Agenda packet — Modesto City Council, May 12, 2026 (part 6 of 7)

MOA (Rev. 7/01/2025)

MEMORANDUM OF AGREEMENT

BETWEEN

COUNTY OF STANISLAUS COMMUNITY SERVICES AGENCY

AND CITY OF MODESTO

FOR EL CAPITAN MOTEL TO PERMANENT SUPPORTIVE HOUSING
JUNE 1, 2026 THROUGH JUNE 30, 2028
This MEMORANDUM OF AGREEMENT (“MOA”) is entered by and between the COUNTY OF STANISLAUS COMMUNITY SERVICES AGENCY, (“COUNTY”) and CITY OF MODESTO, (“CITY”), for the purpose of establishing the responsibilities of both parties for the provision of funding for the El Capitan Motel project for the building and operations of Permanent Supportive Housing Units, as of June 1, 2026, or the execution of the MOA by both parties (the “Effective Date”).

WHEREAS, County is the “Administrative Entity” for the Stanislaus Community System of Care (CSOC);
WHEREAS, CSOC applied through the California Interagency Council on Homelessness (Cal ICH) authorized by AB 140, AB 140 (Health & Safety Code § 50218.6, et seq.), for the Homeless Housing, Assistance and Prevention (HHAP) Grant Program Round 5; WHEREAS, City released an Affordable Housing Request for Proposal (RFP) where El Capitan Homekey LP submitted a proposal for the rehabilitation of the El Capitan Motel located at 1121 Needham Street, Modesto, California 95354 to serve as a forty-nine (49) unit permanent supportive housing and was awarded the project;
WHEREAS, on January 16, 2025, CSOC approved to allocate Round 5 HHAP Grant Program funds to support the El Capitan Motel permanent supportive housing project; WHEREAS, County and City are entering into this MOA to clearly identify the roles and responsibilities of each party, including payment of costs incurred for the rehabilitation of El Capitan Motel to permanent supportive housing; and
NOW, THEREFORE, both parties have agreed to the following:

1. CITY AGREES TO THE FOLLOWING:

1.1 Design, permit and rehabilitate forty-nine (49) units at the El Capitan Motel. Forty-eight (48) units will serve as a permanent supportive housing and one (1) unit will serve as a manager’s unit.

1.1.1 The project shall include the required number of units that meet the American with Disabilities Act standards, as determined by applicable law and regulations. The forty-eight (48) permanent supportive housing units shall serve one of the following populations:

1.1.1.1 Units for individuals experiencing homelessness or at risk of homelessness with a behavioral health condition; or

1.1.1.2 Units for veterans who are homeless or at risk of homelessness with a behavioral health condition.
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1.2 Enter into an Agreement with El Capitan Homekey LP to complete the rehabilitation of the Travelers Motel into a permanent supportive housing project.

1.3 City shall receive HHAP Round 5 Grant Program allocation funds for the rehabilitation and operations of the El Capitan Motel to support the permanent housing project, not to exceed $922,837.64.

1.4 City shall secure funding from the following sources, or such other sources as the City deems appropriate, to complete the project and have permanent supportive housing fully operational by October 31, 2026. The following funding sources will be used to complete the project:

1.4.1 California Department of Housing and Community Development – Homekey+Program Grant Funding;

1.4.2 US Department of Housing and Urban Development - Community Development Block Grant (CDBG); and

1.4.3 Stanislaus County Behavioral Health Recovery Services, Behavioral Health Services Act (BHSA) Funding.

1.5 City and its contractors shall faithfully comply with all of the Grant requirements set forth in EXHIBIT C, and all Special Terms and Conditions, EXHIBIT D, which is attached hereto and, by this reference, made a part hereof.

1.5.1 City shall include the requirements in EXHIBIT C and EXHIBIT D in all contracts and subcontracts entered into by City in connection with the project.

2. COUNTY AGREES TO THE FOLLOWING:

2.1 County shall provide City with the approved lump sum of the CSOC Round 5 HHAP Grant program funds in the amount of $922,837.64 for the rehabilitation of the El Capitan Motel into permanent supportive housing project.

3. COUNTY AND CITY MUTUALLY AGREES TO THE FOLLOWING:

3.1 Assign a lead staff person to communicate, coordinate issues, and resolve problems; and

3.2 Adhere to applicable federal and state laws, regulations, and guidelines.

4. REPORTING:

4.1 City shall provide information and reports through the completion of the permanent housing project in the form and format required by County, which includes, but not limited to, the following:

4.1.1 Monthly project update to County Manager via email by the 15th (fifteenth) of every month; and

4.1.2 Quarterly project update at the CSOC board meeting. #21..
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5. COMPENSATION:

City shall be compensated for the services provided under this MOA as follows:

5.1 Costs:

5.1.1 The maximum amount of this MOA for the period June 1, 2026, through June 30, 2028, shall not exceed $922,837.64.

5.1.2 City shall not expend any funds provided pursuant to this MOA except as expressly authorized in EXHIBIT A, or as the budget is thereafter amended or obligated, which is hereby incorporated by reference and made a part hereof.

5.1.3 The funding is valid only if sufficient funds are made available by legislative appropriations.

5.2 Invoices:

5.2.1 City shall submit an invoice at the execution of the MOA to collect payment.

5.2.1.1 Invoice shall include the following information:

5.2.1.1.1 Name of Contractor: City of Modesto;

5.2.1.1.2 Service Provided: El Capitan Motel to Permanent Supportive Housing; and

5.2.1.1.3 Total due.

5.2.2 Invoices shall be submitted to:

County of Stanislaus
Community Services Agency
Attention: Accounts Payable Supervisor, E2A
P.O. Box 42
Modesto, CA 95353-0042
or
[email protected]
Accounts Payable Supervisor Phone: (209) 558-2217

6. TERM:

6.1 The MOA shall commence on June 1, 2026, and shall terminate on June 30, 2028, or until completion of the agreed upon services unless sooner terminated as provided below or by some other method provided for in this MOA.

6.2 Should either party default in the performance of this MOA or materially breach any of its provisions, the other party, at that party's option, may terminate this MOA by giving written notification to the defaulting party if such default continues after written notice and a reasonable opportunity to cure has been given to the defaulting party. #21..
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6.3 This MOA shall terminate automatically if the City (a) has a cancellation of insurance required under the terms of this MOA, and (b) if, for any reason, City ceases to be licensed or otherwise authorized to do business in the State of California, and the City fails to remedy such defect or defects within thirty (30) days of receipt of notice of such defect or defects.

7. INSURANCE:

Coverage Required: City shall obtain and maintain, at all times, during the term of this MOA, insurance coverage in the amounts and coverage specified in EXHIBIT B, which is attached hereto and, by this reference, made a part hereof.

8. DEFENSE AND INDEMNIFICATION:

8.1 To the fullest extent permitted by law, City shall indemnify, hold harmless and defend the County and its agents, officers and employees from and against all claims, damages, losses, judgments, liabilities, expenses and other costs, including litigation costs and attorneys’ fees, to the extent arising out of, resulting from, or in connection with the negligence or willful misconduct of City or City’s officers, employees, agents, representatives or subcontractors; provided, however, such indemnification shall not extend to or cover loss, damage or expense to the extent arising from the negligence or willful misconduct of County or its agents, officers and employees. This obligation shall survive termination of this MOA.

8.2 City’s obligation to defend, indemnify and hold the County and its agents, officers and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this MOA for City to procure and maintain a policy of insurance for the duration of this MOA. City shall notify County in writing within forty-eight (48) hours if City’s insurance policy lapses or is cancelled for any reason.

8.3 City shall indemnify, defend and hold harmless and shall be responsible for any and all federal, state and local taxes, fees, or contributions required to be paid with respect to City and City’s officers, employees, and agents engaged in the performance of this MOA, including and without limitation unemployment insurance, social security and payroll tax withholding.

8.4 Subject to the limitations in 42 United States Code section 9607 (e), and unless otherwise provided in a Scope of Services approved by the parties:

8.4.1 City shall not be responsible for liability caused by the presence or release of hazardous substances or contaminants at the site, unless the release results from the negligence of City or its subcontractors;

8.4.2 No provision of this MOA shall be interpreted to permit or obligate City to assume the status of “generator,” “owner,” “operator,” “arranger,” or “transporter” under State or Federal law; and

8.4.3 At no time, shall title to hazardous substances, solid wastes, petroleumcontaminated soils or other regulated substances pass to City. #21..
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9. NOTICE:

Any notice, communication, amendment, addition or deletion to this MOA, including change of address of either party during the term of this MOA, which City, shall be required or may desire to make shall be made within thirty (30) days in writing to the address or to the email listed below as follows to the respective parties:

To County: County of Stanislaus
Community Services Agency
Attention: Contracts Manager
PO Box 42
Modesto, CA 95353
Or
[email protected]
To City: City of Modesto
Attention: Joseph P. Lopez, City Manager
1010 Tenth Street, Suite 3100
Modesto, CA 95354
Or
[email protected]

10. AMENDMENT:

This MOA may be modified, amended, changed, added to or subtracted from by the mutual consent of County and City hereof if such amendment or change is in written form and executed with the same formalities as this MOA and attached to the original of this MOA.

11. ENTIRE MOA:

This MOA supersedes any and all other MOA’s, either oral or in writing, between any of the parties herein with respect to the subject matter hereof and contains all the agreements between the parties with respect to such matter. Each party acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein, and that no other agreement, statement or promise not contained in this MOA shall be valid or binding.

12. DEBARMENT:

City represents and warrants that neither City nor any of its Principals (“Principal” means an officer, director, owner, partner, or a person having primary management or supervisory responsibilities within a business entity) is presently debarred, suspended, proposed for debarment, voluntarily excluded, or involuntarily excluded from receiving an agreement from any Federal, State or local government or agency, nor has it been declared ineligible for the award of agreements by any Federal, State, or local government or agency, nor does it appear on any federal, state or local government’s excluded parties list system. City shall provide immediate written notice to the County if, at any time City learns that this representation was erroneous when submitted or has become erroneous by reason of changed circumstances. The representations and warranties above are a material representation of fact upon which reliance #21..
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was placed when entering into this MOA. If it is later determined that City knowingly made a false representation, in addition to other remedies available to County, the County may terminate this MOA.

