Planned Activities Rehabilitation of street pavement includes repairing existing sidewalks, wheelchair ramps,
driveways, and curb gutter to meet City and ADA standards; reconstruction of failed pavement;
grind and overlay pavement with rubberized asphalt; and upgraded striping that includes bike lanes
Annual Action Plan
29
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and
minority concentration) where assistance will be directed
Activities slated for CDBG-funding during FY 2021-2022 will be available on a citywide basis to income-
eligible individuals (i.e., limited clientele) and in areas of the City with high percentages of lower-income
residents. A map of the City's CDBG Eligible Areas provides a view of the areas where CDBG resources
can be focused via "area-wide" activities (see Attachment 2). Table 10 indicates the majority of the
City's CDBG funds will be focused on a citywide basis. All HOME funds will be available on a citywide
basis (not included in Table 10).
Geographic Distribution
Target Area Percentage of Funds
Citywide 32
CDBG Eligible Areas 6
8
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
HUD funding will primarily be allocated on a citywide basis as the City's primary intent is to serve eligible
Costa Mesa households in need of housing and services regardless of where they live. As the City's
CDBG-eligible areas tend to be older sections of the City, area-wide activities will help to improve and
sustain these neighborhoods and encourage property owners to also invest in their properties
Discussion
As indicated above, CDBG and HOME funds will be focused on programs that serve eligible residents
regardless of where they live. It is also expected that the City's investment in neighborhoods will
create a synergy whereby other property owners will also invest in their homes and community.
Annual Action Plan
30
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
During FY 2021-2022, proposed activities to be funded with CDBG and HOME funds will meet the
housing needs of the following households.
One Year Goals for the Number of Households to be Supported
Homeless 4
Non-Homeless 11
Special-Needs 0
Total 15
Table 9 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through
Rental Assistance 4
The Production of New Units 0
Rehab of Existing Units 11
Acquisition of Existing Units 0
Total 15
Table 10 - One Year Goals for Affordable Housing by Support Type
Discussion
The City will focus FY 2021-2022 HOME funds on the rehabilitation of existing owner-occupied housing
units and tenant-based rental assistance (TBRA). While not the program's primary focus, some special-
needs households (senior and disabled) may be assisted during the year via the City's Housing
Rehabilitation Program.
FY 2021-2022 HOME CHOO funds are included in the Annual Action Plan; however, no specific project
has been identified at this time. CDBG funding has also been allocated to support rapid rehousing (26
individuals). It is anticipated that OCHA will continue to provide rental assistance to approximately 570
Costa Mesa renter households.
Annual Action Plan
31
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-60 Public Housing – 91.220(h)
Introduction
Costa Mesa does not own or manage public housing.
Actions planned during the next year to address the needs to public housing
Not applicable.
Actions to encourage public housing residents to become more involved in management and
participate in homeownership
Not applicable.
If the PHA is designated as troubled, describe the manner in which financial assistance will b e
provided or other assistance
Not applicable.
Discussion
Not applicable.
Annual Action Plan
32
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-65 Homeless and Other Special Needs Activities – 91.220(i)
Introduction
As outlined in the 2020-2024 Consolidated Plan, the City's homeless strategy is to support programs that
prevent homelessness by providing safety net services. These programs will help households, especially
extremely low-income households, maximize the amount of income they have available for housing.
Additionally, both HUD and City resources will be allocated to provide access to a continuum of services
and housing to assist those already homeless and with strong ties to the community.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness
including
Reaching out to homeless persons (especially unsheltered persons) and assessing their
individual needs
Approximately $1,000,000 in General Fund and Housing Authority (former Redevelopment Agency)
resources will be allocated to provide direct outreach services for chronic and situational homeless.
Services include engagement, assessment, and linkages to appropriate services and housing. City-paid
social workers and community volunteers will provide services. No FY 2021-2022 CDBG funds will be
allocated to provide similar outreach services.
