Item 7.1
Revised 10/17|23
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE FIRST AMENDMENT TO
THE 2023/24 UNITED STATES DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT ANNUAL ACTION PLAN AND
APPROPRIATING FUNDS THEREFOR
WHEREAS, on May 9, 2023, the City Council approved submittal of the 2022/23 Annual Action Plan (the "Plan"') via City Council Resolution No. 2023-045 and authorized submittal to the U.S. Department of Housing and Urban Development ("HUD") for the Community Development Block Grant ("CDBG"), Emergency Solutions Grant ("ESG"), and Home Investment Partnerships Program ("HOME"); and
WHEREAS, the City of Chula Vista ("City") previously authorized an appropriation of one-time HOME American Rescue Plan ("HOME-ARP") funds in the amount of $3,139,777 via City Council Resolution No. 2023-012 adopted on February 14, 2023 for the development of Permanent Supportive Housing ("PSH") ($3,069, 133) and grant administration ($70,644); and WHEREAS, the City now desires to transfer $400,322.55 in HOME-ARP funds to total $470,966.55 for allowed grant administration (15%), leaving $2,668,810.45 for the production of affordable PSH; and
WHEREAS, the City desires to add available HOME funds in an amount of $1,331,189.55 to total Four Million $4,000,000.00 for use for the production of affordable PSH; and WHEREAS, the City intends to allocate the $4,000,000 in HOME and HOME-ARP funds together through a competitive procurement process, such as a Request for Proposals ("RFP"); and WHEREAS, fifteen percent (15%) of available HOME funds must be allocated to organizations certified as Community Housing Development Organizations ("CHDOs"), in accordance with HUD set-aside requirements; and
WHEREAS, the RFP shall be restricted to organizations that responded to the City's Request for Qualifications which concluded on August 24, 2023, and that were determined to meet the City's standards as a qualified developer and operator of PSH; and WHEREAS, the RFP will prioritize proposals for PSH, and rank proposals according to relevant criteria such as CHDO certification, geographic equity, and project readiness; and WHEREAS, the City owns Lauderbach Park, located at 333 Oxford Street, which contains a community center operated and maintained by SBCS Corporation ("SBCS"), a subrecipient of HUD funds; and
Form Rev 3/6/2023
Resolution No.
WHEREAS, the City previously identified the community center as in need of renovation and for programming opportunities surrounding nutrition education; and WHEREAS, the City previously provided $392,000 in CDBG funding to SBCS to carry out the improvements, pursuant to City Council Resolution No. 2022 161, and an additional $48,000 in CDBG funding, pursuant to City Council Resolution No. 2023-012; and WHEREAS, the City and SBCS have now identified a second phase of needed improvements, including sewer line replacement to service both the community facility and park bathrooms; and WHEREAS, the second phase of improvements has been determined to cost an amount not to exceed $150,000; and
WHEREAS, the City desires to amend the 2023/24 Annual Action Plan to allocate and appropriate HOME funds for the production of PSH and; to reallocate the split of funds in the HOME-ARP, and to allocate and appropriate CDBG funds for community facility improvements at Lauderbach Park; and
WHEREAS, Federal regulations governing the HOME and CDBG grant funding programs state that programmatic and funding changes to the Plan constitute a Substantial Amendment to the Plan; and
WHEREAS, in compliance with HUD regulations, an Action Plan Substantial Amendment requires a 30-day public review and comment period, and such period began on September 29, 2023 and will conclude on October 29, 2023; and
WHEREAS, no comments were received prior to the date of this resolution and any comments received after will be incorporated in the final Action Plan First Amendment prior to submittal to HUD; and
WHEREAS, Funds appropriated to the proposed activities are available to be drawn from unallocated HUD grant funds;: and
WHEREAS, in order for an outside entity to receive funds in accordance with the proposed activities, it must formally enter into a Subrecipient Agreement with the City, and therefore the existing Agreement No. 2022 105 with SBCS approved by City Council Resolution Nos. 2022- 161 and 2023-012 will be amended to add a not to exceed $150,000 in additional CDBG funding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby authorizes the amendment to the 2023/24 HUD Annual Action Plan, in the form presented in Exhibit 1, and authorizes the submission of the Substantial Amendment to the United States Department of Housing and Urban Development; and BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the transfer of $400,322.55 in previously appropriated HOME-ARP funds towards the Resolution No.
production of housing to administration, resulting in $470,966.55 for allowed grant administration (15%) and $2,668,810.45 for the production of affordable PSH.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the appropriation of of the following$1,331,189.55 in HOME Investment Partnerships Program funds for the production of affordable housing, as further described in Exhibit 1 to this resolution; and:
Funding Source City Activity/Program Funding
Community Development Block Lauderbach Park community center $150,000.00 Grant (CDBG) improvements
HOME Investment Partnerships Production of Affordable Housing $1,331,189.55 Program (HOME)
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager or her designee to execute a First Amendment to Agreement No. 2022 105 with SBCS and execute all other documents necessary to carry out these activities.
Presented by Approved as to form by
Stacey Kurz Jill D.S. Maland
Director, Department of Housing and Lounsbery Ferguson Altona & Peak Homeless Services Acting City Attorney
Resolution No.
EXHIBIT
First Amendment to City of Chula Vista 2023-24 Annual Action Plan Grant Project
Program Org Obj String Proposed Project Description Amount HOME-ARP Production of Affordable Housing $2,668,810.45 HOME-ARP* Administration $470,966.55
272552 7901 TBD Production of Affordable Housing $1,331,189.55 7901| BGS1166 Lauderbach Improvements $150,000.00
$4,620,966.55470
*Transfer of $400,322.55 previously appropriated by Council Resolution No. 2023-012 on February 14, 2023.