13. AUTHORIZED SIGNATURE:

13.1 The person signing this MOA (“Signatory”) represents and warrants that he or she is duly authorized and has legal capacity to execute this MOA. Signatory represents and warrants that the execution and delivery of the MOA and the performance of City’s obligations hereunder has been duly authorized and that the MOA is a valid and legal agreement binding on City and enforceable in accordance with its terms.

14. COUNTERPARTS AND ELECTRONIC SIGNATURES:

This MOA may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one instrument. A signature delivered by electronic means shall be considered binding for all parties. Each party agrees that the electronic signatures (whether digital or encrypted) of the parties included in this MOA are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record (including facsimile or email electronic signatures) pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code § 1633.1 et seq.) as amended from time to time. /////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// #21..
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IN WITNESS WHEREOF, the parties or their duly authorized representatives have executed this MOA on the day and year first hereinabove written.

APPROVED AS TO CONTENT:

COUNTY OF STANISLAUS APPROVED AS TO CONTENT:

COMMUNITY SERVICES AGENCY CITY OF MODESTO
By: By:

Christine Huber, MSW Joseph P. Lopez
Title: Director Title: City Manager
Dated: Dated:

APPROVED AS TO FORM: APPROVED AS TO FORM:

COUNTY COUNSEL CITY OF MODESTO ATTORNEY
By: By:

Title: Deputy County Counsel Title: City Attorney
Dated: Dated:

COUNTY OF STANISLAUS
Approved BOS Resolution #:

Dated:
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EXHIBIT A
BUDGET
FOR

CITY OF MODESTO

EL CAPITAN MOTEL TO PERMANENT SUPPORTIVE HOUSING
JUNE 1, 2026 THROUGH JUNE 30, 2028
The maximum amount of this MOA for the period June 1, 2026, through June 30, 2028, shall not exceed $922,837.64.

BUDGET CATEGORY TOTAL
Rehabilitation to the Structure and Operations of
El Capitan Motel $922,837.64

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EXHIBIT B
Insurance Required for Most Contracts
(Not for Construction Contracts)
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than One Million Dollars ($1,000,000) per incident or occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation Insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the County requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the County.

Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

Insurance Requirements for Most Contracts 2025 Page 1
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Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The County, its officers, officials, employees, agents and volunteers are to be covered as additional insureds on the CGL and Auto policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability and Auto liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the County, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the County, its officers, officials, employees, agents or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

Waiver of Subrogation
Contractor hereby grants to County a waiver of any right to subrogation (except for Professional Liability) which any insurer of said Contractor may acquire against the County by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the County has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the County. The County may require the Contractor to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. County may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. County reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with California admitted insurers (licensed to do business in California) with a current A.M. Best’s rating of no less than A-VII, unless otherwise approved by the County.

Insurance Requirements for Most Contracts 2025 Page 2
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Claims Made Policies
If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Contractor shall furnish the County with a copy of the original certificates and amendatory endorsements, or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the County before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The County reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Insurance Limits
The limits of insurance described herein shall not limit the liability of the Contractor and Contractor's officers, employees, agents, representatives or Subcontractors. Contractor's obligation to defend, indemnify and hold the County and its officers, officials, employees, agents and volunteers harmless under the provisions of this paragraph is not limited to or restricted by any requirement in the Agreement for Contractor to procure and maintain a policy of insurance.

Reporting
Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the County or its officers, officials, employees, agents or volunteers.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the County in accordance with policy terms and conditions. If policy does not allow for notice, notification of cancellation shall be the responsibility of the contractor. [SIGNATURES SET FORTH ON THE FOLLOWING PAGE]
Insurance Requirements for Most Contracts 2025 Page 3
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_______ Exempt from Auto – By initialing, I certify Contractor’s officers, employees, agents, representatives, or subcontractors will not utilize a vehicle in the performance of my work with the County.
_______ Exempt from WC – By initialing, I certify Contractor is exempt from providing workers’ compensation coverage as required under section 1861 and 3700 of the California Labor Code.

I acknowledge the insurance requirements listed above.

Print Name: _____________________________________________ Date:_____________________ Signature: ______________________________________________ Date:_____________________ Vendor Name: _____________________________________________________________________ For CEO-Risk Management Division use only
Exception: ________________________________________________________________________________ Approved by CEO for Risk Management: ________________________________ Date: __________________ Insurance Requirements for Most Contracts 2025 Page 4
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EXHIBIT C

GRANT REQUIREMENTS

1. HOMELESS HOUSING, ASSISTANCE AND PREVENTION PROGRAM

1.1 The State of California has established the Homeless Housing, Assistance, and Prevention Program Round 5 (HHAP-5) pursuant to the provisions in Chapter 6.5 (commencing with Health and Safety Code (HSC) section 50230) of Part 1 of Division 31 of the HSC. (Amended by Stats. 2023, Ch. 40, Sec. 17. (AB 129) effective July 10, 2023).

1.2 This Memorandum of Agreement (MOA) along with all its exhibits is entered into by County and City under the authority of, and in furtherance of the purpose of, the HHAP-5.

In signing this MOA and thereby accepting this award of funds, City agrees to comply with the terms and conditions set forth in this MOA.

1.3 HHAP-5

1.3.1 The general purpose of the HHAP-5 is to organize and deploy the full array of homelessness programs and resources comprehensively and effectively, and to sustain existing federal, state, and local investments towards long-term sustainability of permanent housing and supportive services. This funding shall:

1.3.1.1 Reduce homelessness by expanding or developing local capacity to address immediate homelessness challenges informed by a bestpractices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing; and

1.3.1.2 Continue to build on regional coordination developed through previous rounds of HHAP funding (see HCS section 50230 et seq.).

2. FUNDING

2.1 Funds must be spent consistent with the intent of the Program and the eligible uses identified in HSC section 50234, subdivision (a)(1)(A) and 50236 and in alignment with the County’s approved funding plan.

2.2 Funds shall not be used for cost associated with activities in violation of any law or for any activities not consistent with the intent of the Program and the eligible uses identified in HSC section 50234 subdivision (a)(1)(A) and 50236.

2.3 County reserves the right to request additional clarifying information to determine the reasonableness and eligibility of all uses of the funds made available by this MOA. If City its agents, contractors or subcontractors uses to pay for ineligible activities, City shall be required to reimburse these funds to County.

2.4 Funds shall not be used to supplant existing Encampment Resolution Funding Grant funds provided under HSC section 50251.
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3. TIME

3.1 City shall strictly comply with all of the deadlines in the MOA. All the HHAP Round 5 grant funds (100 percent) must be expended by June 30, 2028.

3.2 County reserves the right to add any special conditions to this MOA as it deems necessary to ensure that the goals HHAP-5 are achieved via email to City contact. No special Addendum shall be acquired.

4. REPORTING
Reporting Requirements. City shall provide information and reports in the form and format required by County.

5. TRANSFERS

5.1 County may not transfer or assign to the City, or by any other means, the rights, duties, or performance of the Agreement or any part thereof, except as allowed within allowed within the Special Conditions - Grantees/SubGrantee section or with the prior approval of County and a formal amendment to this MOA to affect such subcontract.

6. SPECIAL CONDITIONS - GRANTEES/SUBGRANTEE

6.1 The City agrees to comply with all Special Terms and Conditions, EXHIBIT D. These conditions shall be met to the satisfaction of California Interagency Council on Homelessness (Cal ICH). County shall ensure that City is aware of and agrees to comply with all conditions of the Agreement and the applicable State requirements governing HHAP Round 5 funds. Failure to comply with these conditions may result in termination of this MOA.

6.1.1 City shall perform the work in accordance with Federal, State, and Local housing building codes.

6.1.2 Maintain at least the minimum State-required worker’s compensation for those employees who will perform the work of any part of it.

6.1.3 Maintain, as required by law, unemployment insurance, disability insurance and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the City or subcontractor in performing the work or any part of it.

6.1.4 Agree to include all there all terms listed in Grant Requirements, EXHIBIT C, in each subcontract.

6.2 County shall monitor the activities of City and its subcontractors to ensure compliance with all requirements under this MOA.

7. FINANCIAL AUDIT

7.1 County reserves the right to perform or cause to be performed a financial audit. At County request, City shall provide, at its own expense, a financial audit prepared by a certified public accountant, the Program administrative funds may be used to fund this expense.

Should an audit be required, City shall adhere to the following conditions. #21..
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7.1.1 The audit shall be performed by an independent certified public accountant.

7.2 City shall notify County of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by County to the independent auditor's working papers.

7.2.1 City is responsible for the completion of audits and all costs of preparing audits.

7.2.2 If there are audit findings, City must submit a detailed response acceptable to County for each audit finding within ninety (90) days from the date of the audit finding report.

8. RECORD INSPECTION
County or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance under this MOA. City agrees to provide County, or its designee, with any relevant information requested. City agrees to give County or its designee access to its premises, upon reasonable notice and during normal business hours, for the purpose of interviewing employees who might reasonably have information related to such records, and of inspecting and copying such books, records, accounts, and other materials that may be relevant to an investigation of compliance with the Homeless Housing, Assistance, and Prevention Program laws, the Program guidance document published on the website, and this MOA.

9. RECORD RETENTION

9.1 City further agrees to retain all records relating to this MOA for a minimum period of five (5) years after the termination of this MOA.

