2nd Substantial Amendment – 2023 Annual Action Plan
April 2024
Summary of Changes to Projects and Amendment Details
Introduction and Reason for Amendment:
Through a second amendment to the 2023 Annual Action Plan (2023 AAP) for Program Year 2023-24, the City of Merced intends to make changes to previously approved U.S Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) projects and to correct previously stated CDBG financial resource calculations.
This summary has been prepared to illustrate and explain what items in the current amended AAP will be further amended, added, or deleted.
During a 30-day Public Review and Comment Period held from 4/5/24 to 5/6/24, written questions/comments regarding these changes can be directed to: (mail/in-person) City of Merced Housing Division, 2nd Floor Merced Civic Center, 678 W 18th Street, Merced CA 95340; (email) [email protected]. Housing Division staff can be reached by telephone at (209)385-6863.
The 2023 AAP was first amended in January 2024, to expedite expenditure of excess CDBG funds. The primary need for a second amendment is due to the discovery of unintended miscalculations of CDBG financial resource figures as the initial amendment was being readied for its January City Council approval. Given its urgent nature, Council and HUD approved the first amendment, conditioned with the directive to City staff to immediately start a second amendment process that would correct the errors, which now necessitates eliminating and/or postponing additional projects in order to balance the program year budget. Council and subsequent HUD approval of this second amendment will allow City staff to then close out the 2023-24 Program Year with accurate project lists and financial calculations.
Please see the tables and information on the pages that follow.
Translation/interpretation of this summary to Spanish and Hmong will be made available upon request – please call (209)385-6863.
La traducción/interpretación de este resumen al español y hmong estará disponible previa solicitud; llame al (209) 385-6863.
Kev txhais / txhais cov ntsiab lus no ua lus Mev thiab lus Hmoob yuav muaj nyob rau ntawm qhov kev thov - thov hu rau (209) 385-6863.
Projects to be Deleted by this Second Substantial Amendment:
AAP Project
# and
Annual Plan
Year
Project Name Goal
Affected
Funding
Source
Affected
Amount Deleted and Added
Back to Available Resources
and Subtracted from
Associated Goal
Reason Cancelled
2022 Project
#7
(Also was
2021 Project
#5)
PFI – CDBG: S Canal St/W
Childs Ave. Street,
Sidewalk, Curb & Gutter
Improvements (FY22/23)
1A Improve
Public
Infrastructure
& Facilities
CDBG $ 275,000
(Originally budgeted as
$270,000 project costs and
$5,000 Activity Delivery Costs -
ADC)
This project was initially planned as a 2021 and
2022 CDBG public infrastructure project with total
project costs of $1,043,190 and $104,316 for
Activity Delivery (total of $1,147,506 CDBG). A
portion of these funds were removed with the 1st
Substantial Amendment to the 2023 Annual Plan,
leaving a total of $275,000 to be directed towards
engineering plan design.
However, this project is now moving forward
without any federal funding (using Local and State
funding sources), so the project in its entirety is
removed from CDBG funding/Annual Plans for all
years.
This project originally expected to benefit an
estimated 19,029 residents living within one mile of
the project site.
2023 Project
#5
PFI – CDBG: Merced City
Fire Dept – HEART and
EAV EMS Vehicles
(23/24)
1A Improve
Public
Infrastructure
& Facilities
CDBG $ 632,000
(All project costs, no ADC)
This project is not moving forward due to necessary
adjustments that were made to CDBG Expected
Resources to correct previous calculation errors. As
a result, there are not enough CDBG resources
available to carry out this project during PY2023.
Goal Outcome Indicator (Table AP-20) is reduced by
3 Public Facilities (“Other”), and 520 Persons
Assisted
2023 Project
#14 (after 1st
Amendment)
(Originally
2023 project
#16)
HSG – CDBG: Habitat for
Humanity – Homeowner
Rehabilitation of Existing
Housing Assets
2A Increase
Owner
Occupied
Rehab
Opportunities
2B Increase
Affordable
Housing
Opportunities
CDBG $ 180,000
(Originally budgeted as
$150,000 project costs and
$30,000 ADC)
This project is not moving forward in PY2023 due to
necessary adjustments that were made to CDBG
Expected Resources to correct previous calculation
errors. As a result, there are not enough CDBG
resources available to include it in the 2023 Annual
Action Plan.
However, this project is carried over from previous
years and must still be completed. PY2023 funded
was intended to replace previous HOME funds that
were removed from the project. As such, this
project may be re-added in the 2024 Annual Action
Plan.
Goal Outcome Indicator (Table AP-20) is reduced by
1 Homeowner Housing Added (1 household
housing unit) and 1 Homeowner Housing
Rehabilitated (1 household housing unit).
Other changes to the 2023-24 Annual Action Plan in this Second Substantial Amendment:
1. Increase in Program Income: more program income has continued to be received at higher amounts than originally anticipated (original estimate: $93,000). This second amendment will specifically include and direct an additional $27,225 of this unanticipated program income towards Project #15 (HSG - CDBG/HOME: Affordable Rental Housing - Land Acquisition and Construction (23/26). Total program income of $147,320 now received in 2023-24 and added to the previously amended CDBG Expected Resources.
2. As a result of the deletion of 2022 Project #7 noted in the table above, the previously amended 2023 Carryover Funds is increased by $275,000, which will then increase the previously amended 2023 CDBG Expected Resources by the same amount.
3. As a result of project changes/deletions, the following adjustments to the previously amended 2023 CDBG Annual Goals and Objectives (Section AP-20 in AAP) are necessary: a) Goal 1A – decrease by $657,623; b) Goal 2A – increase by $1,997; c) Goal 2B – decrease by $159,173; d) Goal 3A – increase by $2,377; e) Goal 4A – increase by $422.
4. Minor text amendments and other corrections related to these adjustments will be made to sections where these projects and goals are mentioned.