Addressing the emergency shelter and transitional housing needs of homeless persons
There is a shortage of year-round emergency shelter beds in the County. In March 2019, the City
Council authorized the purchase of a property to create a 50 to 100-bed emergency shelter for single,
adult homeless men and women. Non-HUD resources were utilized for this purchase. The City has
utilized CDBG funds to repurpose a warehouse into a shelter facility. Improvements include
construction of dormitories, shower/bath facilities, food service, and dining areas, storage, and office
space.
FY 2021-2022 CDBG funding is allocated to support operations at the City’s bridge shelter; no FY 2021-
2022 CDBG funding is allocated for transitional housing.
Helping homeless persons (especially chronically homeless individuals and families, families
with children, veterans and their families, and unaccompanied youth) make the transition to
permanent housing and independent living, including shortening the period of time that
individuals and families experience homelessness, facilitating access for homeless individuals
and families to affordable housing units, and preventing individuals and families who were
recently homeless from becoming homeless again
FY 2021-2022 CDBG funding is allocated for rapid rehousing. This "housing first" program model places
a household experiencing homelessness directly into an affordable housing unit and provides
appropriate supportive services to establish housing stability. For FY 2021-2022, $20,000 in CDBG
Annual Action Plan
33
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
funding will be allocated to Families Forward to rehouse 26 individuals rapidly. As previously indicated,
$150,000 in HOME funds will be allocated for the City’s TBRA pilot program, which will provide housing
and support services for an estimated four households facing homelessness.
Helping low-income individuals and families avoid becoming homeless, especially extremely
low-income individuals and families and those who are: being discharged from publicly
funded institutions and systems of care (such as health care facilities, mental health facilities,
foster care and other youth facilities, and corrections programs and institutions); or, receiving
assistance from public or private agencies that address housing, health, social services,
employment, education, or youth needs.
The City's homeless strategy is based on the proposition that it is less expensive and disruptive for a
household to remain housed in their existing home than to be rehoused. To this end, the City will focus
its resources on agencies that provide various safety-net services to prevent households from becoming
homeless. The City will support programs that provide low-cost meals, counseling, and employment/job
skills development services for lower-income individuals. Safety-net services allow households to save a
portion of income previously spent on food, clothes, etc. and preserve their housing. The City also
continues to fund a TBRA Program with HOME program income funds. This program will assist low-
income residents with short-term rental assistance to make renting affordable.
The City has a well-developed strategy to address homelessness in the community. This strategy
includes outreach and assessment services for homeless and chronic homeless individuals. Program
staff will attempt to link individuals to appropriate housing, support services, and public assistance
programs (e.g., VA benefits, SSI). To undertake this effort, the City partners with local nonprofit service
providers and community-based volunteers. Based on assessments, individuals or households are
referred to appropriate housing/service providers. City staff will coordinate the delivery of services and
housing with providers to reduce the number of homeless individuals in the community. Both HUD and
City funds will be used to carry out these activities, including emergency shelter and rapid rehousing.
Discussion
The City of Costa Mesa has a well-developed strategy to address homelessness in the community. This
strategy includes outreach and assessment services for homeless and chronic homeless individuals.
Program staff will attempt to link individuals to appropriate housing, support services, and public-
assistance programs. To support this effort, the City partners with local nonprofits and community-
based volunteers. Individuals and families are referred to appropriate housing/service providers. Both
HUD and City funds will be used to carry out these activities, including outreach, emergency shelter, and
rapid rehousing.
Annual Action Plan
34
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:
A strategy to address barriers to affordable housing and actions to overcome these barriers is provided
in the City's Housing Element and Consolidated Plan. The City will continue efforts to address these
barriers during the 2021-2022 Program Year.
