For City Council Meeting July 22, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Cynthia Alvarado, Director of Parks, Recreation, and Community Services
Title
Request City Council to: (1) Conduct a Public Hearing to Solicit Public Comments from Interested Citizens; (2) Adopt Resolution No. 8386 Approving Substantial Amendment No. 7 to the Fiscal Year 2020-2021 Annual Action Plan (AAP); (3) Authorize the City Manager or their Designee to Submit the Substantial Amendment of Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD); (4) Authorize the City Manager or their Designee to Take All Actions Necessary to Implement the Programs Identified in the Annual Action Plan (AAP); and (5) Authorize the City Manager or their Designee to Make All Conforming Modifications and Edits, and to Execute All Implementing Documents Required by HUD in a Form Approved by the City Attorney.
POWERPOINT
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Conduct a Public Hearing to Solicit Public Comments from Interested Citizens;
2) Adopt a Resolution Approving Substantial Amendment No. 7 to the Fiscal Year 2020-2021 Annual Action Plan (AAP);
3) Authorize the City Manager or their Designee to Submit the Substantial Amendment of Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD);
4) Authorize The City Manager or their Designee to Take All Actions Necessary to Implement the Programs Identified in the AAP; and
5) Authorize the City Manager or their Designee to Make All Conforming Modifications and Edits, and to Execute All Implementing Documents Required by HUD in a Form Approved by the City Attorney.
BACKGROUND
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which appropriates nearly $2 trillion nationwide for COVID-19 pandemic relief funding. $5 billion of these CARES Act funds, referred to in this report as CDBG-CV funds, were appropriated to the Community Development Block Grant Program (CDBG) to assist state and local governments in their COVID-19 response.
CDBG CARES Funding Background
The CDBG program is a federally funded program of HUD that provides funding for housing, community facilities, and public services. On April 2, 2020, HUD announced the allocation of the first $2 billion in CARES Act funding for current CDBG grantees. The CARES Act builds on features of the existing CDBG program as well as the precedent set by CDBG Disaster Response (CDBG-DR) supplemental appropriations. The act directs HUD to administer these funds, pursuant to Section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306). This provision calls for HUD to allocate the supplemental funds to CDBG grantees -including eligible local governments, states, and insular areas - proportional to their conventional Fiscal Year 2020 CDBG allocation, as published by HUD in April 2020.
CDBG-CV funding is intended to prevent, prepare for, and respond to coronavirus based on public health needs, risk of transmission of coronavirus, number of coronavirus cases compared to the national average, and economic and housing market disruptions. The remaining funds will be distributed to states and units of local government on a rolling basis, at the discretion of the Secretary of the U.S. Department of Housing and Urban Development, with formula factors to be defined by HUD.
The City received $1,339,584 in Supplemental Community Development Block Grant Coronavirus (CDBG-CV) funding to help prepare, prevent, and respond to the COVID-19 pandemic. The City amended its 2020-2021 Annual Action Plan to allocate funds to programs and activities throughout the City to help struggling residents in the community.
Initial City Allocation of Funds
Over the course of two years, several substantial amendments were approved to meet the changing needs of the community. On May 9, 2023, the City Council approved Substantial Amendment No. 6 appropriating $1,339,584 of CDBG-CV funds to the following programs.
Substantial Amendment No. 6 - City Allocation of Funds
ANALYSIS/DISCUSSION
The City has until February 2027 to spend the remaining balance of CDBG-CV funds. To date, the City has expended a total of $899,136.60 of CDBG-CV funds. Thus, leaving a remaining balance of $440,447.40 in CDBG-CV funds available for reprogramming.
An overview of the current allocation of CDBG-CV funding includes a summary of each program’s allocation and expenditures to date as follows:
Current Allocation of CDBG-CV Funds
The City’s CDBG Ad-Hoc Committee held a public meeting on May 29, 2025. The Ad-Hoc Committee, comprised of Mayor Baca and Council Member Perez, was presented with a status update of the current CDBG-CV programs, available CDBG-CV funds, and examples of eligible and ineligible uses of CDBG-CV funds. Per the Ad-Hoc Committee’s request, a cost analysis of eligible CDBG-CV activities was presented.
Ad-Hoc Committee Recommendations
The Ad-Hoc Committee discussed the City’s priorities and recommended that the remaining balance of $440,447.40 be reprogrammed to create an Inclusive Playground at the Rialto City Park, located at 130 E. San Bernardino, Rialto, CA 92376.
Substantial Amendment
Reprogramming of CDBG-CV funds requires an amendment to the City’s 2020 Annual Action Plan. In accordance with the City’s Citizen Participation Plan, when a substantial change (i.e., adding an activity, canceling an activity, redirecting funds, or receiving additional funding) is proposed to an adopted city Annual Action Plan, HUD requires that the public be notified, and a public hearing be held to allow the public an opportunity to comment on the proposed substantial changes.
In compliance with the City’s approved Citizen Participation Plan and implementing regulation 24 CFR 92-105, a Public Notice was published to solicit public comments from interested citizens and to consider and approve the proposed Substantial Amendment No. 7 to the 2020-2021 Annual Action Plan. The public hearing was noticed on June 27, 2025 (Attachments 2 & 3). The 15-day public review and written comment period began on June 27, 2025, and ran through July 12, 2025. This item was presented to the Ad-Hoc Committee on May 29, 2025.
Proposed Annual Action Plan Amendment
Based on feedback received during the May 29th Ad-Hoc Committee Meeting, staff is presenting the following recommendations to the community and City Council for consideration. City Council direction and approval are required to reprogram previously allocated CDBG-CV funds as part of Substantial Amendment No. 7.
Proposed Allocation of CDBG-CV Funds - Substantial Amendment No. 7
ENVIRONMENTAL IMPACT
The proposal is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with the City of Rialto’s General Plan Guiding Principle 3, “Rialto’s Economic Environment is Healthy and Diverse.” Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goals and Policies:
Goal 2-27: Provide a variety of public and quasi-public facilities that meet the diverse needs of all members of the community.
LEGAL REVIEW
The City Attorney's Office has reviewed the resolution and approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
There is no impact to the Operating Budget.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
This action does not require a business license.
ATTACHMENT(S)
1. PRESENTATION City of Rialto - CDBG-CV Substantial Amendment No. 7
2. CDBG-CV Substantial Amendment No. 7 Proof of Publication, English
3. CDBG-CV Substantial Amendment No. 7 Proof of Publication, Spanish
4. 2020-2021 Action Plan - Substantial Amendment No. 7 Revised Budgets/Scope of Community Development Block Grant - CARES Act (CDBG-CV) Allocations
5. Resolution