9.2 If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it.

10. BREACH OF THIS AGREEMENT

10.1 Breach of this Agreement includes, but is not limited to, the following events:

10.1.1 City's failure to comply with the terms or conditions of this MOA.

10.1.2 Use of, or permitting the use of, HHAP-5 funds provided under this MOA for any ineligible activities.

10.1.3 Any failure to comply with the deadlines set forth in this MOA.

11. WAIVERS
No waiver of any breach of this MOA shall be held to be a waiver of any prior or subsequent breach. The failure of County to enforce at any time the provisions of this MOA, or to require at any time, performance by City of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this MOA or the right of County to enforce these provisions.
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12. NONDISCRIMINATION
During the performance of this MOA, City and its subrecipients shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, and denial of medical and family care leave or pregnancy disability leave. City and Sub grantees shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. City and its subrecipients shall comply with the provisions of California's laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEHA) (Gov. Code,§ 12900 et seq.); the regulations promulgated thereunder (Cal. Code Regs., tit. 2, § 11000 et seq.); and the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, §§ 11135 - 11139.5). City and its subrecipients shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

13. COMPLIANCE WITH LAWS

13.1 The City agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable and/or related to the HHAP-3 and HHAP-4 program, the City, its subrecipients, and all eligible activities.

13.2 City shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this MOA, including those necessary to perform design, construction, or operation and maintenance of the activities. City shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. City shall provide copies of permits and approvals to County upon request.

14. DRUG-FREE WORKPLACE CERTIFICATION
Certification of Compliance: By signing this MOA, City hereby certifies, under penalty of perjury under the laws of State of California, that it and its contractors and subcontractors will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:

14.1 Publish a statement notifying employees and contractors that unlawful manufacture distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code section 8355, subdivision (a)(1).

14.2 Establish a Drug-Free Awareness Program, as required by Government Code section 8355, subdivision (a)(2) to inform employees and contractors about all of the following:

14.2.1 The dangers of drug abuse in the workplace;

14.2.2 Its policy of maintaining a drug-free workplace;

14.2.3 Any available counseling, rehabilitation, and employee assistance program; and #21..
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14.2.4 Penalties that may be imposed upon employees for drug abuse violations.

14.3 Provide, as required by Government Code section 8355, subdivision (a)(3), that every employee and contractor that works under this MOA:

14.3.1 Will receive a copy of City's drug-free policy statement; and

14.3.2 Will agree to abide by terms of City's condition of employment or subcontract.

15. CHILD SUPPORT COMPLIANCE ACT
For any Contract Agreement in excess of $100,000, City acknowledges in accordance with Public Contract Code 7110, that:

14.1 City recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and

14.2 City, to the best of its knowledge, is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

15. INSPECTIONS

15.1 City shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this MOA.

15.2 County reserves the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this MOA.

15.3 City agrees to require that all work that is determined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected.

16. SEVERABILITY
If any provision of this MOA, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of County, shall not affect any other provisions of this MOA and the remainder of this MOA shall remain in full force and effect. Therefore, the provisions of this MOA are and shall be deemed severable.

17. CLAIMS
City shall notify County immediately of any claim or action undertaken by or against it, which affects or may affect this MOA or County, and shall take such action with respect to the claim or action as is consistent with the terms of this MOA and the interests of County. #21..
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18. STATE OF CALIFORNIA GENERAL TERMS AND CONDITIONS
This exhibit is incorporated by reference and made part of this MOA. The General Terms and Conditions (GTC 04/2017) can be viewed at the following link:
https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-ListFolder/Standard-Contract-Language #21..
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EXHIBT D
HOMELESS HOUSING, ASSISTANCE, AND PREVENTION PROGRAM ROUND 5

SPECIAL TERMS AND CONDITIONS

1. All proceeds from any interest-bearing account established by the City for the deposit of Homeless Housing, Assistance, and Prevention Program Round 5 (HHAP-5) funds, along with any interest-bearing accounts opened by subrecipients to the City for the deposit of HHAP-5 funds must be used for HHAP-5 eligible activities and reported on as required. City must maintain records of all expenditures of the proceeds from these interest-bearing accounts for five (5) years and report on these expenditures as required by County. County reserves the right to perform or cause to be performed a financial audit on the use of proceeds from interest-bearing accounts.

2. Per Health and Safety Codes (HSC) section 50234 subdivision (f), any housing-related activities funded with HHAP-5 funds, including but not limited to emergency shelter, per HSC section 50236 subdivision (c)(3)(E), rapid-rehousing, rental assistance, transitional housing and permanent supportive housing, must be in compliance or otherwise aligned with the core components of Housing First, as described in Welfare and Institutions Code section 8255, subdivision (b). Individuals and families assisted with these funds must not be required to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services for which these funds are used. In addition, HHAP-5 funding shall be used to adopt a Housing First approach within the entire local homelessness response system, including outreach and emergency shelter, short-term interventions like rapid re housing, and longer-term interventions like supportive housing.

3. City shall utilize its local Homeless Management Information System (HMIS) to track HHAP-5 funded projects, services, and clients served. City will ensure that HMIS data are collected in accordance with applicable laws and in such a way as to identify individual projects, services, and clients that are supported by HHAP-5 funding (e.g., by creating appropriate HHAP-5-specific funding sources and project codes in HMIS).

Any health information provided to, or maintained within, the statewide Homeless Management Information System, or HDIS, which compiles all HMIS data into a statewide data warehouse, shall not be subject to public inspection or disclosure under the California Public Records Act.

For purposes of this paragraph, "health information" means "protected health information," as defined in Part 160.103 of Title 45 of the Code of Federal Regulations, and "medical information," as defined in subdivision (j) of Section 56.05 of the Civil Code. HCD may, as required by operational necessity, amend or modify required data elements, disclosure formats, or disclosure frequency. Additionally, HCD, at its discretion, may provide County with aggregate reports and analytics of the data County submits to HDIS in support of the Purpose of this Agreement and the existing Data Use Agreement.

5. City agrees to accept technical assistance as directed by California Interagency Council on Homelessness (Cal ICH) or by a contracted technical assistance provider acting on behalf of Cal ICH and report to Cal ICH on programmatic changes the grantee will make as a result of the technical assistance and in support of their grant goals. #21..
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6. City agrees to demonstrate a commitment to racial equity and, per Section 50222 (a)(2)(B), City shall use data provided through HDIS to analyze racial disproportionality in homeless populations and, in partnership with Cal ICH, establish clear metrics and performance monitoring for achieving equity in provision of services and outcomes for Black, Native, and Indigenous, Latinx, Asian, Pacific Islanders and other People of Color who are disproportionately impacted by homelessness and COVID-19.

7. City should establish a mechanism for people with lived experience of homelessness to have meaningful and purposeful opportunities to inform and shape all levels of planning and implementation, including through opportunities to hire people with lived experience.

8. Upon mutual agreement of both parties, County reserves the right to add any special conditions to this MOA it deems necessary to ensure that the goals of the Program are achieved. #21..
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1 HHAP Grant AGREEMENT
(El Capitan – 1121 Needham Street)
This Grant Agreement (this “Agreement”) is entered into as of ____________________, 2026, by and between the City of Modesto, a California charter city (the “City”) and El Capitan Homekey LP, a California limited partnership (“Recipient” or “Developer” or “Owner”). City and Recipient are collectively referred to in this Agreement as the “Parties.”

RECITALS
A. Recipient owns, or has the contractual right to purchase, the real property and improvements located at 1121 Needham Street Modesto, California, also known as Stanislaus County Assessor’s Parcel Number _________________, as more particularly described and depicted in Exhibit A, attached hereto, and incorporated herein (the “Property”).

B. The Recipient intends to rehabilitate a former motel located on the Property, commonly known as El Capitan (the “Project”), into a permanent supportive housing development consisting of forty-eight (48) residential units (the “Development”). The Recipient shall ensure that these forty-eight (48) units (the “Assisted Units”) are occupied by, or if vacant, available for occupancy by, households with incomes at or below eighty percent (80%) of the Area Median Income for Stanislaus County. All forty-eight (48) Assisted Units shall be restricted to individuals experiencing homelessness or at risk of homelessness. Of these Assisted Units, twenty-four (24) shall be designated for individuals served by Stanislaus County Behavioral Health and Recovery Services, and twenty-four (24) shall be designated for veterans experiencing homelessness or at risk of homelessness. The Project shall also include one (1) manager’s unit.

C. The County of Stanislaus Community Services Agency (“CSA”) is the Administrative Entity for the Stanislaus Community System of Care (“CSOC”). The CSOC previously applied for and obtained funding from the California Interagency Council (“CIC”) on Homelessness for the Homeless Housing, Assistance and Prevention (“HHAP”) Grant Program Round 3 and Round 4. CSOC approved allocating a portion of such HHAP funds to support the Project. City and CSA previously entered into an agreement whereby CSA agreed to provide HHAP funding to the City, and the City agreed to distribute and administer the HHAP funding for the Project.

D. City wishes to give to Recipient a grant of not to exceed Nine Hundred TwentyTwo Thousand Eight Hundred Thirty-Seven Dollars ($922,837) (the “Grant”) of HHAP funds to help finance the rehabilitation of the Property and improvements thereon required for the Project.

The Grant must be expended by April 30, 2028.

E. As a condition to providing the Grant to the Recipient, the City is imposing occupancy and affordability restrictions on the Project, ensuring that specified units therein remain available and affordable to specified income eligible households for a specified period as set forth in the Regulatory Agreement and Declaration of Restrictive Covenants dated as of ________ (the “Regulatory Agreement”)
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2 F. The California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) (“CEQA”) imposes no conditions on the City's consideration and approval of this Agreement because the Project is exempt from CEQA requirements under the categorical exemption set forth in 14 California Code of Regulations Section 15303(b).

NOW, THEREFORE, in consideration of the mutual covenants contained herein and good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1 EXHIBITS
Section 1.1 Exhibits
The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A: Legal Description
Exhibit B: Project Summary
Exhibit C: Approved Project Budget
Exhibit D: HHAP Requirements
ARTICLE 2 GRANT PROVISIONS
Section 2.1 Grant.

Upon satisfaction of the conditions set forth in Section 2.3 and Section 2.4 of this Agreement, the City shall grant to the Recipient HHAP Funds in the amount not to exceed Nine Hundred Twenty-Two Thousand Eight Hundred Thirty-Seven Dollars ($922,837) (the “Grant”) for the purposes set forth in Section 2.3. No Grant funds will be disbursed by City to Recipient after April 30, 2028.