Actions it planned to remove or ameliorate the negative effects of public policies that serve
as barriers to affordable housing such as land use controls, tax policies affecting land, zoning
ordinances, building codes, fees and charges, growth limitations, and policies affecting the
return on residential investment
According to the City’s Housing Element, governmental agencies' actions or policies can impact the
private sector's ability to provide adequate housing to meet consumer demands. Local governments
exercise regulatory and approval powers that directly impact residential development within their
respective jurisdiction. These powers establish the location, intensity, and type of units that may or may
not be developed. The City's General Plan, zoning regulations, project review and approval procedures,
development, and processing fees all play important roles in determining the cost and availability of
housing opportunities in Costa Mesa.
• General Plan and Zoning
The Costa Mesa General Plan and Zoning Ordinance establish the location and amount of land
allocated to residential development and the intensity of development (in terms of unit
densities and the total number of units) that will be permitted. Densities and other
development standards can drive the cost of developing housing and thus the ultimate cost.
• Local Entitlement Processing and Fees
Two aspects of local government that have been criticized as placing undue burdens on building
affordable housing are the fees or other exactions required of developers to obtain project
approval and the time delays caused by the review and approval process. Critics contend that
lengthy review periods increase financial and carrying costs and that fees and exactions increase
expenses. These costs are typically passed onto the prospective homebuyer in the form of
higher purchase prices or higher rents in the case of tenants.
Processing Procedures: The time required to process a project varies tremendously from one
project to another and is directly related to the size and complexity of the proposal and the
number of actions or approvals needed to complete the process.
Planning and Development Fees: The developer is required to pay certain fees for only the net
increase of residential units on site. Fees, land dedications, or improvements are also required in
most instances to provide an adequate supply of public parkland and to provide necessary
public improvements (streets, sewers, and storm drains) to support the new development. Fees
Annual Action Plan
35
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
are based on the significance of the necessary public works improvements, thus vary from
project to project. While such costs are charged to the developer, most, if not all, additional
costs are passed to the ultimate product consumer in the form of higher prices or rents. Various
governmental agencies also charge fees depending on the service and the location of the
project.
• On/Off-Site Improvement Standards
Costs associated with site improvements are an important component of new residential
development costs. Site improvement costs are applied to provide sanitary sewer and water
service to a project, make necessary transportation improvements, and provide other
infrastructure. The City may require the payment for various offsite improvements as part of
project mitigation measures (e.g., payment towards an offsite traffic signal). The City's on- and
off-site improvement requirements are typical for urban development in a highly developed
community. While these improvements add to housing costs, they do not constrain housing
development as these improvements are similarly required in all surrounding communities.
If available, subsidies may also be provided for qualified, affordable housing projects (e.g., HOME funds).
There is no local tax.
Discussion:
The City's Housing Element outlines the City's plan to address barriers to affordable housing. The
Consolidated Plan mirrors the Housing Element, which provides incentives to developers willing to
dedicate developed units for lower-income households.
Annual Action Plan
36
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
AP-85 Other Actions – 91.220(k)
Introduction:
As outlined in the City's Consolidated Plan, the City will implement the following actions during FY 2021-
2022 to address the "Other Actions" or sub-strategies identified in the Consolidated Plan.
Actions planned to address obstacles to meeting underserved needs
The City will allocate a portion of its CDBG and HOME funds for activities that address the housing and
service needs of the elderly and lower-income households. Additionally, the City will encourage and
support OCHA's efforts to obtain additional rental assistance funding, especially for senior and low-
income households. OCHA reports that as of January 2021, 572 Costa Mesa households received rental
housing assistance. (This total includes 117 disabled households, 398 elderly households, and 57
families. Among these populations are 11 homeless and 24 Veterans households). The City's housing
rehabilitation program will also assist elderly homeowners in improving their residences to address
specific household needs.
Additionally, the City is placing a high priority on rental assistance and will allocate HOME program
income funding for Tenant-Based Rental Assistance during the FY 2021-2022. The program will focus on
families with children at risk of homelessness or exiting temporary or bridge shelter housing.
