For City Council Meeting April 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 reschedule the previously set Public Hearing date from April 22, 2025, to June 24, 2025, for the adoption of the five-year 2025-2029 Consolidated Plan and the one-year Action Plan for the allocation of the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds.
Body
RECOMMENDATION
Staff recommends that the City Council reschedule the previously set Public Hearing date from April 22, 2025, to June 24, 2025, for the adoption of the five-year 2025-2029 Consolidated Plan and the one-year Action Plan for the allocation of the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds.
BACKGROUND
The City of Rialto is designated as an entitlement jurisdiction and receives an annual allocation from the U.S. Department of Housing and Urban Development (HUD) to support its Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs. Funding levels are determined by a HUD formula that considers factors such as population size, the age of the city, and poverty levels. As a result, the City’s allocation may vary from year to year. Currently, there is a delay at the federal level in the release of the official funding amounts. To accommodate this delay and ensure accurate budget planning, staff is requesting that the Public Hearing originally scheduled for April 22, 2025, be rescheduled to June 24, 2025, to allow time for the announcement of the CDBG funding allocations.
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, or 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 and Annual Action Plan, the proposed Five-Year Analysis of Impediments to Fair Housing Choice and Citizen Participation Plan will also be considered for adoption.
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.
Table 1 shows the current 2020-2025 Consolidated Plan goals.
TABLE 1
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 Incomer
• 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 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 Profile
• Fair Housing complaints, violations, and law
• Trends and patterns of impediments
ENVIRONMENTAL IMPACT
The proposed action 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 the potential to result 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 Guiding Principle 3 in the General Plan:
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 million 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.