Modesto City Council
May 9, 2023

This Project was advertised for bids on June 15, 2021, having only a base bid. Bids were publicly opened on July 13, 2021, pursuant to City Charter Section 1307, and one bid was received.

The bid received was above the engineer’s estimate by approximately 62.1%. Due to inflation and current pricing, staff was already anticipating higher bids as the project scope was reworked with Caltrans to be consistent with our Traffic Signal System Master Plan that was completed. Staff had additional funding through Measure L for this project for a total construction amount of $1,100,000; however, the allocated funding was approximately 22.3% short of the bid received.

On August 10, 2021, by Resolution No. 2021-323, Council approved rejecting all bids and readvertising at a future date. This allowed staff to re-evaluate the construction costs and scope of work to identify any clarifications needed to the bid package and the necessary adjustments to the engineer’s estimate and project budget.

DISCUSSION:

The project was re-advertised for bids on August 25, 2021. Bids were publicly opened on September 28, 2021, pursuant to Modesto Municipal Code section 8-3.403 and Tennyson Electric, Inc. of Livermore, CA, was the responsible bidder with the low bidder at 3.29% above the engineers estimate.

On October 26, 2021 by Resolution 2021-417, Council awarded a contract to Tennyson Electric, Inc., of Livermore, CA, in the amount of $1,138,793. The Contractor received the Notice to Proceed with a start date of January 03, 2022. All contract work was completed on October 21, 2022.

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file the County Recorder, release securities, and authorize payments totaling $1,199,842. The work is covered by a one-year warranty for any issued that may arise.

Staff recommends the project for acceptance as the contractor has complied with all contract requirements for the project.

FISCAL IMPACT:

The total project costs were $1,295,610 which included design, construction, and construction administration costs. The total project amount originally budgeted was $1,639,628 which included $1,252,673 for the construction contract and contingency with Tennyson Electric, Inc., of Livermore, CA.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, and updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (8%) $91,104 for construction contracts of this dollar value. By Resolution 2021-418 staff requested an increase in the Director’s Authority for the Construction Contingency to twenty-five (10%) to $113,879. #13..
- 393 -
City Council, May 9, 2023
Accept Upgrade ATMS 2019 CML5059-(238) Project

There were five change orders resulting in an overall increase of $61,049 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
101192– PW. Traffic Engineering “Upgrade ATMS 2019- FHWA-CalTrans-CML-5059-(238)- 2019-20.205 HWY Planning and Con.”
PROJECT EXPENDITURES:

Total
Construction Contract (Cal Sierra Const. Inc.) $1,138,793 Construction Contingency 5.36% $61,049
Construction Administration (City Staff) 4.98% $56,665
Engineering Design/Admin. (City Staff) 3.43% $39,103
TOTAL CONSTRUCTION EXPENDITURES: $1,295,610

COMMITTEE RECOMMENDATION
On April 5, 2021, the Project was presented to the Economic Development Committee as a report on upcoming Capital Improvement construction projects. The Committee approved the list of projects and recommended that staff present the award of the project to Council upon successful bidding.

CEQA/NEPA REQUIREMENTS:

Environmental review has been provided through a Categorical Exemption under CEQA Section 15301, EA/PW 2019-015, filed July 9, 2019.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the Upgrade Advance Traffic Management System 2019, CML-5059-(238) Project as complete, releasing securities, releasing payments totaling $1,199,842 to Tennyson Electric, Inc., of Livermore, CA., and authorizing the City Clerk to file a Notice of Completion.

Approved by:
_________________________________________
William Wong, Director of Utilities
_________________________________________
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. CCO Log

3. Project Suspension Form

4. Notice of Completion
#13..
- 394 -
1 MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XX

RESOLUTION ACCEPTING THE UPGRADE ADVANCE TRAFFIC
MANAGEMENT SYSTEM 2019, CML-5059-(238) PROJECT AS

COMPLETE, RELEASING SECURITIES, RELEASING PAYMENTS
TOTALING $1,199,842 TO TENNYSON ELECTRIC, INC., OF
LIVERMORE, CA., AND AUTHORIZING THE CITY CLERK TO FILE A

NOTICE OF COMPLETION
WHEREAS, the Upgrade Advanced Traffic Management System (ATMS) 2019 Project installed fiber optic cable down Briggsmore Avenue, Standiford/Sylvan Avenue, and Oakdale Road, and
WHEREAS the project conforms to the Traffic Signal System Master Plan, by replacing old 12/24 strand fiber with 96 strand fiber to provide capacity for anticipated future need, and
WHEREAS, this initiative also supports the future implementation of video detection cameras, signal performance software, adaptive software, and additional intelligent transportation system elements, and
WHEREAS, the project was advertised for bids on August 25, 2021, and bids were publicly opened on September 28, 2021, pursuant to Modesto Municipal Code Section 8-

3.403 and City Charter Section 1307, and
WHEREAS, Tennyson Electric, Inc. of Livermore, CA, was the responsible bidder with the low bidder at 3.29% above the engineers estimate, and WHEREAS, on October 26 2021, by Resolution No. 2021-417, Council awarded a contract to Tennyson Electric, Inc. of Livermore, CA for the construction of the Upgrade ATMS 2019 CML5059 (238) project for the amount of $1,138,793, and #13..
- 395 -
2 WHEREAS, the Contractor received the Notice to Proceed with a start date of January 3, 2022. All contract work was completed on October 21, 2022, and WHEREAS, the total project costs were $1,295,610 which included design, construction, and construction administration costs. The total project amount originally budgeted was $1,639,628 which included $1,252,673 for the construction contract and contingency with Tennyson Electric, Inc. of Livermore, CA and WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, and updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (8%) $91,104 for construction contracts of this dollar value. By Resolution 2021-418 staff requested an increase in the Director’s Authority for the Construction Contingency to twenty-five (10%) to $113,879, and
WHEREAS, there were two change orders resulting in an overall increase of $61,049, and
WHEREAS, by accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby accepts the Upgrade Advanced Traffic Management System 2019, CML5059-(238)Project as complete, releasing securities, releasing payments totaling $1,199,842 to Tennyson Electric, Inc., of Livermore, CA., and authorizing the City Clerk to file a Notice of Completion.
#13..
- 396 -
3 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________________
DIANE NAYARES-PEREZ, CMC, City
Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
#13..
- 397 -
CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: March 15, 2023
TIME
EXT.
2022/06 - Upgrade ATMS 2019, CML 5059(238) (Rebid) (101192) PROJECT NUMBER AND NAME:
01 Additional Splicing 08/02/22 $50,118.85 3 W.D. Yes No No 02 Lost working days due to pull box procurement. 09/09/22 $0.00 106 W.D. No Yes No 03 Sisk/Standiford upsize existign signal box and relocate fiber splice box to bow.
09/02/22 $3,100.00 0 W.D. No Yes No
04 Box relocate Orangeburg/Oakdale. 09/02/22 $2,379.33 0 W.D. No Yes No 05 RE- TEST AND TERMINATE AT COFFEE/SYLVAN 03/15/23 $5,450.00 0 W.D. No No Yes Total Change Orders Processed To Date: $61,048.18
Original Contract Amount: $1,138,793.00
IDA To: $113,879.00
Total Working Days Time Extension: 109
Original Director's CCO Authority: $91,103.44
IDA Date: 10/26/2021
#13..
- 398 -
3/28/2023
Financial Analyst (Assets): Date:
03/28/23
#13..
- 399 -
#13..
- 400 -
#13..
- 401 -
#13..
- 402 -
Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on October 26, 2021, the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the bid to Tennyson Electric, Inc., of Livermore, CA for the project titled “Upgrade Advanced Traffic Management System (ATMS) 2019, CML 5059(238)” located at Standiford Avenue, Sylvan Avenue, Briggsmore Avenue and Oakdale Road and that on October 21, 2022, the said contract as a whole was actually completed by Tennyson Electric, Inc., of Livermore, CA., and accepted by the Council of the City of Modesto at a regular meeting of the Council held May 9, 2023.

CITY OF MODESTO
By
Diane Nayares-Perez, City Clerk
I certify under penalty of perjury that the foregoing is true and correct.

Date: May 9, 2023 By
Modesto, CA Diane Nayares-Perez, City Clerk
#13..
- 403 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 9, 2023
April 19, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: William Wong, Director of Utilities
SUBJECT: Accept Wastewater Building Upgrades as Complete CONTACT: Peter Kambel, Sr. Civil Engineer, [email protected], 209-577-5444 DESCRIPTION:

Consider accepting the Wastewater Building Upgrades Project as complete, releasing securities, and releasing payments totaling $854,000 to Azul Works, Inc, of San Francisco, CA. (Funding Source: Wastewater Fund)
STRATEGIC PLAN ELEMENT:

The recommended action supports the 2020-2025 City’s Strategic Plan Initiatives, Goal D:

Provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

Remediation improvements are needed for some of the existing buildings located at the Jennings Wastewater Treatment Plant (Jennings Plant), due to severe deteriorations of nonstructural components.

The existing lab building was one of the original buildings on site. Due to deterioration, the roof of the lab building, which houses lab equipment vital for the operations of the Jennings Plant, the Motor Control Center for the aeration channel pumps and the communication center servers, were replaced. Another building that was included in this project is the existing steel warehouse, where the roof sheeting and siding were severely corroded. Insulation was added to increase thermal efficiency of the building. The existing electrical building roof was also replaced to address existing leaks that occur during the rainy seasons.

In addition to the remediation improvements, this project included improvements to prolong the life of City equipment used in the Jennings Plant maintenance. A new steel structure over equipment parking and a new enclosure of an existing canopy area were constructed in this project. This will allow a better utilization of the existing shop footprint area. #14..
- 404 -
City Council, May 9, 2023
Accept Wastewater Building Upgrades Project as Complete

DISCUSSION:

The project was advertised for bids on May 4, 2021. Bids were publicly opened on June 8, 2021, pursuant to Modesto Municipal Code section 8-3.403. Three bids were received and Azul Works Inc., of San Francisco, CA, was the responsible bidder with the low bidder at 9.86% above the engineers estimate.

On August 10, 2021 by Resolution 2021-330, Council awarded a contract to Azul Works Inc., of San Francisco, CA, in the amount of $769,000. The Contractor received the Notice to Proceed with a start date of October 11, 2021. All contract work was completed on October 6, 2022.

By accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed. The City Clerk is authorized to complete all the necessary steps to file the County Recorder, release securities, and authorize payments totaling $854,000 to Azul Works Inc., of San Francisco, CA. The work is covered by a one-year warranty for any issued that may arise.

Staff recommends the project for acceptance as the contractor has complied with all contract requirements for the project.

FISCAL IMPACT:

The total project costs were $1,069,999 which included design, construction, and construction administration costs. The total project amount originally budgeted was $1,272,000 which included $884,350 for the construction contract and contingency with Azul Works Inc., of San Francisco, CA.

The City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, and updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (10%) $76,900 for construction contracts of this dollar value. However, given the nature of this project being located at a critical facility, as well as the unknown conditions of underlying materials, additional work may be needed to address these conditions. Resolution 2021-331 staff requested an increase in the Director’s Authority for the Construction Contingency to fifteen (15%) to $115,350.

There were three change orders resulting in an overall increase of $85,000 for change order work as listed on the attached change order log. A summary of the expenditures for the overall project is listed below.
101004– UPP Wastewater Building Upgrades
PROJECT EXPENDITURES:

Total
Construction Contract (Azul Works, Inc.) $769,000
Construction Contingency 11.05% $85,000
Construction Administration (City Staff) 14.31% $110,077 Engineering Design/Admin. (City Staff) 13.77% $105,922
TOTAL CONSTRUCTION EXPENDITURES: $1,069,999

COMMITTEE RECOMMENDATION
#14..
- 405 -
City Council, May 9, 2023
Accept Wastewater Building Upgrades Project as Complete

On March 25, 2019, the Project was presented to the Finance Committee as a report on upcoming Capital Improvement construction projects. The Committee approved the list of projects and recommended that staff present the award of the project to Council upon successful bidding.

CEQA/NEPA REQUIREMENTS:

Environmental review has been provided through a Categorical Exemption under CEQA Section Article 19, Section 15301 Class 1, item (d) & (e-2).

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution accepting the Wastewater Building Upgrades Project as complete, releasing securities, releasing payments totaling $854,000 to Azul Works Inc., of San Francisco, CA., and authorizing the City Clerk to file a Notice of Completion.

Approved by:
_________________________________________
William Wong, Director of Utilities
_________________________________________
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. CCO Log

3. Project Suspension Form

4. Notice of Completion
#14..
- 406 -
1 MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XX

RESOLUTION ACCEPTING THE WASTEWATER BUILDING UPGRADES

PROJECT AS COMPLETE, RELEASING SECURITIES, AND RELEASING PAYMENTS TOTALING $854,000 TO AZUL WORKS INC., OF SAN
FRANCISCO, CA. AND AUTHORIZING THE CITY CLERK TO FILE A NOTICE

OF COMPLETION
WHEREAS, remediation improvements are needed for some of the existing buildings located at the Jennings Wastewater Treatment Plant (Jennings Plant), due to severe deteriorations of non-structural components, and WHEREAS, the existing lab building was one of the original buildings on site. Due to deterioration, the roof of the lab building, which houses lab equipment vital for the operations of the Jennings Plant, the Motor Control Center for the aeration channel pumps and the communication center servers, were replaced, and WHEREAS another building that was included in this project is the existing steel warehouse, where the roof sheeting and siding were severely corroded, and WHEREAS, the existing electrical building roof was also replaced to address existing leaks that occur during the rainy seasons, and WHEREAS, in addition to the remediation improvements, this project included improvements to prolong the life of City equipment used in the Jennings Plant maintenance. A new steel structure over equipment parking and a new enclosure of an existing canopy area were constructed in this project. This will allow a better utilization of the existing shop footprint area, and
WHEREAS, the project was advertised for bids on May 4, 2021, and bids were publicly opened on June 8, 2021, pursuant to City Charter Section 1307. Three bids were #14..
- 407 -
2 received, and
WHEREAS, Azul Works, Inc, was the lowest responsible bidder at 9.86% above the engineer’s estimate, and
WHEREAS, on August 10 2021, by Resolution No. 2021-330, Council awarded a contract to Azul Works, Inc., of San Francisco, CA for the construction of the Wastewater Building Upgrades project for the amount of $769,000, and WHEREAS, the Contractor received the Notice to Proceed with a start date of October 11, 2021 All contract work was completed on October 6, 2022, and WHEREAS, the total project costs were $1,069,999 which included design, construction, and construction administration costs. The total project amount originally budgeted was $1,272,000 which included $884,350 for the construction contract and contingency with Azul Works, Inc., of San Francisco, CA, and WHEREAS, the City’s “Change Order Approval Policy” enacted by Council Resolution No. 94-443 on July 19, 1994, and updated by Resolution No. 2019-326 on July 9, 2019, established a contract change order authority of eight percent (10%) $76,900 for construction contracts of this dollar value. However, given the nature of this project being located at a critical facility, as well as the unknown conditions of underlying materials, additional work may be needed to address these conditions. By Resolution 2021-331 staff requested an increase in the Director’s Authority for the Construction Contingency to twenty-five (15%) to $115,350, and
WHEREAS, there were three change orders resulting in an overall increase of $85,000, and
#14..
- 408 -
3 WHEREAS, by accepting this project as complete, the City officially accepts the improvements made and authorizes the Notice of Completion to be filed.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby accepts the Wastewater Building Upgrades project as complete, releasing securities, and releasing payments totaling $854,000 to Azul Works, Inc., of San Francisco, CA., and authorizing the City Clerk to file a Notice of Completion. #14..
- 409 -
4 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ____________________________________
DIANE NAYARES-PEREZ, CMC, City
Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
#14..
- 410 -
CHANGE
ORDER
NO. DESCRIPTION EXECUTED AMOUNT
CAUSE

UNFORSEEN

CONDITIONS
DESIGN
ISSUE
ADDED
SCOPE

CONTRACT CHANGE ORDER LOG
Date: April 03, 2023
TIME
EXT.
2021/08 - WASTEWATER BUILDING UPGRADES (101004)
PROJECT NUMBER AND NAME:
01 35 Additional Working Days 09/14/22 $0.00 35 W.D. Yes No No 02 Cost Escalation 10/10/22 $85,000.00 0 W.D. No Yes No 03 Additional Working Days 03/27/23 $0.00 20 W.D. No Yes No Total Change Orders Processed To Date: $85,000.00
Original Contract Amount: $769,000.00
IDA To: $115,350.00
Total Working Days Time Extension: 55
Original Director's CCO Authority: $76,900.00
IDA Date: 8/10/2021
#14..
- 411 -
Date:

Fund/Cost Center: 4210
Contact: Sherrie Jones Ext. 75215
Capital/Non-Capital Project (CIP) #:

Project Creation: Non-Capital or Capital Project (Check One) Non-Capital Capital Project Name:

Project Description:

Council Acceptance/Project Completion Date:

Warranty Period (Yes/No) Yes Project Warranty End Date:

Final Construction Contract Amount (including change orders):

Amount of Construction Cost categorized as Capital:

Project expenses include (Check one): Non-Capital Capital Capital and Non-Capital* * If project expenses include Capital and Non-Capital, provide and attach Itemized List of New Assets and Costs Open Commitments (Yes/No): Yes If Yes, list below:
$854,000.00

65.56%
Provides improvements to three existing buildings at Jennings Wastewater Treatment Plant.

Building work will include demo, and install of new walls, and roofs. The project also includes a new struture for parking and new enclsure of an existing canopy of an existing shop building.

Project in Warranty Period
Kleinfelder, Red Inc. Architect
5/9/2024
Project Suspension Form
3/28/2023
Requesting Department:

Project Organization: UPP Engineering Design
For projects under warranty period
101004
UPP. Wastewater Building Upgrades
Utilities - Engineering
Reason for Suspend:
5/9/2023
Project Manager: Date:

Sr. Civil Engineer (Construction Admin.): Date:

Engineering Division Manager: Date:

Department Director: Date:

Authorization Signatures to Close Project
03/29/2023 03/29/2023 03/29/2023
(Acting Director)
03/29/2023
CFF/CFD Administrator: Date:

Financial Analyst (Budget): Date:

Director of Finance: Date:

Financial Analyst (Assets): Date:

Completed/Processed by: Date:
3/28/2023
3/30/23
Marvin Chan 3/29/23
#14..
- 412 -
For both Non-Capital/Capital Projects
Verity Project Fund is correct.

Verify all encumbrances have cleared with zero balances once all costs are final.

GMS: Costing and Funds Check on Usage and Miscellaneous Costs PRC: Update Project Summary Amounts
PRC: Distribute Total Burdened Cost
PRC: Generate Cost Accounting Events
PRC: Create Accounting
For Non-Capital Projects
Enter and End Date in the Project Screen in Oracle.

For Capital Projects
Email the Asset Financial Analyst (Leslie Vaughn)of the closure (Capital Projects ONLY).

For both Non-Capital/Capital Projects
Email Project Closure Form to Requesting Department once completed.

File BT or AT if Budget Adjustment was necessary.

File Project Closure Form in the Closure Binder.

For Capital Projects that include Non-Capital expenses, include itemized list of new assets (schedule of values)
Before changing the Status to "Pending Close", attach a scanned copy of the signed Project Closure Form to the Project Screen.

Next change the Status to "Pending Close" and enter the date the Department Authorized the Project to be closed.

Email the Oracle Administrators (Matthew Chewning and Maria Garnica) to inactivate the Project Number on the General Ledger side of Oracle.

Finance Staff ONLY
Steps for Processing Project Closures
Grant Funded Projects - Verify with Program Manager and Financial Analyst in Accounting- that all final reporting and billing have been completed, and revenue has been received.

In Oracle, be sure to run the five processes individually after adjustments for both NonCapital/Capital Projects:

Before changing the Status to "Closed", attach a scanned copy of the signed Project Closure Form to the Project Screen in Oracle.

Email the Oracle Administrators (Matthew Chewning and Maria Garnica) to inactivate the Project Number on the General Ledger side of Oracle.

Last Revised 12/6/2021
#14..
- 413 -
Pull-down Lists (DO NOT PRINT THIS PAGE)
Yes/No (Pulldown)
Yes
No
Department/Division (Pulldown List)
Community & Economic Development - Transportation Engineering Community & Economic Development -Land Development Engineering Community & Economic Development -Community Development Public Works - Traffic
Public Works - Streets
Public Works - Fleet
Utilities - Engineering
Utilities - Water
Utilities - Wastewater
Parks, Recreation & Neighborhoods
MPD
MFD
Last Revised 12/6/2021
#14..
- 414 -
Requested by
City of Modesto/City Clerk’s Office
Return to City of Modesto/City Clerk’s Office:

PO Box 642
Modesto CA 95353

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that on August 10, 2021, the City of Modesto, PO Box 642, Modesto, California 95353, a Municipal Corporation in the County of Stanislaus, State of California, awarded the contract to Azul Works, Inc., of San Francisco, CA., for the project titled “Wastewater Building Upgrades” located at 1221 Sutter Avenue, Modesto, CA., and that on October 6, 2022 the said contract as a whole was actually completed by Azul Works, Inc., of San Francisco, CA., and accepted by the Council of the City of Modesto at a regular meeting of the Council held May 9, 2023.

CITY OF MODESTO
By
Diane Nayares-Perez, City Clerk
I certify under penalty of perjury that the foregoing is true and correct.

Date: May 9, 2023 By
Modesto, CA Diane Nayares-Perez, City Clerk
#14..
- 415 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 09, 2023
Date: April 17, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Interim Director of Community and Economic Development SUBJECT: Program Year 2023-2024 Annual Action Plan
CONTACT: Jessica Hill, Interim Director of Community and Economic Development [email protected], 209-577-5211
DESCRIPTION:

Hearing to consider the 2023-2024 Annual Action Plan as well as the acceptance of the 2023- 2024 Annual HUD Allocation in the amount of $2,875,518 and to submit the 2023-2024 Annual Action Plan, and applicable documentation, as required by U.S. Department of Housing and Urban Development. (Funding Source: HUD Entitlement Funding) STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto’s 2020-2025 Strategic Plan Goal C: Develop Homelessness and Housing Plan.

BACKGROUND:

The City of Modesto is an entitlement grantee under the U.S. Department of Housing and Urban Development (HUD) Office of Community Planning and Development (CPD) programs. HUD requires entitlement grantees adopt a comprehensive, long‐term plan for the use of its HUD funds known as the Five‐Year “Consolidated Plan” (Con Plan) which analyzes the City’s housing and community development needs, with a priority focus on low‐ and moderate‐ income individuals, households, and neighborhoods, and describes long‐term strategies for meeting those needs. The City’s current Consolidated Plan covers Program Years 2020 to 2025 (July 1, 2020 to June 30, 2025).

As a HUD entitlement community, the City is required to develop an Annual Action Plan that describes proposed projects to be funded with HUD’s CPD programs including Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds. The Annual Action Plan (AAP) must align and support the priorities in the City’s 2020-2024 Consolidated Plan.
#15..
- 416 -
City Council, May 09, 2023
Program Year 2023-2024 Annual Action Plan

DISCUSSION:

The City of Modesto’s Program Year (PY) 2023-2024 Annual Action Plan represents the fourth (4th) plan of the City of Modesto’s 2020-2024 Consolidated Plan. The PY 2023-2024 AAP identifies the expected resources to be available and the projects to be funded during the program year to address community priority needs as identified in the Consolidated Plan.

Program Allocations
The following is a breakdown of our Program Year 2023-2024 grant allocations:

CDBG $1,784,411
ESG $161,451
HOME $ 929,656
Total $ 2,875,518
Community Development Block Grant (CDBG)
CDBG funds support a range of eligible projects to benefit low- and moderate-income individuals, families, and neighborhoods. CDBG eligible project categories include, but are not limited to public services, affordable housing, homebuyer assistance, acquisition of real property, construction and improvements of public facilities, special economic development activities, and program administration in support of the implementation the eligible activities and Annual Action Plan development process.

CDBG funds must be allocated to eligible activities within the allowable project categories to support the goals and objectives identified within the Consolidated Plan to address community needs. The following CDBG project categories have been proposed in the AAP:

Emergency Solutions Grant (ESG)
Emergency Solutions Grants (ESG) funds can be used to provide a wide range of services and supports under the five program components: Street Outreach, Emergency Shelter, Rapid Rehousing, Homelessness Prevention, and the Homeless Management Information System.

The City competitively awards ESG grants to eligible organizations that aid individuals and families experiencing homelessness and those at risk of experiencing homelessness.