Section 2.2 Use of Grant Funds.

The Recipient shall use the proceeds of the Grant solely to finance the rehabilitation of the Property for the purposes of the Project, as described in Exhibit B.

The Recipient shall use the proceeds of the Grant as described in Exhibit B and Exhibit D.

The portion of the Grant used to provide an operating subsidy to pay the Recipient an amount equal to (i) the cumulative Fair Market Rent for a particular subsidized unit in the Project as determined by HUD for the Modesto, CA MSA, less (ii) the cumulative amount of any rent payment actually received from a tenant of such subsidized unit at the Project by the Recipient.

Section 2.3 Conditions Precedent to Disbursement of Grant Funds. #21..
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3 The maximum amount of funds to be disbursed pursuant to this Section 2.3 shall not exceed the amount of the Grant. The City shall not be obligated to make any disbursements of Grant funds for acquisition of the Property or take any other action under the Grant Documents unless the following conditions precedent have been and continue to be satisfied prior to each such disbursement of Grant funds:

2.3.1 There exists no Default nor any act, failure, omission or condition that would constitute an event of Default under this Agreement;

2.3.2 Recipient has delivered to the City a copy of a corporate resolution authorizing Recipient's execution of the Agreement;

2.3.3 There exists no material adverse change in the financial condition of Recipient from that shown by the financial statements and other data and information furnished by Recipient to the City prior to the date of this Agreement;

2.3.4 The Recipient has furnished the City with evidence of the insurance coverage meeting the requirements of this Agreement;

2.3.5 Recipient has caused to be executed and delivered to the City the Agreement and the Regulatory Agreement;

2.3.7 The City has reasonably determined that the undisbursed proceeds of the Grant, together with other funds or firm commitments for funds that the Recipient has obtained in connection with the Project, are not less than the amount that is necessary to pay for development of the Project and to satisfy all of the covenants contained in this Agreement.

2.3.8 The City has received a written draw request from the Recipient, including certification that the condition set forth in Section 2.3 continues to be satisfied, and setting forth the proposed uses of funds, the amount of funds needed, and, where applicable, a copy of the bill or invoice covering a cost incurred or to be incurred.

Section 2.4 Final Financing Plan.

As a condition precedent to the first draw of Grant Funds, Recipient shall provide City with financing plan for the Project (“Final Financing Plan”) which describes (i) the estimated costs of Project Development, including acquisition costs, and hard and soft construction costs, (ii) an operating pro forma which describes projected revenue and expenses for the Project, and (iii) identification of sources of construction and permanent financing to be used for a purpose other than acquisition of the Property. The Developer shall have submitted and received approval from the City of the Final Financing Plan as well as:
(1) Copies of all required funding commitments for performing the Construction Work consistent with the Final Financing Plan, including approval of the Bond Grant lender, and a preliminary tax credit reservation and an executed commitment letter from a tax credit equity investor acceptable to the City; and
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4 (2) Any other information that is reasonably necessary to the City in determining that the Developer has the financial capability to pay all costs of completing the Construction Work in accordance with the requirements of this Agreement.

Section 2.5 Other Financing. All other financing necessary to construct the Development, as required and approved by the City in the Final Financing Plan, shall be closed by the Developer prior to, or simultaneously with the funding of the Grant. The Developer shall also submit to the City evidence reasonably satisfactory to the City that any conditions to the release or expenditure of funds described in the Final Financing Plan as the sources of funds to pay the costs of constructing the Development have been met or will be met subject to the Developer's satisfaction of standard disbursement preconditions required to be satisfied on a periodic basis, for construction of the Development. Submission by the Developer, and approval by the City, of such evidence of funds availability shall be a condition precedent to the City's obligation to disburse the Grant.

ARTICLE 3 CONSTRUCTION OF THE IMPROVEMENTS
Section 3.1 Permits and Approvals.

Recipient shall obtain all permits and approvals necessary for the construction of the Project on the Property and the Off-Site Improvements.

Section 3.2 Construction Plans.

Recipient shall submit to the City a copy of the Construction Plans for the Project and Bid Package. As used in this Agreement, “Construction Plans” shall mean all construction documentation upon which Recipient and Recipient's contractor shall rely in rehabilitating the Property.

The Construction Plans shall be deemed approved by the City unless rejected by the City in writing for their failure to comply with the foregoing requirements within thirty (30) days after receipt by the City. Such approval of the Construction Plans by the City shall not relieve Recipient's Obligation to obtain any and all approvals required by the City or the City Building Department.

If rejected by the City in whole or in part, Recipient shall submit new or corrected Construction Plans within thirty (30) days after notification of the City's rejection and the reasons therefor. The City shall then have thirty (30) days to review and approve Recipient's new or corrected Construction Plans. The provisions of this Section relating to time periods for approval, rejection, or resubmission of new or corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City.

Section 3.3 Construction Contract.

All construction work and professional services shall be performed by persons or entities licensed or otherwise authorized to perform the applicable construction work or service in the State of California. Each contract that the Recipient enters for construction of the Project shall provide that at least five percent (5%) of the costs incurred shall be payable only upon #21..
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5 completion of construction, subject to early release of retention for specified subcontractors upon approval by the City.

Section 3.4 Construction Pursuant Applicable Laws
Recipient shall cause all work performed in connection with the Project to be performed in compliance with (i) all applicable laws, ordinances, rules and regulations of federal, state, City or municipal governments or agencies now in force or that may be enacted hereafter; and (ii) all directions, rules and regulations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or hereafter acquiring jurisdiction. The work shall proceed only after procurement of each permit, license, or other authorization that may be required by any governmental agency having jurisdiction, and Recipient shall be responsible to the City for the procurement and maintenance thereof, as may be required of Recipient and all entities engaged in work on the Project.

Section 3.5 Accessibility.

To the extent applicable, Recipient shall construct the Project in compliance with all applicable federal and state disabled persons accessibility requirements including but not limited to the Federal Fair Housing Act; Section 504 of the Rehabilitation Act of 1973 (“Section 504”); Title II and/or Title III of the Americans with Disabilities Act; and Title 24 of the California Code of Regulations (collectively, the “Accessibility Requirements”). In compliance with Section 504 Recipient shall provide the City with a certification from the Project architect that to the best of the architect's knowledge, the Project comply with all federal and state accessibility requirements applicable to the Project. Recipient shall indemnify, hold harmless and defend (with counsel reasonably acceptable to the City) the City against any claim for damages, compensation, fines, penalties, or other amounts arising out of the failure or alleged failure of any person or entity (including Recipient, its architect, contractor, and subcontractors) to construct the Project in
Section 3.6 Equal Opportunity.

During the construction of the Project there shall be no discrimination on the basis of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin, ancestry, or disability in the hiring, firing, promoting, or demoting of any person engaged in the construction work.

Section 3.7 Progress Reports.

Until such time as Recipient has received a certificate of occupancy from the City for the Project, Recipient shall provide the City with quarterly progress reports regarding the status of the construction of the Project.

Section 3.8 Construction Responsibilities.

It shall be the responsibility of Recipient to coordinate and schedule the work to be performed so that commencement and completion of the construction of the Project will take place in accordance with this Agreement.
#21..
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6 Recipient shall be solely responsible for all aspects of Recipient's conduct in connection with the Project, including (but not limited to) the quality and suitability of the plans and specifications, the supervision of construction work, and the qualifications, financial condition, and performance of all architects, engineers, contractors, subcontractors, suppliers, consultants, and property managers. Any review or inspection undertaken by the City with reference to the Project is solely for the purpose of determining whether Recipient is properly discharging its obligations to the City, and should not be relied upon by Recipient or by any third parties as a warranty or representation by the City as to the quality of the design or construction of the Project.

Section 3.9 Mechanics Liens, Stop Notices, and Notices of Completion.

If any claim of lien is filed against the Property or a stop notice affecting the Grant is served on the City or any other lender or other third party in connection with the Project, then Recipient shall, within thirty (30) days after such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the City a surety bond in sufficient form and amount, or provide the City with other assurance satisfactory to the City that the claim of lien or stop notice will be paid or discharged.

If Recipient fails to discharge any lien, encumbrance, charge, or claim in the manner required in this Section, then in addition to any other right or remedy, the City may (but shall be under no obligation to) discharge such lien, encumbrance, charge, or claim at Recipient's expense. Alternately, the City may require Recipient to immediately deposit with the City the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. The City may use such deposit to satisfy any claim or lien that is adversely determined against Recipient.

Recipient shall file a valid notice of cessation or notice of completion upon cessation of construction on the Project for a continuous period of thirty (30) days or more, and take all other reasonable steps to forestall the assertion of claims of lien against the Property. Recipient authorizes the City, but without any obligation, to record any notices of completion or cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest in the Project and Property.

Section 3.10 Inspections.

Recipient shall permit and facilitate, and shall require its contractors to permit and facilitate, observation and inspection at the Project by the City and by public authorities during reasonable business hours for the purposes of determining compliance with this Agreement.

ARTICLE 4 GRANT REQUIREMENTS
Section 4.1 Financial Accountings and Post-Completion Audits.

No later than sixty (60) days following completion of construction of the Project, Recipient shall provide to City a financial accounting of all sources and uses of funds for the Project.
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7 Section 4.2 Information.

Recipient shall provide any information reasonably requested by the City in connection with the Project, including (but not limited to) any information required by CSA in connection with Recipient's use of the Grant funds.

Section 4.3 Records.

