CITY MANAGER' S REPORT
MARCH 10, 2025 REGULAR CITY COUNCIL MEETING
ITEM:
ITEM 5. 1
PUBLIC HEARING ( PUBLISHED NOTICE) TO
CONSIDER COMMUNITY DEVELOPMENT BLOCK
GRANT ( CDBG) AND HOME INVESTMENT
PARTNERSHIP ACT ( HOME) PROGRAM ALLOCATIONS
FOR FISCAL YEAR 2025/026
RECOMMENDATION: Council to Consider the Following:
1. Hold a Public Hearing; and
2. Adopt Resolution Recommending the Allocation of
the CDBG and HOME Funds for FY 2025/026 for
consideration by San Joaquin County and the US
Department of Housing and Urban Development
HUD) pursuant to Budget Amendments
SUMMARY:
Each year the City of Lathrop ( City) receives an allocation of Community Development Block Grant ( CDBG) and HOME Investment Partnership Act ( HOME) funds. Both programs are funded by the U. S. Department of Housing and Urban Development HUD), and administered by San Joaquin County ( COUNTY), under an Urban Cooperative Agreement between San Joaquin County and the cities of Escalon, Lathrop, Manteca, Ripon, and Tracy.
The County guidelines are in place to help meet the needs of the community and the requirements set forth by HUD. The important highlights of these guidelines are as follows:
Multi - entitlement agencies must apply directly to San Joaquin County for both County and City funding.
The minimum award for public service grant requests should be at least 5, 000.0, unless prior approval received from San Joaquin County.
Cities will be recommending the local allocation of funds for final approval by the San Joaquin County Board of Supervisors and HUD.
For fiscal year 2025/026, the City of Lathrop anticipates an allocation of $ 98, 536 in CDBG funds and $ 26, 843 in HOME funds. Final allocation numbers are determined upon Federal Budget approvals, which will be proportionally increased or decreased from the estimated funding levels to match the actual allocation amounts.
No more than fifteen percent ( 15%) of the allocated CDBG funds may be designated toward Public Service organizations with the remaining eighty- five percent ( 85%) designated toward Public/ Capital Facility projects. HOME funds may be allocated to eligible program( s) administered by the County.
CITY MANAGER' SREPORT Page 12
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
City Council must conduct a public hearing to consider funding requests from eligible applicants, prior to finalizing recommendations of local CDBG and HOME funding allocations. Staff published a legal advertisement on December 26, 2024, to promote the availability of CDBG and HOME funds and to solicit eligible applicants. A second legal advertisement was published on February 25, 2025 to announce the public hearing date to consider CDBG and HOME funding allocations for FY 2025/026.
Multi -entitlement agencies serve residents of multiple cities throughout the County; therefore, these agencies are required to submit one application to San Joaquin County for individual local agency funding requests.
There were six ( 6) multi -entitlement agency applications submitted for CDBG Public Service' sfunding, two ( 2) applications received for Public Facilities grants, and zero 0) applications received for HOME funds. Four ( 4) applications were submitted directly to the City for consideration of a CDBG grant, however, two ( 2) withdrew their application and one ( 1) application was deemed ineligible due to lack of information provided.
The three -step process for allocating funds to identified local activities is referenced below:
STEP 1. Allocate funding for the CDBG Public Service Organizations.
STEP 2. Allocate funding for the CDBG Public/ Capital Facility Projects.
STEP 3. Allocate HOME funds to an eligible program administered by the County.
Staff recommends that the City Council consider the information provided at the public hearing, staff' presentation, and Lathrop' s Scoring Committee' s proposed funding allocations for CDBG' s public service grants, public facility grants, and the HOME funds for fiscal year 2025/026. City Council maintains sole discretion to accept staff' recommendations or propose recommended funding allocations toward eligible applicant projects or services they deem in the best interest to meet community and resident needs.