Actions planned to foster and maintain affordable housing
The City of Costa Mesa has identified the actions it will undertake during FY 2021-2022 to foster and
maintain affordable housing. The Annual Action Plan identified programs such as Owner-Occupied
Housing Rehabilitation assistance as the means to maintain and improve housing currently available to
low- and moderate-income residents. By providing deferred payment loans and grants, lower-income
households can rehabilitate their residence to meet basic housing quality standards and incur zero or
minimal additional housing costs. An estimated 11 housing units will be assisted with HOME funds
during FY 2021-2022. Additionally, the City has allocated HOME CHDO funds to accommodate a
potential housing project.
Actions planned to reduce lead-based paint hazards
Based on past housing rehabilitation program statistics, only a small percentage of housing units
rehabilitated with City resources contain lead-paint hazards. To ensure compliance with all current HUD
lead-based paint regulations, all housing units constructed before 1978, which are rehabbed with City
resources, will be tested for lead-paint hazards. If needed, additional grant funds may be allocated to a
project to ensure all lead-based hazards are mitigated.
Actions planned to reduce the number of poverty-level families
The City will assist programs and services that combat poverty. During FY 2021-2022, the City will fund
the following activities to support the implementation of this strategy:
Annual Action Plan
37
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Implement housing programs (including housing rehabilitation assistance) for lower-income,
senior and disabled homeowners
Implement a Tenant-Based Rental Assistance (TBRA) program for lower-income residents
Support rental assistance programs provided by the OCHA for very low-income renters
Support services for individuals presently housed but at risk of losing their residence. Also,
assist those already homeless in need of shelter and continue coordinating services with
nonprofit partners.
Support safety-net public services programs to improve the quality of life for seniors, youth,
disabled, homeless, and other populations that may be severely impacted by the cost of living in
the region.
Actions planned to develop institutional structure
The City has made an effort to establish an institutional structure to help identify and access resources
to improve the community. For example, the City will continue to work with nonprofit entities to deliver
public services. As a member of the Orange County Continuum of Care Community Forum, the City will
provide critical information to the County of Orange to prepare the County's Continuum of Care
Homeless Assistance grant applications to HUD. Costa Mesa will also continue to fund activities that
help address gaps and needs in the regional system of care. Finally, the City will continue to assist the
Orange County Housing Authority in implementing its Five-year PHA Plan.
Actions planned to enhance coordination between public and private housing and social
service agencies
The City of Costa Mesa does not operate public housing. The Orange County Housing Authority provides
rental assistance in the community. Federal legislation requires that the Housing Authority prepare a
five-year and a one-year plan that highlights its mission, goals, and objectives related to public and
assisted housing programs. The City will review the Authority's plans and provide OCHA the opportunity
to review and consult with the City regarding its Consolidated Plan/Annual Action Plan. The goal of this
cross-consultation is to provide consistent and coordinated housing services for City residents. Ongoing
consultation with local nonprofits also assists the City in coordinating the efficient and effective use of
limited federal resources.
Discussion:
HUD-funded grant recipients are required under various laws not to discriminate in housing or services
directly or indirectly based on race, color, religion, sex, national origin, age, familial status, or disability.
Grant recipients such as Costa Mesa are required to: (1) examine and attempt to alleviate housing
discrimination within their jurisdiction; (2) promote fair housing choices for all persons; (3) provide
opportunities for all persons to reside in any given housing development, regardless of race, color,
religion, sex, disability, familial status, national origin, and other personal or familial attributes; (4)
promote housing that is accessible to and usable by persons with disabilities; (5) and comply with the
non-discrimination requirements of the Fair Housing Act. HUD encourages jurisdictions to consult with
Annual Action Plan
38
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
one another and initiate region-wide fair housing planning. The Analysis of Impediments (Al) to Fair
Housing Choice is the primary document utilized for this purpose. In addition to identifying
impediments, a strategy to overcome barriers must be developed and implemented - accomplishments
are reported annually. The City participated in developing a county-wide Al, which the City Council
adopted in May 2020. A summary of impediments to fair housing and the action steps the City will take
during FY 2021-2022 are found in Attachment 3.