The Recipient shall keep and maintain at the Administrative Office, or elsewhere with the City's written consent, full, complete and appropriate books, record and accounts relating to the Project, including all such books, records and accounts necessary or prudent to evidence and substantiate in full detail Recipient's compliance with the terms and provisions of this Agreement. Books, records and accounts relating to Recipient's compliance with the terms, provisions, covenants and conditions of this Agreement shall be kept and maintained in accordance with generally accepted accounting principles consistently applied, and shall be consistent with requirements of this Agreement. All such books, records, and accounts shall be open to and available for inspection and copying by CSA, the City, its auditors or other authorized representatives at reasonable intervals upon reasonable notice during normal business hours. Copies of all tax returns and other reports that Recipient may be required to furnish to any governmental agency shall at all reasonable times be open for inspection by the City at the place that the books, records and accounts of the Recipient are kept. The Recipient shall preserve such records for a period of not less than five (5) years after the creation of such records. If any litigation, claim, negotiation, audit exception, monitoring, inspection or other action relating to the use of the Grant is pending at the end of the record retention period stated herein, then the Recipient shall retain such records until such action and all related issues are resolved. Such records shall include all invoices, receipts, and other documents related to expenditures from the Grant funds.

Section 4.4 HHAP Requirements.

Recipient shall comply with all applicable laws and regulations governing the use of the HHAP funds, including those requirements set forth in Exhibit D, attached hereto and incorporated herein. In the event in a conflict between the provisions of this Agreement and the requirements of Exhibit D, the requirements of Exhibit D shall control.

Section 4.5 Hazardous Materials.

Recipient shall keep and maintain the Property in compliance with, and shall not cause or permit the Property to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. Recipient shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of “hazardous substances”, “ hazardous wastes”, “hazardous materials”, or “toxic substances” under any applicable federal or state laws or regulations (collectively referred to hereinafter as “Hazardous Materials”) except such of the foregoing as #21..
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8 may be customarily used in the construction of projects like the Project or kept and used in and about residential property of this type..

Section 4.6 Maintenance.

During the course of both construction and operation of the Project, Recipient shall maintain the Property and the Project in good repair and in a neat, clean and orderly condition. If there arises a condition in contravention of this requirement, and if Recipient has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Property.

Section 4.7 Fees and Taxes.

Recipient shall be solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Property or the Project to the extent owned by Recipient and shall pay such charges prior to delinquency.

However, Recipient shall not be required to pay and discharge any such charge so long as (a) the legality thereof is being contested diligently and in good faith and by appropriate proceedings, and (b) if requested by the City, Recipient deposits with the City any funds or other forms of assurance that the City in good faith from time to time determines appropriate to protect the City from the consequences of the contest being unsuccessful.

Section 4.8 Notice of Litigation.

Recipient shall promptly notify the City in writing of any litigation which has the potential to materially affect Recipient or the Property and of any claims or disputes that involve a material risk of such litigation.

Section 4.9 Operation of Project
The Recipient intends to rehabilitate a former motel located on the Property, commonly known as El Capitan (the “Project”), into a permanent supportive housing development consisting of forty-eight (48) residential units (the “Development”). The Recipient shall ensure that these forty-eight (48) units (the “Assisted Units”) are occupied by, or if vacant, available for occupancy by, households with incomes at or below eighty percent (80%) of the Area Median Income for Stanislaus County.All forty-eight (48) Assisted Units shall be restricted to individuals experiencing homelessness or at risk of homelessness. Of these Assisted Units, twenty-four (24) shall be designated for individuals served by Stanislaus County Behavioral Health and Recovery Services, and twenty-four (24) shall be designated for veterans experiencing homelessness or at risk of homelessness. The Project shall also include one (1) manager’s unit.

Section 4.10 Transfer.

For purposes of this Agreement, “Transfer” shall mean any sale, assignment, or transfer, whether voluntary or involuntary, of (i) any rights and/or duties under this Agreement, and/or (ii) #21..
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9 any interest in the Project, including (but not limited to) a fee simple interest, a joint tenancy interest, a life estate, a partnership interest, a leasehold interest, a security interest, or an interest evidenced by a land contract by which possession of the Project is transferred and Recipient retains title. “Transfer” shall exclude the occupancy of any Unit in the Project by an eligible household. The City Manager is authorized to execute assignment and assumption agreements on behalf of the City to implement any approved Transfer.

No Transfer shall be permitted without the prior written consent of the City, which the City may withhold in its sole discretion.

Notwithstanding the foregoing, the following shall not be construed to be Transfers requiring the consent of the City: i) transfers to a limited partnership in which Recipient is the sole member of the general partner; ii) transfers of limited partner interests in Recipient; ii) the removal and replacement of the general partner of Recipient by the limited partner in accordance with the terms of the Recipient's partnership agreement; and iii) the grant and exercise of a right of first refusal and/or purchase option to acquire the Property or the limited partner interests of Recipient by Visionary Home Builders of California or a wholly-controlled affiliate thereof in accordance with the partnership agreement.

This Agreement is entered into solely for the purpose of the Developer's construction and operation of the Development in accordance with the terms of this Agreement. The qualifications and identity of the Developer are of particular
concern to the City, in view of:
(a) The importance of the construction of the Development to the general welfare of the community;
(b) The public aids that have been made available by law and by the government for the purpose of making such development possible; ( c) The reliance by the City upon the unique qualifications and ability of the Developer to serve as the catalyst for construction of the Development and upon the continuing interest which the Developer will have in the Development to assure the quality of the use, operation, and maintenance deemed critical by the City in the construction of the Development; ( d) The fact that a change in ownership or control of the owner of the Development, or of a substantial part thereof, or any other act or transaction involving or resulting in a significant change in ownership or with respect to the identity of the parties in control of the Developer or the degree thereof, is for practical purposes a transfer or disposition of the Development; and
( e) The importance to the City of the standards of use, operation, and maintenance of the Development.It is because of the qualifications and identity of the Developer that the City is entering
into this Agreement and that Transfers are permitted only as provided in this Agreement.

Section 4.11 Insurance Requirements.

The Recipient shall maintain the following insurance coverage throughout the Term of the Grant:
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10 4.11.1 Worker's Compensation insurance to the extent required by law, including Employer's Liability coverage, with limits not less than One Million Dollars ($1,000,000) each accident.

4.11.2 Comprehensive General Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for Contractual Liability, Personal Injury, Broadform Property Damage, Products and Completed Operations.

4.11.3 Comprehensive Automobile Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for owned, non-owned and hired vehicles, as applicable.

4.11.4 Builders' risk insurance during the course of the construction, and, upon completion of construction, property insurance covering the Project, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to the City, naming the City as a Loss Payee, as its interests may appear. Flood insurance shall be obtained if required by applicable federal regulations.

4.11.5 Property insurance covering the Property, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to the City, naming the City as a Loss Payee, as its interests may appear. Flood insurance shall be obtained if required by applicable federal regulations.

4.11.6 Commercial crime insurance covering all officers and employees, for loss of Grant proceeds caused by dishonesty, in an amount not less than the amount of the Grant, naming the City as a Loss Payee, as its interests may appear.

4.11.7 The Recipient shall cause any general contractor, agent, or subcontractor working on the Project under direct contract with the Recipient or subcontract to maintain insurance of the types and in at least the minimum amounts described in subsections (a), (b), and (c) above, except that the limit of liability for comprehensive general liability insurance for subcontractors shall be One Million Dollars ($1,000,000), and shall require that such insurance shall meet all of the general requirements of subsections (g), (h), and (i) below.

4.11.8 The required insurance shall be provided under an occurrence form, and Recipient shall maintain the coverage described in subsections (a) through (d) continuously throughout the Term. Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in such annual aggregate limit, such annual aggregate limit shall be three times the occurrence limits specified above.

4.11.9 Comprehensive and General Liability and Comprehensive Automobile Liability insurance policies shall be endorsed to name as an additional insured the City and its officers, agents, employees and members of the City Council. #21..
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11 4.11.10 All policies and bonds shall contain (i) the agreement of the insurer to give the County at least thirty (30) days' notice prior to cancellation (including, without limitation, for non-payment of premium) or any material change in said policies (ii) an agreement that such policies are primary and non-contributing with any insurance that may be carried by the City; (iii) a provision that no act or omission of the Recipient shall affect or limit the obligation of the insurance carrier to pay the amount of any loss sustained; and (iv) a waiver by the insurer of all rights of subrogation against the City and its authorized parties in connection with any loss or damage thereby insured against.

Section 4.12 Performance and Payment Bonds.

As a condition precedent to the first Grant draw request under the Grant, the Developer shall deliver to the City copies of the Construction Bonds, which shall: (i) be in a form reasonably acceptable to the City; (ii) be issued by a surety licensed to do business in California and reasonably acceptable to the City; and (iii) name the City as a co-obligee.

The City shall either reasonably approve or disapprove the submitted proposed Construction Bonds within fifteen (15) days from the date the City receives the Construction Bonds. If the proposed Construction Bonds are not approved by the City, then the City shall notify the Developer in writing of the reasons for disapproval and the required revisions to the previously submitted Construction Bonds. The Developer shall thereafter submit revised proposed Construction Bonds within fifteen (15) days of the notification of disapproval. The City shall either approve or disapprove the submitted revised Construction Bonds within fifteen (15) days of the date such revised Construction Bonds are received by the City. The City shall approve the initial or revised Construction Bonds if they meet the standards set forth in Subsection (a) above.

Notwithstanding the foregoing, the City shall consider other reasonable forms of security for the completion of the construction of the Project, from either the Developer or the Developer's general contractor, in lieu of such construction bonds described in this Section provided that: (1) all lenders set forth on the Financing Plan have agreed to such other security, and (ii) the City has the same enforcement rights under such security as the lenders set forth on the Financing Plan.

Section 4.13 Payment of Other Indebtedness; Notice of Defaults.

Recipient shall promptly pay the principal and interest when due on any other indebtedness related to the Project.

Recipient shall promptly notify the City in writing of any defaults declared under any other financing for the Project by the lender of such financing.

Section 4.14 Prevailing Wage Requirements. To the extent, and if, required by applicable state laws, rules, and regulations, Recipient and its contractors and agents shall comply with California Labor Code Section 1720 et seq. and applicable federal labor laws and standards, and the regulations adopted pursuant thereto (“Prevailing Wage Laws”), and shall be responsible for carrying out the requirements of such provisions. Recipient shall submit to City a #21..
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12 plan for monitoring payment of prevailing wages and shall implement such plan at Recipient ’s expense.