BACKGROUND:
The City of Lathrop, in accordance with the Urban Cooperative Agreement with San Joaquin County, will make recommendations to allocate the anticipated amount of CDBG funds to Public Service organization( s), Public/ Capital Facility project( s), and HOME funds as follows:
CDBG
Public Service Awards ( 15%): $ 14, 780
Public/ Capital Facility Projects ( 85%): S83, 756
Total anticipated CDBG Allocation: $ 98, 536
HOME Funds
Total anticipated HOME Funds $ 26, 843
CITY MANAGER' S REPORT Page 13
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
STEP 1: Allocate funds to Public Service Organizations
Multi -Entitlement Agencies via County Application:
Multi - entitlement agency applicants include San Joaquin County -Human Services Agency -Aging & Community Services, Emergency Food Bank of Stockton/ San Joaquin, San Joaquin Fair Housing Foundation, Inc., and Give Every Child a Chance GECAC). Each of these organizations provide services within multiple cities throughout San Joaquin County and have applied directly to the County through the one application process to request funding from the County and Cities for which they provide services.
The following summary describes the services provided to Lathrop residents by each of the multi -entitlement agency applicants and the amount requested by each organization:
San Joaquin Fair Housing Foundation, Inc. $ 1, 305
HUD mandates that CDBG grantees develop viable communities by providing decent housing and suitable living environments for low -to -moderate income people. San Joaquin Fair Housing accomplishes this goal by educating tenants and owners on all the Federal and State Fair Housing laws to ensure understanding of their individual rights and responsibilities. As a HUD mandated program, each jurisdiction is responsible for providing their proportionate share of the anticipated expenditures by San Joaquin Fair Housing for the fiscal year. The program expects to benefit approximately 580 Lathrop residents.
Give Every Child a Chance - Before/ After School Programs $ 7, 600 Give Every Child a Chance ( GECAC) provides free to minimal cost programs to youth in San Joaquin County. Free mentor/ tutoring to students in K - 12th grade is provided through programs called TEACH, ASAP, and BHS. In addition, bi- monthly food, activity kit distributions, and a Summer Supplemental Program ( Day Camp) are provided. The programs expect to benefit approximately 600 youth in Lathrop.
Emergency Food Bank - Mobile Farmer' sMarket $ 1, 305
The Emergency Food Bank of Stockton/ San Joaquin is requesting funding for its Mobile Farmers Market" program, which visits 85 sites throughout the cities and county. Each site is visited monthly, with a goal of providing nutrition education and increased access to fresh produce, to promote healthy lifestyles and decrease the prevalence of disease/ chronic health conditions and food insecurities to the most vulnerable populations. There are two Mobile Farmer' s Market sites serving Lathrop for one day each month —Lathrop Elementary School, and Walnut Capk. The program expects to serve 788 residents of Lathrop.
CITY MANAGER' S REPORT Page 14
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
SJC, HSA, Aging & Community Services - Meals on Wheels $ 1, 650 The San Joaquin County Human Services Agency' s Department of Aging & Community Services is requesting funding for its Meals on Wheels Program, which delivers five nutritious meals once a week to homebound seniors who lack transportation and have little or no social support. The program' s objective is to promote better health through improved nutrition. The program expects to benefit five ( 5) senior residents of Lathrop.
SJC, HAS, Aging & Community Services — Rental Assistance $ 9, 000 Rental Assistance is a new program funding request from the San Joaquin County Human Services Agency' s Department of Aging & Community Services. The program goal is to assist older adults to live at home independently by preventing eviction.
Rental Assistance will provide up to 3 months' rent either in arrears or after a life - changing event to assist them in stabilizing their housing while they begin to receive assistance with other basic needs. The program expects to benefit two ( 2) residents of Lathrop.
