For City Council Meeting July 23, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Colby Cataldi, Community Development Director
Title
Request City Council to Set a Public Hearing for August 13, 2024, to solicit public comments from interested citizens; and Consider and Approve Substantial Amendment No. 1 to the FY 2024-2025 Annual Action Plan and a Substantial Amendment No. 1 to the 2020-2025 Consolidated Plan.
Body
RECOMMENDATION(S)
Staff recommends that the City Council:
1) Set a Public Hearing for August 13, 2024, to solicit public comments from interested citizens; and
2) Consider and Approve Substantial Amendment No. 1 to the FY 2024-2025 Annual Action Plan and a Substantial Amendment No. 1 to the 2020-2025 Consolidated Plan.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) requires that the grantee cities, such as Rialto, prepare an Annual Action Plan every year as a condition to receiving Federal funding under the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grants Program (ESG), in order to meet the goals and objectives approved by the City Council in the Five-Year Consolidated Plan.
The City of Rialto (City), as an entitlement City, has previously only received Community Development Block Grant (CDBG) funds on an annual basis from the U.S. Department of Housing and Urban Development (HUD) to carry out a wide range of community development activities, which benefit low- and moderate-income residents.
The Annual Action Plan identifies how the CDBG program funds will be utilized to provide programs and projects that benefit low- and moderate-income households and neighborhoods in the City. It also serves as the City’s official grant application to HUD. Normally, the Action Plan is prepared during the prior Fiscal Year (FY) to ensure compliance with the City’s approved Citizen’s Participation Plan and CDBG implementing regulation 24 CFR 92-105. The 2024-2025 CDBG Annual Action Plan was approved by City Council during the April 23, 2024, Public Hearing.
The City was notified by the Department of Housing and Urban Development of their eligibility to become a designated HOME Participating Jurisdiction (PJ), after the 2024-2025 Annual Action Plan was approved and adopted by City Council on April 23, 2024.
The City is electing to opt into the Federal HOME Investment Partnership Program (HOME) program as a HOME Participating Jurisdiction (PJ). As a HOME PJ entitlement community, the City will be receiving HOME fund allocations from the United States Department of Housing and Urban Development (HUD) for the first time in FY 2024-2025 (July 1, 2024 - June 30, 2025).
In accordance with the City’s Citizen’s Participation Plan, when a substantial change (i.e., adding an activity, canceling an activity, redirecting funds, or receiving additional funding) is proposed to the City’s Annual Action Plan or the Consolidated Plan, the City 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.
DISCUSSION
The City is proposing a Substantial Amendment No. 1 to the FY 2024-2025 Annual Action Plan and a Substantial Amendment No. 1 to the 2020-2025 Consolidated Plan. Therefore, these Substantial Amendments must be made available to the general public for a period of 30 days in order to provide them with an opportunity to review the proposed 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 changes to FY 2024-2025 Annual Action Plan and the 2020-2025 Consolidated Plan. The public hearing was noticed on July 12, 2024. The 30-day public review and written comment period begins July 13, 2024, and run through August 13, 2024.
HOME Investment Partnerships Program (HOME) - Grant Purpose
The Home Investment Partnerships Program was established by the Title II of the
Cranston-Gonzalez National Affordable Housing Act. The objectives of the HOME
program include:
• Expanding the supply of decent and affordable housing, particularly housing for low- and very low-income residents,
• Strengthening the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing,
• Providing financial and technical assistance to participating jurisdictions, including the development of model programs for affordable low-income housing; and
• Extending and strengthening partnerships among all levels of government and the private sector, including for-profit and non-profit organizations, in the production and operation of affordable housing.
The following programs may be added, increased, reduced, or eliminated at the discretion of the City Council:
1. Proposed Amendment to the 2020-2025 Consolidated Plan will amend Goal No. 3, as noted below:
Preserve the supply of affordable housing - to include Residential Rehab Grants via HOME funds.
2. Proposed Substantial Amendment No. 1 to the FY 2024-2025 Annual Action Plan will authorize the addition of HOME funds as follows:
|
Activity |
Allocation |
|
HOME Administration (10%) |
$ 37,446.93 |
|
Mandatory CHDO Set-Aside (15%) |
$ 56,170.39 |
|
Residential Rehab |
$ 280,851.94 |
|
TOTAL HOME ALLOCATION: |
$ 374,469.26 |
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA).
LEGAL REVIEW:
The staff report has been reviewed and approved by the City Attorney.
FINANCIAL IMPACT
Operating Budget Impact
The funding for the proposed 2024-2025 HOME projects totaling as estimated $374,469.26 will come from the City’s 2024-2025 HOME funds allocation from the U.S. Department of Housing and Urban Development (HUD). The City is required to provide a one-time amount of $125,530.74 to meet the initial participation threshold of $500,000 for the HOME program.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.