ADMINISTRATIVE REPORT
MEETING DATE: January 22, 2025 AGENDA CATEGORY: CONSENT CALENDAR PUBLIC HEARINGS TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 15, 2025
SUBJECT: Public Hearing to consider HUD Substantial Action Plan Amendment No. 3 FY 2024-25 to add the Niles Street Project (Ward 2)
FY 24-25 Amendment No. 3: Add Niles Street Affordable Housing as a project to New Construction Assistance, transfer funds from New Construction Assistance FY 24-25 ($619,066.19 HOME), New Construction Assistance FY 2023-24 ($399,259.86 HOME), Program Income FY 23-24 ($166,746.95 HOME), and New Construction Assistance FY 2022-23 ($214,187 HOME) to Niles Street Affordable Housing ($1,399,260 HOME).
RECOMMENDATION:
Staff recommends approval of the Action Plan Amendment.
BACKGROUND:
HUD Action Plan:
The City receives funding from the U.S. Department of Housing and Urban Development (HUD) annually through the submission of an Action Plan, which describes all HUD-funded projects and activities for a particular fiscal year. The Action Plan identifies projects and activities to be undertaken with HUD funds and how they meet community housing, homelessness, and community and economic development needs. Significant changes to an Action Plan require staff to process a Substantial Amendment. Staff is proposing a Substantial Amendment for the HOME Investment Partnership Program (HOME) fund, which is part of the City’s annual HUD Action Plan.
The City of Bakersfield receives an annual entitlement of HOME funds to invest in quality, affordable housing for low-income residents. During the Action Plan process, the City committed to assisting one new construction project.
On November 3, 2023, the City released the FY 2024-25 Funding Handbook and received one proposal from the Housing Authority of the County of Kern, requesting HOME funds to develop fifty-one (51) units of affordable housing for low-income households. At this time, staff proposes to add the Niles Street project to the 2024-25 Action Plan as a New Construction Assistance project and transfer funds from New Construction Assistance FY 24-25 ($619,066.19 HOME), New Construction Assistance FY 2023- 24 ($399,259.86 HOME), Program Income FY 23-24 ($166,746.95 HOME), and New Construction Assistance FY 2022-23 ($214,187 HOME) to Niles Street Affordable Housing ($1,399,260 HOME). The project site is Assessor Parcel Number 132-010-29 and is generally located on the north side of Niles Street between Brentwood Drive and Park Drive.
Public Notice:
A public notice for this action was published in English in the Bakersfield Californian, and in Spanish in El Popular on December 20, 2024, initiating a 30-day public comment period and providing 30-day notice of the public hearing. As of January 15, 2025, no comments were received.
Staff concludes that the proposed Action Plan Amendment meets all regulatory requirements and recommends Council approve the Amendment. If approved, staff will amend the Action Plan to incorporate the Niles Street Affordable Housing project.
FISCAL IMPACT:
The proposed changes to the City HUD Action Plan and the allocation of these funds will have no impact on the City General Fund, as the City participation in funding this Project is only using HUD funds.
COUNCIL GOAL:
Safety and Resilience
Economic Opportunity for All
WARD: 2
ATTACHMENTS:
Substantial Amendment No. 3 to HUD FY 2024-2025 Action Plan Public Notice