HOME Investment Partnerships Program (HOME)
The HOME program supports projects that purchase, construct, and/or rehabilitate affordable housing to low-income individuals. The HOME program provides funding for the following types of projects:
 Program Planning and Administration
 Affordable Housing – Rehabilitation and Construction
 City Owned Properties
 Church Properties
 Community Housing Development Organization (CHDO) Set-Aside  Community Housing Development Organization (CHDO) Operating Support Proposed Funding Allocation
The City reports to HUD on its intended use of funds based on all funding still available from prior year allocations, proposed program income, revolving loan funds dedicated to CDBG activities, and the new year’s entitlement. This includes its one-time funding issued to respond #15..
- 417 -
City Council, May 09, 2023
Program Year 2023-2024 Annual Action Plan

to the COVID-19 pandemic through the HOME American Rescue Plan Act and the Coronavirus Aid, Relief, and Economic Security Act(CARES Act). The City has the following amounts available to program this program year and is dedicating to the following Consolidated Plan Goals:

Goal CDBG ESG HOME ESG-CV HOMEARPTotal
Administration $1,035,882 $14,451 $685,920 $63,283 $511,466 $2,311,002 Improve
Quality and
Increase
Affordable
Housing
$2,724,546 $0 $4,656,817 $0 $2,898,308 $10,279,671
Enhance
Infrastructure
and Public
Facilities
$382,202 $0 $0 $0 $0 $382,202
Access to
Jobs,
Education,
and Other
Services
$120,960 $0 $0 $0 $0 $120,960
Work Towards
Ending
Homelessness
$191,500 $147,000 $0 $569,547 $0 $908,047
Total $4,455,090 $161,451 $5,342,737 $632,830 $3,409,774 $14,001,882 Allocations by Project
The City further breaks down its funding to the project level. This is broad categories that meet one or more of the Consolidated Plan Goals. Though the funding is listed in these categories all project Agreements over $50,000 return to Council for final approval prior to issuance of any funding to a project. The allocations by project categories are listed below:

Project Name Project Utilization
General
Administration
Goal: Administration
 Funding Total: $1,968,577
• CDBG: $693,457
• HOME: $685,920
• HOME-American Rescue Plan: $511,466
• ESG: $14,451
• ESG-CV: $63,233
 Description This project will fund administrative expenses related to the planning and administration of CDBG and HOME activities including but not limited to development of HUD plans, contract development, project monitoring, and enforcement of federal regulations
#15..
- 418 -
City Council, May 09, 2023
Program Year 2023-2024 Annual Action Plan

Section 108 Loan
Repayment
Goal: Administration
 Funding Total
 CDBG: $342,425
 Description: Planned repayment of Section 108 Loan
Principal/interest
Housing
Rehabilitation
Program inclusive
of Revolving Loan
Funding and
Activity Delivery
Goal: Improve Quality and Increase Affordable Housing
 Funding Total: $861,965
• CDBG: $250,000
• CDBG (RLF): $611,965
 Description Health and Safety repairs to homes that are owner occupied and activity delivery costs related to carrying out housing rehabilitation activities (rental and owner occupied).  Estimated to Serve: 20 Households
Affordable
Housing
Acquisition and
Rehabilitation
Goal: Improve Quality and Increase Affordable Housing
 Funding Total: $9,417,706
• CDBG: $1,862,581
• HOME: $4,656,817
• HOME-American Rescue Plan: $2,898,308
 Description: Use CDBG funds for acquisition and/or
rehabilitation of property for affordable housing, disability access/improvements, first time homebuyers, lead based paint services, energy efficiency improvements and similar projects and the use of HOME or HOME-ARP funds to leverage funding for the construction and/or rehabilitation of new affordable rental housing units through partnerships with the State, the housing authority, and using tools such as land banking, the revolving loan fund, and housing set-aside funds.
 To create an estimated 187 units of affordable housing Public Facilities Goal: Enhance Infrastructure and Public Facilities  Funding CDBG: $382,202
 Description: Improve the physical structures throughout the City in CDBG program eligible areas including but not limited to construction or rehabilitation of public facilities and/or improving infrastructure conditions in LMA neighborhoods
 This will serve a residential population of at least 1,000 households.
 Planned Activities: Community Centers, park improvements, homeless facilities, and/or other eligible public facilities.

Public Services Goal: Work Towards Ending Homelessness and Access to Jobs, Education, and Other Services
 Funding Total
• CDBG: $ 312,460
 Description: Partner with local public service providers to provide essential public services to Modesto residents.

Activities are estimated to serve at least 775 individuals below 80% of AMI through public service activities
#15..
- 419 -
City Council, May 09, 2023
Program Year 2023-2024 Annual Action Plan

ESG and ESG-CV Goal: Work Towards Ending Homelessness
 Funding Total: $716,547
 ESG: $147,000
 ESG-CV: $569,547
 Description: General Administration and Partner with local nonprofits to provide essential services and outreach to individuals and households at risk for homelessness.
 Activities are estimated to serve at least1,600 individuals and families at risk for homelessness
 Planned Activities: Street Outreach, HMIS, Rapid Re-housing, and Homeless Prevention.

Citizen Participation Process
In accordance with HUD Citizen Participation requirements, the public is afforded an opportunity to comment, for a minimum of 30 days, on the proposed Annual Action Plan. Any public comments received in writing or at public meetings, will be considered by the City when preparing the Annual Action Plan. A summary of the comments, including a notation as to whether or not the comment was accepted and the reasoning behind the inclusion or exclusion, will be included within the Citizen Participation section of the Annual Action Plan.

A series of community meetings are being held during the months of April and May 2023 to provide information about the City’s HUD programs and discuss the PY 2023-2024 Annual Action Plan. The following is a list of the community meetings.

Date Time Location
April 12, 2023 5:30 pm Stanislaus Homeless Alliance
April 18, 2023 2:00 pm Modesto Neighborhoods, Inc.

April 20, 2023 12:00 pm Citizen Housing & Community Development Committee
April 20, 2023 2:30 pm Stanislaus Community System of Care May 01, 2023 3:00 pm Airport Neighborhood Collaborative (Virtual) May 09, 2023 5:30 pm City Council Public Hearing (Hybrid) The public review period serves an opportunity for the public to provide comments on the draft AAP document. This comment period opened on April 09, 2023 and is scheduled to close with a public hearing at the Council meeting on May 09, 2023.

Any comments received during the public review period or during the Council public hearing will be incorporated into the final Program Year 2023-2024 Annual Action Plan that is submitted to HUD. A copy of the Draft Program Year 2023-2024 Annual Action Plan is provided as Attachment 3.

As per the City’s Administrative Directive 7.2 on Grant Management, grant applications over $1,000,000 with no match requirements must be approved by Council. This item satisfies that requirement for these annual grants.
#15..
- 420 -
City Council, May 09, 2023
Program Year 2023-2024 Annual Action Plan

FISCAL IMPACT:

There is no impact to the General Fund. The U.S. Department of Housing and Urban Development Department HUD requires all recipients that receive entitlement funding to prepare and submit an Annual Action Plan as its application for each year’s funding allocation.

Failure to comply will jeopardize the funds the City receives each year from the Community Development Block Grant program, the HOME Investment Partnerships program, and the Emergency Solutions Grant program. In Program Year 2023-2024, the City will receive approximately $2,875,518 million from the three federal programs.

COMMITTEE RECOMMENDATION:

The 2023-2024 Annual Action Plan was presented to Citizens Housing and Community Development Committee on April 20, 2023 and was recommended to forward to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the City of Modesto program year 2023-2024 Annual Action Plan for the use and acceptance of Community Development Block Grant Programs, Emergency Solutions Grant, and HOME Investment Partnerships Program funding in the amount of $ 2,875,518 received from the U.S. Department of Housing and Urban Development and authorizing the City Manager, or his designee, to negotiate and execute any related program Agreements, contracts or other documentation required for implementation and acceptance of the program year 2023- 2024 Annual Action Plan funding, and authorization to submit applicable documentation and provide technical alterations, as required by HUD, incorporate comments received prior to the close of the public comment period, and to make the necessary steps to implement the provisions of this resolution.

Resolution approving the allocation of funds outlined in the program year 2023-2024 Annual Action Plan Budget to reflect proposal submitted to the U.S. Department of Housing and Urban Development and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of this Resolution.

Approved by:

Jessica Hill, Interim Director of Community
and Economic Development
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Budget Resolution

3. Program Year 2023-2024 Annual Action Plan
#15..
- 421 -
05/09/2023/CED/JHill/Item XX 1 2023-xxxx

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-xxxx

RESOLUTION APPROVING THE CITY OF MODESTO PROGRAM YEAR
2023-2024 ANNUAL ACTION PLAN FOR THE USE AND ACCEPTANCE OF

COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAMS, EMERGENCY

SOLUTIONS GRANT, AND HOME INVESTMENT PARTNERSHIPS
PROGRAM FUNDING IN THE AMOUNT OF $ 2,875,518 RECEIVED FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND

AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO NEGOTIATE

AND EXECUTE ANY RELATED PROGRAM AGREEMENTS, CONTRACTS

OR OTHER DOCUMENTATION REQUIRED FOR IMPLEMENTATION AND
ACCEPTANCE OF THE PROGRAM YEAR 2023-2024 ANNUAL ACTION PLAN

FUNDING, AND AUTHORIZATION TO SUBMIT APPLICABLE

DOCUMENTATION AND PROVIDE TECHNICAL ALTERATIONS, AS

REQUIRED BY HUD, INCORPORATE COMMENTS RECEIVED PRIOR TO

THE CLOSE OF THE PUBLIC COMMENT PERIOD, AND TO MAKE THE

NECESSARY STEPS TO IMPLEMENT THE PROVISIONS OF THIS

RESOLUTION
WHEREAS, as a U.S. Department of Housing and Urban Development (HUD) entitlement community, the City of Modesto is required to develop an Annual Action Plan that describes proposed activities funded with Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds, and
WHEREAS, the City of Modesto’s Program Year (PY) 2023-2024 Annual Action Plan represents the fourth (4th) plan of the City of Modesto’s 2020-2024 Consolidated Plan, and
WHEREAS, the PY 2023-2024 AAP identifies the expected resources to be available and the projects to be funded during the program year to address community priority needs as identified in the Consolidated Plan, and WHEREAS, CDBG funds support a range of eligible projects to benefit low- and moderate-income individuals, families, and neighborhoods, and #15..
- 422 -
05/09/2023/CED/JHill/Item XX 2 2023-xxxx
WHEREAS, CDBG funds must be allocated to eligible activities within the allowable project categories to support the goals and objectives identified within the Consolidated Plan to address community needs, and
WHEREAS, up to fifteen percent (15%) of the overall CDBG allocation for public service activities may be used to fund CDBG Public Services grants awarded to eligible organizations that serve low- and moderate-income residents, and WHEREAS, the ESG program supports essential services to homeless individuals and families through street outreach and engagement, rapid re-housing assistance, homeless prevention, homeless management information system support, and provision of vital services in emergency shelters, and
WHEREAS, the HOME program supports projects that purchase, construct, and/or rehabilitate affordable housing for rent or homeownership to low-income individuals, and
WHEREAS, citizen participation is a key component of the Annual Action Plan process, and
WHEREAS, HUD regulations require the City provide ample opportunity and means for the populations served by the grants, as well as the general citizenry, to provide input on the goals and priorities and the specific type of activities to be funded in the City’s Program Year 2023-2024 Annual Action Plan, and WHEREAS, a series of community meetings were held during the month of April and May 2023 to provide information about the City’s HUD programs and discuss the PY 2023-2024 Annual Action Plan, and
#15..
- 423 -
05/09/2023/CED/JHill/Item XX 3 2023-xxxx
WHEREAS, any comments obtained from the community meetings will be incorporated into the Program Year 2023-2024 Annual Action Plan, and WHEREAS, in compliance with the Citizen Participation Plan requirements, a 30- day public period to review and comment on the draft documents opened April 09, 2023 and will close with a public hearing at the City Council meeting on May 09, 2023, WHEREAS, in Program Year 2023-2024, the City will receive $2,875,518 million from the three federal programs, and
WHEREAS, On April 20, 2023, the CH&CDC reviewed, approved and forwarded the proposed Program Year 2023-2024 Annual Action Plan to Council for review and approval.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the City of Modesto Program Year 2023-2024 Annual Action Plan for use of the Community Development Block Grant, HOME Investment Partnerships Program, and Emergency Solutions Grant funds.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to negotiate and execute any related program agreements, contracts, or other documentation required for implementation and acceptance of the Program Year 2023- 2024 Annual Action Plan funding.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is authorized to submit all applicable documentation and provide technical alterations, as required by HUD, and to incorporate comments received prior to the close of the public comment period making the necessary steps to implement the provisions of this resolution.
#15..
- 424 -
05/09/2023/CED/JHill/Item XX 4 2023-xxxx
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ___, who moved its adoption, which motion being duly seconded by Councilmember ___, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#15..
- 425 -
05/09/2023/CED/JHill/Item XX 1 2023-xxxx

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-xxxx

RESOLUTION APPROVING THE ALLOCATION OF FUNDS OUTLINED IN THE PROGRAM YEAR 2023-2024 ANNUAL ACTION PLAN BUDGET TO REFLECT PROPOSAL SUBMITTED TO THE U.S. DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT AND AUTHORIZING THE CITY

MANAGER, OR HIS DESIGNEE, TO TAKE THE NECESSARY STEPS TO

IMPLEMENT THE PROVISIONS OF THIS RESOLUTION
WHEREAS, each year the City of Modesto receives Community Development Block Grant (CDBG), HOME Investment Partnership Grant (HOME) and Emergency Solutions Grant (ESG) funds from the U.S. Department of Housing and Urban Development (HUD), and
WHEREAS, the CDBG and HOME grant programs also generate program income and revolving loan fund income which further fund the grant programs and are to be used under similar rules and regulations as grant funding, and WHEREAS, HUD requires these amounts to be presented to the City Council each year in an Annual Action Plan (AAP), and
WHEREAS, the Program Year 2023-24 Annual Action Plan proposed budget submitted to the U.S. Department of Housing and Urban Development which is attached hereto as Exhibit A, and incorporated herein by reference, and WHEREAS, funding availability and specific project and activity budgets consistent with the AAP are managed in HUD’s online Integrated Disbursement and Information Management (IDIS) system and the City’s financial system simultaneously, and
#15..
- 426 -
05/09/2023/CED/JHill/Item XX 2 2023-xxxx
WHEREAS, according to HUD rules and regulations, substantial amendments to an AAP must be presented to the City Council for approval, while unsubstantial amendments, remaining consistent with the AAP, can be made in IDIS by City staff, and WHEREAS, funding availability and specific project and activity budgets consistent with the AAP are managed in HUD’s online Integrated Disbursement and Information Management (IDIS) system and the City’s financial system simultaneously, and
WHEREAS, synchronization of the City’s financial system and IDIS necessitates budget adjustments within the City’s financial system, and WHEREAS, budget adjustments are necessary to revise CDBG, HOME and ESG budgets included in the City of Modesto 2023-24 Annual Operating, Multi-Year and Capital Improvement Budgets, and
WHEREAS, budget amendments performed under the authority of this resolution will be presented to the Finance Committee and the Council as part of the existing Monthly Budget Adjustment Report process, and
WHEREAS, the authority of this resolution will not be used to satisfy any HUD rules or regulations requiring information to be presented to the City Council or the public.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the allocation of funds outlined in the Program Year 2023-2024 Annual Action Plan proposed budget which is attached hereto as Exhibit A and incorporated herein by reference.
#15..
- 427 -
05/09/2023/CED/JHill/Item XX 3 2023-xxxx
BE IT FURTHER RESOLVED, that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ___, who moved its adoption, which motion being duly seconded by Councilmember ___, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#15..
- 428 -
05/09/2023/CED/JHill/Item XX 4 2023-xxxx

EXHIBIT A
CITY OF MODESTO FISCAL YEAR 2023-2024

CDBG, ESG, HOME

FUNDING SUMMARY
CDBG $1,784,411
ESG $161,451
HOME $ 929,656
Total $ 2,875,518
#15..
- 429 -
Program Year 2023-2024
Annual Action Plan
Prepared by:

Community and Economic Development Department
City of Modesto Consolidated Plan 2020-2024 - Year 4
Approved by Resolution Number: Draft
#15..
- 430 -
Contents
Executive Summary............................................................................................................................................3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) .............................................................................3 Expected Resources.........................................................................................................................................31 AP-15 Expected Resources – 91.220(c)(1,2) ................................................................................................31 Annual Goals and Objectives...........................................................................................................................36 AP-20 Annual Goals and Objectives.............................................................................................................36 Projects ............................................................................................................................................................38 AP-35 Projects – 91.220(d) ..........................................................................................................................38 AP-38 Project Summary ...............................................................................................................................40 AP-50 Geographic Distribution – 91.220(f)..................................................................................................44 Affordable Housing ..........................................................................................................................................45 AP-55 Affordable Housing – 91.220(g) ........................................................................................................45 AP-60 Public Housing – 91.220(h)................................................................................................................47 AP-65 Homeless and Other Special Needs Activities – 91.220(i).................................................................50 AP-75 Barriers to affordable housing – 91.220(j) ........................................................................................60 AP-85 Other Actions – 91.220(k) .................................................................................................................64 Program Specific Requirements.......................................................................................................................68 AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ...........................................................................68 Executed HUD Certifications and SF-424.........................................................................................................74 City of Modesto Resolution 2022-246 .............................................................................................................75 #15..
- 431 -
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Modesto’s Program Year (PY) 2023-2024 Annual Action Plan (AAP) represents the fourth (4th) year plan of the City of Modesto’s 2020-2024 Consolidated Plan (the Consolidated Plan). The PY 2023-2024 AAP identifies activities to be undertaken during the program year to address community priority needs identified in the Consolidated Plan. Further, the PY 2023-2024 AAP identifies the expected resources to be available and the activities to be funded during the program year.

2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis, or the strategic plan.

The following priority needs were established based upon on data from the Consolidated Plan’s Needs Assessment, Market Analysis, public meetings, and community survey results.

1. Affordable Housing

2. Addressing and Preventing Homelessness

3. Enhance Infrastructure and Public Facilities

4. Public Services

5. Community and Economic Development
Activities carried out during Program Year 2023-2024 will serve to advance these priority needs with the end goal of improving the lives of low-and-moderate income families and individuals.

3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.

The City utilizes resources identified in the expected resources section of this Plan to carry out projects and activities. The City of Modesto identified several projects in the PY 2022-2023 Annual Action Plan in an attempt to address the community needs as identified in the Consolidated Plan. Through these activities, the City of Modesto continued to take an active role in promoting and producing affordable housing, addressing the social and economic needs of low- and moderate-income individuals, and serving the special needs populations within the City of Modesto.

The Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), the HOME Investment Partnership (HOME), provided operating funds for many local programs, allowing the City to make progress towards the goals outlined in the Consolidated Plan.
#15..
- 432 -
In addition to the traditional entitlement funding, the United States Congress passed the CARES Act – H.R. 748(CARES Act) on March 27, 2020. The bill provided $5 billion for CDBG and $4 billion for ESG to rapidly respond to COVID-19 and the economic, housing, and homelessness impacts caused by it. The City is actively implementing activities that will help the residents of the City respond to, prepare for, and/or prevent COVID-19 including advancing Consolidated Plan priorities and goals. The City was awarded a reallocation in the amount of $632,829.

In 2021, the City was allocated $3,409,704 in HOME-ARP funding through the American Rescue Plan Act.

For jurisdictions to utilize this funding under modified HOME regulation, the City was required to develop a plan that was required to be reviewed and accepted by HUD. The City’s plan was successfully submitted and approved December 14, 2022.

The City continues to work with subrecipients on creative solutions to manage decreasing funds, and increased construction costs to provide decent affordable housing, create economic development opportunities, and ensure suitable living environments.

The City is proud to highlight the following projects it took part on via partnerships with local service providers (note: these projects may be completed or currently underway):

1. The “Camp2Home” program designed to assist individuals experiencing homelessness by creating a path to self-sufficiency through outreach, shelter, job training, permanent employment, and permanent housing. To date through ESG Street Outreach this initiative has contacted 1817 unduplicated individuals and made 5,207 contacts with individuals experiencing homelessness. As the frontline effort Street Outreach’s is geared towards connection to shelter. Once an individual is sheltered they are further engaged in connections to job training programs with the Downtown Streets Team which to date has served 236 individuals and successfully placed 72 individuals into employment. Through the Camp2Home initiative 101 individuals have also reached the ultimate goal of permanent housing.

2. Homeless Engagement Street Outreach mapping through Camp2Home outreach has helped prioritize City resources for strategic engagement through determining gaps in services.

3. City partnered with a variety of agencies to assist low-income individuals through a variety of public service programs in 2022 2,897 low-income individuals were assisted with CDBG and 3,586 homeless or at risk for homelessness individuals were assisted through with ESG funds.

4. Bay Valley Foundation assisted 17 individuals with technical training. The Tech Code Academy includes a 16-week tuition free IT, Digital Design and Marketing Courses designed to expose local adult student to in-demand digital careers and prepare them for entry-level positions.

5. Provided loan/grant assistance to 10 eligible owner-occupied households for health and safety improvements in their homes

6. The city released a comprehensive affordable housing notice of funding availability making available all funds that can be used to develop affordable housing.

4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.

The City offers a variety of engagement methods for both stakeholders and the public to participate in the Annual Action Plan process. The City makes all attempts to encourage communitywide participation, including low- and moderate-income neighborhoods. Meetings were held times and locations were #15..
- 433 -
identified to expand the reach to active community groups and accommodate the needs of low-income residents, particularly persons with Limited English Proficiency community needs.

Spanish translation was provided at all meetings and Limited English Proficiency assistance information was provided, and translation services accommodated for other languages upon advance notice.

All community meetings were open to the public. A meeting notice listing all the meetings and the public hearings was distributed via email and published in the local newspaper, The Modesto Bee. A copy of the draft AAP was made available online at: https://www.modestogov.com/1850/Annual-Action-Plans and hard copies were made available for review at the City of Modesto Community and Economic Development Department at 1010 10th street, Suite 3100, Modesto CA. • The City takes an active role in gathering public feedback for the AAP. The details of the engagement process are outlined in the next section, Process, and are highlighted below: Public community meetings
• Stakeholder meetings and presentations
See section AP-12 for a summary of Citizen Participation community meetings held.

5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.

See AP-12 Participation for a summary of comments received.

6. Summary of comments or views not accepted and the reasons for not accepting them See AP-12 Participation for a summary of comments received. No comments or views received were not accepted during the Annual Action Plan Process.

7. Summary
The City of Modesto’s Program Year (PY) 2023-2024 Annual Action Plan represents the fourth (4th) year plan of the City of Modesto’s 2020-2024 Consolidated Plan. The PY 2023-2024 AAP identifies activities to be undertaken during the program year to address community priority needs.

Meetings were held at different times and in collaboration with active community groups to accommodate the needs of low-income residents, particularly persons with Limited English Proficiency community needs. #15..
- 434 -
PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
Lead Agency MODESTO, CA Community & Economic
Development Department
CDBG Administrator MODESTO, CA Community & Economic
Development Department
HOME Administrator MODESTO, CA Community & Economic
Development Department
ESG Administrator MODESTO, CA Community & Economic
Development Department
Table 1 – Responsible Agencies
Narrative (optional)
The City of Modesto’s Community and Economic Development Department, Community Development Division is the lead agency responsible for preparation of the Consolidated Plan and administration of each grant program and its associated funding source(s). Primary oversight of the City’s HUD entitlement grant programs comes from the Citizens’ Housing and Community Development Committee (CH&CDC). This committee is appointed by the City Council and is comprised of representatives from the City Council, Planning Commission, Culture Commission, Housing Rehabilitation Loan Committee, Human Relations Commission and/or Citizens Redevelopment Advisory Commission and several citizens-at-large. Generally, the citizens-at-large represent low-income and racial minority groups. The CH&CDC makes funding recommendations to the City Council regarding HUD CDBG, HOME, ESG, and/or State funded programs related to housing and community development.

The CH&CDC meets approximately once a month. The meetings are publicly noticed, open to the public, and are generally held at Tenth Street Place, 1010 Tenth Street, Modesto, California. special accommodations may be made upon request and the meetings may be accessible virtually.

Public comments are both encouraged and welcomed.

To avoid a perceived conflict of interest, any CH&CDC member who is also a member of a board of directors or is employed by an agency that applies for or receives CDBG, ESG, HOME, or other HUD funding, is ineligible to vote on funding decisions involving their respective agencies.

Consolidated Plan Public Contact Information
The following are various ways in which an interested party can contact the City of Modesto CEDD staff with comments regarding the City’s Consolidated Plan:
#15..
- 435 -
• Telephone: (209) 577-5211
• Hearing Impaired dial, the California Relay Service Number: Dial 711, and then ask for 209- 577-5211
• Email: [email protected]
• In person: City of Modesto, Community & Economic Development Department 1010 Tenth Street, 3rd Floor, Modesto, California, 95354
• Mail: City of Modesto, Community & Economic Development Department Community Development Division, P.O. Box 642, Modesto, California 95353 • By web form: https://www.modestogov.com/FormCenter/Community-EconomicDevelopment-Departmen-5/Public-Comments-for-HUD-documents-98 AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City follows the City Council approved Citizen Participation Plan which serves as the guide for engaging with citizens and consultation with respective entities. The City of Modesto encourages citizen participation in the Annual Action Plan process and views itself as an active partner; directly engaging with the public and facilitating opportunities for citizens and stakeholders to engage with the process.

The City of Modesto consulted with various organizations, service providers, and other community stakeholders in drafting the Annual Action Plan. Consultation with service providers not only takes place during the development of the Annual Action plan but occurs throughout the year as part of the City’s engagement in the Community System of Care, Stanislaus Homeless Alliance, and other local community forums. The City values the consultation and collaboration with stakeholders and service providers as it is key in ensuring that meaningful dialogue takes place to implement successful strategies to address underserved community needs and optimize the utilization of HUD resources effectively.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
The City is an active member of several committees and working groups that represent organizations in housing and social services. For example, the City regularly attends the Stanislaus Community System of Care – CSOC (the local Continuum of Care) meetings (note: the CSOC and CoC may be referenced interchangeably throughout this document). The CSOC is comprised of service providers from multiple sectors including but not limited to affordable housing, private and governmental health, mental health, youth services, senior services, and lived experience). These meetings are held monthly and work to address potential issues and gaps in the service delivery system and create a transparent and collaborative service delivery systems for the entire County. #15..
- 436 -
The City also has both inter/intradepartmental coordination through regular meetings and discussions. The Community Development Division (CDD) regularly meets with sub-recipients and partners of HUD funded programs. Similarly, the City also engages in Memorandums of Understanding (MOUs) to clearly dictate program goals and reporting requirements to ensure all governmental and non-governmental organizations involved in HUD-funded programs understand expectations.

The City works closely with the Stanislaus Regional Housing Authority (SRHA) as well as the Stanislaus County Affordable Housing Corporation (STANCO). This working relationship is evident through consistent productive partnerships on affordable housing projects, rehabilitation and maintenance of existing affordable/subsidized housing projects and shelters, and regular communication to address needs and shifting trends in the community.