The Lathrop Ranking and Scoring Committee reviewed the applications and recommends allotment to each qualified public service organization as follows:
PUBLIC SERVICE ORGANIZATIONS ALLOTMENT SUMMARY
Organization
Requested
Amounts for
FY 25/6
Recommended
Allotment for
FY 25/6
Give Every Child a Chance ( GECAC) 7, 600 7, 600
San Joaquin Fair Housing 1, 305 1, 305
Emergency Food Bank ( Mobile Farmers Market) 1, 305 1, 305 SJC Dept of Aging ( Meals on Wheels) 1, 650 1, 650
SJC Dept of Aging ( Rental Assistance) 9, 000 2, 920
TOTAL FUNDS 14, 780
STEP 2: Allocate Funds for Public/ Capital Facility Project( s) The City of Lathrop anticipates $ 83, 756 of CDBG funds to be available for eligible public/ capital facility projects.
The City' sPublic Works Department submitted an application for additional funding consideration. Details of the project are below:
CITY MANAGER' S REPORT Page 15
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
City of Lathrop — (PW - Park Architectural Barrier Removal) $ 335, 000 The City of Lathrop' s
Public Works Department is requesting additional CDBG grant funding to assist with the removal of architectural barriers at East Lathrop Public estimate
Parks to
created
meet ADA
by City
compliance
staff, the
and
CDBG
allow
funds
access
awarded
to everyone.
last year
Per
are
the
insufficient
engineer' s
to
address the listed architectural barriers across the six parks. The project sites include Apolinar Sangalang Park, Woodfield Park, Valverde Park, Thomson Park, Armstrong Park, and Libby Park. The additional funding will provide the ability to develop a scope of work that will address most of the necessary improvements and ensure accessibility for all community members.
STEP 3: Allocate Home Funds
The estimated HOME fund allocation for FY 2025-6 is $ 26, 843. The City of Lathrop participates in two eligible HOME loan programs - the Homebuyer Down -Payment Assistance ( GAP) and the Lathrop Housing Rehabilitation Program. Both programs provide low -interest loans for qualified low- income households. The City advertises these programs through the City website, Channel 97, Newsletters, and through flyers distributed at City Hall, Community Center, Senior Center and the library.
San Joaquin County administers the HOME fund applications, contracts, and program disbursements. As of February 13, 2025, San Joaquin County confirmed the current balance in the Lathrop Housing Rehabilitation program as $ 156, 613 and the GAP program balance as $ 27, 885.
The County reported that the Lathrop Housing Rehabilitation program assisted the following number of households: One ( 1) completed rehabilitation loan, one ( 1) rehabilitation loan in progress, one ( 1) prequalified pending inspections, three ( 3) pending roof/ HVAC grants, and eleven ( 11) residents on the waiting list for a full rehabilitation loans.
The Homebuyer Down Payment Assistance Program ( GAP) has not been utilized for the past ten ( 11) years. Due to the rising cost of housing and interest rates, residents who qualify under HUDs low- income guidelines find it difficult to qualify for home purchases. The County reported that they received zero ( 0) applications for this program.
In past years the Council expressed desire to put funding toward the GAP program in case market conditions should change. The program may provide 20% of the sales price up to $ 40, 000 (whichever is the lesser), to low income, first- time homebuyers for the purchase of homes in the City of Lathrop. For this reason, staff recommends that $ 12,15 of the HOME Funds be allocated toward the GAP program to bring the balance up to $ 40, 000, with the remaining balance of $ 14, 728 allocated toward the Lathrop Housing Rehabilitation Loan Program.
CITY MANAGER' S REPORT Page 16
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
RECOMMENDATION:
Staff recommends that the City Council consider the information given at the public hearing and during the staff presentation to make a funding recommendation to allocate the 2025/026 fiscal year CDBG and HOME program funds pursuant to budget amendments as follows:
Step 1: Allocate CDBG funds to Public Service Organizations ($ 14, 780) as indicated on the Lathrop Scoring and Ranking Committee Recommendations Attachment B).
