For City Council Meeting June 24, 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. 8368 adopting The Consolidated Plan for Fiscal Years 2025-2029, The Annual Action Plan for Fiscal Year 2025-2026, The Analysis of Impediments to Fair Housing for Fiscal Year 2025-2029, and The Citizen Participation Plan; (3) Authorize the City Manager, or their Designee, to Submit The Consolidated Plan and The Annual Action Plan to the U.S. Department of Housing and Urban Development; and (4) Authorize the City Manager, or their Designee, to Take all Actions Necessary to Implement the Programs Identified in the Consolidated Plan and the Annual Action Plan.
POWERPOINT
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Conduct a Public Hearing to solicit public comments from interested citizens;
2) Adopt Resolution adopting The Consolidated Plan for Fiscal Years 2025-2029, The Annual Action Plan for Fiscal Year 2025-2026, The Analysis of Impediments to Fair Housing for Fiscal Year 2025-2029, and The Citizen Participation Plan;
3) Authorize the City Manager, or their designee, to submit The Consolidated Plan and The Annual Action Plan to the U.S. Department of Housing and Urban Development; and,
4) Authorize the City Manager, or their designee, to take all actions necessary to implement the programs identified in the Consolidated Plan and the Annual Action Plan.
BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) requires that the grantee cities, such as Rialto, prepare a Consolidated Plan every five years and an Annual Action Plan (AAP) every year as a condition to receiving Federal funding under the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs.
The Consolidated Plan is a planning document that covers a five-year period between July 1, 2025, and June 30, 2030, and establishes the City’s strategies for addressing low- and moderate-income needs of the community, as defined by HUD regulations.
The Annual Action Plan identifies how the CDBG and HOME Programs 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 must be submitted no later than 45 days prior to the start of the fiscal year (FY). The activities recommended under CDBG and HOME are summarized in Attachment 4 - Ad-Hoc Recommendations.
ANALYSIS/DISCUSSION
Consolidated Plan
Attachment 1 to this report is the proposed Consolidated Plan for FY 2025-2029. The Consolidated Plan provides the City with a five-year strategic plan for addressing housing, homelessness, special needs, and community and economic development activities in the City. The Consolidated Plan provides four functions, including (1) the development of a planning document that encourages citizen participation, (2) a consolidated application to HUD, (3) a strategy to be followed in carrying out HUD programs, and (4) an action plan that provides a basis for assessing performance. The Consolidated Plan matches the community needs with identified implementation strategies and available resources to address those needs.
Analysis of Impediments to Fair Housing Choice
Attachment 2 to this report is the Fiscal Years 2025-2029 Analysis of Impediments to Fair Housing (AI) Choice proposed for Council consideration. The following Analysis of Impediments to Fair Housing Choice satisfies the requirements of the Housing and Community Development Act of 1974, as amended, and serves as a comprehensive look at fair housing issues in the City of Rialto. The report includes an analysis of various demographic, economic, and housing indicators; a review of public and private sector policies that affect fair housing; and a review of the city’s efforts to create fair housing choice. It is to be used as a resource document the City can reference for insights into community needs and strategies that can help address those needs.
Annual Action Plan
Attachment 3 to this report is the 2025-2026 Annual Action Plan proposed for Council consideration, which specifically identifies how Rialto will allocate CDBG and HOME funds for the upcoming year. The 2025-2026 Action Plan serves as the first annual update to the City’s five-year Consolidated Plan (2025-2029). Tonight’s Public Hearing represents the last Public Hearing in a series of meetings conducted under the City’s Citizen Participation Plan (CCP).
Citizen Participation
Citizen participation for the development of the Consolidated Plan and Annual Action Plan was accomplished through a series of public notices, announcements, public meetings, and public hearings. City staff conducted meetings with residents and non-profit organizations to solicit input on the community’s needs. Public hearings were conducted to determine priority needs, review funding applications, and approval of the 5-Year Consolidated Plan (FY 2025-2029) and the Annual Action Plan (FY 2025-2026).
The City held two public hearings during the development of the Consolidated Plan. The first public hearing took place on February 25, 2025. During this hearing, the community and City Council had the opportunity to provide input on community needs. A Public Meeting to discuss applications received in response to the City’s Notice of Funding Availability (NOFA) for 2025-2026 CDBG funds was held before the Ad-Hoc Committee on March 12, 2025. Each agency was given an opportunity to present its program and make a formal request for CDBG funding. The Ad-Hoc Committee reconvened on May 29, 2025, for a second Public Meeting to deliberate on recommended funding allocations. Funding recommendations made by the Ad-Hoc Committee, which are proposed in Attachment 4, were placed in the 2025-2026 Draft Annual Action Plan. The plan was made available to the public on May 23, 2025.
Tonight’s second public hearing, scheduled for June 24, 2025, will include an overview of the draft Consolidated Plan (ConPlan), Annual Action Plan (AAP), and Citizen Participation Plan (CPP), along with the proposed CDBG and HOME budgets for fiscal year 2025-2026. As of the date this report was submitted, no public comments had been received.
Community Development Block Grant (CDBG) - Grant Purpose
The Community Development Block Grant program is authorized by Title I of the Housing and Community Development Act of 1974, as amended. The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate income.
The CDBG objective is to be achieved in two ways: First, a grantee can only use funds to assist eligible activities that meet one of three national objectives of the program:
• Benefit low- and moderate-income persons,
• Aid in the prevention or elimination of slums and blight, or
• Meet community development needs having a particular urgency.
Second, at least 70 percent of funds must be spent (over a period of up to three years) on activities that address the national objective of benefiting low- and moderate-income persons.
Community Development Block Grant (CDBG) - Funding and Limitations
HOME Investment Partnerships Program (HOME) - Grant Purpose
The Home Investment Partnerships Program was established by 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.
HOME Investment Partnerships Program (HOME) - Funding and Limitations
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of 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
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 resolution and approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
The Operating Budget will not be impacted. The funding proposed in the FY 25-26 AAP will come from the City’s 2025-2026 CDBG allocation of $1,131,371, and the HOME allocation $375,252.73, from the U.S. Department of Housing and Urban Development (HUD).
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.
ATTACHMENTS
1. FY 2025-2029 Consolidated Plan (ConPlan) & FY 25-26 Annual Action Plan (AAP) - DRAFT
2. FY 2025-2029 Analysis of Impediments to Fair Housing (AI) - DRAFT
3. Citizen Participation Plan (CPP)
4. Ad-Hoc Recommendations
5. Resolution
6. Consolidated Plan Proof of Publication, English
7. Consolidated Plan Proof of Publication, Spanish
8. Presentation