The City works closely with the Stanislaus County Department of Behavioral Health and Recovery Services (BHRS) in the system delivery of housing services. BHRS provides a Housing Support Services Program which includes an array of support services for individuals facing barriers that include low income, severe mental illness, substance abuse, and other disabling conditions. The program offers a combination of affordable housing and support services designed to help individuals and families use housing as a platform for wellness and recovery following a period of homelessness, hospitalization, or incarceration. The goal of Housing Support Services is to assist individuals in obtaining employment, independent living skills, recovery and increased selfsufficiency, and housing stabilization. In addition, BHRS provides Employment Support Services to individuals with psychiatric disabilities who are working towards employment and housing goals.

The program provides an opportunity for individuals with severe mental health disabilities to work in the community. BHRS and the City work together to leverage HUD funding and other resources to partner with local affordable housing developers such as the SRHA and STANCO.

The City also coordinates with the Stanislaus County Community Services Agency (CSA) which is responsible for the administration of multiple housing and homeless programs associated with the administration of the General Assistance, CalWORKs, Welfare to Work, Child Welfare, and Adult Services programs. The housing and homeless programs include the Housing Assistance Program (HAP), the Transitional Housing Plus Program (THP+), the Housing Support Program (HSP), the Housing Disability Advocacy Program (HDAP), the Homeless Emergency Aid Program (HEAP), and Homeless Housing, Assistance, and Prevention Program. As with BHRS, the City partners with housing developers and CSA in the delivery of services and/or affordable housing projects to serve the target populations.

The City of Modesto is an active participant in the monthly Hospital Discharge Planning managed by the Hospital Council for Northern and Central California. The purpose of this group is to assist local healthcare providers and homeless service providers communicate to ensure that safe, equitable, and responsible discharge planning when someone who is homeless is discharges with #15..
- 437 -
the appropriate level of care to the correct facility type. The meetings have identified several gaps in the local service delivery and coordination of services and the group continues to work collaboratively to identify long-term solutions.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

The City is an active member of the Stanislaus County CoC as well as the Stanislaus Homeless Alliance (SHA). The CoC and the SHA support all service delivery mechanisms as they relate to working to end and address homelessness.

The City regularly coordinates with the CoC, the SHA, as well as individual stakeholders including during the development of this Annual Action Plan. Coordination with the CoC consists of:
• Meetings with the CoC at large as well as the CoC subcommittees such as the CoC Executive Committee, NOFO Review Committee, Homeless Management Information System (HMIS) Subcommittee and HMIS Governance Committee., Point-In-Time (PIT) and Housing Inventory Count (HIC) Committee, Coordinated Entry System Committee, Regional Coordinating Committee, Vulnerable Populations Committee, Funding and Resource Committee, and Housing Planning & Development Committee.
• The City of Modesto participates in weekly Coordinated Entry meetings in an effort to fill vacant housing units in the community.
• The City regularly coordinates with service providers including but not limited to Community Housing and Shelter Services, BHRS, CSA, SRHA, STANCO, Family Promise, HAVEN, Children’s Crisis Center, CASA, The Salvation Army, Center for Human Services, Downtown Streets Team, Turning Point, and County Veterans Services in efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. Coordination with these entities occurs via monitoring meetings, CoC meeting interactions, client service referrals, and or/program planning.
• The City participates in monthly meetings with hospital management representatives and homeless shelter providers in an effort to improve the discharge process of homeless individuals from hospitals and respective systems.
• The City participates in the monthly project development meetings to establish a regional Interim Care facility to help with homeless placement for individuals with higher level medical needs. • The City’s Community Development Division actively participated in the Modesto Housing Plan to address regulation and zoning for Affordable and other types of Housing. • The City regularly meets with Latino Emergency Council to increase awareness within the Latino community and service providers.
• The City consults regularly with the local community groups and neighborhood collaboratives when forming funding priorities.
• Through the Camp2Home program, the City continues to coordinate with law enforcement in the implementation of the Community Health and Assessment Team (CHAT) to conduct street outreach and connect homeless individuals to shelter and supportive services. • The Camp2Home program further developed collaboration with the City of Modesto, ACES Emergency Shelter, the Salvation Army, Family Promise, Modesto Gospel Mission, Downtown #15..
- 438 -
Streets Team, Community Housing and Shelter Services (CSOC member providers), Opportunity Stanislaus, and Workforce Development for a comprehensive approach to breaking the cycle of homelessness through job training, placement, and housing while protecting those most vulnerable to the COVID-19 pandemic.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Modesto includes CoC members in the grant review process to assist with grant application review. Members review and score applicant applications based on past performances and outcomes, current proposals and assist with the determination of how to best allocate both CDBG and ESG program funding. Award recommendations are then vetted through the CoC and CH&CDC committees for endorsement and forwarded to City Council for review and approval.

The City of Modesto uses the System Performance Measures Report captured annually by HMIS to evaluate ESG assisted project outcomes. The performance measures help evaluate the performance to determine the most effective services and assist with future allocation of ESG funds.

The City collaborates with the CoC for continued management of the Homeless Management Information System (HMIS). HMIS collects client-level data and data on the provision of housing and services to homeless individuals, families, and persons at risk of homelessness. Analysis from the data is used to identify gaps in services and better deploy resources in the community. The CoC encourages greater participation from non-HUD funded organizations into HMS by providing assistance and ongoing training with HMIS data collection, data entry, and free licensing. The CoC’s HMIS provides ongoing support and training to both funded and non-funded organization to meet HUD’s requirements as outlined in the current HMIS Data Standards. Data collected includes length of homelessness, returns to homelessness, number of sheltered homes persons, employment and income growth for persons, services provided, homelessness start date, and exit destination information, and permanent housing retention.

The City participates in monthly HMIS Subcommittee meetings. These meetings serve to provide guidance, training, and information to end users with regards to system implementation according to HUD’s HMIS Data and Technical Standards. The subcommittee reviews system updates and changes, review and update policy and procedures, review data quality, system performance, and any HUD or related updates. In addition, ongoing training is provided with focus on User Policies and Responsibilities, federal reporting, data quality, coordinated entry, along with agency office hours and one on one support.
#15..
- 439 -

2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities

1. Agency/Group/Organization
Stanislaus Regional Housing Authority

2. Agency/Group/Organization Type
a. Housing
b. PHA
c. Services – Housing

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Public Housing Needs
c. Homeless Needs - Chronically homeless
d. Homeless Needs - Families with children
e. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Consulted via ongoing collaboration of housing projects that the City has well as coordination during CSOC (CoC) meetings. Anticipated outcomes include the identification of gaps and services and continued partnership in delivery of affordable housing projects and services with the end goal of serving low income and homeless households in the most effective an efficient manner.

1. Agency/Group/Organization
Healthy Alternatives to Violent Environments (HAVEN)

2. Agency/Group/Organization Type
Services-Victims of Domestic Violence

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Families with children
b. Non-Homeless Special Needs
c. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization

STANISLAUS COUNTY

2. Agency/Group/Organization Type
Other government - County

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Strategy
f. Non-Homeless Special Needs
#15..
- 440 -
g. Anti-poverty Strategy
h. COVID-19 Pandemic Services
i. Other: SRA for Earthquake, Landslide, Dam Failure, Wildfire, and Flooding.

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? City and County staff collaborate on an ongoing basis to address homeless needs in the community.

The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization

THE SALVATION ARMY - MODESTO CA

2. Agency/Group/Organization Type
Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As one of the largest homeless services providers, located in and serving Modesto, this agency provides insight on the needs and issues the homeless population are facing. The anticipated outcome is that the City and County governments continue to work closely with this agency to increase its capacity with the goal of delivering effective and efficient services to the homeless population as well as improving program related requirements.

1. Agency/Group/Organization

THE DISABILITY RESOURCE AGENCY FOR INDEPENDENT LIVING (DRAIL)

2. Agency/Group/Organization Type
a. Services-Elderly Persons
b. Services-Persons with Disabilities

3. What section of the Plan was addressed by Consultation? a. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Stanislaus County Community Services Agency

2. Agency/Group/Organization Type
#15..
- 441 -
a. Health Agency
b. Child Welfare Agency
c. Publicly Funded Institution/System of Care
d. Other government - County

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Economic Development
i. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Turning Point Community Programs

2. Agency/Group/Organization Type
a. Services - Housing
b. Services-Persons with Disabilities
c. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Strategy
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As the operator of the Outreach and Engagement Center and Housing Assessment Team, the anticipated outcome is that the City and County governments continue to work closely with this agency to increase its capacity with the goal of delivering effective and efficient services to the homeless population as well as improving program related requirements.

1. Agency/Group/Organization
Community Impact Central Valley

2. Agency/Group/Organization Type
a. Housing
b. Services-Persons with Disabilities
#15..
- 442 -
c. Services-Persons with HIV/AIDS
d. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. HOPWA Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As a housing provider serving persons with HIV/AIDS, the CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
West Modesto King Kennedy Neighborhood Collaborative and People of Action Council

2. Agency/Group/Organization Type
a. Housing
b. Regional organization
c. Business and Civic Leaders
d. Neighborhood Organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homelessness Strategy
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The neighborhood collaborative was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing community collaboration. Anticipated outcomes include ongoing collaboration with neighborhood groups and working together to address and solve social and neighborhood problems via HUD programs and other community resources.

1. Agency/Group/Organization
Airport Neighborhood Collaborative

2. Agency/Group/Organization Type
a. Services-Children
b. Services-Education
c. Regional organization
d. Business and Civic Leaders
e. Neighborhood Organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homelessness Strategy
#15..
- 443 -
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The neighborhood collaborative was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing community collaboration. Anticipated outcomes include ongoing collaboration with neighborhood groups and working together to address and solve social and neighborhood problems via HUD programs and other community resources.

1. Agency/Group/Organization
City of Turlock

2. Agency/Group/Organization Type
Other government - Local

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Market Analysis
i. Economic Development
j. Anti-poverty Strategy
k. COVID-19 Strategies

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As a member of the CSOC and an entitlement community of CDBG and HOME funds, the City seeks to improve the coordination of regional housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Parent Resource Center

2. Agency/Group/Organization Type
a. Services-Children
b. Services-Health
c. Services-Education

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Families with children
b. Homelessness Strategy
c. Non-Homeless Special Needs
#15..
- 444 -

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
United Way

2. Agency/Group/Organization Type
a. Services-Health
b. Services-Education
c. Services-Employment

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs
g. Economic Development
h. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
United Samaritans Foundation

2. Agency/Group/Organization Type
a. Services-homeless
b. Foundation

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing. #15..
- 445 -

1. Agency/Group/Organization

PROJECT SENTINEL

2. Agency/Group/Organization Type
Service-Fair Housing

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Public Housing Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. As the fair housing provider in Stanislaus County, the anticipated outcome is to continue coordination with this agency to provide essential fair housing services to the community.

1. Agency/Group/Organization
Modesto Police Department/Law Enforcement

2. Agency/Group/Organization Type
a. Services - Victims
b. Other government - Local
c. Services - Law Enforcement

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Anti-poverty Strategy
i. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC as well as part of the implementation of the Camp2Home program and HEART and CHAT team engagement. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing. #15..
- 446 -

1. Agency/Group/Organization

CHILDREN'S CRISIS CENTER

2. Agency/Group/Organization Type
a. Services-Children
b. Services-homeless
c. Services-Education

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Unaccompanied youth
d. Homelessness Strategy
e. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Opportunity Stanislaus

2. Agency/Group/Organization Type
a. Services-Education
b. Services-Employment
c. Business and Civic Leaders

3. What section of the Plan was addressed by Consultation? a. Economic Development
b. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. Anticipated outcomes are to continue to collaborate to continue to provide economic development opportunities for low-income persons and/or provide assistance to small businesses.

1. Agency/Group/Organization
Family Promise of Greater Modesto

2. Agency/Group/Organization Type
a. Housing
b. Services - Housing
c. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
#15..
- 447 -
f. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Center for Human Services

2. Agency/Group/Organization Type
a. Services-Children
b. Services-homeless

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Families with children
b. Homelessness Needs - Unaccompanied youth
c. Homelessness Strategy
d. Non-Homeless Special Needs
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Stanislaus Homeless Alliance

2. Agency/Group/Organization Type
a. Other government - County
b. Other government - Local
c. Regional organization
d. Business and Civic Leaders

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs
g. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region. #15..
- 448 -

1. Agency/Group/Organization
Stanislaus County Hospital & Shelter Partners

2. Agency/Group/Organization Type
a. Health Agency
b. Regional organization
c. Business and Civic Leaders

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Veterans
e. Homelessness Needs - Unaccompanied youth
f. Homelessness Strategy
g. Non-Homeless Special Needs
h. Homeless Needs - Discharge Planning

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? This is a group of partner agencies and hospitals that meet to discuss and coordinate hospital and medical facility discharge policies and issues for homeless individuals.

1. Agency/Group/Organization
Comcast

2. Agency/Group/Organization Type
Broadband Service Provider

3. What section of the Plan was addressed by Consultation? Other: Digital Access for disadvantaged Communities

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
San Joaquin Air Quality District

2. Agency/Group/Organization Type
Regional organization

3. What section of the Plan was addressed by Consultation? Other: Air Quality Mitigation SRA for Hazard Mitigation

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration prior to any project. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
State Historic Preservation Office

2. Agency/Group/Organization Type
Government – State of California
#15..
- 449 -

3. What section of the Plan was addressed by Consultation? Other SRA for Historic Preservation for Hazard Mitigation

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration prior to any project. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region.

1. Agency/Group/Organization
Modesto City Schools

2. Agency/Group/Organization Type
Regional organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homeless Needs - Chronically homeless
c. Homeless Needs - Families with children
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs
g. Homeless Needs - Discharge Planning
h. Other Broadband Digital Divide

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region. This includes meeting the needs of the low-income community access to broadband.

1. Agency/Group/Organization
Federal Communications Commission

2. Agency/Group/Organization Type
Federal Government Agency

3. What section of the Plan was addressed by Consultation? Other Broadband Digital Divide

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan. To ensure that the efforts and programs that are provided to the City residents meet the needs of the region. This includes meeting the needs of the low-income community access to broadband. #15..
- 450 -

1. Agency/Group/Organization
Stanislaus Equity Partners STEP

2. Agency/Group/Organization Type
a. Housing
b. PHA
c. Services – Housing

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Public Housing Needs
c. Homeless Needs - Chronically homeless
d. Homeless Needs - Families with children
e. COVID-19 Pandemic Services

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Consulted via ongoing collaboration of housing projects that the City. Anticipated outcomes include the identification of gaps and services and continued partnership in delivery of affordable housing projects and services with the end goal of serving low income and homeless households in the most effective an efficient manner.

1. Agency/Group/Organization
a. Faith in the Valley

2. Agency/Group/Organization Type
a. Housing
b. Regional organization
c. Business and Civic Leaders
d. Neighborhood Organization

3. What section of the Plan was addressed by Consultation? a. Housing Need Assessment
b. Homelessness Strategy
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Faith in the Valley was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing community collaboration. Anticipated outcomes include ongoing collaboration with neighborhood groups and working together to address and solve social and neighborhood problems via HUD programs and other community resources.

1. Agency/Group/Organization
Community Housing and Shelter Services

2. Agency/Group/Organization Type
a. Housing
b. Services - Housing
c. Services-homeless
#15..
- 451 -

3. What section of the Plan was addressed by Consultation? a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Veterans
d. Homelessness Needs - Unaccompanied youth
e. Homelessness Strategy
f. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC.

The CSOC seeks to improve the coordination of housing and human services to address social problems, reduce chronic homelessness, and increase the supply of affordable housing.

1. Agency/Group/Organization
Youth for Christ

2. Agency/Group/Organization Type
a. Services- Education
b. Services-Youth

3. What section of the Plan was addressed by Consultation? a. Homelessness Needs - Unaccompanied youth
b. Homelessness Strategy
c. Non-Homeless Special Needs

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The agency was consulted during the formulation of the annual action plan and over the course of the year as part of the ongoing collaboration and coordination effort of the CSOC. #15..
- 452 -
Identify any Agency Types not consulted and provide rationale for not consulting No agency or organization was specifically left out of the consultation process.

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
General Plan City of Modesto The plan outlines community growth strategies and the need to include housing and services among those strategies
Housing
Element
City of Modesto Goals of the City’s Housing Element of the General Plan were considered when preparing the Annual Action Plan. The goals of the Annual Action Plan address some of the housing needs identified in the Housing Element.

Continuum of
Care
Consolidated
Application
Stanislaus County The goals of the CoC’s annual submissions to HUD are similar in that they address the coordination, needs and goals of housing service providers and participating jurisdictions.

Stanislaus
2021 Regional
Strategic Plan
to Address
Homelessness
Stanislaus Community
System of Care (CoC)
The City’s Strategic Plan addresses homelessness via various funded projects/activities including ESG, CDBG, or HOME funds.

Strategic Plan City of Modesto The City of Modesto’s Strategic Plan includes efforts on how to address homelessness and affordable housing.

Public Housing
Agency (PHA)
Plan
Stanislaus Regional
Housing Authority
Both include the need to increase affordable housing stock and integrate quality services
Permanent
Local Housing
Allocation Plan
City of Modesto Plan includes a five-year funding strategy in conjunction with our Consolidated Plan to increase permanent affordable
housing to the City of Modesto as part of the State of
California’s Building Homes and Jobs Act (SB2, 2017)
Action Plan for
Preventing
and Ending
Homelessness
in California
State of California –
Homeless
Coordinating and
Finance Council
This Action Plan orients the State’s efforts to drive purposeful, meaningful, and measurable progress toward preventing and ending homelessness in California, motivated by a vision of a future in which homelessness in California
Broadband
Infrastructure
Deployment
Public Utilities
Commission
Order Instituting Rulemaking Regarding Broadband
Infrastructure Deployment and to Support Service Providers in the State of California.
https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M396/K1 14/396114019.PDF
2022-2027
Local Hazard
Mitigation
Plan
Stanislaus County –
Office of Emergency
Services
The Stanislaus County Office of Emergency Services in
collaboration with the cities of Ceres, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock, Waterford, and the County Office of Education is updating their 2017 Local Hazard Mitigation Plan (LHMP). The LHPM 2017 recognized earthquakes, floods, dam inundation, landslides and wildfire as the local natural hazards.

Home ARP
Plan
City of Modesto The American Rescue Plan (ARP) provides $5 billion to assist individuals or households who are homeless, at risk of
homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services, and non- #15..
- 453 -
congregate shelter, to reduce homelessness and increase housing stability across the country. These grant funds will be administered through HUD’s HOME Investment Partnerships Program (HOME).

Table 2 – Other local / regional / federal planning efforts Narrative (optional)
The City’s Strategic Plan and Annual Action Plans align with the overall vision and goals of each of the plans identified in Table 3. Collaboration with these plans and lead organizations ensure we continue on the path to improving living conditions.

Hazard Mitigation
Based on the Regional Hazard Mitigation Plan update adopted in 2022, the following hazards were assessed and reviewed based on their risks in conjunction with climate changes.

Earthquake Hazard
The City regularly updates its building codes to meet minimum standards in the California Building Code (CBC) last updated in 2019. Compliance with the 2019 CBC ensures construction standards are met and hazards risks related to earthquake, landslides, flood, severe weather, and wildfire are minimized. Within the City limits of Modesto, the risk is to the vulnerable populations is unknown.

Landslide Hazard
Landslides hazards were assessed for the City and based on the analysis and mapping neither hazard resulted in significant vulnerabilities or impacts. Within the City limits of Modesto, the risk is minimal to the vulnerable populations.

Dam Failure Hazard
The vulnerable populations within the City limits could be impacted by a Dam failure. Probability of this is considered very low, but in the event, it is noted that; vulnerable populations are downstream from a potential dam failure. Though there were no incidents this year, our Street Outreach teams are notified when water will be sent down river from the Dam, so that the vulnerable populations are notified in time to ensure safety and secure property.

Flood Hazard
The vulnerable populations within the city limits could be impacted by extreme flooding and the probability is considered high for recurrence as there is an incident recorded approximately every 14 years. Probability of this is considered high, emergency officials have received notice of #15..
- 454 -
potential flooding before the incident giving first responders time to notify and evacuate residents. The more vulnerable populations are those who are not able to self-evacuate including the elderly, young and those with disabilities. The homeless population is vulnerable in a flood incident and may need expanded notification and relocation efforts. The homeless outreach teams managed by Law enforcement have coordinated and prioritized the notification of homeless. Based on the history of flooding in the County of Stanislaus, the City of Modesto and surrounding areas are considered likely to have the hazard potential for future flooding. The City also participates in the National Flood Insurance Program (NFIP); therefore, the flood hazards are addressed in this vulnerability assessment for public awareness and planning purposes.

Wildfire Hazard
Though the risk in our County is extremely high, these areas are located well west and east of the city limits of Modesto. The only current risk to the vulnerable residents of the City would be air quality should an event arise within the County’s State Responsibility Areas (SRA). Air Quality mitigation and emergency protocols are managed by the San Joaquin Air Quality District. Wildfire hazards were assessed for the City and based on the analysis and mapping neither hazard resulted in significant vulnerabilities or impacts.

Broadband Needs of Low-Moderate Income Housing
To increase local accessibility to free WIFI, the city has opened Free public WIFI access to the to the immediate areas surrounding the downtown Tenth Street Place building. This being open to the public, allows anyone including homeless and low-income households without access to WIFI, if they have a WIFI accessible device, they can easily access key online services.

On November 15, 2021, the Infrastructure Investment and Jobs Act (Infrastructure Act) provides $14.2 billion to modify and extend the Emergency Broadband Benefit Program (EBB Program) to a longer-term broadband affordability program called the Affordable Connectivity Program (ACP).

The Infrastructure Act directs the Federal Communications Commission (FCC) to undertake a proceeding to adopt final rules for the ACP.

This program has been enacted by locally through the following carriers Spectrum, Xfinity/Comcast, AT&T, and the FCC Emergency program. Each program offers their services under differing criteria, such as school enrollment, SNAPS or Medicaid enrollment, etc. with price range of $5.00-$10.00 per month. This program is actively promoted through the local school systems and homeless and housing service providers. According to data collected by the Universal Services Administrative Co., on behalf of the FCC, 15,311 Modesto low-moderate-income residents have taken advantage of this program. Not unsurprising the majority, or approximately 10,920 households are from the zip codes that make up Modesto’s most vulnerable areas. #15..
- 455 -
#15..
- 456 -
AP-12 Participation – 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting In order to ensure maximum participation in the AAP process among all populations and special needs groups and to ensure that their issues and concerns are adequately addressed, the City of Modesto has a Citizen Participation Plan (CPP) in place. The community outreach process included virtual and hybrid community meetings, CH&CDC public committee meetings, and a City Council Public Hearing.

All community meetings are open to the public, and in addition to newspaper publications, notices of the meetings were distributed via e-mail, and hard copy posting. Community meetings provide a forum for citizens to participate in matters related to the City’s HUD Programs as well as provide staff an opportunity to review policy issues and obtain public feedback.

In compliance with Citizen Participation requirements, the City encourages citizen participation among all community sectors including but not limited to low and moderate income persons, residents from blighted areas predominantly low and moderate income neighborhoods, areas where CDBG funds are proposed for use, minorities, non-English speaking persons, persons with disabilities, public housing residents, and local and regional institutions including the CoC, businesses, developers, and non-profit organizations, among others.

The public comment period was held from April 09, 2023, through May 09, 2023. During the Citizen Participation process, community meetings were held to inform community groups of the 2023-2024 Annual Action Plan (AAP) and the programs offered by the various funding sources covered under the AAP. Comments received at meetings were considered for goal setting. An AAP publication announcing the AAP citizen participation process was published in the Modesto Bee in both Spanish and English. Dates, times and locations of community meetings as well as public hearings were published through these mediums and are summarized in Table 4 below. #15..
- 457 -
Citizen Participation Outreach
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
News Paper Ad –
Modesto Bee
• Nontargeted/broa
d community

N/A N/A
Email - CSOC Listserv • Homeless
• Homeless
Service
Providers

N/A N/A
Email - City of Modesto
Listserv
• Nontargeted/broa
d community

N/A N/A
Email - SHA Listserv • Nontargeted/broa
d community

N/A N/A
Stanislaus Community
System of Care
• Minorities
• Non-English
Speaking -
• Persons with
disabilities
• Nontargeted/broa
d community
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
Modesto Neighborhood
Inc
• Minorities
• Non-English
Speaking -
• Persons with
disabilities
• Nontargeted/broa
d community
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
#15..
- 458 -
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Virtual Community
Meeting - Airport
Neighborhood
Collaborative
• Minorities
• Non-English
Speaking –
Spanish
• Low to
Moderate
Income
residents
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
Stanislaus Homeless
Alliance
• Minorities
• Non-English
Speaking –
Spanish
• Low to
Moderate
Income
residents
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
Hybrid Community
Meeting – CH&CDC
• Nontargeted/broa
d community
To be provided after the
meeting
To be provided after the meeting
Public hearing – Hybrid
City Council
• Minorities
• Non-English
Speaking -
• Persons with
disabilities
• Nontargeted/broa
d community
• Residents of
Public and
Assisted
Housing
To be provided after the
meeting
To be provided after the meeting
Table 3 – Citizen Participation Outreach
#15..
- 459 -
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
During Program Year 2023-2024, the City of Modesto anticipates receiving $1,784,411 of Community Development Block Grant (CDBG) program funds, $929,656 of HOME Investment Partnerships (HOME) Program funds, and $161,451 of Emergency Solutions Grant (ESG) funds.