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF RECIPIENT
Section 5.1 Representations and Warranties.

Recipient hereby represents and warrants to the City as follows:

5.1.1 Organization. Recipient is a duly formed California limited partnership, validly existing and in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted.

5.1.2 Authority of Recipient. Recipient has full power and authority to execute and deliver this Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.

5.1.3 Authority of Persons Executing Documents. This Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Recipient, and all actions required under Recipient's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken.

5.1.4 Valid Binding Agreements. This Agreement and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Recipient enforceable against it in accordance with their respective terms.

5.1.5 No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Recipient, or conflict with any provision of the organizational documents of Recipient, or will conflict with or constitute a breach of or a default under any agreement to which Recipient is a party, or will result in the creation or imposition of any lien upon any assets or property of Recipient, other than liens established pursuant hereto.

5.1.6 Pending Proceedings. Recipient is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Recipient, threatened against or affecting Recipient or the Property, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Recipient, materially #21..
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13 affect Recipient's ability to repay the Grant or impair the security to be given to the City pursuant hereto.

5.1.7 Financial Statements. The financial statements of Recipient and other financial data and information furnished by Recipient to the City fairly and accurately present the information contained therein. As of the date of this Agreement, there has not been any adverse, material change in the financial condition of Recipient from that shown by such financial statements and other data and information.

5.1.8 Sufficient Funds. Recipient holds sufficient funds, binding commitments for sufficient funds, and/or access to borrow sufficient funds to complete the acquisition of the Property and the construction of the Project in accordance with the terms of this Agreement.

5.1.9 Taxes. Recipient and its subsidiaries have filed all federal and other material tax returns and reports required to be filed, and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their income or the Property otherwise due and payable, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles. There is no proposed tax assessment against Recipient or any of its subsidiaries that could, if made, be reasonably expected to have a material adverse effect on the Property, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Recipient and its subsidiaries, taken as a whole, which would be expected to result in a material impairment of the ability of Recipient to perform under any Grant Document to which it is a party, or a material adverse effect upon the legality, validity, binding effect or enforceability against Recipient of any Grant Document.

ARTICLE 6 DEFAULT AND REMEDIES
Section 6.1 Events of Default.

Each of the following shall constitute a “Default” by Recipient under this Agreement:

6.1.1 Breach of Covenants. Failure by Recipient to duly perform, comply with, or observe any of the conditions, terms, or covenants of this Agreement, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the City to the Recipient or, if the breach cannot be cured within thirty (30) days, the Recipient shall not be in breach so long as Recipient is diligently undertaking to cure such breach and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 6, the specific provisions shall control.

6.1.2 Default Under Other Grants. A default is declared under any other financing for the Project by the lender of such financing and such default remains uncured following any applicable notice and cure period.

6.1.3 Insolvency. A court having jurisdiction shall have made or entered any decree or order (i) adjudging Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, to be bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization of Recipient or #21..
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14 Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, or seeking any arrangement for Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction, (iii) appointing a receiver, trustee, liquidator, or assignee of Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, in bankruptcy or insolvency or for any of their properties, (iv) directing the winding up or liquidation of Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, if any such decree or order described in clauses (i) to (iv), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) calendar days; or (v) Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (i) to (iv), inclusive. .

6.1.4 Assignment; Attachment. Recipient shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) calendar days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution.

6.1.5 Suspension; Termination. Recipient shall have voluntarily suspended its business or, if Recipient is a partnership, the partnership shall have been dissolved or terminated, other than a technical termination of the partnership for tax purposes.

6.1.6 Liens on Property and the Project. There shall be filed any claim of lien (other than liens approved in writing by the City) against the Project or any part thereof, or any interest or right made appurtenant thereto, or the service of any notice to withhold proceeds of the Grant and the continued maintenance of said claim of lien or notice to withhold for a period of twenty (20) days, without discharge or satisfaction thereof or provision therefor (including, without limitation, the posting of bonds) satisfactory to the City.

6.1.7 Condemnation. The condemnation, seizure, or appropriation of all or the substantial part of the Property and the Project.

Section 6.2 Remedies. The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the City or automatically where so specified, relieve the City of any obligation to make or continue the Grant and shall give the City the right to proceed with any and all remedies set forth in this Agreement, including but not limited to the following:

6.2.1 Repayment. The City shall have the right to cause the Recipient to repay, upon written demand, the Grant within a reasonable period of time, as determined by the City in its sole discretion. The City may proceed to enforce repayment of the Grant and to exercise any or all rights afforded to the City.
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15 6.2.2 Specific Performance. The City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require Recipient to perform its obligations and covenants under this Agreement or to enjoin acts on things which may be unlawful or in violation of the provisions of this Agreement.

6.2.3 Right to Cure at Recipient's Expense. The City shall have the right (but not the obligation) to cure any monetary default by Recipient under a Grant other than the Grant.

The Recipient agrees to reimburse the City for any funds advanced by the City to cure a monetary default by Recipient upon demand therefor, together with interest thereon at the lesser of the maximum rate permitted by law and ten percent (10%) per annum (the “Default Rate”) from the date of expenditure until the date of reimbursement.

Section 6.3 Remedies Cumulative.

No right, power, or remedy given to the City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Recipient and any other person.

ARTICLE 7 GENERAL PROVISIONS
Section 7.1 Relationship of Parties.

Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the City and Recipient or its agents, employees or contractors. Recipient shall at all times be deemed an independent contractor, solely responsible for its own acts and those of its agents and employees.

Section 7.2 No Claims.

Nothing contained in this Agreement shall create or justify any claim against the City by any person that Recipient may have employed or with whom Recipient may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the purchase of the Property, the construction or operation of the Project, and Recipient shall include similar requirements in any contracts entered into for the construction or operation of the Project.

Section 7.3 Amendments.

No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the Parties.

Section 7.4 Indemnification.

The Recipient shall indemnify, defend and hold the City harmless against any and all claims, suits, actions, losses and liability of every kind, nature and description made against it #21..
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16 and expenses (including reasonable attorneys' fees) which arise out of or in connection with this Agreement, including but not limited to the purchase of the Property, development, construction, marketing and operation of the Project, except to the extent such claim arises from the grossly negligent or willful misconduct of the City, its agents, and its employees. The provisions of this Section shall survive the expiration of the Agreement.

Section 7.5 Non-Liability of City Officials, Employees and Agents.

No member, official, employee or agent of the City shall be personally liable to Recipient in the event of any default or breach by the City or for any amount which may become due to Recipient or its successor or on any obligation under the terms of this Agreement.

Section 7.6 No Third-Party Beneficiaries.

There shall be no third-party beneficiaries to this Agreement.

Section 7.7 Discretion Retained By City.

The City's execution of this Agreement in no way limits the discretion of the City in the permit and approval process in connection with development of the Project.

Section 7.8 Conflict of Interest.

In accordance with Government Code Section 1090 and the Political Reform Act, Government Code section 87100 et seq., no person who is a director, officer, partner, trustee or employee or consultant of the Recipient, or immediate family member of any of the preceding, shall make or participate in a decision, made by the City or a City board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or Recipient.

Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code Section 87100 et seq., its implementing regulations manual and codes, and Government Code Section 1090.

Section 7.9 Notices, Demands and Communications.

Formal notices, demands, and communications between the Parties shall be sufficiently given if and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the Parties as follows, or such other addresses designated by the Parties in writing:

City: City of Modesto
1010 10th Street
P. O. Box 642
Modesto, CA 95353
Attention: Community Development Director
Recipient: El Capitan Homekey LP
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17 c/o UP Holdings California, LLC
6083 N. Figarden Drive, #656
Fresno, CA 93722
Attention: Manager
Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable).

Section 7.10 Applicable Law.

This Agreement shall be governed by and construed in accordance with California law.

Section 7.11 Parties Bound.

Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their heirs, executors, administrators, legal representatives, successors, and assigns, and the benefit hereof shall inure to the benefit of the City and its successors and assigns.

Section 7.12 Attorneys' Fees.

If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing Party will have the right to recover its reasonable attorneys' fees and costs of suit from the other Party.

Section 7.13 Entire Understanding of the Parties
This Agreement constitutes the entire understanding and agreement of the Parties with respect to the Grant.

Section 7.14 Multiple Originals; Counterpart.

This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
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18 WHEREAS, this Agreement has been entered into by the undersigned as of the date first above written.

CITY

CITY OF MODESTO
By: _______________________________
Joseph P. Lopez, City Manager
ATTEST:

By:

Diane Nayares-Perez, CMC, City Clerk
(SEAL)

APPROVED AS TO LEGAL FORM
By: _______________________________
Jose M. Sanchez, City Attorney
APPROVED AS TO RISK MANAGEMENT:

By:

Joe F. Rodriguez, Risk Manager
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19 OWNER:

El Capitan Homekey LP, a California limited partnership By: HOM El Capitan Motel LLC, a Delaware limited liability company, Its Managing General Partner
By: Housing on Merit, a California nonprofit public benefit corporation, Its Sole Member
By: _______________________________________
Jaymie Beckett, Executive Director
By: UP El Capitan Homekey, LLC,
a California limited liability company, Its Co-General Partner By: UP Holdings, LLC, an Illinois limited liability company, dba UP Holdings California, LLC, its Sole Member
By: _______________________________________
Cullen J. Davis, Manager
By: RHCB El Capitan, LLC,
a California limited liability company, its Co-General Partner By: RHCB Development LP, a California limited partnership, its Sole Member
By: WRBH LLC, a California limited liability company,
its General Partner
By: _______________________________________
Wayne Rutledge, Manager
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EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY
The land referred to is situated in the County of Stanislaus, City of Modesto, State of California, and is described as follows:

PARCEL NO. 1:

Lots 11, 12, 13, 14, 15, 16, 17 and 18 in Block 506 of the CITY OF MODESTO, according to the
Official Map thereof, filed in the Office of the Recorder of Stanislaus County, California, on December 21, 1942 in Volume 15 of Maps.

