Staff Report
City Council
Item No. {{section.number}}.{{item.number}}
Meeting Date: September 24, 2025
From: John A. Corella, Director of Public Works
Title: Administrative Amendment to the CDBG FY 2023-24 Annual Action Plan
RECOMMENDATION:
To approve an administrative amendment to the city’s FY 2023-24 Community Development Block Grant Annual Action Plan to reallocate $43,124.76 in unused funds from the Via De Anza Street Improvement Phase III project to the Whitewater Neighborhood Road Improvement Phase II project; and authorize the City Engineer to execute the administrative amendment for submission to the U.S. Department of Housing and Urban Development.
BACKGROUND:
The Community Development Block Grant (CDBG) is a federal program administered by the U.S. Department of Housing and Urban Development (HUD). The city has received CDBG funding directly from HUD since becoming an entitlement grantee in 2012. These funds are used to address a variety of housing and community development needs, which are prioritized through the city’s Five-Year Consolidated Plan (ConPlan) and budgeted annually through the Annual Action Plan (AAP).
On May 24, 2023, the City Council approved the FY 2023-24 CDBG AAP, which allocated the city’s CDBG entitlement of $569,557 to a range of public improvement initiatives. Among the projects funded was the Via De Anza Street Improvement Phase III project.
As of the close of Fiscal Year 2024-25, a balance of $43,124.76 in allocated CDBG funds for this project remained unexpended. To ensure the effective utilization of federal resources and continued compliance with HUD regulations, these funds must be reprogrammed to an eligible activity.
On April 23, 2025, the City Council approved the Fiscal Year 2025–26 CDBG Annual Action Plan, which includes funding for the Whitewater Neighborhood Road Improvement Phase II Project. This project continues ongoing efforts to reconstruct residential streets within a designated low- and moderate-income area of the city. Phase I was successfully completed as part of the FY 2024–25 City Streets Pavement Reconstruction project. To support the timely implementation of Phase II, the proposed amendment reallocates unspent funds from the Via De Anza Street Improvement project to the Whitewater project.
DISCUSSION:
Each year, the city programs its CDBG funds in accordance with HUD requirements, prioritizing support for public services, administrative functions, and most notably, public infrastructure improvements that benefit low- and moderate-income residents. These allocations are documented in the AAP and may be administratively amended, provided that certain thresholds are not exceeded.
The proposed administrative amendment would reallocate $43,124.76 in unspent CDBG funds from the FY 2023-24 Via De Anza Street Improvement Phase III project to the FY 2025-26 Whitewater Neighborhood Road Improvement Phase II project.
In accordance with the City’s HUD-approved Community Participation Plan (CPP), this action qualifies as an administrative amendment because it involves less than $50,000 and does not exceed 10% of the total annual CDBG budget. Therefore, it does not require a substantial amendment, and it does not require a public comment period.
Whitewater Neighborhood Road Improvement Phase II Project:
The project is located within Census Tract 044907, a HUD-designated low- and moderate- income area serving approximately 2,500 residents. This phase builds upon the improvements completed in Phase I during FY 2024-25 and will include street reconstruction and resurfacing activities aimed at improving safety, accessibility, and quality of life for residents.
Phase II will focus on residential street reconstruction along the following roadway segments:
•Navajo Trail (33rd Avenue to Dinah Shore Drive)
•Pueblo Trail (33rd Avenue to Dinah Shore Drive)
•Ortega Road (Shifting Sands Trail to Cathedral Canyon Drive)
The proposed reallocation of funds will allow the city to maximize its reimbursable costs related to this public improvement project, ensure accurate accounting of expenditures within their respective program years, and facilitate the continued advancement of this vital neighborhood revitalization effort.
City staff recommend City Council approve an administrative amendment to the city’s FY 2023-24 CDBG AAP to reallocate $43,124.76 in unspent funds from the Via De Anza Street Improvement Phase III project to the Whitewater Neighborhood Road Improvement Phase II project and authorize the City Engineer to execute the administrative amendment for submission to HUD.
FISCAL IMPACT:
The city proposes to reallocate $43,124.75 in unspent CDBG funds from FY 2023-24, to supplement the Whitewater Neighborhood Road Improvement Phase II project. This reallocation complies with all applicable HUD program regulations and does not affect the caps on administrative or public service expenditures. The approval of this administrative amendment will ensure the city’s financial records remain accurate and account for these programmatic changes.
Program Year Project (from) Project (to) Funding
FY 2023-24 Via De Anza Street
Improvement Phase III
Whitewater
Neighborhood Road
Improvement Phase II
$43,124.76
Total $43,124.76
The reallocation of funds will allow the city to maximize its reimbursable costs related to this public improvement project. Currently, as outlined in the FY 2025-26 AAP, $409,288 is budgeted for the Whitewater Neighborhood Street Reconstruction Phase II project. The reallocation of funds through this administrative amendment will bring the total CDBG funding for the project to $452,412.76.
FY 25-26 Whitewater Neighborhood Road Improvement Project Budget $409,288.00 FY 23-24 Reallocated Funding for Project $ 43,124.76
Total Budget for Whitewater Neighborhood Road Improvement Project $452,412.76 Following the construction bidding process, the Whitewater Neighborhood Road Improvement Phase II project will be brought before the City Council for final budget approval and award of the construction contract.
FIVE-YEAR STRATEGIC PLAN:
Goal B- Community Investment
Objective: Cathedral City roads, gateways, public spaces, and other infrastructure are well planned, designed, constructed and maintained.
ATTACHMENTS:
1.CDBG Administrative Amendment