The table below is a summary of expected resources in PY 2023-2024 Anticipated Entitlement Resources
Program Eligible Use
Annual
Allocation
Program
Income
Prior Year
Resources Total
Amount
remaining in
Con Plan Program Description
CDBG –
Public
Federal
Acquisition,
Admin and
Planning,
Economic
Development,
Housing, Public
Improvements,
Public Services
$ 1,784,411 $ 500,000 $ 1,904,715 $ 4,189,126 $ 1,600,000 Expected Uses:

Program
Administration; Public
Services; Housing
Programs; Fair
Housing Enforcement;
Public Facility
Improvements
Homeless Services
HOME –
Public
Federal
Acquisition,
Multifamily
rental new
construction,
Multifamily
rental rehab,
New
Construction
$ 929,656 $ 536,506 $ 4,806,231 $ 6,272,392 $ 900,000 Expected Uses: Rental Housing Rehabilitation
Rental Housing New
Construction
ESG –
Public
Federal
Shelter, HMIS,
Outreach, Rapid
Rehousing,
Homeless
Prevention.
$ 161,451 $ 0 $ 0 $ 161,451 $ 150,000 Expected Uses:

Homeless Services
Homeless Prevention
Rapid Re-Housing
#15..
- 460 -
Available One-Time Allocated Resources
Program Eligible Use One-Time
Allocation
Program
Income
Allocated
Resources
Total Program
Description
ESG-CV
– Public
Federal
COVID-19
Prevention: Shelter,
HMIS, Outreach,
Rapid Rehousing,
Homeless
Prevention,
Administration.
$ 4,561,202 $ 0 $ 3,928,516 $ 632,686 Expected Uses:

Homeless
Services
Homeless
Prevention Rapid
Re-Housing
CDBGCV –
Public
Federal
COVID-19
Prevention:

Acquisition, Admin
and Planning,
Economic
Development,
Housing, Public
Improvements,
Public Services
$ 2,385,772 $ 0 $ 2,331,760 $ 54,012 Expected Uses:

Program
Administration;
Public Services;
Housing
Programs; Fair
Housing
Enforcement;
Public Facility
Improvements
Homeless
Services
HOMEARP –
Public
Federal
American Rescue
Plan: Creation of
Affordable Housing,
Administration
$ 3,409,774 $ 0 $ 0 $ 3,409,774 Expected Uses:

Program
Administration;
Development of
Affordable
Housing
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Leveraging HUD resources allows the City to use local, state, and other funds to combine with federal resources to maximize reach and impact of the City’s HUD funded programs. Through the vetting of project applications for HUD funding, the City emphasizes the importance of leveraging to potential applicants. The City uses a project scoring system that places higher weight and rewards project applicants with higher level of leveraged funds. During the project planning phase and prior to project award, the City verifies that leverage funds pledged in the project application have been awarded/committed to the respective applicant/project. The City continues to search for other Federal and State funding to use a leverage. Among some of the City’s leverage resources, the City receives a Permanent Local Housing Allocation from the State as well as per project grants such as the State’s Homekey and Affordable Housing and Sustainable Communities grant programs that will further supplement Federal funding to assist with addressing the goals outlined in the 2020-2024 Consolidated Plan and this Annual Action #15..
- 461 -
Plan.

The following are the HUD matching requirements for the ESG and HOME programs:

ESG Match Requirements:

For the ESG program, the City requires that ESG sub-recipients provide a dollar-for-dollar match for PY 2023-2024 ESG funds received. Typically, the City is able to generate significantly more match than the amount required through its allocation of CDBG funds for ESG activities and primarily through the cash and non-cash contributions provided by ESG sub-recipients as a result of the generosity of their donors, supporters, and other funders.

Cash contributions mean cash expended for allowable ESG costs, while noncash contributions mean the value (using a method reasonably calculated to establish fair market value) of any real property, equipment, goods, and services contributed to an ESG activity, provided that if these had to be paid with ESG funds, the costs would have been allowable.

Specific sources of cash contributions include: private individual donors, CDBG funds, local fundraising cash, state and local funds, foundation grants, and in-kind contributions (value of inkind contributions must be reasonable and the method used to establish value must be provided).

HOME Match Requirements:

The City requires a 25% HOME match requirement that are met through the contributions or layers of funds that the developers provide for each HOME -assisted project. The match includes private financing, waiver or deferral of development fees approved by the City Council, Tax Credit Allocations, and any other eligible source.

State Housing and Community Development Sources
In addition to federal resources, the State of California provides funding for affordable housing development, homebuyer programs, transit-oriented development, special needs housing, and infrastructure. Most projects that the City supports are through partnerships with local organizations who leverage significant amounts of resources. The following is a list of sources that, through such partnerships, the City has either directly or indirectly accessed in the past or seeks to access in the future:
• Low-Income Housing Tax Credit Program: administers both federal and State programs that encourage private investment in affordable housing. #15..
- 462 -
• Permanent Local Housing Allocation (PLHA) Program: funding for new affordable housing units for those households between 30-120% AMI. • Affordable Housing and Sustainable Communities (AHSC) Program: funding for Green House Gas reducing-transit oriented affordable housing development and transportation-related infrastructure.
• No Place like Home (NPLH) - To acquire, design, construct, rehabilitate, or preserve permanent supportive housing for persons who are experiencing homelessness, chronic homelessness or who are at risk of chronic homelessness, and who need mental health services.
• HomeKey – HCD administered funding that provides opportunity for state, regional, and local public entities to develop a broad range of housing types, including but not limited to hotels, motels, hostels, single- family homes and multifamily apartments, adult residential facilities, and manufactured housing, and to convert commercial properties and other existing buildings to Permanent or Interim Housing for the Target Population. • Mental Health Services Act (MHSA): State funds administered at the county level to serve low-income mental health services clients.
• Homeless Emergency Aid Program (HEAP): a $500 million block grant program designed to provide direct assistance to cities and counties to address the homelessness crisis throughout California. HEAP funds are intended to provide funding to Continuums of Care (CoCs) and large cities with populations over 330,000, so they may provide immediate emergency assistance to people experiencing homelessness or those at imminent risk of homelessness.
• California Emergency Solutions and Housing (CESH) Program: provides funds for a variety of activities to assist persons experiencing or at risk of homelessness as authorized by SB 850.
• Homeless Housing, Assistance, and Prevention Program (HHAP): HHAP is a block grant program designed to provide jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges.

If appropriate, describe publicly owned land or property located within the jurisdiction that #15..
- 463 -
may be used to address the needs identified in the plan Discussion
One of the challenges in building new affordable homes is acquiring land suitable for housing.

In 2019, the State of California took several actions to make state and local public lands available for affordable housing development including:
• An executive order to make excess state land available for affordable housing • Connecting affordable housing developers to local surplus land and strengthening enforcement of the Surplus Lands Act
• Requiring cities and counties to inventory and report surplus and excess local public lands to include in a statewide inventory and to report on all land suitable for suitable and available for housing development.
• Requires local agencies to have a centralized inventory and provide it to requesting parties without charge.
• State requires that land that can be zoned for emergency shelters can also be used for supportive housing
The City is currently working on the identification of appropriate City owned properties to meet this requirement with the intent to continue to add to the City’s affordable housing stock.

During this year, the City implemented a new asset management system to aid in the identification of property that can be utilized for affordable housing. The intent is to transfer eligible properties to non-profit organizations to utilize the properties for low-income households or rehabilitate the units and sell them to a low-income household.

In 2021, the City transferred ownership of a parcel owned by the City’s successor housing agency (previously the Redevelopment Agency) to Archway EAH II, LP for the development of 74 affordable housing units for low and very low-income families. This project is leveraging state, federal, tax credit, and private funds and was completed and occupied in February 2023. #15..
- 464 -
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Goal Name Years Category Needs
Addressed
Funding* Goal Outcome
Indicator
Improve the
Condition and
Increase Supply
of Affordable
Housing
2020 -2024 Affordable
Housing
Non-Housing
Community
Development
Affordable
Housing
CDBG: $ 2,724,546
HOME: $ 4,656,817
ESG: $0
HOME-American
Rescue Plan:
$2,898,308
Rental units
constructed:
167 Household
Housing Unit
Homeowner
Housing
Rehabilitated:
20 Household
Housing Unit
Work Towards
Addressing and
Preventing
Homelessness
2020 -2024 Homeless Addressing
and
Preventing
Homelessness
CDBG: $191,500
ESG: $147,000
ESG-CV $569,547
Public service
activities for
Low/Moderate
Income
Housing
Benefit: 45
Households
Assisted
Homelessness
Prevention: 60
Persons
Assisted
Enhance
Infrastructure
and Public
Facilities
2020 -2024 Non-Housing
Community
Development
Enhance
Infrastructure
and Public
Facilities
CDBG: $382,202
HOME: $0
ESG: $0
HOME-American
Rescue Plan: $0
Public Facility
or
Infrastructure
Activities for
other than
Low/Moderate
Income
Housing
Benefit: 1,000
Households
Assisted
#15..
- 465 -
Access to Jobs,
Education, and
Other Economic
Development
Services
2020 -2024 Non-Housing
Community
Development
Public
Services
Community
and Economic
Development
CDBG: $120,960 Public Service
Other: 513
Administration 2020 -2024 CDBG: $1,035,882
HOME: $685,920
ESG-CV:63,283
ESG: $14,451
HOME-American
Rescue Plan: $511,466
NA
Table 4 – Goals Summary
Goal Descriptions
Goal Name Improve the Condition and Increase Supply of Affordable Housing Goal
Description
Through the Needs Assessment, the Market Analysis, public meetings, consultations with stakeholders, and survey results, the lack of affordable housing in the City consistently stood to be the number one issue. The activities tied to this goal will work to preserve and expand the supply of affordable housing.

Goal Name Work Towards Addressing and Preventing Homelessness Goal
Description
Homelessness has become an issue for the region, and because Modesto is the County Seat and the center for most supportive services, the goal of working towards ending homelessness is a goal for the HUD funding. The activities tied to this goal will support getting individuals and families out of homelessness as well as preventing from individuals and families from becoming homeless. The City is engaged in both supporting those agencies that provide services to those that are homeless as well as providing support in housing options across the spectrum: emergency shelters, transitional shelters, rapid re-housing, and permanent supportive housing.

Goal Name Enhance Infrastructure and Public Facilities
Goal
Description
The investment in publicly owned facilities and infrastructure improves the community and neighborhoods in which they serve. This investment directly impacts housing development and economic growth of communities. The activities tied to this goal will improve parks, streets, sidewalks, lighting, ADA accessibility, among other activities that serve residents.

Goal Name Access to Jobs, Education, and Other Economic Development Services Goal
Description
To stimulate the economic growth, the City proposes to address its economic goals through various programs. As the cost-of-living rises, there is a need to assist low- and moderate-income households increase their incomes. Job training and educational opportunities afford low- and moderate-income households an opportunity to increase their earning. The City will continue to explore new partnerships with businesses, developers, and service providers to address community and economic development goals.

Goal Name Administration
Goal
Description
Funding for the administration of the CDBG, ESG, and HOME programs; including section 108 pay-off, HMIS and Housing rehabilitation 14H activities.
#15..
- 466 -
Projects
AP-35 Projects – 91.220(d)
Introduction
Projects
Introduction
The projects to be undertaken in the 2023-24 program year (July 1, 2023 to June 30, 2024 are summarized below. The City will utilize funds available to address the goals outlined in this Consolidated Plan. The specific projects will target affordable housing opportunities through acquisition, rehabilitation, and construction of housing. In addition, the City will provide public services including homelessness services and economic development activities. The City will also provide enhancements to public facilities and infrastructure. The City will continue its efforts to prepare, prevent, and respond to the COVID-19 pandemic.

Projects
Project Number Project Name
1 PROGRAM PLANNING AND ADMINISTRATION
2 HOUSING REHABILITATION ADMINISTRATION ACTIVITY DELIVERY (14H) 3 SECTION 108 LOAN REPAYMENT
4 ECONOMIC DEVELOPMENT
5 PUBLIC FACILITIES
6 AFFORDABLE HOUSING - AQUISITION, REHABILITATION, HOMELESSNESS 7 PUBLIC SERVICES
8 HESG - ENTITLEMENT 2021
9 AFFORDABLE HOUSING - OWNER OCCUPIED REHABILITATION
#15..
- 467 -
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The priority needs described in the Strategic Plan are:
• Affordable housing
• Addressing and preventing homelessness
• Enhance infrastructure and public facilities
• Public services
• Community and Economic development
The funding allocation priorities remain closely connected to these identified needs. Those projects that demonstrate potential to create further progress in addressing these needs will be prioritized.

Beginning in 2020, COVID-19 challenged communities across the nation and required localities to respond to the immediate challenges for the response to COVID-19. In PY 2022, any activities related to the prevention, preparation, and response to COVID-19 will be funded through any of the identified projects in the AP-35 Projects table but will only utilize funding directly to the CARES Act grants.

In the funding of all projects, and in providing assistance to specific beneficiaries, the City will ensure:
• Documentation of the low- and moderate-income status of individuals/households, or • The area where a project benefit will be realized has a population where at least 51% of the residents are low-and moderate-income, or
• A slum and blight project meet the criteria for such projects. The availability of funding from both federal and State sources is a key determinant of the City’s ability to address identified needs. Budget problems at both the Federal and State levels make funding for housing programs uncertain. Partly to make the most of limited resources, the City has formed partnerships with a variety of governmental, non-profit, and service agencies to combine resources to implement programs related to housing and community development needs. • For CARES Act funded project, the City requires written justification the use of funds is required to prepare for, prevention of, and/or response to COVID-19 and that there is no duplication of benefit.

The primary obstacle in addressing underserved needs is the limited financial resources made available to address the needs. Prioritization of funding and associated needs requires that some needs expressed by communities may not be addressed in a given program year.

Other obstacles in addressing needs are:
• Limited services to support the diverse population
• High and increasing cost of land throughout the County present obstacles by further limiting the quantity of projects the City can take on given finite financial resources to acquire land that is becoming increasingly expensive
• Increasing rental rates across the City presents an obstacle in that fewer households may be able to be supported given the funding allocated. The money spent on rental assistance may not go as far given increasing rental costs.
• Coordination gaps between service providers and agencies providing housing • Coordination continues to improve as the CoC becomes more efficient #15..
- 468 -
• Prevailing wage requirements increase construction costs for housing, thus increasing the cost of affordable housing development, potentially limiting the number of affordable housing developments in the City
• Resident perceptions of various services may hinder them from accepting assistance • Current housing market and economic conditions
• Education and dissemination of information to low- and moderate-income residents is a potential obstacle. Although the City has excellent relationships with neighborhood associations and organizations within the different districts in the City, there remains an obstacle of reaching the right people to ensure knowledge of programs available to them.

AP-38 Project Summary
Project Name Project Utilization
Administration • Target Area: N/A
• Goals Supported: Administration
• Needs Addressed: N/A
• Funding
• CDBG: $693,457
• HOME: $685,920
• HOME-American Rescue Plan: $511,466
• ESG-CV: $63,233
• Description This project will fund administrative expenses related to the planning and administration of CDBG and HOME activities including but not limited to development of HUD plans, contract development, project monitoring, and enforcement of federal regulations.
• Target Date: N/A
• Estimate the number and type of families that will benefit from the proposed activities N/A
• Location Description: N/A
• Planned Activities: Activities under this project is for the general administration for CDBG HOME, and HOME-ARP activities.

HOUSING

REHABILITATION

ADMINISTRATION

ACTIVITY DELIVERY
(14H)
• Target Area: N/A
• Goals Supported: Administration
• Needs Addressed: N/A
• Funding CDBG: $250,000
• Description Activity delivery costs related to carrying out housing rehabilitation activities (rental and owner occupied). Examples include appraisal, architectural, engineering, and other professional services; preparation of work specifications and work write-ups; loan processing; survey, site and utility plans; application processing; and other fees.
• Target Date: 6/30/2023
• Estimate the number and type of families that will benefit from the #15..
- 469 -
proposed activities: N/A
• Location Description: N/A
• Planned Activities: Activity delivery costs related to carrying out housing rehabilitation activities (rental and owner occupied).

Examples include appraisal, architectural, engineering, and other professional services; preparation of work specifications and work write-ups; loan processing; survey, site and utility plans; application processing; and other fees.

SECTION 108 LOAN

REPAYMENT
• Target Area: N/A
• Goals Supported: Administration
• Needs Addressed: N/A
• Funding CDBG: $342,425
• Description: Planned repayment of Section 108 Loan
Principal/interest
• Target Date: 6/30/2023
• Estimate the number and type of families that will benefit from the proposed activities:
• N/A
• Location Description: N/A
• Planned Activities: Planned repayment of Section 108 Loan Principal/interest

ECONOMIC

DEVELOPMENT
• Target Area: Citywide
• Goals Supported: Access to Jobs, Education, and Other Services • Needs Addressed: Community and Economic Development
• Funding: $0.00
• Description: Partnerships with businesses, developers and service providers to address community and economic development goals including but not limited to the creation and retention of full-time equivalent jobs through grant and loan programs.
• Target Date: 6/30/2024
• Estimate the number and type of families that will benefit from the proposed activities: This project model is conceptual, so no proposed activities have been considered.
• Location Description: Citywide
• Planned Activities: Partnerships with businesses, developers and service providers to address community and economic development goals including but not limited to the creation and retention of fulltime equivalent jobs through grant and loan programs. #15..
- 470 -
PUBLIC FACILITIES • Target Area: Citywide
• Goals Supported: Enhance Infrastructure and Public Facilities • Needs Addressed: Enhance Infrastructure and Public Facilities • Funding CDBG: $382,202
• Description: Improve the physical structures throughout the City in CDBG program eligible areas including but not limited to construction or rehabilitation of public facilities and/or improving infrastructure conditions in LMA neighborhoods. Matrix Code: 03A-04 Regulatory Citation: 570.201(c) National Objective: 570.208(a)(1)
• Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities Estimated number of individuals served with this project is 1,000.
• Location Description: LMA neighborhoods within Modesto • Planned Activities: Community Centers, park improvements, homeless facilities, and/or other eligible public facilities.

AFFORDABLE

HOUSING -

AQUISITION,

REHABILITATION,

HOMELESSNESS
• Target Area: Citywide
• Goals Supported: Improve Quality and Increase Affordable Housing • Needs Addressed: Affordable Housing
• Funding:
• CDBG: $1,862,581
• HOME: $4,656,817
• HOME-American Rescue Plan: $2,898,308
• Description: Use CDBG funds for acquisition and/or rehabilitation of property for affordable housing, disability access/improvements, first time homebuyers, lead based paint services, energy efficiency improvements and similar projects. Use HOME funds to leverage funding for the construction and/or rehabilitation of new affordable rental housing units through partnerships with the State, the housing authority, and using tools such as land banking, the revolving loan fund, and housing set-aside funds. Matrix Code: 01-02; 11-19E Regulatory Citation: 570201(a) or (c) National Objective: 570.208(a)(3) • Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities: There is an estimated 187 units created by this activity
• Location Description: Citywide
• Planned Activities: Acquisition, Rehabilitation, Construction of affordable housing units
#15..
- 471 -
PUBLIC SERVICES • Target Area: Citywide
• Goals Supported
• Work Towards Ending Homelessness
• Access to Jobs, Education, and Other Services
• Needs Addressed: Public Services
• Funding
• CDBG: $ 312,460
• Description: Partner with local public service providers to provide essential public services to Modesto residents. Matrix Code: 03T - 05Z Regulatory Citation: 570201(e) National Objective: 570.208(a)(2) • Target Date: 6/30/2024
• Estimate the number and type of families that will benefit from the proposed activities Assist over 775 individuals below 80% of AMI through public service activities
• Location Description: Citywide
• Planned Activities: General Public Service Activities HESG -
ENTITLEMENT 2023
• Target Area: Citywide
• Goals Supported: Work Towards Ending Homelessness
• Needs Addressed: Addressing and Preventing Homelessness • Funding:
• ESG: $161,451
• HOME: $632,780
• Description: General Administration and Partner with local nonprofits to provide essential services and outreach to individuals and households at risk for homelessness.
• Target Date: 6/30/2025
• Estimate the number and type of families that will benefit from the proposed activities: Assist over 890 individuals and families at risk for homelessness
• Location Description: Citywide
• Planned Activities: Administration, Street Outreach, HMIS, Rapid Rehousing, and Homeless Prevention.

AFFORDABLE

HOUSING - OWNER

OCCUPIED

REHABILITATION
• Target Area: Citywide
• Goals Supported: Improve Quality and Increase Affordable Housing • Needs Addressed: Affordable Housing
• Funding CDBG: $611,965
• Description: Provide direct financial assistance eligible households through the Homeowner Rehabilitation Program to address health and safety repairs. Matrix Code: 14A Regulatory Citation:
570.202(a)(1) National Objective: 570.208(a)(3) LMH
• Target Date: 6/30/2023
• Estimate the number and type of families that will benefit from the proposed activities: This project is estimated to serve approximately 20 households
• Location Description: Citywide
• Planned Activities: Homeowner Rehabilitation
#15..
- 472 -
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed HUD allows for the designation of priority areas that may be a primary focus of revitalization efforts. For the purpose of the Consolidated Plan, priority areas are loosely defined and are not strict and do not require any specific allocation of resources, matching, or partnerships. At this time, the City does not have nor plan to pursue any official HUD designated geographic based priority areas. The City funds program activities City-wide based on the low/mod block groups and/or on a limited clientele National Objective basis as defined by HUD on specific program eligibility (CDBG, HOME, and ESG) and in accordance with the priority needs listed in this section.

Rationale for the priorities for allocating investments geographically The City of Modesto will use a place-based strategy during the planning period. The geographic distribution of funding is predicated somewhat on the nature of the activity to be funded. It is the City’s intent to fund activities in the areas most directly affected by the needs of low-income residents and those with other special needs. The Annual Action Plan directs investment geographically to an area benefit neighborhood. The area benefit category is the most commonly used national objective for activities that benefit a residential neighborhood. An area benefit activity is one that benefits all residents in a particular area, where at least 51% of the residents are low- and moderate-income persons. Public infrastructure improvements are an area benefit activity when they are located in a predominately low- and moderate-income neighborhood. Where possible, the City of Modesto will distribute CDBG funds throughout the low- and moderate-income block groups located throughout the six city council districts.

Discussion
No additional discussion.
#15..
- 473 -
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City understands the importance of approaching affordable housing from multiple angles: both preserving and maintaining existing affordable housing stock as well as continually looking for opportunities to develop new affordable housing.

The City offers affordable housing programs to support and assist households in obtaining or maintaining their home. The following is a non-exhaustive list of ways that the City promotes affordable housing opportunities:
• The City utilizes affordability covenants on affordable housing units to ensure units remain affordable for a certain extended period of time.
• To mitigate the negative effects of public policies that may pose barriers to affordable housing, the City of Modesto has policies in its impact fee program for affordable housing. The current Capital Facility Fees (CFF) Policies and Procedures provide, with respect to very low- and lowincome housing exemptions, the total number of housing exemptions granted are not to exceed two percent (2%) of the cumulative total CFF program housing units. • The CFF Policies and Procedures also allow a Community Housing and Development Organization (CHDO) to submit an application and request CFF be waived on new affordable units for households earning sixty (60%) or less of the Area Median Income. • The City of Modesto is reviewing pro-housing policies as part of the Housing Plan to determine they have adopted many of these policies to promote housing in the community and be competitive in State funding sources.
• Whenever possible, the City uses HUD resources to partner with local affordable housing developers and/or other public agencies to build affordable housing projects. This Action Plan identifies any such projects to be planned or carried out this Program Year.

The following are the City’s One Year Goals for Affordable Housing activities to be supported by household:

Population Households
Homeless 63
Non-Homeless 35
Special-Needs 23
Total Households 121
Discussion
• Rental Assistance (households; homeless/ non-homeless): 13 Households ▪ Community Housing and Shelter Services (CHSS) will assist a minimum of 7 homeless households with Rapid Rehousing Rental Assistance.
▪ Turning Point will assist 2 households with Rapid Rehousing Rental Assistance. ▪ CHSS will assist a minimum of 4 non-homeless households with Homeless Prevention Types of Housing Production Households
Rental Assistance 13
The Production of New Units 34
Rehab of Existing Units 20
Acquisition of Existing Units 54
Total Households 121
#15..
- 474 -
Rental Assistance.
• Production of new Units (households): 34 Units
▪ Helen White Court – 413 Vine Street will provide 11 senior units ▪ King Kennedy Veteran’s Cottages – 413 Vine Street will provide 23 veteran units • Rehab of Existing Units (households): 15- 20 Units
▪ The City will assist 20 households via the City’s owner-occupied housing rehabilitation program.
• Acquisition of Existing Units
▪ Hotel Conversion – 54 homeless units
#15..
- 475 -
AP-60 Public Housing – 91.220(h)
Introduction
In Stanislaus County, public housing needs, housing choice vouchers, and other specific HUD funds and services are addressed by two housing authorities:
• The Stanislaus Regional Housing Authority (the Housing Authority), serving Alpine, Amador, Calaveras, Inyo, Mariposa, Mono, Stanislaus, and Tuolumne Counties. • The City of Riverbank Housing Authority administered by the Stanislaus Regional Housing Authority.

Public housing sites can range from large apartment buildings to single-family houses. Housing Choice Vouchers (HCV, also often called the “Section 8” program) are a portable rental subsidy that can be used to pay for a portion of rent in private rental housing units. Project-Based Section 8 vouchers assist eligible program participants with rental subsidy when renting private rental units from landlords participating in the Section 8 Program.

Housing Authorities are subject to the same state and federal fair housing laws as other housing providers and cannot discriminate on the basis of state or federally protected classes. Housing Authorities must also follow any local fair housing ordinances and may have additional tenant protections added by HUD.

Actions planned during the next year to address the needs of public housing The Housing Authority has been designated as a “high performing” public housing authority by HUD since 2008. This designation is given to public housing authorities (PHAs) that score above a 90 out of 100 points. PHA projects are assessed based on a physical inspection (40 points), financial condition (25 points), management system (25 points), and timely use of capital funds (10 points). The total PHA score is then created out of the average score for all projects weighted by the number of units.

Like many public housing authorities across the country, the housing authorities in Stanislaus County lack an adequate supply of funding for units and/or vouchers to meet the affordable housing needs within their service areas. This is reflected by long or closed waiting lists for potential units. In Stanislaus County, the average waiting time for a public housing unit is 10 years. Waiting lists for housing choice vouchers are only open occasionally and, even then, sometimes only for select applicants.