Step 2: Allocate
East Lathrop
CDBG
Public
Public/ Capital
Park Architectural
Facility funds ($
Barrier
83, 756)
Removal
to
Project.
the City of Lathrop' s
Step 3: Allocate HOME funds ($ 26, 843) to the GAP program and Housing Rehabilitation Programs administered by the County as indicated on the Lathrop Scoring & Ranking Committee Recommendations ( Attachment B).
FISCAL IMPACT:
Staff time to review the applications, prepare this report, presentation, audit, and manage this program.
The County' s disbursement process requires the City to set up a separate account( s) to accommodate the CDBG reimbursement program. Because the proposed applicant has been awarded CDBG grants in the past, all necessary accounts are in place and funded according to this requirement. The only exception will be an increase in the revenue account to accommodate the Public Facilities award for East Lathrop Public Park Architectural Barrier Removal Project through a budget adjustment for CIP GG 25- 02.
Staff is requesting the following budget amendments to accommodate the CDBG FY 2025/026 allocations for Public Service and Public Facility Grants:
Increase Revenues
2650- 1130- 33- 01-0 Intergov. Federal - CDBG CC $ 83, 756 Increase Transfer Out
2650- 9900-90- 9- 1 CDBG Fund Transfer Out - Public Agency $ 83, 756 Increase Transfers In
3010- 9900- 393- 00-0 Increase Transfer CIP GG 25- 02 $ 83, 756 Increase Expenses
3010- 8000- 420- 12- 00 Increase Expense CIP GG 25- 02 $ 83, 756 CITY MANAGER' SREPORT Page 17
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
GOALS ADVANCED BY THIS AGENDA:
The proposed Resolution promotes Public Safety by providing funding for those in need of assistance and support.
ATTACHMENTS:
A) Resolution Recommending the Allocation of the Community Development Block Grant and Home Investment Program Funds for FY 2025/026.
B) FY 2025/026 - CDBG/ HOME Grant Applications, Scoring and Ranking Committee Recommendations
CITY MANAGER' S REPORT Page 18
MARCH 10, 2025 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING ( PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2025/026
APPROVALS:
Shelley Burcll m
Economic Development Administrator
0? - 7- (COLS
Date
Thomas Hedegard Date
Deputy City Manager
g/ 7a
Salvador Navarrete Date
City Attorney
3. 1 -ZS
Stephen J. Salvatore Date
City Manager
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
RECOMMENDING THE ALLOCATION OF THE COMMUNITY DEVELOPMENT
BLOCK GRANT AND HOME INVESTMENT PROGRAM FUNDS FOR FISCAL YEAR 2025/026 PURSUANT TO BUDGET AMENDMENTS
WHEREAS, the City anticipates it will receive an estimated allocation of 98, 536 for Community Development Block Grant ( CDBG) and $ 26, 843 for the HOME Investment Program ( HOME) for Fiscal Year ( FY) 2025-026; and WHEREAS, the City of Lathrop has properly published a 30 -day public notice of availability of funds for the programs in accordance with HUD regulations; and WHEREAS, the City Council has determined in accordance with the California Environmental Quality Act, Article 18, Section 15273, that this item is statutorily exempt because CEQA does not apply to the establishment or modification of HUD funding programs to public agencies which are to meet community needs; and WHEREAS, the City Council conducted a duly noticed public hearing on February 25, 2025, to consider applications for CDBG and HOME Funds for FY 2025- 2026, has considered the information given at the public hearing and during the staff presentation, and determines that the recommended allocations represent the community needs in Lathrop; and
WHEREAS, the recipients of CDBG funding are required to enter into an agreement with the City to ensure that funds are spent in accordance with HUD regulations.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby recommend the following public service agencies and allocated amounts for funding in the Fiscal Year 2025/026for the CDBG program:
Public Service Organizations Allocations
Give Every Child a Chance ( GECAC) 7, 600
San Joaquin Fair Housing 1, 305
Stockton/ SanJoaquin Emergency Food Bank ( Mobile Farmers Market) 1, 305 SJC Dept. of Aging ( Meals on Wheel) 1, 650
SJC Dept. of Aging ( Rental Assistance) S 2, 920
Total Allocation ( 15% of $ 98, 536) 14, 780
BE IT FURTHER RESOLVED that the City does hereby recommend allocating 83, 756 of the Public/ Capital Facility funds to the City of Lathrop' sPublic Works for the East Lathrop Public Parks Removal of Architectural Barriers project CIP GG 25- 02; and
Resolution No. 25-
BE IT FURTHER RESOLVED that the City does hereby recommend allocating 14, 728 of the HOME Program funds to the Lathrop Property Rehabilitation Loan Program and $ 12,15 to the GAP Loan Program for down payment assistance.
