For City Council Meeting February 25, 2025
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
ARTHOR: Cynthia Alvarado, Director of Parks, Recreation, and Community Services
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Request City Council to: (1) Conduct a Public Hearing to solicit public comments from interested citizens regarding the Housing and Community Development needs concerning the five-year 2025-2029 Consolidated Plan for the allocation of the Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds; (2) Close the Public Hearing; and (3) Provide additional input and direction to staff on the 2025-2029 Five-Year Consolidated Plan and 2025-2026 Annual Action Plan.
(ACTION)
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RECOMMENDATION
Staff recommends that the City Council:
1. Conduct a Public Hearing to solicit public comments from interested citizens regarding the Housing and Community Development needs concerning the five-year 2025-2029 Consolidated Plan for the allocation of the Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds, and the Analysis of Impediments to Fair Housing Choice;
2. Close the Public Hearing; and
3. Provide additional input and direction to staff on the 2025-2029 Five-Year Consolidated Plan and 2025-2026 Annual Action Plan.
BACKGROUND
The City of Rialto is considered an entitlement jurisdiction and receives an annual allocation from the U.S. Department of Housing and Urban Development (HUD) for the operations of its CDBG and HOME programs. The funding is determined by a formula calculated by HUD based on population, age of the city, poverty levels, etc. The City’s allocation can fluctuate year-to-year causing funding to increase or decrease in various programs.
As a recipient of the Federal funds, the City is required to submit a five-year Consolidated Plan, an Annual Action Plan, and monitor its progress, outcomes, and expenditures through the Consolidated Annual Performance and Evaluation Report (CAPER).
The purpose of the Consolidated Plan is to identify the City’s housing and community development needs, priorities, goals, and strategies and to stipulate how funds will be allocated to housing and community development activities over the next five (5) years.
The CDBG Program provides Federal funds for local improvement projects and programs. Activities assisted with CDBG funds must meet one of the three (3) national objectives:
1) Benefit low and moderate-income persons; or
2) Aid in the elimination of slum and blight; or
3) Meet a particular urgent community need because existing conditions pose a serious threat, and no other source of funds is available. This national objective is rare and is designated only for activities that alleviate emergency conditions, e.g., fire, flood, earthquake.
The HOME program provides formula grants, often in partnership with local nonprofit groups, to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing or providing direct rental assistance to low-income persons. HOME is the largest Federal Block Grant to State and Local Governments designed exclusively to create affordable housing for low-income households.
In addition to the Consolidated Plan, HUD requires the development of a Five-Year Analysis of Impediments to Fair Housing Choice.
ANALYSIS/DISCUSSION
The Consolidated Plan is a HUD required plan assessing affordable housing and community development needs for the next five-year 2025-2029 period. The Consolidated Plan determines how funds from HUD will be used.
The following table show the current 2020-2025 Consolidated Plan goals:
The Analysis of Impediments to Fair Housing Choice is a review of policies, procedures, and practices within the community that affect the location, availability and accessibility of housing and current residential patterns and conditions related to fair housing choice. Fair Housing Choice is a condition in which individuals and families of similar income levels in the same housing market have a like range of choices available to them regardless of protected status.
Federal and State Law define protected status as:
• Race
• Color
• Ancestry
• National Origin
• Religion
• Sex
• Age
• Disability
• Familial Status
• Marital Status
• Sexual Orientation
• Source of Income
• Any other arbitrary factor
The Analysis of Impediments to Fair Housing Choice is a study of actions, omissions, or decisions that restrict housing choices or the availability of housing choices or that have the effect of restricting choice or availability.
The scope of the Analysis of Impediments includes:
• Community Profile
• Demographic Profile
• Household Characteristics
• Income Profile
• Housing Profile
• Accessibility to Public facilities, jobs, and housing
• Fair Housing practices of realtors and other housing associations
• Mortgage lending practices
• Public policies and programs affecting housing development
Fair Housing Choice profile includes:
• Fair Housing complaints, violations, and law
• Trends and patterns of impediment
Next Steps in the Development of the Consolidated Plan
This is the first of two public hearings the City will hold as part of the development of the Five-Year Consolidated Plan and Annual Action Plan. This first public hearing seeks input from the public to inform the noted needs and goals in the Consolidated Plan. After the close of the first public hearing, staff will finalize drafts of the Consolidated Plan and Annual Action Plan, and an Analysis of Impediments to Fair Housing. Draft documents will be posted for at least a 30-day comment and review period, which will conclude with the second public hearing on April 22, 2025, seeking the adoption of the Consolidated Plan and Annual Action Plan from the City Council. Following the adoption of the Consolidated Plan and Annual Action Plan, all relevant documents will be submitted to HUD.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
GENERAL PLAN CONSISTENCY
Guiding principle: 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.
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
The U.S. Department of Housing and Urban Development (HUD) has not yet announced allocations for local jurisdictions. It is anticipated that the City of Rialto will receive approximately $6 million in CDBG entitlement funds, and approximately $1.8 in HOME entitlement funds, from HUD for FY 2025-2029. The CDBG and HOME activities and some administrative costs will be funded solely by grant funds and will not impact the General Fund.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
Approval of this action does not require a Business License application and payment of a Business License tax.