Annual Action Plan
39
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:
Each HUD program that is covered by the Consolidated Plan regulations must address certain program-
specific requirements. Below are the program requirements for the CDBG and HOME programs.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the
Projects Table. The following identifies program income that is available for use that is included in
projects to be carried out.
1. The total amount of program income that will have been received before the
start of the next program year and that has not yet been reprogrammed
0
2. The amount of proceeds from section 108 loan guarantees that will be used
during the year to address the priority needs and specific objectives identified in
the grantee's strategic plan
0
3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the
planned use has not been included in a prior statement or plan.
0
5. The amount of income from float-funded activities 0
Total Program Income 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit
persons of low and moderate income. Overall Benefit - A consecutive period of one,
two or three years may be used to determine that a minimum overall benefit of
70% of CDBG funds is used to benefit persons of low and moderate income.
Specify the years covered that include this Annual Action Plan
100.00%
Annual Action Plan
40
OMB Control No: 2506-0117 (exp. 09/30/2021) Draft 04/12/2021
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is
as follows:
The City is not proposing to utilize HOME funds in a form that is not delineated in Section 92.205.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used
for homebuyer activities as required in 92.254, is as follows:
The City has not and does not plan to utilize HOME funds for homebuyer assistance; however, if
funds are redirected to such a program, steps will be taken to ensure program guidelines comply
with the applicable resale and recapture regulations.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired
with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
If a CHOO project comes to fruition, the applicable loan agreement(s) will be prepared to comply
with the resale/recapture requirements delineated in 24 CFR 92.254.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is
rehabilitated with HOME funds along with a description of the refinancing guidelines required that
will be used under 24 CFR 92.206(b), are as follows:
If a CHOO project comes to fruition, program staff will ensure that all applicable program policies are
followed, including establishing refinancing guidelines.
Discussion:
The City will meet the CDBG Program's overall 70% benefit for low- and moderate-income requirement
over three program years: 2020-2021, 2021-2022, and 2022-2023.
SUMMARY OF PUBLIC COMMENTS
MARCH 24, 2021 HOUSING & PUBLIC SERVICE GRANT COMMITTEE
The H&PSG Committee held a virtual meeting to obtain additional public comments regarding CDBG
public service grants, and to develop funding recommendations. Two applicants submitted written
comments (attached). City response was not required.
30-DAY PUBLIC COMMENT PERIOD
TBD
MAY 18, 2021 PUBLIC HEARING
TBD
Attachment 1 Page 1 of 6
Attachment 1 Page 2 of 6
Attachment 1 Page 3 of 6
PUBLIC NOTICE
NOTICE OF 30-DAY PUBLIC COMMENT PERIOD AND PUBLIC HEARING TO BE HELD BY
THE CITY OF COSTA MESA
REGARDING SUBMISSION OF THE 2021-2022 ANNUAL ACTION PLAN
NOTICE IS HEREBY GIVEN that the City of Costa Mesa City Council will hold a public comment period
and public hearing for the 2021-2022 Annual Action Plan. These actions are taken in compliance with
federal regulations [24 CFR 91].
As a recipient of Community Development Block Grant (CDBG) and Home Investment Partnerships
(HOME) funds, the City must prepare a Consolidated Plan every five years. The City is also required to
update the related Action Plan on an annual basis. The Consolidated Plan is a five-year strategic plan
that identifies housing and community needs, strategies to address needs, and programs/resources to
address these needs. The Action Plan delineates activities to be funded under the U.S. Department of
Housing and Urban Development’s (HUD) CDBG and HOME programs to address the Consolidated
Plan's needs.
30-Day Public Comment Period
The City is required to make a draft of the Annual Action Plan available for public review for 30 days. The
required 30-day public comment period will begin April 17, 2021, and end May 17, 2021. Due to current
public health safety concerns, the draft 2021-2022 Annual Action Plan will primarily be available on-line.