PARCEL NO. 2:

The Easterly 15 feet of Nellie Avenue abandoned as shown by the Map entitled CITY OF MODESTO, according to the Official Map thereof, filed in the office of the Recorder of Stanislaus
County, California, on December 21, 1942 in Volume 15 of Maps, lying South of the Northerly line of Lot 11 extended Westerly in Block 506 of the City of Modesto, and lying North of the South line of Lot 18 extended Westerly of said Block 506.

EXCEPTING FROM Parcels 1 and 2 thereof, all that portion conveyed to the City of Modesto by
Deed recorded July 26, 1974 in Book 2643, Official Records, Page 578, Instrument No. 3576, described as follows:

All that portion of Section 29, Township 3 South, Range 9 East, Mount Diablo Base and Meridian, being a portion of Lots 13, 14, 15, 16, 17 and 18, Block 506 and the Easterly 15 feet of Nellie Avenue abandoned as said Nellie Avenue is shown by the Map entitled City of Modesto,
according to the Official Map thereof, filed in the office of the Recorder of Stanislaus County, California, on December 21, 1942 in Volume 15 of Maps, described as follows:

BEGINNING at the Southeastern corner of said Lot 13; thence along the Southern line of said Lots 13, 14, 15, 16, 17 and 18 and the Nellie Avenue abandonment, North 88 degrees 48' 30" West, 165.01 feet, to the Southwestern corner of the Nellie Avenue Abandonment; thence along the Western line of the Nellie Avenue abandonment, North 00 degrees 40' 30" West,

12.51 feet, to a line which is parallel with and 12.50 feet, measured at right angles, Northerly from the Southern line of Lots 13, 14, 15, 16, 17 and 18 and the Nellie Avenue abandonment; thence along said parallel line, South 88 degrees 48' 30" East, 165.01 feet, to the Eastern line of Lot 13; thence along said Eastern line, South 00 degrees 40' 30" East, 12.51 feet, to the point of beginning.

APN: 109-008-004-000
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EXHIBIT B

PROJECT SUMMARY
The El Capitan Homekey+ project consists of the acquisition and rehabilitation of the motel located at 1121 Needham Street in Modesto to create 48 fully furnished studio units and one staff unit serving individuals earning 30% of the Area Median Income (AMI). The development will provide 24 permanent supportive housing units for individuals experiencing or at risk of homelessness who have a behavioral health condition, and 24 units reserved for veterans with similar needs. Of the 48 units, eight will meet Americans with Disabilities Act (ADA) accessibility standards, including five that also meet vision and communication requirements.

RENTAL RESTRICTIONS
# of
Bedrooms
Total Units Manager
Units
Assisted
Units
AMI Income
Limit
Target
Population or
Subpopulation
0 (studio) 24 n/a 24 30% People at risk
of and or
Experiencing
Homelessness
0 (studio) 24 n/a 24 30% Veterans at
risk of and or
Experiencing
Homelessness
1-Bedroom 1 1 0 N/A Manager’s
Unit
Total 49 1 49
Rent amounts for each Unit shall not exceed the “affordable rents” under the applicable restriction of Homekey+ program requirements
If, upon the annual certification of the income a tenant, Recipient determines a tenant’s income has increased to Very Low-Income, or Low-Income, the rent charged to the tenant shall increase to the affordable rent for households with such incomes, as defined by Homekey+ Program Restrictions or applicable law outlined in Section 101 of the Homekey+ 2024 Notice of Funding Availability, amended August 7, 2025
If, upon the annual certification of the income a tenant, Recipient determines a tenant’s income has increased above the qualifying limit for a Low Income Household, such Tenant shall be permitted to retain the Unit and upon expiration of the Tenant's lease and upon sixty (60) days written notice, the Rent may be increased to the lesser of one-twelfth (1/12th) of thirty percent (30%) of the actual adjusted income of the Tenant, or fair market rent for the unit as determined by HUD per Homekey’s 55-year affordability term
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EXHIBIT C
Approved Project Budget
Funding Sources Award Amount
Homekey+ Capital Award $14,272,159
Homekey+ Operating Award $3,617,216
Homekey+ Veteran Operating Award $720,000
Homekey+ Relocation Award $80,000
Homekey+ Total Award $18,689,375
City Capital Contribution CDBG $3,007,163
Stanislaus County BHRS $500,000
Stanislaus Community System of Care HHAP $922,837
Developer Contribution $168,825
Total Funding Sources $23,288,200
Homekey+ Project Costs Amount
Acquisition and Rehabilitation $12,146,452
Relocation $174,336
Pre-Development and Soft Costs $1,666,533
Contingency $2,458,037
Developer Fee $1,117,475
Subtotal (Capital) $17,563,833
Operating Expenses $5,725,367
Total Project Costs $23,288,200
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EXHIBIT D

GRANT REQUIREMENTS

1. HOMELESS HOUSING, ASSISTANCE AND PREVENTION PROGRAM

1.2 This Memorandum of Agreement (MOA) along with all its exhibits is entered into by County and City under the authority of, and in furtherance of the purpose of, the HHAP-5. In signing this MOA and thereby accepting this award of funds, City agrees to comply with the terms and conditions set forth in this MOA.

1.3 HHAP-5

1.3.1.1 Reduce homelessness by expanding or developing local capacity to address immediate homelessness challenges informed by a best-practices framework focused on moving homeless
individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing; and

1.3.1.2 Continue to build on regional coordination developed through previous rounds of HHAP funding (see HCS section 50230 et seq.).

2. FUNDING

2.4 Funds shall not be used to supplant existing Encampment Resolution Funding Grant funds provided under HSC section 50251.

3. TIME

3.1 City shall strictly comply with all of the deadlines in the MOA. All the HHAP Round 5 grant funds (100 percent) must be expended by June 30, 2028.

3.2 County reserves the right to add any special conditions to this MOA as it deems necessary to ensure that the goals HHAP-5 are achieved via email to City contact.

No special Addendum shall be acquired.

4. REPORTING
Reporting Requirements. City shall provide information and reports in the form and format required by County.

5. TRANSFERS

6. SPECIAL CONDITIONS - GRANTEES/SUBGRANTEE

6.1 The City agrees to comply with all Special Terms and Conditions, EXHIBIT D.

These conditions shall be met to the satisfaction of California Interagency Council on Homelessness (Cal ICH). County shall ensure that City is aware of and agrees to comply with all conditions of the Agreement and the applicable State requirements governing HHAP Round 5 funds. Failure to comply with these conditions may result in termination of this MOA.

6.1.1 City shall perform the work in accordance with Federal, State, and Local housing building codes;

6.1.2 Maintain at least the minimum State-required worker’s compensation for those employees who will perform the work of any part of it.

6.1.4 Agree to include all there all terms listed in Grant Requirements, EXHIBIT C, in each subcontract.

6.2 County shall monitor the activities of City and its subcontractors to ensure compliance with all requirements under this MOA.
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7. FINANCIAL AUDIT

7.1.1 The audit shall be performed by an independent certified public accountant.

7.2.1 City is responsible for the completion of audits and all costs of preparing audits.

7.2.2 If there are audit findings, City must submit a detailed response acceptable to County for each audit finding within ninety (90) days from the date of the audit finding report.

9. RECORD RETENTION

9.1 City further agrees to retain all records relating to this MOA for a minimum period of five (5) years after the termination of this MOA.

10. BREACH OF THIS AGREEMENT

10.1 Breach of this Agreement includes, but is not limited to, the following events:

10.1.1 City's failure to comply with the terms or conditions of this MOA.

10.1.2 Use of, or permitting the use of, HHAP-5 funds provided under this MOA for any ineligible activities.
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10.1.3 Any failure to comply with the deadlines set forth in this MOA.

13. COMPLIANCE WITH LAWS

14.2 Establish a Drug-Free Awareness Program, as required by Government Code section 8355, subdivision (a)(2) to inform employees and contractors about all of the following:

14.2.1 The dangers of drug abuse in the workplace;

14.2.2 Its policy of maintaining a drug-free workplace;

14.2.3 Any available counseling, rehabilitation, and employee assistance program; and

14.2.4 Penalties that may be imposed upon employees for drug abuse violations.

14.3 Provide, as required by Government Code section 8355, subdivision (a)(3), that every employee and contractor that works under this MOA:

14.3.1 Will receive a copy of City's drug-free policy statement, and

14.3.2 Will agree to abide by terms of City's condition of employment or subcontract.

15. CHILD SUPPORT COMPLIANCE ACT
For any Contract Agreement in excess of $100,000, City acknowledges in accordance with Public Contract Code 7110, that:

1.1 City recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and

1.2 City, to the best of its knowledge, is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

2. INSPECTIONS
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2.1 City shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this MOA.

2.2 County reserves the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this MOA.

2.3 City agrees to require that all work that is determined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected.

3. SEVERABILITY
If any provision of this MOA, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of County, shall not affect any other provisions of this MOA and the remainder of this MOA shall remain in full force and effect. Therefore, the provisions of this MOA are and shall be deemed severable.

4. CLAIMS
City shall notify County immediately of any claim or action undertaken by or against it, which affects or may affect this MOA or County, and shall take such action with respect to the claim or action as is consistent with the terms of this MOA and the interests of County.

5. STATE OF CALIFORNIA GENERAL TERMS AND CONDITIONS
This exhibit is incorporated by reference and made part of this MOA. The General Terms and Conditions (GTC 04/2017) can be viewed at the following link:
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HOMELESS HOUSING, ASSISTANCE, AND PREVENTION PROGRAM ROUND 5

SPECIAL TERMS AND CONDITIONS

City must maintain records of all expenditures of the proceeds from these interest-bearing accounts for five (5) years and report on these expenditures as required by County.

County reserves the right to perform or cause to be performed a financial audit on the use of proceeds from interest-bearing accounts.