PHAs complete both an annual plan and a 5-year plan to help prioritize projects, development, funding, and programs. For 2019-2023, the HACS listed the following goals and objectives (among others) that help affirmatively further fair housing and increase housing choice:

1. Depending on the availability of federal and state funding, increase the inventory of affordable rental housing within the jurisdiction of the Stanislaus Regional Housing Authority for extremely low to moderate income households.

Objectives:
#15..
- 476 -
• Housing Choice Voucher Program – Continue to expand upon existing marketing and outreach efforts to attract new landlord participants to the Housing Choice Voucher Program. • Development – Leverage private or other public funds to create additional housing opportunities. • Development – Subject to the availability of funding, develop or acquire 500 affordable housing units over the next five years.

2. Conserve and upgrade the Affordable Housing Inventory in Stanislaus County.

Objectives:
• Public Housing – Implement Asset-Based Community Development (ABCD) initiatives to engage and unite residents, associations and institutions from within each community for more sustainable communities and economic development.
• Administration – Partner with county and/or city staff in efforts to improve housing stock and create stable, viable neighborhoods.

3. Increase assisted housing choices.

Objectives:
• Housing Choice Voucher Program – Provide voucher mobility counseling at initial family briefings and during annual reexaminations.
• Housing Choice Voucher Program – Continue to maintain the 2‐tiered Benefit Payment Standard (BPS) to ensure families have the ability to locate affordable housing in less poverty concentrated neighborhoods.
• Housing Choice Voucher Program ‐ Continue to seek funding for the Individual Development & Empowerment Accounts (IDEA) and Workforce Initiative Subsidy for Homeownership (WISH) programs for graduating Family Self‐Sufficiency (FSS) Program Participants.

The City will continue to leverage opportunities and funding to address needs outlined in the City’s Consolidated Plan and remain cognizant of goal and objective overlaps with the Housing Authority.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
The Housing Authority has a Resident Advisory Board (RAB) which represents the residents assisted by the Housing Authority. The RAB assists in the development of the Housing Authority five-year Plan. Resident involvement will continue to be supported in an effort to enhance the service delivery by taking into account input from those with lived experience.

Efforts to improve communications with residents and program participants include: on site resident training/informational meetings, regular newsletters and flyers. The Housing Authority has implemented a “curbside” appearance program. The focus of the program is the exterior of buildings, parking areas, play grounds and other areas of the complexes. Rodent and insect problems are addressed when residents report a problem and/or on Annual Inspections. In an effort to better education residents #15..
- 477 -
concerning these problems, information is regularly provided through the Housing Authority newsletter.

These actions have assisted the Housing Authority in creating an atmosphere which emphasizes customer satisfaction and communication
The Housing Authority provides homeownership resources to participants in the Housing Choice Voucher Program. The Family Self-Sufficiency (FSS) Program has established partnerships with a variety of community resources to refer participants for services including pre- and post-secondary education, health care, childcare, employment development, supported employment, and small business development including micro-loans. The FSS Program also encourages families to participate in financial wellness programs including financial literacy and credit repair with an emphasis on long-term financial stability for the purposes of homeownership. Supportive services are provided through the Stanislaus County Assistance Project, the Stanislaus County Department of Mental Health, Stanislaus Community Services Agency or Stanislaus County Integrated Services Agency.

These actions have assisted the Housing Authority in creating an atmosphere which emphasizes customer satisfaction and communication.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The PHA is not designated as troubled; since 2008, the Housing Authority has been designated as a “high performing” public housing authority by HUD. This designation is given to public housing authorities (PHAs) that score above a 90 out of 100 points. PHA projects are assessed based on a physical inspection (40 points), financial condition (25 points), management system (25 points), and timely use of capital funds (10 points). The total PHA score is then created out of the average score for all projects weighted by the number of units.

In fact, in 2021, the Stanislaus Regional Housing Authority was recognized by the HUD San Francisco Field Office by the 2021 Innovation, Creativity, and Visionary Award for their current projects. Projects like the conversion of a local motel into a new home office named “The 1612” that also includes 8 1- bedroom units and 142 studio apartments for workforce housing. #15..
- 478 -
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City of Modesto participates in the County-wide Continuum of Care (CoC), or the Stanislaus Community System of Care (CSOC), to develop and implement regional goals and strategies to address and end homelessness. The CoC released its 2021 Regional Strategic Plan to Address Homelessness approved September 30, 2021. During 2021 and 2022 the CoC has been working to further define the implementation of this plan and its governing to ensure that it meets the needs of all the populations in the region. This City is an integral part of the implementation committee. A primary function and goal of the CoC is to increase housing stability and decrease incidents of homelessness in Stanislaus County by targeting services and funds to populations most in need, meeting both the immediate and long-term needs of households experiencing homelessness and avoiding the duplication of services by coordinating efforts with service providers and the CoC.

Along with this adopted plan, in recent years the CoC has strategized through working groups and with continuing the coordination with Stanislaus Homeless Alliance (SHA), a regional body of politically elected individuals that represent their various regions. This revamping of the CoC includes a partnership with Thurmond Consulting resulting in a more efficient CoC application and NOFA process with aims to increase CoC funding.

In 2020-2022, the COVID-19 pandemic produced a unique set of public health challenges and intensified community crises that existed long before the coronavirus. The COVID-19 challenges became evident on homelessness and affordable housing making it more difficult to deliver homeless and housing services due to the health implications by continuing to provide homelessness and housing services in traditional ways.

In response to COVID-19, the US Congress passed the CARES Act in March 2020 which provided several rounds of CDBG and ESG funding as well as the American Rescue Plan of 2021 with the intent that communities do everything possible to prevent, prepare for and respond to coronavirus.

In March 2021, US Congress also passed the American Rescue Plan Act of 2021 which provided emergency rental assistance to help families keep up on their rent and remain in their homes, provide mortgage assistance for homeowners behind on their mortgage payments, and emergency housing vouchers among other assistance types.

The City continues to partner with the CoC, local service providers, businesses, financial institutions to address lingering COVID-19 issues and concerns related to homelessness. With the goal of reducing and ending homelessness via street outreach, homeless prevention, and rapid rehousing while continuing to mitigate COVID 19 risks.
#15..
- 479 -
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Modesto has actively participated in CSOC's planning process to move individuals and families from homelessness to permanent housing and independent living through a network of housing linked to supportive services.

The City continues to work with the CoC in the implementation of the continuum-wide Coordinated Entry System (CES) to assess individual needs of homeless individuals and match the right services to the households given their individual circumstance; this includes taking into consideration special needs in both housing and supportive services.

The CoC formed a CES Task Force that continues to meet regularly to assist with the continued evolution and implementation of the CES and address any issues that arise. The CoC will provide continued training for participating service providers and continue developing any necessary tools to effectively manage the system. Coordinated entry provides assessments used to support collaborative decision making across agencies to provide the appropriate assistance required to support individuals experiencing homelessness or at risk of homelessness with an end goal of minimizing bottlenecks in the service delivery system.

In the coming year, the City will continue to partner with the following organizations or programs which conduct street and assessment of the needs of homeless individuals within the community:

1. Camp2Home: Through the Camp2Home initiative, Modesto created a unique set of partnerships and funding that creates a continues streamlined process that will bring individuals out of the cycle of homelessness. This program provides a path to self-sufficiency for people trying to rebuild their lives out of homelessness through five different initiatives street outreach, job training, employment, and permanent housing. These partnerships include:

CHAT Team Community Health and Assistance Team (CHAT) is a partnership program with the Modesto Police Department designed to use trained Outreach Specialists to respond to qualifying 911 calls, received through the 911 communications center, for mental health crises and similar non-criminal, non-violent incidents. The Team currently consists of full-time staff who work in close collaboration with Stanislaus County social services, Non-profit organizations, and Modesto Police Department's (MPD) HEART team. C.H.A.T. provides alternatives to traditional police responses and continues to evolve in order to meet the needs of the community.

The Downtown Streets Team (DST) and a partnership with the local ACES and Berberian Shelters is a key component of the Camp2Home program in helping individuals to attain permanent housing is assisting them in obtaining job training and job placement. In this effort, the City of Modesto has partnered with the Downtown Streets Team (DST), a non-profit organization that creates a safe and engaging space to train homeless individuals. DST’s goal is to end #15..
- 480 -
homelessness by restoring the dignity and rebuilding the lives of unhoused men and women by helping Team Members (clients) activate skills and attributes that are necessary to move toward employment, housing, and overall, a better quality of living. This is attained through things like maintaining a schedule, teamwork, accountability, self-confidence and more. Through a Structured Daily Activity (SDA) model, DST team members rebuild all of these as well as regain a sense of pride in, and stewardship of, their community and at the same time gain valuable experience they can list at the top of their resume to overcome long experience gaps.

SDA projects are generally beautification projects, which includes basic tasks such as litter cleanup in the community. Thus, the model inherently provides a public service and a public benefit in the communities DST serves in. This model serves as an access point for job opportunities with business in the community. The case management at this level of the program has created on-going partnerships with workforce development, for-profit and nonprofit businesses to consider hiring Camp2Home graduates. Those successfully placed in employment will move on to housing placement.

A rental subsidy administered by DST allows the individuals that placed in full time employment to also receive rapid rehousing opportunities with continued case management to ensure success in housing and employment.

2. Center for Human Services (CHS): CHS conducts street outreach to unsheltered homeless youth.

CHS’ goal, through street outreach, is to engage with homeless youth and connect them to resources including housing at CHS’ Hutton House, a runaway and homeless youth shelter (ages 13-17), or Pathways, a transitional living place for older youth (ages 18-21). In 2021, CHS will begin operations of the Youth Navigation Center. (This Youth Navigation Center will enhance current outreach efforts and services for the youth population with everything being available at one location.

3. Community Assessment, Response, and Engagement (CARE) Multidisciplinary (MDT) personnel strategy: The CARE team is a joint strategy from the City of Modesto as well as Stanislaus County. The CARE team is made up of staff that are capable of engaging individuals and households in crisis, distressed in the moment for any number of reasons relating to mental or physical health. The CARE team conducts regular outreach and engagement with what are most often the “hard to reach” individuals and households. The CARE team activity is tracked in detail through the CoC and its reporting. The City will continue to be a partner in the CARE team program in efforts to increase outreach and engagement to homeless households and individuals.

4. Hospital Council’s Stanislaus County Partnership with the goal of streamlining hospital discharges to Emergency Shelters that are ready and equipped to handle the level of care needed for an individual client. This is to alleviate homeless individuals being discharged to the #15..
- 481 -
street.

Addressing the emergency shelter and transitional housing needs of homeless persons Given Modesto is the county seat of Stanislaus County and the largest City within, Modesto is also the central point for many of the CoC’s related supportive services. The City funds shelter activities to the maximum extent possible through CDBG Public Services and ESG funds.

The City partners with shelter providers in Modesto such as The Salvation Army to provide emergency shelter and low barrier shelter services to homeless individuals. The Access Center Emergency Shelter provides low barrier (drug and alcohol testing are not required to enter) to reduce barriers for individuals choosing to enter an emergency shelter. ACES is designed to allow homeless individuals to enter with pets, partners, and possessions, which are often-cited impediments individuals have when entering a homeless shelter.

With respect to housing, the City will partner with local service providers to serve the population as needed and to provide funding whenever possible for the operation of transitional living facilities and emergency shelters such as:
• Center for Human Services-Youth Navigation Center: Center for Human Services has been successfully serving transitional aged youth who are in crisis or experiencing homelessness through the following programs:
• Center for Human Services – Pathways Program: Pathways is a 15-bed transitional living program that addresses the need for shelter and support services for homeless youth 18 to 21 years of age. Shelter is provided up to 21 months. The Pathways Program provides basic life skills, interpersonal and jobs skills training, assistance with obtaining medial insurance and assistance related to advancing educational opportunities. • Hutton House is an emergency shelter for runaway, homeless, and youth in crisis who are ages 13-17.
• Low Barrier Shelter ages 18-24 is A 24-bed facility that provides emergency shelter for young adults ages 18-24 who are or may become homeless with Daily Check-In 6pm – 8pm. • Children’s Crisis Center of Stanislaus County (CCC) provides childcare and shelter services to abused, neglected, and at-risk children in the community. • Audrey’s, Guardian, Marsha’s, Sawyer, and Verda’s Houses provides shelter for children who may be involved in a family crisis or a conflict situation. • Homeless Prevention and Rapid Re-Housing Program (HPRP) provides rental assistance in conjunction with intensive case management.
• Community Housing and Shelter Services (CHSS) provides opportunities to households with and without children to obtain and maintain permanent housing. • Community Impact of Central Valley (CICV) provides services to individuals with HIV/AIDS through the Housing Opportunities for Persons with AIDS Program (HOPWA). • Family Promise of Greater Modesto provides shelter at church sites and case management support for finding permanent affordable housing.
• Healthy Alternatives to Violent Environments (HAVEN) provides shelter services and outreach to homeless women, men, and children in the South Stanislaus County area and within the City. #15..
- 482 -
Services include those for victims of domestic violence. • The Stanislaus Regional Housing Authority administers 222 Shelter Plus Care Certificates and HUD-VASH vouchers which help provide permanent supportive housing to homeless veterans. • Miller Pointe is a 15-unit permanent rental housing project serving very low-income households.
• Meadow Glen is a 32-unit permanent rental supportive housing serving very low-income foster youth aged out of foster care.
• The Modesto Men’s Gospel Mission and Women’s Mission provides a limited stay of seven nights on the floor, and three nights out, and also serves two meals a day. • Mission Emergency Shelter provides beds for temporary shelter to house up to 100 unaccompanied adult men and women and up to 90 women and children for a maximum stay of fourteen days.
• New Life Program Residential is an on-site program, operated by the Modesto Gospel Mission, for up to 41 unaccompanied adult men and women who need specialized help to return to societal living. This program is operated by the Modesto Gospel Mission. • The Salvation Army Modesto Corps provides an array of services to the homeless. o The Access and Emergency Shelter - provides 184 low-barrier year-round beds to unaccompanied homeless adult men and women.
o The Berberian Emergency Shelter provides 164 cold weather beds to unaccompanied homeless adult men and women and up to 30 year-round beds to homeless persons with special medical needs.
o The Berberian Transitional Living Facility provides 20 beds for homeless male and female veterans and 20 beds for unaccompanied homeless males and females for up to 24 months.
• Stanislaus County Affordable Housing Corporation (STANCO): STANCO operates transitional housing facilities that provide housing opportunities for homeless persons with mental disabilities. The City of Modesto provided funding for STANCO in 2019 for transitional housing of five (5) beds. The City will continue to look for partnership opportunities with STANCO and other providers to meet emergency and transitional shelter needs of residents. • Stanislaus County Affordable Housing Corporation (STANCO) operates eight properties for permanent affordable housing and conducts outreach to place people in supportive housing.

STANCO also operates 33 transitional beds for homeless families with children and 37 beds for unaccompanied adult homeless males and females.
o STANCO Transitional Housing
▪ California – 36 beds and 4 units
▪ Garden Gate – 3 beds and 1 unit
▪ Ricardo – 3 beds and 1 unit
▪ Locust – 3 beds and 1 unit
▪ Garvey – 13 beds
▪ REST House - 5 beds
o STANCO Permanent Supportive Housing
▪ 24 beds
o Bennett Place contains 18 units that are reserved for persons who have a serious mental illness (SMI) or serious emotional disturbance (SED) and are homeless or at risk for homelessness.
• Turning Point Community Programs provides integrated, cost-effective mental health services, employment and housing for adults, children and their families that promote recovery, #15..
- 483 -
independence, and self-sufficiency.
• Turning Point Respite Center at Garden Gate provides a safe home-like environment for up to 12 homeless mentally ill persons nightly.
• Salvation Army Veteran Emergency Shelter: provides shelter services to homeless individuals who are U.S. Veterans.
• Catholic Charities provides a variety of programs and services with a new office location as of 2019 in Modesto. Catholic Charities provides transportation services, housing and case management services, low-cost healthcare, and childcare as well as immigration and legal services.

There is a total of 774 emergency shelter beds in Modesto. The emergency shelter beds available in Modesto are from the following organizations:

Modesto Emergency Shelter Beds
Agency Number of Beds
Center for Human Services 24
Children’s Crisis Center 35
Community Housing and Shelter Services (CHSS) 180
Family Promise 14
Haven Women’s Shelter 13
Modesto Gospel Mission 135
Salvation Army – Berberian Shelter 180
Salvation Army – ACES Shelter 182
Turning Point 11
TOTAL 774
Source: Stanislaus Homelessness Alliance Affordable Housing Presentation #15..
- 484 -
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
The CoC continues to refine system processes and address gaps in the service delivery system to ensure that specific vulnerable sub-populations do not fall through the cracks. As the CoC partnerships grow agencies strengthen collaboration, and the system yields more effective results for those individuals and families that are experiencing homelessness. The Coordinated Entry System (CES) is an effective tool in minimizing the number of days someone experiences homelessness. As stated in the Coordinated Entry System Policies and Procedures Manual, the CoC works to assess households for the individual needs and make matches to available housing interventions. The case conferencing teams meet every other week to work through the prioritization list of households that have completed the vulnerability assessments.

Each household experiencing homelessness or chronic homelessness is offered a standard assessment tool, or VI-SPDAT a survey administered as a pre-screening tool to determine risk and prioritization to ensure fairness and equitable access to available services and housing options across the continuum.

The delivery of wrap-around services is critical to the long-term success of those individuals and families that have experienced homelessness but are now housed. Through the CoC, there are housing supports made available, offering financial assistance, security deposits, legal services, credit repair, utility payments, counseling, among others. It is understood by the CoC and its partners that the end goal is not to simply find housing, but to maintain stable housing.

The City of Modesto’s Homelessness Prevention and Rapid Re-Housing (HPRP) activities include the allocation of ESG funds for all household types including but not limited to chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth so they may receive security deposit assistance. The City Camp2Home Program also assists with selfsufficiency and employment to ensure the individual has the means to live independently.

The City of Modesto, its ESG subrecipients, the CoC, and other partners have been especially strategic in creating opportunities that will stably house and promote the self-sufficiency of these subpopulations of persons experiencing homelessness. ESG subrecipients have also had to find strategic ways to assist clients find housing and keep their housing. The following are recent strategies that have been implemented locally in which the City will continue to be a partner in as its strategy at helping homeless individuals transition from homelessness to housing:
#15..
- 485 -
Empire Migrant Center:

The Stanislaus County Community Services Agency’s (CSA) partners with the Housing Authority, STANCO, and CHSS to house homeless families during the cold-weather months in vacant family units at the Empire Migrant Center. The Empire Migrant Center located at 5132 South Avenue is used as a coldweather shelter for homeless families. The Empire Migrant center consists of 90 single family dwelling units used for farmworker housing during project from April to October each year. This project allowed CSA to use 22 of the 90 units to place homeless families in these units during the months of December 2021 through March 2023. This project will be a multi-year partnership allowing CSA to place homeless families each winter in housing and provide case management services with a goal to permanently house homeless households.

Youth Navigation Center:

The Center for Human Services provides a wide range of services that strengthen and support youth and families. One of the biggest projects currently being developed is a Youth Navigation Center. The Youth Navigation Center is located in Modesto and is a one stop service hub providing a continuum of services for young people (13-24 years old) who are experiencing crisis, housing instability, and/or homelessness.

The Youth Navigation Center has created a space that moved all existing services, moved to the new location in November 2021, creating a clear pathway for youth/young adults to strengthen the chances for dealing with crisis and housing instability. Most importantly, this Center established a coordinated system of care for this vulnerable population and will serve youth within Stanislaus County. When this project opened in November 2021 it immediately started serving individuals with the following services:
• Street outreach and engagement services
• Homeless prevention & diversion services
• Coordinated entry and assessment
• Crisis/Drop-in and Shelter for 13-17-year-old individuals (8 beds) • Crisis/Drop-in and Low-Barrier Shelter for 18-24-year-old individuals (24 beds) • Pathways Program: Transitional Housing for 18-24-year-old individuals (15 beds) • Access to housing services including permanent housing slots designed for youth with diverse circumstances
• On-site education and employment services
Downtown Streets Team:

Another key effort led in Modesto aimed at reducing the number of people living in poverty and provide housing opportunities to homeless individuals is the Downtown Streets Team (DST). Downtown Streets Team employs a volunteer Structured Daily Activity (SDA) model in which those experiencing or at risk of homelessness volunteer on beautification projects within Modesto and Stanislaus County. The DST organization supports individuals experiencing homelessness by providing daily meaningful activities, building camaraderie, and supporting members in the following areas: securing employment, increasing engagement in mental health treatment, removing barriers to housing and employment, and assisting with vital documents. The daily meaningful activity for members includes outreach and engagement of #15..
- 486 -
individuals experiencing homelessness and litter abatement on public right of ways such as parks, sidewalks, and other city owned property. The team may also support with park bathroom cleaning and weed abatement.

As these individuals move on to employment and self-sufficient living environments, the shelter capacity and job placement opportunities are made available to the next individual that needs the assistance in breaking the cycle. Security Deposits, utility deposits, and rental subsidy assistance for up to one year will be provided to those clients who complete the program and meet RRH program criteria.

Homeless Employment Litter Program
Similar to the Downtown Streets team project, the City has a partnership with Ready to Work (a nonprofit organization which creates opportunities where individuals who are either experiencing or atrisk of homelessness gain employment support while generating clean streets) and the California Department of Transportation (CalTrans) to initiate the Homeless Employment Litter Program (HELP). This partnership will result in the employment of homeless individuals to pick up litter around our city streets and state highways around Modesto RTW has been very successful in transitioning individuals into full-time employment and permanent housing. Along with market level compensation, employees will receive an employment plan to help secure graduation from the program, as well as assistance with resume building, filling out applications, interviewing and much more. Complementary to a more beautiful city, the goal is to develop a platform that will give individuals all the tools needed to become self-sufficient.

Camp2Home Program: The Camp2Home strategy is a program adopted by the City in 2020. The goal of the Camp2Home program is to implement a homeless action plan that reduces encampments in public spaces, ensures the provision of supportive services and identifies strategies for permanent housing. Through this program, the City formed a partnership with the ACES Emergency Shelter, Downtown Streets Team, and Community Housing and Shelter Services (CSOC member providers) to implement a comprehensive approach to breaking the cycle of homelessness through street outreach and engagement, emergency shelter, job training, placement, and housing.

Turning Point Community Programs: Provides supportive services to people of all ages experiencing homelessness or who are at risk of homelessness. Additionally, The Turning Point HAT program serves as a point of entry for the homeless services delivery system. HAT provides services to civilian and veteran populations in Stanislaus County. The goal of the team is to link individuals to services and provide supportive resources to improve quality of life. HAT also provides Rapid Rehousing Assistance to assist individuals in securing and stabilizing housing. #15..
- 487 -
Helping low-income individuals and families avoid becoming homeless, especially extremely lowincome individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The Stanislaus 2021 Regional Strategic Plan to Address Homelessness identifies quantifies the data in the community to identify those most at risk, gaps in service, and proactive steps for jurisdictions and nonprofits to focus efforts to help individuals from entering homelessness. Discharge planning from these institutions is a key part of the strategy in addressing homelessness throughout the County moving forward. Acknowledging that further collaboration among public institutions and other system of care providers needs to occur so that no individual or family is discharged into homelessness, the CoC continues to work on these issues through awareness campaigns and coordinated efforts to align services and resources among CoC partners. Furthermore, homelessness prevention assistance, while scarce, is provided through an ESG sub-recipient (Community Housing and Shelter Services). Again, foster care youth and those exiting the foster care system will be served through the City partnership with the Housing Authority and the Youth Navigation Center (Center for Human Services).

The City of Modesto will continue collaborative efforts with the CoC to improve services to the homeless and those at risk of becoming homeless. The following are key highlights of the work that has been conducted and will continue to be implemented in our community to assist individuals and families avoid becoming homeless:

Homeless Discharge Coordination:

The City of Modesto is actively engaged in homeless discharge coordination from health care facilities.

Since April 2019, the Hospital Council of Northern California has coordinated monthly meetings with representatives from local hospitals, homeless shelters, public agencies, and stakeholder groups to plan for the discharge of homeless individuals from health care facilities to comply with SB 1152. The objective has been to create a community standard of care and greater connection and cooperation between discharging and receiving providers of services for the homeless.

Homeless Prevention and Rapid Rehousing:

The City will continue to partner with local service providers by providing ESG funds used to assist with homeless prevention assistance to persons or families at risk of losing their housing. ESG funds will also be provided to rapidly rehouse persons who are homeless. Assistance will be provided with intensive case management services to reduce the risk of persons falling back into the cycle of homelessness.

Foster care/youth facilities
One of the biggest youth service providers in Stanislaus County is the Center for Human Services (CHS).

The City has an ongoing partnership with CHS in the planning and programing of services for youth terming out of foster care to prevent homelessness among this population. A prime example is the recent partnership with CHS on the first Youth Navigation Center to be located in Modesto which will #15..
- 488 -
provide a one-stop-shop service hub for youth experiencing or in danger of homelessness.

Corrections/Law Enforcement:

As part of the Coordinated Entry efforts, the City works with law enforcement agencies such as Modesto Police Department and Stanislaus County Sheriff and Probation Departments in discharge planning to avoid discharge of inmates into homelessness.

AP-75 Barriers to affordable housing – 91.220(j)
Introduction:

The City’s 2015-2023 Housing Element contains an analysis of the barriers that may exist in the development and/or preservation of affordable housing. Many factors may work independently to inhibit affordable housing, but more often there is an intersection of barriers that may impede affordable housing development and/or perseveration. Some of those barriers may include market mechanisms and circumstances, government codes and regulations, physical constraints, and environmental constraints.

Of those types of barriers, below is a summarized list of specific barriers:
• Market barriers
o Construction costs
o Land and labor costs
o Loan/Credit issues for households
• Governmental barriers
o Land use and zoning regulations
o Permit fees
o Residential development standards
o Parking requirements
o Development permit procedures
o Building codes
• Environmental barriers
o Natural disasters
There are several codified policies in Modesto that may contribute to the current lack of affordable housing.