The draft 2021-2022 Annual Action Plan is posted on the City’s website (www.costamesaca.gov/city-
hall/city-departments/development-services/housing-and-community-development). Written comments
regarding the draft action plan must be submitted to the attention of Mike Linares by email to
HCDDivision@costamesaca.gov. All written comments must be submitted to the City no later than 12 PM
May 17, 2021.
FY 2021-2022 Annual Action Plan
HUD notified the City it will receive $1,121,215 in CDBG funds and $501,749 in HOME funds for FY
2021-2022. Additionally, $444,600 in prior year uncommitted CDBG funds and $75,000 in prior year
HOME program income are available for programming. Additional prior year resources may become
available during the Action Plan preparation process and Fiscal Year 2021-20222. The proposed use of
CDBG and HOME funds include the following:
Proposed CDBG Activity
Public services for lower-income persons $165,000
Code enforcement of housing and building codes in eligible areas $344,100
Housing rehabilitation administration $20,072
Public facility improvements $812,402
Program administration $224,240
Proposed HOME Activity
Single-family housing rehabilitation $275,000
Housing/Community Housing Development Organization Project Set-
aside $75,265
Tenant-Based Rental Assistance $150,000
Program administration $50,174
Public Hearing
The City is also required to hold a public hearing to entertain additional public comments regarding the
2021-2022 Annual Action Plan. NOTICE IS GIVEN that the Costa Mesa City Council will hold a public
hearing at its regular meeting on Tuesday, May 18, 2021, at 7:00 PM or as soon as possible thereafter,
at the Costa Mesa City Hall, 77 Fair Drive, Costa Mesa, California.
For additional information regarding the 2021-2022 Annual Action Plan, contact Mike Linares at
HCDDivision@costamesaca.gov.
The agenda report for this item will be available on the City’s website at cityclerk@costamesaca.gov.
Public Comments:
Zoom Webinar: Information to sign in will be provided on the agenda. Members of the public who wish to
make a comment may submit your public comment via email to the City Clerk at
cityclerk@costamesaca.gov and they will be provided to the City Council, made available to the public, and
will be part of the meeting record. Any written communications, photos, or other materials for copying and
distribution to the City Council that are 10 pages or less, can be e-mailed to cityclerk@costamesaca.gov,
submitted to the City Clerk’s Office on a flash drive, or mailed to the City Clerk’s Office. Kindly submit
materials to the City Clerk AS EARLY AS POSSIBLE, BUT NO LATER THAN 12:00 p.m. on the day of
the hearing, May 18, 2021. All materials, pictures, PowerPoints, and videos submitted for display at a public
Attachment 1 Page 4 of 6
meeting must be previously reviewed by staff to verify appropriateness for general audiences. No links to
YouTube videos or other streaming services will be accepted, a direct video file will need to be emailed to
staff prior to each meeting in order to minimize complications and to play the video without delay. The video
must be one of the following formats, .mp4, .mov or .wmv. Only one file may be included per speaker for
public comments. Please note that materials submitted by the public that are deemed appropriate for
general audiences will not be redacted in any way and will be posted online as submitted, including any
personal contact information. For further assistance, contact the City Clerk’s Office at (714) 754-5225. The
City Council agenda and related documents may also be viewed on the City’s website at
http://costamesaca.gov, 72 hours prior to the public hearing date. IF THE AFOREMENTIONED ACTION
IS CHALLENGED IN COURT, the challenge may be limited to only those issues raised at the public hearing
described in the notice, or in written correspondence delivered to the City Council at, or prior to, the public
hearing.
Brenda Green, City Clerk, City of Costa Mesa
Published: April 16, 2021
Attachment 1 Page 5 of 6
Attachment 1 Page 6 of 6
Attachment 2 Page 1 of 1
ORANGE COUNTY ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING CHOICE
August 6, 2020
REGIONAL PROPOSED AI GOALS AND STRATEGIES
To address the contributing factors described above, the AI plan proposes the following goals and actions:
Regional Goals and Strategies”
Goal 1: Increase the supply of affordable housing in high opportunity areas.1
Strategies:
1. Explore the creation of a new countywide source of affordable housing.
2. Using best practices from other jurisdictions, explore policies and programs that increase the supply
affordable housing, such as linkage fees, housing bonds, inclusionary housing, public land set-aside,
community land trusts, transit-oriented development, and expedited permitting and review.
