For City Council Meeting February 24, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Christina Taylor, Community Development Director
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Request the City Council to: (1) Conduct a Public Hearing to Solicit Public Comments from Interested Citizens; (2) Adopt Resolution No. 8472 adopting Substantial Amendment No. 1 to the Fiscal Year 2024-2025 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.
PRESENTATION
(ACTION)
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RECOMMENDATION
Staff recommends that the City Council:
1) Conduct a Public Hearing to Solicit Public Comments from Interested Citizens;
2) Adopt the attached Resolution (Exhibit A) Adopting Substantial Amendment No. 1 to the FY 2024-2025 Annual Action Plan;
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
The City of Rialto (City), as an entitlement City, receives Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) 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 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) and HOME Investment Partnerships Program (HOME), in order to meet the goals and objectives approved by the City Council in the Five-Year Consolidated Plan.
ANALYSIS/DISCUSSION
On August 13, 2024, the City Council approved the FY 2024-2025 Annual Action Plan, which included funding allocations for the design of the Building 500 Rehabilitation Project and the rehabilitation of the Carl Johnson Center.
The approved Action Plan allocated $113,000 for the rehabilitation of the Carl Johnson Center to repaint the building, resurface the floors, and bring equipment into compliance. Rehabilitation efforts have progressed significantly, with the repainting of the building and resurfacing of the floors completed. During construction, staff identified challenges with the existing bleachers and winches that require a change order and additional funding to address.
The Building 500 Rehabilitation Project was allocated $100,000 for the design phase to rehabilitate the facility and achieve ADA compliance. As the design advanced, it was determined that securing sufficient funding to complete the full rehabilitation would require several years. To date, no funds have been drawn down for this activity.
Staff determined that reprogramming the $100,000 allocated to the Building 500 Rehabilitation Project would allow the Carl Johnson Center project to move forward and complete the full scope of rehabilitation work. The Building 500 Rehabilitation Project will be brought back to the Ad Hoc Committee and City Council for reconsideration at a later date.
Substantial Amendment
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. 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 will be published to solicit public comments from interested citizens and to consider and approve the proposed substantial changes to FY 2024-2025 Annual Action Plan. The 30-day public review and written comment period began on February 11, 2026, and will run through March 13, 2026.
Proposed Annual Action Plan Amendment
Based on staff feedback, the following recommendations are presented to the community and the City Council for consideration. City Council direction and approval is required to reprogram previously allocated CDBG funds as part of Substantial Amendment No. 1. The following programs may be added, increased, reduced, or eliminated.
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
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 and approved the Resolution as to from.
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
Approval of this action does not require a Business License application and payment of a Business License tax.