Development Fees:
• Zoning Change Fee
o Should a development or housing unit be proposed for a site where it is not consistent with the General Plan and/or should a project be proposed for a site it is not currently permitted by zoning, a fee of up to $6,332 is required depending on the zoning change needed.
o These costs could potentially stifle the development of housing in areas where it may otherwise be reasonable
▪ Given a low supply of housing affordable to low- and/or moderate-income households, these costs may inhibit housing choice for those households #15..
- 489 -
• Impact Fee, land dedications, site improvements
o The costs to integrate necessary infrastructure (streets, sidewalks, storm drains, etc.) are bore by the developer, but are ultimately passed on to the consumer o These costs contribute to pricing out low- and/or moderate-income households for affordability reasons
o The City may provide fee waivers in some cases and/or fee deferrals in others allowing construction to move forward with less up-front costs
• School district fees
o School fees are currently $4.79 per square foot. These add significant costs to larger developments, contributing to the pricing out of low- and/or moderate-income households
The City of Modesto regularly analyzes City building codes, market constraints, and housing/nonhousing development policies, be it through the Consolidated Plan process, the Analysis of Impediments update, or the Housing Element update. The City acknowledges that outdated building codes and land use policies inhibit the development of housing for all income levels and the City understands the importance of regularly analyzing how local policies and ordinances impact the housing market for those households earning less than 80% of the area median income.

This year the City has embarked on a comprehensive look at how the City’s codes can be adjusted to plan for the future. The City is doing this with the creation of a Housing Plan to establish a vision for the future of Modesto's residential neighborhoods, and for expanded housing opportunities throughout Modesto. This plan was developed by community guided feedback throughout the process, the Housing Plan will inform the City’s long-term planning and policy decisions and promote greater housing, diversity and opportunities. The planning process will occur using an innovative and engaging approach as outlined below.
• Analyze Land Characteristics and Identify Future Housing Sites: This process helps to identify appropriate candidate locations for new residential development. “Testing” of various housing product types on sites with different shapes and sizes will help assess the viability and practicality of potential development. It includes creation of three-dimensional visualizations, offering examples of what the community would like to see built. Financial feasibility analysis and zoning recommendations will also be explored and evaluated. • Community Engagement to Better Plan and Design Future Housing Sites: City of Modesto staff want to hear from all interested parties, stakeholders and underrepresented communities to ensure their needs and desires are heard. Staff has developed a list of key local housing advocates and community members who will have an opportunity to make their views known early in the process. These people and organizations will be encouraged to spread the word about the Housing Plan to help engage the broadest range of people possible. • South and West Modesto Plan: On March 8, 2022, the Planning Division, in coordination with the Purchasing Division, issued a formal Request for Proposals (RFP) to prepare a comprehensive analysis for the development of additional housing units, barriers to economic development, street project design and infrastructure needs focusing on the neighborhoods of Southwest Modesto (RFP No. 2122-04). The purpose of the Plan is to establish a vision for the future of Southwest Modesto with a focus on enhancing redevelopment conditions and opportunities, #15..
- 490 -
and to identify ways to realize that vision. The Plan will be delivered in the form of a report that will present a comprehensive analysis of the needs and opportunities and identify a strategy to arrive at the actual development of additional housing units and address barriers to further economic development for the City’s highest areas of disadvantaged households. • General Plan: Beginning in March 2022, the City will look with the intent to prepare a comprehensive update to the Urban Area General Plan, which guides City decisions about growth, development, transportation, jobs, housing, parks, shopping, services, and more. The last time Modesto’s General Plan was updated comprehensively was in 1995. This update process will look toward the City’s long-term future to reflect the issues, ideas, and aspirations of today, and plan toward the year 2050.
• Housing Element: This is an independently governed chapter of the General Plan. This element is required to ensure that the City has programs and zoning in place that allows for the development of housing that can be available at every level of income without marginalizing any protected group. The City is currently drafting its 6th Cycle element that will be in place between 2024-2032.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The City works to remove barriers to the development and/or preservation of affordable housing through the following efforts:
• Providing funding for land acquisition, secondary financing, and infrastructure costs; • Assisting qualified households to purchase homes utilizing the Homebuyer Assistance Program:
• Exemption or deferral of Capital Facilities Fees for projects providing low-income housing; • Using the adopted streamlining process for environmental review; HEROS • Continuing to work with non-profit housing agencies in the provision of supportive services and programs; and
• Using streamlined application review and permit processing.

To mitigate the negative effects of public policies that serve as barriers to affordable housing, the City of Modesto has policies in its impact fee program for affordable housing. The current Capital Facility Fees (CFF) Policies and Procedures provide, with respect to very low- and low-income housing exemptions, the total number of housing exemptions granted are not to exceed two percent (2%) of the cumulative total CFF program housing units. The CFF Policies and Procedures also allow a Community Housing and Development Organization (CHDO) to submit an application and request CFF be waived on new affordable units for households earning sixty (60%) or less of the Area Median Income.

In 2017, the State of California passed a15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. Specifically, SB 2, which is part of the 15-bill housing package, established a permanent source of revenue intended to increase the affordable housing stock in California.
#15..
- 491 -
In 2019, the State of California released a Notice of Funding Availability (NOFA) to all local governments in California for the SB2 Planning Grants Program (PGP). The PGP program is intended for the preparation, adoption, and implementation of plans that streamline housing approvals and accelerate housing production.

In 2023, the City adopted a comprehensive housing plan with extensive feedback from the community that accomplished two primary objectives

1. The first is identification of opportunity sites for affordable housing, along with an analysis of potential barriers and/or constraints related thereto. This is intended to maximize residential development potential on sites that have meaningful capacity for residential development.

Existing barriers to new residential development will be identified and examined. Strategies to reduce or eliminate these barriers will be documented.

2. The second primary component of this AHP will consist of a series of zoning code amendments intended to facilitate housing development at new locations / sites / zoning districts where residential land uses may not be allowed under the current code. Zoning code amendments, in addition to other available remedies, will also be prepared to reduce / eliminate the barriers identified as described above.

These objectives are driving the implementation of change within the City to ensure that the policies and zoning is in place to encourage development that will benefit the low-moderate income households of Modesto. This data driven document is supporting the other initiatives within the General Plan and Housing Element.

In 2020, the State of California released a non-competitive Notice of Funding Availability (NOFA) to all local entitlement communities California for the SB2 Permanent Local Housing Allocation (PLHA). The PLHA program is intended to assist local government to fund workforce affordable housing.

In response to the NOFA, the City of Modesto awarded $949,747 in 2020 and in 2021 the City was successfully awarded through the annual NOFA an additional $1,507,287. In 2022, the City was awarded its 3rd year allocation of $1,658,723. According to the City’s PLHA allocation plan, the City will use this funding for the development of both affordable rental housing and permanent supportive housing.

All of the goals from the City’s 2015-2023 Housing Element are relevant to the Consolidated Plan, and several goals are explicitly aimed at removing barriers to the development of housing within the City.

Goal Number 4 of the Housing Element is “Ensure land use and zoning procedures accommodate housing,” stating that the City will work to track changes in Housing Law as to be consistent with supportive of State and Federal laws. The goal also aims to review local regulations periodically for the ability to accommodate projected housing demands. Goal number 5 is “Reduce government constraints,” with the aim of continuing to identify any development fees, impact fees, and other municipal costs that may unduly constrain housing production. #15..
- 492 -
The City is also a partner in the development of the Regional Analysis of Impediments to Fair Housing Choice (AI) for Stanislaus County. The AI will analyze public policies, strategies, and housing market practices that could potentially create barriers to affordable housing for households within the City. The AI will also identify actions to be taken to alleviate any barriers identified.

AP-85 Other Actions – 91.220(k)
Introduction:

Actions planned to address obstacles to meeting underserved needs In alignment with local efforts and initiatives, the City's primary focus in 2023-2024 will be to use HUD resources to address the Consolidated Plan goals, all of which are high priority:
• Improve the Condition and Increase Supply of Affordable Housing • Work Towards Addressing and Preventing Homelessness
• Enhance Infrastructure and Public Facilities
• Access to Jobs, Education, and Other Economic Development Services This action plan identifies projects the City will undertake in pursuit of progress towards those goals outlined above.

Actions planned to foster and maintain affordable housing One of the City’s main strategies to address the housing shortage in Modesto is to use HUD funds to assist with property acquisition for new construction and/or conversion into affordable housing.

Another strategy is acquisition of single-family dwelling units located on large lots. There is potential here for future development utilizing the access space for accessory dwelling units (ADUs). This concept assists with the affordable housing need, while maximizing space. This is a creative solution for an area where land and housing stock availability are low.

In December of 2022, the City released a comprehensive NOFA to provide resources to develop affordable housing that included all available funding resources that could be utilized to support the development of affordable housing. The City will use projects identified via the NOFA proposals and/or over the counter project proposals to maximize the use of HUD funds with the end goal of adding affordable housing units to the maximum extent possible.

Actions planned to reduce lead-based paint hazards
The Market Analysis section of the 2020-2024 Consolidated Plan estimates that 8,820 owner-occupied low-income households and 8,400 renter-occupied low-income households are living in units built before 1980. Because lead-based building materials was banned in 1979, this is the best available estimate of the number of households that may have lead-based materials to abate.

The City of Modesto has adopted policies which will continue to be implemented in its housing programs. The City’s lead-based paint policy complies with HUD requirements relating to lead-based #15..
- 493 -
paint hazards. In alignment with HUD’s requirements, lead-based paint remediation actions will depend on the level of subsidy provided on a project-by-project basis.

City staff provides the HUD approved “Protect Your Family from Lead in Your Home” pamphlet to homeowners when lead-based paint is found or presumed to be present. Homeowner Rehabilitation Program Policies & Procedures adhere to 24 CFR 35.100 Subpart J 35.930(b), 24 CFR 35.100 subpart J

35.930(c), and 24 CFR 35.100 subpart J 35.930(d). Contractors who are working in homes where leadbased paint is found or presumed to be present provides to the homeowners EPA pamphlet “The LeadSafe Certified Guide to Renovate Right” prior to construction activities.

Housing rehabilitation projects will be subject to federal regulations for Lead-Based Paint and contractors must be certified in safe work practices when completing the rehabilitation work. Costs related to lead-based paint inspections, clearance and abatement will be included in the City’s housing rehabilitation loan program which is paid from entitlement funds.

The following is the City’s lead-based policy for reduction of lead paint hazards:

Hazard Mitigation Subsidy Amount <$5,000 Subsidy Amount $5,000-$25,000
Subsidy Amount
>$25,000
Approach to Lead
Hazard Evaluation
and Reduction
“Do No Harm”: Use lead
safe work practices
Identify and control
Lead hazards
Identify and Abate Lead Hazards
Homeowner
Notification
Yes Yes Yes
Lead Hazard
Evaluation
Presume Presence of LBP
(alternative: Paint testing
of surfaces to be
disturbed by
rehabilitation)
Paint testing of surfaces
to be disturbed by
rehabilitation AND Risk
assessment
Paint testing of surfaces to be
disturbed by rehabilitation AND
Risk assessment
Lead Hazard
Reduction
Repair surfaces disturbed
during rehabilitation, use
lead-safe work practices,
clearance test of work site
upon completion.

Interim controls, leadsafe work practices,
clearance test of unit
upon completion.

Complete abatement, lead- safe
work practices, clearance test of
unit upon completion.

Actions planned to reduce the number of poverty-level families Affordable housing is identified as the highest need in the City’s 2020-2024 Strategic Plan. To address the need for additional affordable housing the City of Modesto works with local affordable housing developers in efforts to identify new projects and/or ways to enhance the supply of affordable housing.

Section AP-55 of this Action Plan outlines the City’s 2023-2024 affordable housing goals for this year.

The City will enter community partnerships that provide economic development opportunities for lowincome households. Partnerships such as those with Opportunity Stanislaus, Digital Nest, the local economic development, and workforce agency, will seek to leverage any funds available to the city #15..
- 494 -
(federal and/or state) for the economic advancement of low-income families with the end goal to get improve income levels for low-income individuals. Opportunity Stanislaus developed the VOLT Institute, located in Modesto, to offer training for maintenance and technology positions. VOLT was developed in consultation with local businesses to address their needs for machine maintenance and continuing education among their workforces.

In response to the global pandemic and the efforts to increase the earning potential for the City of Modesto residents; the City partnered with Opportunity Stanislaus – VOLT Institute to offer two new programs that will help individuals with economic needs by providing hard and soft skills training that will help them gain employment. The first program is titled, Certified Production Technician Plus, which will include a 9-week cohort. Training consists of 81 hours of basic industrial training. The second program, Career Ready Program, focuses on assisting individuals learn the skills to obtain a career and keep their career. This program offers three workshops with two separate three-hour sessions per workshop. The City has also partnered with Digital NEST to provide technical and professional skills to underserved youth. Digital NEST focuses on technology and empowerment through three main programs: Digital Arts & Technology, Web & Information Technology and People Projects & Leadership.

Digital NEST also partners with local businesses to provide paid internships to students with the focus of highlighting skills obtained through the program and gain on the job experience.

Actions planned to develop institutional structure
The City of Modesto, through its engagement in local initiatives, is engaged in the Coordinated Entry system. Coordinated Entry (also known as coordinated assessment system) is a consistent, community wide process to match people experiencing homelessness or at-risk of homelessness to community resources that are the best fit for their situation. In a community using Coordinated Entry, homeless individuals and families complete a standard triage assessment survey that identifies the best type of services for that household. Participating programs accept referrals from the system, reducing the need for people to traverse the county seeking assistance at every provider separately. The process helps prioritize housing and homeless assistance based on vulnerability and severity of service needs to ensure that people who need assistance the most can receive it in a timely manner. The process also provides information about service needs and gaps to help plan assistance and identify needed resources in our community.

The intent of Coordinated Entry is to engage the entire geographic area through Access Points. Access Points are places–either virtual or physical–where an individual or family in need of assistance accesses the coordinated entry process. People experiencing homelessness can complete the assessment survey to participate in Coordinated Entry and are matched with community resources that best fit their situation. All locations and methods offer the same assessment approach and referrals using uniform decision-making processes. The Access Points in Stanislaus County include: 1) A centralized physical location (Access Center) in Stanislaus County where housing and support services, among others are provided, 2) 211 hotline system that screens and directly connects people to services, 3) Continuum of Care partners that provide assessments using the same tool county-wide, 4) A specialized Multi- #15..
- 495 -
disciplinary Outreach and Engagement Team that scouts the geographic area to provide access to those who might not want to engage at a physical access point.

The City works closely with the Stanislaus County Department of Behavioral Health and Recovery Services (BHRS) in the system delivery of housing services. BHRS provides Housing Support Services Program provides an array of support services for individuals facing barriers that include low income, severe mental illness, substance abuse, and other disabling conditions. The program offers a combination of affordable housing and support services designed to help individuals and families use housing as a platform for wellness and recovery following a period of homelessness, hospitalization, or incarceration. The goal of Housing Support Services is to assist individuals in obtaining employment, independent living skills, recovery, and increased self-sufficiency. In addition, BHRS provides Employment Support Services to individuals with psychiatric disabilities who are working towards Employment and Housing goals. The program provides an opportunity for individuals with severe mental health disabilities to work in the community. Often, BHRS and City HUD funding resources are leveraged together when partnering with local affordable housing developers such as the SRHA and STANCO.

Actions planned to enhance coordination between public and private housing and social service agencies
City of Modesto relies primarily on its (A) close consultation with the CSOC, which is made up of representative stakeholders and (B) monthly meetings with its public and private housing development partners, which include local private CHDOs (e.g., Habitat for Humanity, Stanislaus County and Stanislaus Affordable Housing Corporation, and Great Valley Housing Development Corporation (GVHDC), the Stanislaus Regional Housing Authority, and BHRS to enhance coordination in the areas of community housing and social services.

The City of Modesto relies on non-profit organizations and for-profit developers to build and acquire, develop, and rehabilitate affordable units. The City of Modesto will continue to work closely with these entities to ensure that each year as many new affordable units are developed or made available.

The City of Modesto also relies on the non-profit service sector to provide emergency shelter and transitional and special needs housing. The City of Modesto will continue to support eligible organizations and their activities with local, state and federal funding as it’s made available and upon their governing entity’s approval.

Discussion:

No additional discussion.
#15..
- 496 -
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

Program Components Amount

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $ 0.00

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
$ 0.00

3. The amount of surplus funds from urban renewal settlements $0.00

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0.00

5. The amount of income from float-funded activities $0.00 Total Program Income $0.00
Other CDBG Requirements
Program Components Amounts

1. The amount of urgent need activities $0.00

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income
100%
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City of Modesto does not use form of investment within the local HOME program other than those identified in Section 92.205.

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

When HOME funds are used for homebuyer activities, the City will follow the following guidelines:

Pursuant to 24 CFR 92.254(a)(5)(ii), the City requires that HOME funds be recaptured if the property #15..
- 497 -
does not continue to be the principal residence of the buyer for the duration of the Affordability Period secured by an Affordable Housing Covenant. The Recapture Provision shall apply to a HOME assisted property only when a Direct HOME Subsidy is provided to a homebuyer.

The Recapture provision will ensure that the City of Modesto recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the affordability period.

Per, 24 CFR 92.254(a)(5)(ii)(A), In establishing recapture requirements, the City of Modesto is subject to the limitation that when the recapture requirement is triggered by a sale (voluntarily or involuntarily) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investment due, the City of Modesto will only recapture the net proceeds, if any.

The net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs.

Of the recapture options described in 92.254(a)(5)(ii)(A), the City of Modesto will use a the “Shared Net Proceeds” option as outlined in 24 CFR 92.254(a)(5)(ii)(A)(3). With this option, if the net proceeds are not sufficient to recapture the entire HOME investment, the City and original homebuyer will share the net proceeds.

To calculate the amount of net proceeds (or shared appreciation) to be returned to the City the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured HOME Investment + Homeowner Investment
To calculate the amount of net proceeds (or shared appreciation) to available to the homebuyer the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured Direct HOME Subsidy + Homeowner Investment
Since the HOME rule limits recapture to available net proceeds, the City will only recapture what is available from net proceeds. In this case, the City is not required to repay the difference between the total direct HOME subsidy and the amount the City is able to recapture from available net proceeds.

3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds. See 24 CFR 92.254(a)(4) are as follows:

When HOME funds are used for resale or recapture, the City will follow the following guidelines:

Pursuant to 24 CFR 92.254(a)(5)(ii), the City requires that HOME funds be recaptured if the property does not continue to be the principal residence of the buyer for the duration of the Affordability Period secured by an Affordable Housing Covenant. The Recapture Provision shall apply to a HOME assisted property only when a Direct HOME Subsidy is provided to a homebuyer.

The Recapture provision will ensure that the City of Modesto recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the affordability period.

Per, 24 CFR 92.254(a)(5)(ii)(A), In establishing recapture requirements, the City of Modesto is subject to the limitation that when the recapture requirement is triggered by a sale (voluntarily or involuntarily) of the housing unit, and there are no net proceeds or the net proceeds are insufficient #15..
- 498 -
to repay the HOME investment due, the City of Modesto will only recapture the net proceeds, if any.

The net proceeds are the sales price minus superior loan repayment (other than HOME funds) and any closing costs.

Of the recapture options described in 92.254(a)(5)(ii)(A), the City of Modesto will use a the “Shared Net Proceeds” option as outlined in 24 CFR 92.254(a)(5)(ii)(A)(3). With this option, if the net proceeds are not sufficient to recapture the entire HOME investment, the City and original homebuyer will share the net proceeds.

To calculate the amount of net proceeds (or shared appreciation) to be returned to the City the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured HOME Investment + Homeowner Investment
To calculate the amount of net proceeds (or shared appreciation) to available to the homebuyer the following formula will be applied:

HOME investment x Net proceeds = HOME amount to be recaptured Direct HOME Subsidy + Homeowner Investment
Since the HOME rule limits recapture to available net proceeds, the City will only recapture what is available from net proceeds. In this case, the City is not required to repay the difference between the total direct HOME subsidy and the amount the City is able to recapture from available net proceeds.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City does not intend to use HOME funds for refinancing activities.

Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)

1. Include written standards for providing ESG assistance (may include as attachment) The City, in consultation with Continuum of Care stakeholders, developed policies and procedures for providing ESG assistance. The policies and procedures adopted are in accordance with HUD and HCD guidelines.

Standards for providing ESG homelessness prevention and rapid re-housing assistance include targeting households with dependent children and persons experiencing homelessness connected to or eligible to receive (within 6 months) assistance from mainstream benefits and services.

The City’s ESG policies may be accessed at the following website:
https://www.modestogov.com/DocumentCenter/View/6198/Section-5---Emergency-SolutionsGrants

2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment #15..
- 499 -
system.

The CoC continues to work with partners and stakeholders in the implementation of the Coordinated Entry System (CES) process. Coordinated Entry (CE) is a consistent, community wide intake and placement process through which people experiencing homelessness are efficiently connected to available housing services within the community. With Coordinated Entry, homeless individuals and families complete standard triage assessment survey that identifies the best type of services for that household. Participating programs accept referrals from the system, reducing the need for people to traverse the county seeking assistance at every provider separately. The process helps prioritize housing and homeless assistance based on vulnerability and severity of service needs to ensure that people who need assistance the most can receive it in a timely manner. The process also provides information about service needs and gaps to help plan assistance and identify needed resources in our community. The community has worked hard to improve on this process and ensure that we are assisting poverty-level families not only with prioritizing them for their housing needs but assessing all other needs. Now that these needs are assessed case managers will continue reaching out to the members to connect to applicable services until housing becomes available.

The intent is to provide coordinated entry to the entire geographic area through Access Points.

Access Points are places–either virtual or physical–where an individual or family in need of assistance accesses the coordinated entry process. People experiencing homelessness can complete the assessment survey to participate in coordinated entry and are matched with community resources that best fit their situation. All locations and methods offer the same assessment approach and referrals using uniform decision-making processes. The Access Points in Stanislaus County include: 1) A centralized physical location (Access Center) in Stanislaus County where housing and support services, among others are provided, 2) 211 hotline system that screens and directly connects people to services, 3) Continuum of Care partners that provide assessments using the same tool county-wide, 4) A specialized Multi-disciplinary Outreach and Engagement Team that scouts the geographic area to provide access to those who might not want to engage at a physical access point.

Currently, the CoC holds meetings every other week for Coordinated Entry meetings/conference calls with housing/service providers where the list of homeless individuals who have been vetted through the CES process is reviewed for gauging individual housing readiness. Each individual is assessed as to housing readiness and is placed in any housing available within the community.

The Coordinated Entry System Policies and Procedures Manual was updated in August 2021. The manual outlines a process that consists of four (4) phases:

1. Assessment
a. During this phase all community members experiencing homelessness or chronic homelessness are to be assessed by a Housing Assessor and their Standardized Assessment (uniform community assessment forms) score is placed a community queue for housing.

2. Housing Match and Prioritization
a. The Case Conferencing Team will meet to review the community housing queue and begin to match eligible participants with housing opportunities. These Case #15..
- 500 -
Conferencing Teams meet weekly or more frequently based on need.

3. Documentation and Housing Navigation
a. In this phase, official eligibility documentation, as standardized by the CoC, are gathered to prepare a household for an available housing intervention. The Housing navigator works with Housing Providers to guide a household through the referral and move-in process.

4. Housing Placement
a. This phase includes ensuring that the households is ready for move-in and documenting client acceptance and move-in date in HMIS.

3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).

The City of Modesto competitively awards ESG funding through an RFP process. This RFP process conforms to the City of Modesto’s rigorous procurement policies, including public noticing and utilizing its Neighborly online based grant management system. The funding priorities as it relates to ESG are funding emergency shelter to the maximum extent possible and prioritizing rapid re-housing and homelessness prevention.

The RFP Process is undertaken through the following steps:

1. The City publishes a Notice of Funding Availability (NOFA)

2. The City holds are technical workshop for those organizations planning to apply for funds

3. The City conducts a technical review on all applications received

4. The City submits technical review notifications

5. Following technical review notifications, the City allows organizations to appeal their technical review determination

6. Grant presentations are made to the Modesto Grant Review Committee that is made up of representative from the CH&CDC Committee and the CSOC.

7. Award notifications are announced at the CH&CDC committee that approves the Annual Action Plan after which letters are sent to the applicants regarding their award status.

8. Associated projects and planned activities are included in the Annual Action Plan that is presented to City Council

9. Sub-recipient grant agreements are finalized

4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.

The City of Modesto works very closely with the CoC which is made up of a representative group of diverse stakeholders, including persons experiencing homelessness and those who at one time in their lives had experienced homelessness. The CoC bylaws, amended on December 16, 2021, identify the CoC Council Members. Those bylaws state that “2 people who are or have experienced homelessness” are to be members of the CSOC council, elected/appointed by the general membership of the CSOC.

Alongside working with the CSOC, the City regularly participates in Stanislaus Homeless Alliance (SHA) discussions when developing policies and funding recommendations regarding facilities and #15..
- 501 -
services funded under ESG.

5. Describe performance standards for evaluating ESG.

To develop performance standards and evaluate outcomes of projects and activities assisted by ESG funds, the City of Modesto uses performance measures captured annually by HMIS to evaluate the outcomes of projects assisted with ESG funds. The performance measures will help evaluate the performance to determine the most effective services and assist with future allocation of ESG funds.

These include length of homelessness, returns to homelessness, number of sheltered homes persons, employment, and income growth for persons, homeless for the first time, and exit and retention to permanent housing.

For the full Stanislaus Community System of Care Collaborative Homeless Management Information System (HMIS) Policies and Procedures Manual, please find it at the following link:
https://www.csa-stanislaus.com/hmis/pdf/Policies_Procedures_SCOC.pdf Discussion
The City of Modesto consults closely and regularly with the CoC and its HMIS, ESG/HPRP, and Supportive Housing Program (SHP) subcommittees, which develop policies and procedures for these programs and has played an active role in building the service infrastructure to sustain and improve the coordinated entry system. This consultation includes but is not limited to reports and presentations that are placed on the CoC monthly meeting agendas, weekly coordinated entry meetings to place individuals in housing, and ongoing coordination amongst service providers related to housing placement of homeless individuals.