3. Explore providing low-interest loans to single-family homeowners and grants to homeowners with
household incomes of up to 80% of the Area Median Income to develop accessory dwelling units with
affordability restriction on their property.
4. Review existing zoning policies and explore zoning changes to facilitate the development of affordable
housing.
5. Align zoning codes to conform to recent California affordable housing legislation.
Goal 2: Prevent displacement of low- and moderate-income residents with protected characteristics, including
Hispanic residents, Vietnamese residents, other seniors, and people with disabilities.
Strategies:
1. Explore piloting a Right to Counsel Program to ensure legal representation for tenants in landlord-tenant
proceedings, including those involving the application of new laws like A.B. 1482.
Goal 3: Increase community integration for persons with disabilities.
Strategies:
1. Conduct targeted outreach and provide tenant application assistance and support to persons with
disabilities, including individuals transitioning from institutional settings and individuals who are at risk
of institutionalization. As part of that assistance, maintain a database of housing that is accessible to
persons with disabilities.
2. Consider adopting the accessibility standards adopted by the City of Los Angeles, which require at least
15 percent of all new units in city-supported Low-Income Housing Tax Credit (LIHTC) projects to be ADA-
accessible with at least 4 percent of total units to be accessible for persons with hearing and/or vision
disabilities.
1 The term “high opportunity areas” generally means locations where there are economic and social factors and amenities
that provide a positive impact on a person’s life outcome. This is described in more detail in Section iii, Disparities in Ac cess
to Opportunity.
Attachment 3 Page 1 of 2
Goal 4: Ensure equal access to housing for persons with protected characteristics, who are disproportionately
likely to be lower-income and to experience homelessness.
Strategies:
1. Reduce barriers to accessing rental housing by exploring eliminating application fees for voucher holders
and encouraging landlords to follow HUD’s guidance on the use of criminal backgrounds in screening
tenants.
2. Consider incorporating a fair housing equity analysis into the review of significant rezoning proposals
and specific plans.
Goal 5: Expand access to opportunity for protected classes.
Strategies:
1. Explore the voluntary adoption of Small Area Fair Market Rents or exception payment standards in order
to increase access to higher opportunity areas for Housing Choice Voucher holders.
2. Continue implementing a mobility counseling program that informs Housing Choice Voucher holders
about their residential options in higher opportunity areas and provides holistic supports to voucher
holders seeking to move to higher opportunity areas.
3. Study and make recommendations to improve and expand Orange County’s public transportation to
ensure that members of protected classes can access jobs in employment centers in Anaheim, Santa
Ana, and Irvine.
4. Increase support for fair housing enforcement, education, and outreach.
CITY OF COSTA MESA PROPOSED AI GOALS AND STRATEGIES
1. In collaboration with the Orange County Housing Authority (OCHA):
a. Attend quarterly OCHA Housing Advisory Committee to enhance the exchange of information
regarding the availability, procedures, and policies related to the Housing Assistance Voucher
program and regional housing issues.
b. Support OCHA's affirmative fair marketing plan and de-concentration policies by providing five-year
and annual PHA plan certifications.
c. In coordination with OCHA and fair housing services provider, conduct landlord education campaign
to educate property owners about State law prohibiting discrimination based on household income.
2. Through the City's fair housing contractor:
a. Provide fair housing education and information to apartment managers and homeowner
associations on why denial of reasonable modifications/accommodations is unlawful.
b. Conduct multi-faceted fair housing outreach to tenants, landlords, property owners, realtors, and
property management companies. Methods of outreach may include workshops, informational
booths, presentations to community groups, and distribution of multi-lingual fair housing literature.
Attachment 3 Page 2 of 2