BE IT FURTHER RESOLVED that the City Council authorizes CDBG and HOME fund allocations pursuant to the following budget amendments for FY 2025/026.
Increase Revenues
2650- 1130- 33- 01-0 Intergov. Federal - CDBG CC $ 83, 756 Increase Transfer Out
2650- 9900-90- 9- 1 CDBG Fund Transfer Out - Public Agency $ 83, 756 Increase Transfers In
3010- 9900- 393- 00-Increase Transfer CIP GG 25- 02 $ 83, 756 Increase Expenses
3010- 8000- 420- 12- 00 Increase Expense CIP GG 25- 02 $ 83, 756 Resolution No. 25-
PASSED AND ADOPTED this 10th day of March 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, MAYOR
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 25-
ATTACHMENT B
FY 2025/026 - CDBG/ HOME GRANT APPLICATIONS
SCORING AND RANKING COMMITTEE RECOMMENDATIONS
A. PUBLIC FACILITY APPLICATIONS FUNDING
AVAILABLE FUNDING 83, 756
APPLICANT PROGRAM REQUEST RECOMMENDATION
1. City of Lathrop ( PW) Removal of Architectural
Barriers at East Lathrop Parks
335, 000 83, 756
B. PUBLIC SERVICE APPLICATIONS FUNDING
AVAILABLE FUNDING 14,70
APPLICANT PROGRAM REQUEST RECOMMENDATION
Multi -City Agencies
1. GECAC After School Program 7, 600 7, 600
2. San Joaquin Fair Housing' HUD Mandated Services 1, 305 1, 305
3. Emergency Food Bank of
Stockton/ San Joaquin
Mobile Farmers Market 1, 305 1, 305
4. SJC Dept. of Aging Meals on Wheels 1, 650 1, 650
5. SJC Dept. of Aging Rental Assistance 9, 000 2, 920
TOTAL FUNDING REQUEST 20, 860 14, 780
C. HOME FUNDS
AVAILABLE FUNDING 26, 843
PROGRAM BALANCE RECOMMENDATION
GAP PROGRAM - DOWNPAYMENT ASSISTANCE 27, 885 12,15
HOUSING REHABILITATION LOAN PROGRAM 156, 613 14, 728
NOTES:
A) Public Facility Grant funding is the total CDBG allocation Tess 15% for Public Services. CDBG Allocation for FY 2025/026 has been based on FY 2024/025 final allocation numbers of $98, 536.
B) Awards for Public Service Applications submitted directly to the City must be a minimum of $5, 000, unless prior approval is received by San Joaquin County. Multi - County agencies who have applied through the County may be awarded less than the $ 5, 000 minimum and recommendations are up to the discretion of the City Council.
C) HOME funds have been awarded toward the Housing Rehabilitation Program since 2018. There is a total of 156, 613 remaining in Lathrop' s program. Awards are issued on a first -come, first -serve basis for all applications received throughout San Joaquin County.
GAP Program — Downpayment Assistance is rarely used in the County due to the high price of homes and households not able to meet the income qualification to purchase a home. 1 HUD mandated program, which requires each jurisdiction to provide their proportionate share of the anticipated expenditures by San Joaquin Fair Housing for the fiscal year.