For the full Coordinated Entry Policies and Procedures Manual, please find it at this link -> https://csocstan.com/coordinated-entry-system-ces-policies-and-procedures-manual/ #15..
- 502 -
Executed HUD Certifications and SF-424
This section is to be added once this plan is adopted.
#15..
- 503 -
City of Modesto Resolution 2023-XXX
This section is to be added once this plan is adopted.
#15..
- 504 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 9, 2023
Date: April 17, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Interim Director of Community and Economic Development SUBJECT: 2019-2020 Annual Action Plan Amendment #5
CONTACT: Edgar Garcia, Housing and Urban Development Supervisor, [email protected], 209-577-5211
DESCRIPTION:

Hearing to consider approving Amendment #5 to the City of Modesto’s Program Year 2019- 2020 Annual Action Plan to identify and allocate reallocated Emergency Solutions Grant Coronavirus (ESG-CV) funds made available through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Public Law 116-136, accepting the ESG-CV award, and authorizing the City Manager, or his designee, to negotiate and execute an Agreement with the Salvation Army for the operation and management of a Day Center. (Funding Source: Cares Act Emergency Solutions Grant)
STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto’s 2020-2025 Strategic Plan Goal C: Develop Homelessness and Housing Plan.

BACKGROUND:

The U.S. Department of Housing and Urban Development1 (HUD) requires the City of Modesto, as an entitlement community, to develop an Annual Action Plan that describes proposed activities funded with Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds. The Annual Action Plan should align and support the priorities in the City’s five-year Consolidated Plan.

On May 14, 2019, by Resolution 2019-240, City Council approved the Program Year 2019-2020 Annual Action Plan, through which CDBG, ESG and HOME Program funds for fiscal year 2019- 2020 were allocated and programmed. HUD allows the City to amend an Annual Action Plan when it makes changes to programs and/or allocates additional funding. 1 https://www.hud.gov/
#16..
- 505 -
City Council, May 9, 2023
2019-2020 Annual Action Plan Amendment #5

In March 2020, United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act – H.R. 748). Beginning on June 9, 2020, the City approved a series of Amendments to the Program Year 2019 – 2020 Annual Action Plan to effectively allocate the $3,928,372 to respond to the Pandemic. The City’s final allocation was programmed by 2019- 2020 Annual Action Plan Amendment #4 approved by City Council on October 27, 2020 by Resolution 2020-448.

On August 22, 2022, the City of Modesto was identified as a recipient of reallocated ESG-CV funds. The reallocated funds were redistributed from other jurisdictions due to noncompliance with the September 30, 2021 expenditure deadline and the June 16, 2022 draw deadline. On September 20, 2022, the U.S. Department of Housing and Urban Development awarded the City of Modesto an additional amount of $632,829 of reallocated funds from the Emergency Solutions Grant CARES Act (ESG-CV) appropriation with an expenditure deadline of June 30, 2024.

DISCUSSION:

The City’s 2020-2025 Consolidated Plan identified housing and homelessness as key priorities.

Addressing homelessness during a pandemic takes a global approach with many community partners and the City departments coming together to create a holistic approach to keeping the most vulnerable in the community safe from COVID-19.

In order to allocate the proposed funds, a substantial Amendment to the Program Year 2019- 2020 Annual Action Plan is required, and usually a 30-day public comment period is required; however, due to the urgency in addressing COVID-19, HUD has waived this requirement provided that no less than five (5) days are provided for public comments on each substantial amendment.

Information related to the reallocation of ESG-CV funds was presented at the following public meetings for feedback from community stakeholders:
 February 6, 2023 at 3:00 pm at Airport Neighborhood Collaborative  March 15, 2023 at 10:00 am at West Modesto Collaborative  April 20, 2023 at 12:00 pm at Citizens Housing and Community Development Committee Additionally, any comments received during the 5-day public review period or during the City Council public hearing will be incorporated into the final Amendment #5 to the City’s Program Year 2019-2020 Annual Action Plan.

Proposed Project
To assist in the operational response to COVID-19 and assist unhoused individuals, the City will provide reallocated ESG-CV funds in an amount not to exceed $569,546 for the operations of the Berberian Emergency Shelter Day Center to support individuals experiencing homelessness. Currently, the Salvation Army Berberian Shelter requires that clients leave the shelter every morning which presents concerns for service providers. The proposed Day Center would serve as a drop-in site for clients and non-clients to be able to participate in Salvation Army activities throughout the day.

The proposed Day Center location will include the outside location (tents, chairs and tables) near the current location of the Access Center at 10th and D Street (stone area near the water #16..
- 506 -
City Council, May 9, 2023
2019-2020 Annual Action Plan Amendment #5

tower). Other locations would include the classroom located within the Salvation Army Administration building at 301 10th Street, using the 10th Street entrance as well as the Dining Room located within the Berberian Shelter at 320 9th Street. The services made available by the Day Center would include the following:
 Shower and Laundry Access
 Meal Services
 Needs Assessments
 Service Provider Referrals
 Behavioral Health Services and Referrals
 Job Readiness Curriculum
 Financial Literacy
 Core Life Skills Classes
City staff is recommending a three-year Agreement with the Salvation Army for the provision of the abovementioned services. The proposed allocation of ESG-CV funds is only a one-time allocation from HUD, and funds are required to be fully expended by Summer 2024. To support ongoing operations beyond the initial year following the initial eligible funding period of ESG-CV funds, the City will be seeking to partner with the County and other private partners to continue to fund the operations of the Day Center in perpetuity. The City will be including an exit clause in the Agreement that would allow the City to terminate the contract if ongoing funding is not secured.

FISCAL IMPACT:

The Annual Action Plan Amendment #5 will utilize the reallocated ESG-CV funding to allow for the increase in project and activity delivery expenses associated, as shown below:

Item Estimated Costs
Emergency Shelter (Day Center): $ 569,546
ESG-CV Administration $ 63,283
Total: $632,829
COMMITTEE RECOMMENDATION:

This item was approved to forward to the City Council for approval by the Citizens’ Housing and Community Development Committee on April 21, 2023.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving Amendment #5 to the City of Modesto’s Program Year 2019-2020 Annual Action Plan to identify and allocate reallocated Emergency Solutions Grant Coronavirus (ESGCV) funds in the amount of $632,829 received from the U.S. Department of Housing and Urban Development and authorizing the City Manager, or his designee, to negotiate and execute any related program Agreements, contracts or other documentation required for implementation and acceptance of the program year 2019-2020 Annual Action Plan Amendment #5 funding, and authorization to submit applicable documentation and provide technical alterations, as required by HUD, incorporate comments received prior to the close of the public comment period, and to make the necessary steps to implement the provision of this Resolution.

Resolution approving allocation of reallocated Emergency Solutions Grant Coronavirus (ESGCV) funds made available through the Coronavirus Aid, Relief, And Economic Security Act #16..
- 507 -
City Council, May 9, 2023
2019-2020 Annual Action Plan Amendment #5

(CARES Act), and authorizing the City Manager, or his designee, to negotiate and execute an Agreement with the Salvation Army in an amount not to exceed $569,546 for the operation and management of a day center, and authorizing the City Manager or his designee to execute any related documents and/or Agreements.

Resolution amending the Fiscal Year 2022-2023 multi-year fund budget to establish applicable revenue, expense, and transfer budgets for the Emergency Solutions Grant award funds and authorizing the City Manager or his designee, to take the necessary steps to implement the provisions of this Resolution.

Approved by:
___________________________________
Jessica Hill, Interim Director of Community
and Economic Development
___________________________________
Joseph P. Lopez, City Manager
Attachments:

1. Resolution – Annual Action Plan Amendment #5

2. Resolution – Day Center

3. Resolution – Budget Resolution Annual Action Plan Amendment #5

4. 2019-2020 Annual Action Plan Amendment #5

5. Public Service ESG CV Subrecipient Agreement
#16..
- 508 -
05/09/2023/CED/JHill/Item XX 1 2023-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XXX
RESOLUTION APPROVING AMENDMENT #5 TO THE CITY OF MODESTO’S PROGRAM YEAR 2019-2020 ANNUAL ACTION PLAN TO IDENTIFY AND

ALLOCATE REALLOCATED EMERGENCY SOLUTIONS GRANT
CORONAVIRUS (ESG-CV) FUNDS IN THE AMOUNT OF $632,829 RECEIVED FROM THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO

NEGOTIATE AND EXECUTE ANY RELATED PROGRAM AGREEMENTS,

CONTRACTS OR OTHER DOCUMENTATION REQUIRED FOR
IMPLEMENTATION AND ACCEPTANCE OF THE PROGRAM YEAR 2019- 2020 ANNUAL ACTION PLAN AMENDMENT #5 FUNDING, AND

AUTHORIZATION TO SUBMIT APPLICABLE DOCUMENTATION AND

PROVIDE TECHNICAL ALTERATIONS, AS REQUIRED BY HUD,

INCORPORATE COMMENTS RECEIVED PRIOR TO THE CLOSE OF THE

PUBLIC COMMENT PERIOD, AND TO MAKE THE NECESSARY STEPS TO

IMPLEMENT THE PROVISION OF THIS RESOLUTION
WHEREAS, as a U.S. Department of Housing and Urban Development (HUD) entitlement community, the City of Modesto is required to develop a Substantial Amendment to the Annual Action Plan when it makes changes to its planned or actual activities funded with Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds, and WHEREAS, HUD requires the City of Modesto develop, in consultation with its citizens and community-based service providers, a funding strategy that furthers its housing and community development goals as described in the City’s Five-Year Consolidated Plan for FY 2015-2020, and
WHEREAS, citizen participation is a key component of the Substantial Amendment to the Annual Action Plan process, and
WHEREAS, HUD regulations require the City provide ample opportunity and means for the populations served by the grants, as well as the general citizenry, to #16..
- 509 -
05/09/2023/CED/JHill/Item XX 2 2023-XX
provide input on the goals and priorities and the specific type of activities to be funded in the City’s Substantial Amendment to the Program Year 2019-2020 Annual Action Plan, and
WHEREAS, on March 27, 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act – H.R. 748), and WHEREAS, through the first round of funding, the City of Modesto was awarded $567,410 in ESG-CV1, and
WHEREAS, this funding was programmed by 2019-2020 Annual Action Plan Amendment #3 approved by City Council on April 28, 2020 by Resolution 2020-206, and
WHEREAS, on June 9, 2020 HUD announced the second round of CARES Act Funding through which the City was awarded an additional $3,360,962 in Emergency Solutions Grants – Coronavirus (ESG-CV2), and
WHEREAS, on June 9, 2020 HUD announced a second round of CARES Act Funding through which the City received an additional $3,360,962 in Emergency Solutions Grants – Coronavirus (ESG-CV2), and
WHEREAS, this funding was programmed by 2019-2020 Annual Action Plan Amendment #4 approved by City Council on October 27, 2020 by Resolution 2020-448, and
WHEREAS, on August 22, 2022, the City of Modesto was identified as a recipient of reallocated ESG-CV funds, and
WHEREAS, the reallocated funds were redistributed from other jurisdictions due to noncompliance with a September 30, 2021 expenditure deadline, and #16..
- 510 -
05/09/2023/CED/JHill/Item XX 3 2023-XX
WHEREAS, on September 20, 2022, the U.S. Department of Housing and Urban Development awarded the City of Modesto an additional amount of $632,829 of reallocated funds from the Emergency Solutions Grant CARES Act (ESG-CV) appropriation with an expenditure deadline of June 30, 2024, and WHEREAS, the City’s current 2020-2025 Consolidated Plan identifies homelessness and housing as the highest priorities, and WHEREAS, addressing homelessness in the midst of a pandemic takes a global approach with many community partners and the City departments coming together to create a holistic approach to keeping the most vulnerable in the community safe from COVID-19 and to continue the effort to assist these individuals on a path that brings them closer to a life off the streets and part of our local community, and WHEREAS, with this in mind, a portion of the ESG-CV2 allocation will be programmed to address this priority while responding to the COVID-19 threat to the community, and
WHEREAS, the programs that will be funded are highlighted in Exhibit A City of Modesto 2019 Annual Action Plan Substantial Amendment #5 to help prevent, prepare for, and respond to the coronavirus pandemic, and
WHEREAS, in accordance with HUD, a substantial Amendment to the PY 2019- 2020 Annual Action Plan is required, and usually a 30-day public comment period is required; however, HUD has waived this requirement provided that no less than five (5) days are provided for public comments on each substantial amendment.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves Amendment #5 to City of Modesto Program Year 2019-2020 #16..
- 511 -
05/09/2023/CED/JHill/Item XX 4 2023-XX
Annual Action Plan, and acceptance of the program year 2019-2020 Annual Action Plan Amendment #5 funding, a copy of which in on file with the City Clerk.

BE IT FURTHER RESOLVED; that the City Manager or his designee to execute and submit any documents and/or agreements necessary to carry out the intent of this Resolution in a form approved by the City Attorney.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ___, who moved its adoption, which motion being duly seconded by Councilmember ___, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#16..
- 512 -
05/09/2023/CED/JHill/Item XX 5 2023-XX

SUBSTANTIAL AMENDMENT
City of Modesto
2019 Annual Action Plan
Substantial Amendment #5
City Council: May 9, 2023
On March 27, 2020 the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748). The bill provided $4 billion for ESG to rapidly respond to COVID-19 and the economic, housing, and homelessness impacts caused by it.

On September 20, 2022, The U.S. Department of Housing and Urban Development awarded the City of Modesto $632,829.55 of reallocated funds from the Emergency Solutions (ESG) Program CARES Act (ESG-CV) appropriation. A substantial Amendment to the FY 2019-2020 Annual Action Plan is required, and usually a 30-day public comment period is required; however, the U.S. Department of Housing and Urban Development (HUD) has waived this requirement provided that no less than five (5) days are provided for public comments on each substantial amendment. The City of Modesto has opted to allow for a twenty (20) day public comment period to allow for maximum community input and still respond to the community’s COVID-19 needs in a timely manner.

The purpose of the Substantial Amendment is to reallocate, add, and define additional following eligible uses using Emergency Solutions Grant Coronavirus ESG-CV made available by reallocation:

1. Emergency Shelter:

Funding: $569,546.59 From the CARES Act - ESG-CV Reallocation Description: Individuals experiencing homelessness are at greater risk of exposure to a variety of infectious diseases including COVID-19. Funding may be utilized for costs of providing essential services to homeless families and individuals in emergency shelters, renovating buildings to be used as emergency shelter for homeless families and individuals, and operating emergency shelters.

Funds will be used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19).

National Objective: N/A
Citation: 576.102
#16..
- 513 -
05/09/2023/CED/JHill/Item XX 6 2023-XX
Funding Source: Emergency Solutions Grants – Coronavirus (ESG-CV) Reallocation

2. ESG-CV Planning & Administration
Funding: $63,282.96 From the CARES Act - ESG-CV Allocation Description: This project will fund administrative expenses related to the planning and administration of ESG-CV projects and activities including but not limited to development of HUD plans, contract development, project monitoring, and enforcement of federal regulations.

Target Area: N/A
Citation: 576.102
Funding Source: Emergency Solutions Grants – Coronavirus (ESG-CV) Reallocation
ESG-CV
 Allows recipients to deviate from regular procurement standards when procuring goods and services to prevent, prepare for, and respond to the coronavirus.  Recipients can use up to 10 percent of the allocation for administrative purposes.

In addition to the 10 percent for admin, these funds can be used to provide hazard pay, including for time worked prior to the date of this bill, for staff working directly to prevent, prepare for, and respond to coronavirus among the homeless or persons at-risk of homelessness.
 The funds are not subject to the Citizen Participation requirements.  No match requirement.
 No cap on emergency shelter activities.
 Funds can be used to provide temporary shelters (through leasing of existing property, temporary structures, or other means) to prevent, prepare for, and respond to the coronavirus; and,
 Environmental review standards will not apply to these funds. #16..
- 514 -
05/09/2023/CED/JHill/Item XX 1 2023-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-XXX

RESOLUTION APPROVING ALLOCATION OF REALLOCATED

EMERGENCY SOLUTIONS GRANT CORONAVIRUS (ESG-CV) FUNDS MADE

AVAILABLE THROUGH THE CORONAVIRUS AID, RELIEF, AND

ECONOMIC SECURITY ACT (CARES ACT), AND AUTHORIZING THE CITY

MANAGER, OR HIS DESIGNEE, TO NEGOTIATE AND EXECUTE AN

AGREEMENT WITH THE SALVATION ARMY IN AN AMOUNT NOT TO
EXCEED $569,546 FOR THE OPERATION AND MANAGEMENT OF A DAY

CENTER AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO

EXECUTE ANY RELATED DOCUMENTS AND/OR AGREEMENTS
WHEREAS, as a U.S. Department of Housing and Urban Development (HUD) entitlement community, the City of Modesto is required to develop a Substantial Amendment to the Annual Action Plan when it makes changes to its planned or actual activities funded with Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds, and WHEREAS, HUD requires the City of Modesto develop, in consultation with its citizens and community-based service providers, a funding strategy that furthers its housing and community development goals as described in the City’s Five-Year Consolidated Plan for FY 2015-2020, and
WHEREAS, citizen participation is a key component of the Substantial Amendment to the Annual Action Plan process, and
WHEREAS, HUD regulations require the City provide ample opportunity and means for the populations served by the grants, as well as the general citizenry, to provide input on the goals and priorities and the specific type of activities to be funded in the City’s Substantial Amendment to the Program Year 2019-2020 Annual Action Plan, and
#16..
- 515 -
05/09/2023/CED/JHill/Item XX 2 2023-XX
WHEREAS, on March 27, 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act – H.R. 748), and WHEREAS, through the first round of funding, the City of Modesto was awarded $567,410 in ESG-CV1, and
WHEREAS, this funding was programmed by 2019-2020 Annual Action Plan Amendment #3 approved by City Council on April 28, 2020 by Resolution 2020-206, and
WHEREAS, on June 9, 2020 HUD announced the second round of CARES Act Funding through which the City was awarded an additional $3,360,962 in Emergency Solutions Grants – Coronavirus (ESG-CV2), and
WHEREAS, on June 9, 2020 HUD announced a second round of CARES Act Funding through which the City received an additional $3,360,962 in Emergency Solutions Grants – Coronavirus (ESG-CV2), and
WHEREAS, this funding was programmed by 2019-2020 Annual Action Plan Amendment #4 approved by City Council on October 27, 2020 by Resolution 2020-448, and
WHEREAS, on August 22, 2022, the City of Modesto was identified as a recipient of reallocated ESG-CV funds, and
WHEREAS, the reallocated funds were redistributed from other jurisdictions due to noncompliance with a September 30, 2021 expenditure deadline, and WHEREAS, on September 20, 2022, the U.S. Department of Housing and Urban Development awarded the City of Modesto an additional amount of $632,829 of #16..
- 516 -
05/09/2023/CED/JHill/Item XX 3 2023-XX
reallocated funds from the Emergency Solutions Grant CARES Act (ESG-CV) appropriation with an expenditure deadline of June 30, 2024, and WHEREAS, the City’s current 2020-2025 Consolidated Plan identifies homelessness and housing as the highest priorities, and WHEREAS, addressing homelessness in the midst of a pandemic takes a global approach with many community partners and the City departments coming together to create a holistic approach to keeping the most vulnerable in the community safe from COVID-19 and to continue the effort to assist these individuals on a path that brings them closer to a life off the streets and part of our local community, and WHEREAS, to assist in the operational response to COVID-19 and assist unhoused individuals, the City will provide reallocated ESG-CV funds in an amount not to exceed $569,546 for the operations of the Berberian Emergency Shelter Day Center to support individuals experiencing homelessness, and
WHEREAS, the proposed Day Center would serve as a drop-in site for clients and non-clients to be able to participate in Salvation Army activities throughout the day, and WHEREAS, a three-year agreement with the Salvation Army for the provision of services will be established, and
WHEREAS, the proposed allocation of ESG-CV funds is only a one-time allocation from HUD the City will be seeking to partner with the County and other private partners to continue to fund the operations of the Day Center in perpetuity, and WHEREAS, in accordance with HUD, a substantial Amendment to the PY 2019- 2020 Annual Action Plan is required, and usually a 30-day public comment period is #16..
- 517 -
05/09/2023/CED/JHill/Item XX 4 2023-XX
required; however, HUD has waived this requirement provided that no less than five (5) days are provided for public comments on each substantial amendment.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves Amendment #5 to City of Modesto Program Year 2019-2020 Annual Action Plan, approving allocation of reallocated Emergency Solutions Grant Coronavirus (ESG-CV) funds made available through the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT), and authorizing the City Manager, or his designee, to negotiate and execute an Agreement with the Salvation Army in an amount not to exceed $569,546 for the operation and management of a day center.

BE IT FURTHER RESOLVED; that the City Manager or his designee to execute any documents and/or agreements necessary to carry out the intent of this Resolution in a form approved by the City Attorney.
#16..
- 518 -
05/09/2023/CED/JHill/Item XX 5 2023-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ___, who moved its adoption, which motion being duly seconded by Councilmember ___, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#16..
- 519 -
05/09/2023/CED/JHill/Item XX 6 2023-XX
Exhibit A
Item Estimated Costs
Emergency Shelter (Day Center): $ 569,546
ESG-CV Administration $ 63,283
Total: $632,829
#16..
- 520 -
05/09/2023/CED/JHill/Item XX 1 2023-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-xxx
RESOLUTION AMENDING THE FISCAL YEAR 2022-2023 MULTI-YEAR

FUND BUDGET TO ESTABLISH APPLICABLE REVENUE, EXPENSE, AND

TRANSFER BUDGETS FOR THE EMERGENCY SOLUTIONS GRANT

AWARD FUNDS AND AUTHORIZING THE CITY MANAGER OR HIS

DESIGNEE, TO TAKE THE NECESSARY STEPS TO IMPLEMENT THE

PROVISIONS OF THIS RESOLUTION
WHEREAS, the City of Modesto receives annual entitlements from HUD based on its population size, number of households living below poverty level and number of sub-standard housing units, and
WHEREAS, on May 14, 2019, by Resolution 2019-240, City Council approved the Program Year 2019 Annual Action Plan, and
WHEREAS, on September 10, 2019, by Resolution 2019-404, City Council approved the Program Year 2019 Annual Action Plan Amendment No. 1, and WHEREAS, on April 14, 2020, by Resolution 2020-182, City Council approved the Program Year 2019 Annual Action Plan Amendment No. 2, and WHEREAS, on April 28, 2020, by Resolution 2020-206, City Council approved the Program Year 2019 Annual Action Plan Amendment No. 3, and WHEREAS, on March 27, 2020 United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act – H.R. 748), and WHEREAS, this funding was programmed by 2019-2020 Annual Action Plan Amendment #4 approved by City Council on October 27, 2020 by Resolution 2020-448, and
WHEREAS, on August 22, 2022, the City of Modesto was identified as a recipient of reallocated ESG-CV funds, and
#16..
- 521 -
05/09/2023/CED/JHill/Item XX 2 2023-XX
WHEREAS, the reallocated funds were redistributed from other jurisdictions due to noncompliance with a September 30, 2021 expenditure deadline, and WHEREAS, on September 20, 2022, the U.S. Department of Housing and Urban Development awarded the City of Modesto an additional amount of $632,829 of reallocated funds from the Emergency Solutions Grant CARES Act (ESG-CV) appropriation with an expenditure deadline of June 30, 2024, and WHEREAS, the CARES Act immediately provided a special allocation of ESG funds to be used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19), and
WHEREAS, certain budgetary transactions are necessary to reallocate funds during the course of the Consolidated Plan cycle when there is a change in allocation priorities, or method of distribution, carrying out new activities with CPD funds, change in purpose, scope, location or beneficiaries of an activity, and WHEREAS, the Fiscal year 2022-2023 operating and multi-year budget must be amended as shown in Exhibit A, which is incorporated by reference herein to reflect an approved reallocation of funds as set forth in the Integrated Disbursement and Information System (IDIS) reporting system.

NOW, THEREFORE, BE IT RESOLVED, amending the Fiscal Year 2022- 2023 operating and multi-year project budgets to identify and allocate reallocated Emergency Solutions Grant Coronavirus (ESG-CV) funds made available through the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) as proposed in the Program Year 2019-20 Annual Action Plan Amendment NO. 5.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is #16..
- 522 -
05/09/2023/CED/JHill/Item XX 3 2023-XX
hereby authorized to implement the provision of this resolution.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 9th day of May, 2023, by Councilmember ___, who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT:Councilmember
s:

ATTEST: ________________________________
DIANE NAYARES-PEREZ, City Clerk
APPROVED AS TO FORM:

BY:

JOSE M. SANCHEZ, Acting City Attorney
#16..
- 523 -
05/09/2023/CED/JHill/Item XX 4 2023-XX

EXHIBIT A
Item Estimated Costs
Emergency Shelter (Day Center): $ 569,546
ESG-CV Administration $ 63,283
Total: $632,829
#16..
- 524 -
Annual Action Plan
2019
OMB Control No: 2506-0117 (exp. 06/30/2018)

SUBSTANTIAL AMENDMENT
City of Modesto
2019 Annual Action Plan
Substantial Amendment #5
City Council: May 9, 2023
On March 27, 2020 the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748). The bill provided $4 billion for ESG to rapidly respond to COVID-19 and the economic, housing, and homelessness impacts caused by it.

On September 20, 2022, The U.S. Department of Housing and Urban Development awarded the City of Modesto $632,829.55 of reallocated funds from the Emergency Solutions (ESG) Program CARES Act (ESG-CV) appropriation. A substantial Amendment to the FY 2019- 2020 Annual Action Plan is required, and usually a 30-day public comment period is required; however, the U.S. Department of Housing and Urban Development (HUD) has waived this requirement provided that no less than five (5) days are provided for public comments on each substantial amendment. The City of Modesto has opted to allow for a twenty (20) day public comment period to allow for maximum community input and still respond to the community’s COVID-19 needs in a timely manner.

The purpose of the Substantial Amendment is to reallocate, add, and define additional following eligible uses using Emergency Solutions Grant Coronavirus ESG-CV made available by reallocation:

1. Emergency Shelter:

Funding: $569,546.59 From the CARES Act - ESG-CV Reallocation Description: Individuals experiencing homelessness are at greater risk of exposure to a variety of infectious diseases including COVID-19. Funding may be utilized for costs of providing essential services to homeless families and individuals in emergency shelters, renovating buildings to be used as emergency shelter for homeless families and individuals, and operating emergency shelters. Funds will be used to prevent, prepare for, and respond to the coronavirus pandemic (COVID-19).

National Objective: N/A
Citation: 576.102
Funding Source: Emergency Solutions Grants – Coronavirus (ESG-CV) Reallocation

2. ESG-CV Planning & Administration
Funding: $63,282.96 From the CARES Act - ESG-CV Allocation #16..
- 525 -
Annual Action Plan
2019
OMB Control No: 2506-0117 (exp. 06/30/2018)
Description: This project will fund administrative expenses related to the planning and administration of ESG-CV projects and activities including but not limited to development of HUD plans, contract development, project monitoring, and enforcement of federal regulations.

Target Area: N/A
Citation: 576.102
Funding Source: Emergency Solutions Grants – Coronavirus (ESG-CV) Reallocation
ESG-CV
 Allows recipients to deviate from regular procurement standards when procuring goods and services to prevent, prepare for, and respond to the coronavirus.  Recipients can use up to 10 percent of the allocation for administrative purposes. In addition to the 10 percent for admin, these funds can be used to provide hazard pay, including for time worked prior to the date of this bill, for staff working directly to prevent, prepare for, and respond to coronavirus among the homeless or persons atrisk of homelessness.  The funds are not subject to the Citizen Participation requirements.  No match requirement.
 No cap on emergency shelter activities.
 Funds can be used to provide temporary shelters (through leasing of existing property, temporary structures, or other means) to prevent, prepare for, and respond to the coronavirus; and,
 Environmental review standards will not apply to these funds. #16..
- 526 -
Emergency Solutions Grants Cares Act Program
Public Service Subrecipient Agreement
(July 1, 2023 through June 30, 2024)
THIS AGREEMENT, made and entered into as of _____________________________, 2023, by and between the CITY OF MODESTO, a municipal corporation of the State of California, as the recipient of the EMERGENCY SOLUTIONS GRANTS PROGRAM, hereinafter referred to as (“CITY”), and _________________ a California nonprofit public benefit corporation, hereinafter referred to as (“SUBRECIPIENT”).

WITNESSETH WHEREAS, CITY has an Emergency Solutions Grants allocation from the U.S.

Department of Housing and Urban Development under Subtitle B of Title IV of the Stewart B.

McKinney Homeless Assistance Act (42 U.S.C. 11371-11378), as amended; and WHEREAS, pursuant to such grant, CITY is undertaking certain programs and services necessary for the planning, implementation, or execution of such Emergency Solutions Grants Program; and
WHEREAS, CITY desires to engage SUBRECIPIENT to render certain services, programs, or assistance in connection with such undertaking of the Emergency Solutions Grants Program, as described in Appendices A, and B; and
WHEREAS, Resolution 2023-___ adopted by the Council of the CITY on May__, 2023, determined and resolved that the SUBRECIPIENT should be utilized to implement the Emergency Solutions Grants Program, a copy of which Resolution is attached hereto as Exhibit A and hereinafter incorporated by reference to this Agreement.

NOW, THEREFORE, the parties hereto do mutually agree as follows:

I. SCOPE OF WORK:

SUBRECIPIENT shall perform all the necessary services provided under this Agreement in accordance with and respecting the following activities as set forth in Appendices A, and B as described in the Application for Funding and incorporated herein by reference:______________________. The SUBRECIPIENT will be responsible for administering the activity described herein consistent with all the provisions of this Agreement and with the requirements of Title 24 Code of Federal Regulations, Part 576 for the U.S. Department of Housing and Urban Development concerning Emergency Solutions Grants Program and all applicable federal requirements to carrying out ESG activities. SUBRECIPIENT further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available. #16..
- 527 -

FY 2023-2024 Public Service CV Agreement
II. TERM OF AGREEMENT:

Unless terminated earlier due to default or insufficiency of funds, this Agreement shall have a term commencing July 1, 2023 and ending June 30, 2024. SUBRECIPIENT shall undertake and complete its services under this Agreement in such sequence and in such a manner to assure completion with the term of the Agreement.

The maximum amount of funding to be disbursed to SUBRECIPIENT for this term is Twenty Three Thousand Eight Hundred Eighty Three Dollars and No Cents ($________).

III. FUNDING:

SUBRECIPIENT shall be disbursed up to a total consideration of Amount spelled out ($23,883.00) for full performance of the services specified under this Agreement, in conformity with the approved and executed budget document which is attached to this Agreement as Appendices A and B, and incorporated herein by reference.

Disbursement is dependent upon SUBRECIPIENT providing all required documentation.

If projects or services fail to comply with federal requirements, SUBRECIPIENT could be required to repay any or all compensation or shall not be paid for said projects or services. The amount set forth in this section is not a guarantee of the compensation that SUBRECIPIENT receive, but rather is merely a limit of potential CITY expenditures under this Agreement. SUBRECIPIENT will be paid for services actually performed in accordance with the requirements of this Agreement.

Federal award identification information regarding the funding provided to SUBRECIPIENT by this Agreement, as required by 24 CFR 200.332, is included in Exhibit B, attached hereto and incorporated herein.

IV. DRAW DOWN OF FUNDS:

Draw down of funds shall be determined between the CITY and the SUBRECIPIENT, as stated in the Appendices A and B.

In every case, payment will be made subject to receipt of a written requisition for payment from SUBRECIPIENT specifying and certifying that such expenses are in conformance with this Agreement and SUBRECIPIENT is entitled to receive the amount requisitioned under the terms of the Agreement. To comply with 2 CFR 200.415, with each requisition for payment, an official authorized to bind SUBRECIPIENT shall certify that “By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31, Sections 3729-3730 and 3801-3812).” #16..
- 528 -

FY 2023-2024 Public Service CV Agreement
a. SUBRECIPIENT agrees that the General Provisions for Selected Items of Cost (2 CFR 200.420-200.475) shall be used to determine the allow-ability of invoiced costs.
b. Requisitions for Payment will be dispersed upon request provided that:
i. The Requisition for Payment is submitted with an original authorized signature;
ii. That all Requisitions for Payment are accompanied with supporting documentation verifying all costs are specific to carrying out the Agreement Scope;
iii. That a Budget Amendment Form be requested from City, and if approved by City, be returned with an original authorized signature for any Requisition for Payment that varies from the original approved Project Budget. City Approval of the budget amendment will be evaluated based on the nature of the request in comparison to the contract scope, and shall be subject to prior-approval by HUD, if required, pursuant to 2 CFR 200.308. The City of Modesto will only allow two Budget Amendments during the contract period, but no later than May 30,_____.
c. SUBRECIPIENT shall not claim reimbursement from CITY for (or apply sums received from the CITY with respect to) that portion of any of its obligations which has been or should be paid by another source.
d. SUBRECIPIENT shall be reimbursed only for eligible expenses incurred during the specified time period of the Agreement.
e. SUBRECIPIENT shall submit any outstanding claims for reimbursement under this Agreement within ten (10) days after the ending date of the contract. All claims submitted after ten (10) days following the ending date of the Agreement will not be eligible for reimbursement by the CITY.
f. SUBRECIPIENT shall notify CITY in writing of all authorized personnel who shall be empowered to file requests for payment and pick up reimbursement checks pursuant to the Agreement.
g. Disbursement of funds may be withheld if periodic (QUARTERLY) activity reports are not provided according to this Agreement.
h. Upon receipt of payment of its final written requisition, SUBRECIPIENT shall have no entitlement to any unused funds.
#16..
- 529 -

FY 2023-2024 Public Service CV Agreement
V. USE OF FUNDS:

Use of funds received pursuant to this Agreement shall be in accordance with the requirements of the Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11371-11378), as amended, 24 CFR Part 576, and other federal requirements governing the Emergency Solutions Grants Program, and any amendments or policy revisions thereto which shall become effective during the term of this Agreement. In addition, SUBRECIPIENT agrees to comply with other applicable laws including but not limited to Title VI of the Civil Rights Act of 1964, as amended Title VI), 42 USC Section 2000, and the U.S. Department of Housing and Urban Development’s (HUD’s) regulations implementing that Act at 24 CFR Part 1; Title VIII of the Civil Rights Act of 1968, now cited as the Federal Fair Housing Act, and specifically its provisions relating to the obligation to affirmatively further fair housing choice at 42 USC 3608(d) and (e)(5); and Section 504 of the Rehabilitation Act of 1973, as amended (Section 504), 42 USC Section 794, and HUD’s regulations implementing that Act at 24 CFR Part 8; and to practice nondiscrimination in the provision of assistance, consistent with Section 411 (42 USC 11371) of the McKinney-Vento Homeless Assistance Act, as amended by Section 896 of the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009.

Furthermore, any funded activity must be designed or so located as to principally benefit low- and moderate-income persons, aid in the prevention or elimination of slums or blight or meet urgent community development needs, as defined in the program guidelines.

SUBRECIPIENT shall administer all activities provided for this Agreement in a manner consistent with such rules and regulations, including the Emergency Solutions Grants Program Operations Manual, as shall from time to time be promulgated by the U.S.

Department of Housing and Urban Development, insofar as such rules and regulations do not conflict with applicable law or the terms of this Agreement. SUBRECIPIENT shall use Emergency Solutions Grants Program funds for the services described in Appendix A, in the manner described in Appendix B of the Agreement.

SUBRECIPIENT shall administer all activities provided for in this Agreement in accordance with 24 CFR § 576 et seq and all other applicable federal state or local laws, rules or regulations.

If SUBRECIPIENT contracts with any subconsultant for the purpose of carrying out any part of the services set forth in Appendices A and B, SUBRECIPIENT shall require such subconsultant(s) to comply with all applicable ESG Regulations (as set forth in this Agreement and 24 CFR Part 576 et seq.), including but not limited to, reporting requirements. SUBRECIPIENT shall ensure it collects all required information from the subconsultant(s) in order for SUBRECIPIENT to satisfy its reporting obligations as set forth herein.
#16..
- 530 -

FY 2023-2024 Public Service CV Agreement
VI. DUPLICATION OF BENEFITS:

SUBRECIPIENT shall not use funds available under this Agreement to pay for costs that have already been paid for, or will be paid for, by another Federal program, insurance, or other sources. By signing this Agreement SUBRECIPIENT attests that it has not received funds from any other source to pay for the activities set forth in Appendices A and B that will be paid for by the funds provided under this Agreement. SUBRECIPIENT acknowledges and agrees that if SUBRECIPIENT uses the funds under this Agreement to pay for costs that have already been paid for, or will be paid for, by another source, SUBRECIPIENT shall repay the funds provided under this Agreement to the CITY.

Initials of Authorized Representative of SUBRECIPIENT: _______ VII. SUBRECIPIENT shall maintain an updated and valid DUNS number, which requires registering with Dun and Bradstreet and completing and annually renewing their registration in the Central Organization Registration (CCR).

VIII. COST PRINCIPLES, UNIFORM ADMINISTRATIVE REQUIREMENTS, AND PROGRAM INCOME:

SUBRECIPIENT will comply and follow the requirements set forth in 24 CFR part 84 and 2 the standards of 2 CFR part 200 “Uniform Administrative Requirements, Cost Principles, and Requirements for Federal Awards”, as now in effect and as may be amended from time to time, as applicable. The use of Emergency Solutions Grants Program funds must be accounted for separately with all the expenditures clearly identified including all supporting documentation. Program income, as that term is defined in ESG Regulations, derived from this project/activity, if any, shall revert to CITY for use in the Emergency Solutions Grants Program, unless otherwise indicated in Appendices A or B.

IX. Unless otherwise provided in another exhibit to the Agreement, the SUBRECIPIENT shall provide at its sole cost and expense, all office space, supplies, equipment, vehicles, reference and other written materials, and telephone service as is necessary for SUBRECIPIENT to provide the services under the Agreement.

X. ASSIGNMENT:

Without written consent of CITY, this Agreement is not assignable by SUBRECIPIENT, whether in whole or in part.

XI. ALTERATION:

No alteration or variation in the terms of this Agreement shall be valid unless made in writing, approved and signed by the parties hereto.

XII. REVERSION OF ASSETS:

Upon expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any unused ESG funds on hand and any accounts receivable attributable to the use of ESG Funds in accordance with 24 CFR § 576. SUBRECIPIENT shall retain furniture, equipment or any #16..
- 531 -

FY 2023-2024 Public Service CV Agreement
other property or assets acquired with Emergency Solutions Grants Program funds under this contract as long as there is a need for such property to accomplish the purpose of the program, whether or not the program continues to be supported by Emergency Solutions Grants Program funds. If the SUBRECIPIENT becomes insolvent, all furniture, equipment or any other property or assets purchased partly or totally with Emergency Solutions Grants Program funds, shall be returned to the CITY for disposition.

XII. GENERAL TERMS AND CONDITIONS:
a. SUBRECIPIENT agrees to maintain records required by the Federal regulation specified in 24 CFR Part 576.500, and that are pertinent to the activities to be funded under this Agreement. Such records shall include, but not be limited to:
a.1. Records providing a full description of each activity undertaken; a.2. Records required to determine the eligibility of activities; a.3. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with ESG assistance; a.4. Records documenting compliance with the fair housing and equal opportunity components of the ESG program;
a.5. Financial records as required by 24 CFR Part 576.500, OMB Circular A1102, and CFR Part 200; and a.6. Other records necessary to document compliance with of 24 CFR 576. b. SUBRECIPIENT agrees to submit QUARTERLY program status reports to the CITY, and other reports as may be required. QUARTERLY, year-end and any other periodic reports that are required must be provided to the CITY within ten (10) days from the end of the reporting period.
c. SUBRECIPIENT agrees to maintain racial, ethnic, gender, head of household, total household income and family size data showing the extent to which these categories or persons have participated in, or benefited from, the project and provide such data in the periodic activity/status report. A cumulative year-end report is due at the Department of Community & Economic Development Department within ten (10) days from the end of the fiscal year.
d. SUBRECIPIENT agrees that in advertisements or public notices regarding the ESG-funded portion of the program, that such ads or notices will include wording to the effect that the program, or a portion thereof, is funded through a ESG award provided by the City of Modesto.
e. SUBRECIPIENT agrees to keep all necessary books and records, including personal property, personnel and financial records, in connection with the operations and services performed under this Agreement for five (5) years following the end of this Agreement, and shall document all transactions so that all expenditures may be properly audited.
#16..
- 532 -

FY 2023-2024 Public Service CV Agreement
f. SUBRECIPIENT agrees that CITY or any authorized representative has access to and the right to examine all records, books, papers, or documents related to the project. g. SUBRECIPIENT agrees to allow CITY to monitor program and allow the CITY or any authorized representative access to all records, books, papers, or documents related to the project within forty-eight (48) hours of a request to examine. CITY shall conduct quarterly onsite monitoring visits with the SUBRECIPIENT to review work progress. If during monitoring review CITY determines that insufficient progress has been made, it will include such information in its monitoring documentation and identify a corrective action plan. The corrective action plan shall include communication with the SUBRECIPIENT in order to ensure that all services will be delivered. If after the CITY communicates scope of work delivery concerns to the SUBRECIPIENT, the SUBRECIPIENT is not sufficiently able to ensure the CITY that there is a plan that will deliver the contracted scope of work, then CITY may recapture and reallocate funds. If monitoring visit results in sufficient evidence of adequate progress toward meeting the scope of work, then CITY will record that there is such progress in monitoring documentation forwarded to the SUBRECIPIENT.
h. SUBRECIPIENT shall develop and implement procedures to ensure: (1) the confidentiality of records pertaining to all program participants; (2) that program participants’ addresses will not be made public, except to the extent that this prohibition contradicts a preexisting privacy policy of the SUBRECIPIENT. i. SUBRECIPIENT may terminate assistance to a program participant who violates program eligibility requirements. SUBRECIPIENT may resume assistance to a program participant whose assistance was previously terminated. In terminating assistance to a program participants, SUBRECIPIENT must: (1) provide a formal process that recognizes the rights of individuals receiving assistance to due process of law with a written notice that includes (a) a clear statement of the reasons for termination; (b) a review of the decision, in which the program participant is given the opportunity to present written or oral objections before a third party; and (c) prompt written notice of the final decision to the program participants; (d) for purposes of this policy, a “Third Party” is defined as another agency staff person who has not previously evaluated the program participant for eligibility. SUBRECIPIENT must have clear written policies and procedures for the denial, discharge, or termination of program services.
j. SUBRECIPIENT agrees to provide to CITY, at SUBRECIPIENT’S cost, a certified audit performed by an accredited public accountant, of all funds received and utilized by SUBRECIPIENT, including the distribution of Emergency Solutions Grants Program funds for applicable fiscal year(s) to be delivered to CITY no later than October 1 following the end of the applicable fiscal year(s).
k. SUBRECIPIENT agrees to provide to CITY, at SUBRECIPIENT’S cost, an independent auditor’s report on compliance with requirements applicable to each major program #16..
- 533 -

FY 2023-2024 Public Service CV Agreement
and on internal control over compliance in accordance with OMB Circular A-133, when applicable.
l. SUBRECIPIENT hereby warrants that all project records, books, papers and documents will be retained for a period of not less than five (5) years after the project terminates and grants CITY the option of retention of the project books, records, papers and documents.
m. SUBRECIPIENT agrees to obtain all necessary permits for intended activities. n. SUBRECIPIENT hereby severally warrants that it will establish and adopts safeguards to prohibit members, officers, and employees from using positions for purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business or other ties. Further, no member, officer, or employee of SUBRECIPIENT who exercises any functions or responsibility with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or subagreement, or the proceeds thereof, either for themselves or those with whom they have family or business ties, for work to be performed in connection with the program assisted under this Agreement.
o. The SUBRECIPIENT shall provide at its own expense and maintain at all times, the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by the Risk Manager of the CITY. SUBRECIPIENT shall submit evidence of insurance electronically via the Pacific Insurance Network Systems (PINS). The policies or certificates thereof shall provide that thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY by registered mail, return receipt requested, for all of the following stated insurance policies:

Worker’s Compensation in compliance with the statutes of the State of California, plus employer’s liability with a minimum limit of liability of $1,000,000.

General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent contractors and subcontractors; products and completed operations as applicable.

Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
#16..
- 534 -

FY 2023-2024 Public Service CV Agreement
Professional Liability insurance with a minimum limit of $1,000,000 per claim and policy aggregate. If coverage is on a claims made basis it shall be maintained for at least three (3) years following completion of the work.

If at any time any of said policies shall be unsatisfactory to the CITY, as to form or substance or if a company issuing such policy shall be unsatisfactory to CITY, the SUBRECIPIENT shall promptly obtain a new policy, submit the same to the Risk Manager for approval and submit a certificate thereof as herein above provided. Upon failure of the SUBRECIPIENT to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of the CITY, may be forthwith declared suspended, or terminated. Failure of the SUBRECIPIENT to obtain and/or maintain any required insurance shall not relieve the SUBRECIPIENT from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the SUBRECIPIENT concerning indemnification. The CITY, its agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Worker’s Compensation.

The Worker’s Compensation insurer shall agree to waive all rights of subrogation against the CITY, its agents, officers, employees and volunteers for losses arising from work performed by SUBRECIPIENT for the CITY.

The SUBRECIPIENT’s insurance policy(ies) shall include a provision that the coverage is primary as respects the CITY; shall include no special limitations to coverage provided to additional insured, and shall be placed with insurer(s) with acceptable Best’s rating of A:

VII or with approval of the Risk Manager. The SUBRECIPIENT must deliver certificates evidencing existence of the insurance listed above to the CITY prior to the time the contract is signed.

SUBRECIPIENT shall provide CITY with separate endorsements evidencing proof of the CITY’s additional insured status as to both the general and auto liability insurance policies. In addition, SUBRECIPIENT shall provide CITY with a Workers’ Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number.

For any claims related to this project, the SUBRECIPIENT’s insurance shall be primary insurance as respects the CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees or volunteers shall be excess of the SUBRECIPIENT’s insurance and shall not contribute with it.

XIII. TERMINATION OF AGREEMENT:

The CITY may terminate this Agreement, with or without cause and at any point in time in the sole and absolute discretion of CITY, upon written notice to the SUBRECIPIENT. In #16..
- 535 -

FY 2023-2024 Public Service CV Agreement
the event the CITY terminates this Agreement, CITY shall compensate the SUBRECIPIENT for all outstanding costs incurred for work satisfactorily completed as of the effective date of the termination. SUBRECIPIENT shall maintain adequate logs and timesheets in order to verify costs incurred to date. SUBRECIPIENT may terminate this Agreement upon breach by CITY, provided that SUBRECIPIENT has first provided CITY of the breach and then provided CITY with a reasonable opportunity to cure.

Without limiting the foregoing, CITY expressly reserves the right to terminate this Agreement upon written notification to SUBRECIPIENT under the following conditions:
a. Notification by the U.S. Department of Housing and Urban Development (HUD) to CITY that said project is ineligible because of project location, services provided, or any other reason cited by HUD.
b. Notification by HUD to CITY that said project is deficient and that continued support is not providing an adequate level of service to low-income and minority people.
c. Written notification from HUD to CITY that the program funds made available to CITY are being curtailed, withdrawn, or otherwise restricted. d. Failure of SUBRECIPIENT to submit to CITY required reports including monthly, quarterly or end of year reporting forms.
e. Failure of SUBRECIPIENT to submit to the CITY regular invoices/requisitions as stated in Appendix B
f. Failure by SUBRECIPIENT to meet project date, objectives or proposed goals/accomplishments as set forth herein.
g. Failure to comply with written notice from CITY of substandard performance in scope of service under the terms of this Agreement.
h. Expenditure of funds by SUBRECIPIENT and under this Agreement is for ineligible activities, services, or items.
i. If the SUBRECIPIENT shall fail to fulfill, in a timely and proper manner, its obligations under this Agreement, or if SUBRECIPIENT shall violate any of the covenants, Agreements or stipulations of this Agreement, CITY shall thereupon have the right to terminate by giving written notice to SUBRECIPIENT of such termination and specifying the effective date thereof, which shall be at least thirty (30) days before the effective date of such termination. Without prejudice, SUBRECIPIENT agrees that prior to the termination or expiration of #16..
- 536 -

FY 2023-2024 Public Service CV Agreement
this Agreement upon any final or interim audit by CITY of the U.S. Department of Housing and Urban Development, it shall be disclosed to be due to CITY (or shall, at CITY’s election, permit CITY to deduct such sums from whatever amounts remained undisbursed by CITY to SUBRECIPIENT pursuant to this Agreement). If this Agreement shall be terminated and it shall be disclosed upon such audit, or otherwise, that such failure has occurred, then SUBRECIPIENT shall pay to CITY whatever sums are so disclosed to, or determined by CITY, to be due to CITY. j. CITY shall have the right to terminate this Agreement with or without cause at any time upon giving SUBRECIPIENT at least thirty (30) days written notice prior to the effective date of such termination.

XIV. HOLD HARMLESS AND INDEMNITY AGREEMENT:

SUBRECIPIENT shall hold the CITY, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out the performance of this Agreement. SUBRECIPIENT's obligation to defend, indemnify, and hold the CITY, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Agreement for SUBRECIPIENT to procure and maintain a policy of insurance. The provisions of this Section shall survive the expiration of the term of this Agreement.

XV. CIVIL RIGHTS
a. Compliance
The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VII of the Civil Rights Act of 1968 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104{b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063 ,and Executive Order 11246 as amended by Executive Orders 11375, 11478,12107 and 12086.
b. Nondiscrimination
The SUBRECIPIENT agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations and executive orders referenced in 24CFR 570.607, as revised by Executive Order 13279. The applicable non-discrimination provisions in Section 109 of the Housing and Community Development Act of 1974 as amended are still applicable.
c. Land Covenants
This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P.

L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other #16..
- 537 -

FY 2023-2024 Public Service CV Agreement
transfer of land acquired, cleared or improved with assistance provided under this contract, the SUBRECIPIENT shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected there on providing that the GRANTEE and the United States are beneficiaries of and entitled to enforce such covenants. The SUBRECIPIENT in undertaking its obligation to carry out the program assisted hereunder agrees to take such measures as are necessary to enforce such covenant. d. Section 504
The SUBRECIPIENT agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any federally assisted program. The GRANTEE shall provide the SUBRECIPIENT with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement.

XVI. EQUAL OPPORTUNITY IN PARTICIPATION AND EMPLOYMENT:

SUBRECIPIENT agrees that no person shall, on the grounds of race, color, national origin, religion, gender, sexual orientation, age, marital status, familial status, handicap or human immunodeficiency virus (HIV) status, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available to SUBRECIPIENT pursuant to this Agreement. SUBRECIPIENT shall not on the grounds of race, color, national origin, gender, sexual orientation, age, marital status, familial status, handicap, or human immunodeficiency virus (HIV) status:
a. Deny any service or other benefit provided under the program or activity; b. Provide any service or other benefit which is different, or is provided in a different form from that provided to others under the program or activity;
c. Subject to segregate or separate treatment in any facility, or in any manner or process related to receipt of any service or benefit under the program or activity;
d. Restrict in any way the enjoyment of any advantage or privilege enjoyed by others receiving any service or benefit under the program or activity; e. Treat an individual differently from others in determining whether he/she satisfies any admission, enrollment, eligibility, membership or other recruitment or condition which individuals must meet in order to be #16..
- 538 -