2. Per Health and Safety Codes (HSC) section 50234 subdivision (f), any housing-related activities funded with HHAP-5 funds, including but not limited to emergency shelter (per HSC section 50236 subdivision (c)(3)(E), rapid-rehousing, rental assistance, transitional housing and permanent supportive housing, must be in compliance or otherwise aligned with the core components of Housing First, as described in Welfare and Institutions Code section 8255, subdivision (b). Individuals and families assisted with these funds must not be required to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services for which these funds are used.

In addition, HHAP-5 funding shall be used to adopt a Housing First approach within the entire local homelessness response system, including outreach and emergency shelter, short-term interventions like rapid re housing, and longer-term interventions like supportive housing.

4. City shall participate in and provide data elements, including, but not limited to, health information, in a manner consistent with federal law, to the HMIS (known as the Homeless Data Integration System or "HDIS"), in accordance with their existing Data Use Agreements, and as required by HSC section 50234(b) and 50220.6 and Welfare and Institutions Code section 8256. Any health information provided to, or maintained within, the statewide Homeless Management Information System, or HDIS, which compiles all HMIS data into a statewide data warehouse, shall not be subject to public inspection or disclosure under the California Public Records Act. For purposes of this paragraph, "health information" means "protected health information," as defined in Part 160.103 of Title 45 of the Code of Federal Regulations, and "medical information," as defined in subdivision (j) of Section 56.05 of the Civil Code. HCD may, as required by operational necessity, amend or modify required data elements, disclosure formats, or disclosure frequency. Additionally, HCD, at its discretion, may provide County with aggregate reports and analytics of the data County submits to HDIS in support of the Purpose of this Agreement and the existing Data Use Agreement.

5. City agrees to accept technical assistance as directed by California Interagency Council on Homelessness (Cal ICH) or by a contracted technical assistance provider acting on #21..
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60211647.1
behalf of Cal ICH and report to Cal ICH on programmatic changes the grantee will make as a result of the technical assistance and in support of their grant goals.

8. Upon mutual agreement of both parties, County reserves the right to add any special conditions to this MOA it deems necessary to ensure that the goals of the Program are achieved.
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LETTER OF AGREEMENT

BETWEEN

STANISLAUS COUNTY BEHAVIORAL HEALTH AND RECOVERY SERVICES AND

CITY OF MODESTO

FOR THE REHABILITATION AND OPERATION OF EL CAPITAN MOTEL Effective Dates: ___________, 2026 – January 27, 2081
This Letter of Agreement ("LOA") is entered into by and between Stanislaus County Behavioral Health and Recovery Services ("BHRS" or "County") and the City of Modesto ("City") in support of the El Capitan Homekey+ Project ( “Project”) at the El Capitan Motel located at 1121 Needham Street, Modesto, California 95354 as of _____________, 2026 (the “Effective Date”).

The project shall include subcontractors for development and property management. BHRS shall have guaranteed access to a minimum of twenty-four (24) units throughout the term of this Agreement.

1. Term and Compensation
The term of this Agreement shall commence on the ______, 2026 and continue through January 27, 2081 (55 years). BHRS agrees to compensate the City of Modesto a maximum of Five Hundred Thousand Dollars ($500,000) in support of the Project.

2. Project Description
The Project will target individuals and veterans with behavioral health challenges experiencing homelessness. The Project proposes 48 permanent supportive housing units to individuals with an income of 30% AMI. Of those units, 7 will also comply with American Disabilities Act (ADA) vision and communication requirements.

The Project will complete on-site improvements to City standards, while providing those in need with housing services that are designed to each person’s unique needs. The Project site will include supportive services including case management, peer support activities, mental health services, and linkage to external services providers for health and dental care. Project service team members will be trained in assessing mental health and substance abuse disorders to ensure proper referral.

3. Compliance Requirements
The City and its subcontractors shall comply with all applicable federal, state, and local building codes. The City shall maintain, at minimum, the following insurance coverage for all personnel involved in the project:
• Workers’ compensation
• Unemployment insurance
• Disability insurance
• Liability insurance sufficient to cover any injury or damage arising from project activities

4. Reimbursement Process
The City shall submit an invoice upon execution of this Agreement to initiate payment. All invoices must be submitted in the format specified by BHRS and include all required documentation. City #21..
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shall submit an invoice electronically to [email protected] or by mail to the following address:

Stanislaus County Behavioral Health & Recovery Services PO BOX 3211
Modesto, CA 95353
Attention: Accounts Payable
County shall reimburse City for any undisputed invoices, which County and City agree represent the costs of delivering the services required under the terms of this Agreement for the period covered by the invoice, within 30 days of invoice receipt.

5. Defense and Indemnification
a) To the fullest extent permitted by law, City shall indemnify, hold harmless and defend the County and its agents, officers and employees from and against all claims, damages, losses, judgments, liabilities, expenses and other costs, including litigation costs and attorneys’ fees, arising out of, resulting from, or to the proportionate extent caused by the negligence or willful misconduct City or City's officers, employees, agents, representatives or subcontractors.

This obligation shall survive termination of this Agreement. b) City's obligation to defend, indemnify and hold the County and 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 City to procure and maintain a policy of insurance. c) Subject to the limitations in 42 United States Code section 9607 (e), and unless otherwise provided in a Scope of Services approved by the parties:
(a) City shall not be responsible for liability caused by the presence or release of hazardous substances or contaminants at the site, unless the release results from the negligence of Contractor or its subcontractors;
(b) No provision of this Agreement shall be interpreted to permit or obligate City to assume the status of “generator,” “owner,” “operator,” “arranger,” or “transporter” under state or federal law; and
(c) At no time, shall title to hazardous substances, solid wastes, petroleum contaminated soils or other regulated substances pass to City. [SIGNATURES SET FORTH ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties or their duly authorized representatives have executed this Agreement on the day and year first hereinabove written.

COUNTY OF STANISLAUS
By: ______________________________________
Andrew Johnson
GSA Director/Purchasing Agent
"County"
APPROVED: BOS Resolution #___________

CITY OF MODESTO
By: _____________________________________
Joseph P. Lopez
City Manager
"City”

APPROVED AS TO CONTENT

BEHAVIORAL HEALTH AND

RECOVERY SERVICES
By: ______________________________________
Ruben Imperial, MBA
Behavioral Health Director

APPROVED AS TO FORM
City of Modesto Attorney
By: _________________________________
City Attorney

APPROVED AS TO FORM
Thomas E. Boze, County Counsel
By: ______________________________________
Shaun Wahid
Chief Deputy County Counsel
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California Levine Act Disclosure
California Government Code Section 84308, also known as the "Levine Act", prohibits City “officers” from participating in any action related to a license, permit, or other entitlement for use (a “proceeding”) if such member accepts, solicits, or directs political contributions from a party to the proceeding or their agent totaling more than $500 while the proceeding is pending before the agency, and for twelve (12) months following the date a decision concerning the proceeding has been made. The Levine Act also requires disclosure of such contribution by a party to the proceeding.

Section 84308(a)(4) of the Levine Act defines an "officer" as follows: “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. The term “officer” is further defined 2 Cal. Code Regs. Section 18438.1, which states:

An officer of an agency includes only those persons who make, participate in making, or in any way attempt to use their official position to influence a decision in the license, permit, or entitlement for use proceeding, or who exercise authority or budgetary control over the agency of officers who may do so, and:
(1) Serve in an elected position, including an official appointed to an elected position due to an interim vacancy or an election otherwise canceled because the official was the sole candidate for the position; (2) Serve as a member of a board or commission;
(3) Serve as the chief executive of a state agency, or county, city or district of any kind; or (4)Have decision making authority with respect to the proceeding involving a license, permit, or other entitlement for use and is also a candidate for elected office or has been a candidate for elective office in the 12 months prior to the proceeding.

A list of Modesto City Council Board Members can be found online at: Modesto City Council https://modestogov.com/706/Council-Members (modestogov.com). The party making this certification is responsible for determining whether a recipient of a political contribution is a City officer prior to answering the following questions:

1. Have you, your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to any City officer, in the twelve (12) months preceding the date of the submission of your proposals or the anticipated date of any Council action related to this contract?
___ YES If yes, please identify the Councilmember(s):
___ NO

2. Do you, or your company, or any agent on behalf of you or your company, anticipate or plan to make any political contribution of more than $500 to any City officer in the twelve (12) months following any Council action related to this contract?
___ YES If yes, please identify the Councilmember(s):
___ NO

CITY OF

MODESTO

CALIFORNIA
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Answering YES to either of the questions above does not preclude the City of Modesto from awarding a contract to your firm or taking any subsequent action related to the contract. It may, however, preclude the identified City officer from participating in any actions related to such contract.

HEREBY CERTIFY UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
_________________ _____________________________
Date Signature of authorized individual
_____________________________
Company/Applicant Name
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Date: May 1, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jose M. Sanchez, City Attorney
SUBJECT: Ordinance Amending Compensation for the Mayor and Councilmembers’ Salaries pursuant to the Citizens’ Salary Setting Commission Final Recommendations
CONTACT: Jose M. Sanchez, City Attorney, 209-577-5284,
[email protected]
DESCRIPTION:

Hearing to consider an Ordinance amending Compensation for the Mayor and Councilmembers’ Salaries pursuant to the Citizens’ Salary Setting Commission’s Final Recommendations pursuant to Modesto Charter Section 703. (Funding Source: General Fund)
STRATEGIC PLAN ELEMENT:

This item supports the City’s 2025-2026 Strategic Plan Goal to build a high-performance organization.

BACKGROUND:

On February 5, 2008, voters approved Measures M, titled “Accountability in City Hall,” which amended Modesto City Charter Section 703. Charter Section 703 sets out the processes for establishing the salary for the Mayor and Councilmembers. Section 703(b) requires the formation of a Citizens’ Salary Setting Commission (“Commission”) whose function is to recommend the compensation for the Mayor and Members of the Council. According to the Charter, the Commission meets between March 1st and April 30th of every even-numbered year and make any salary recommendation to the Council by April 30th.

Compensation for the Mayor and Councilmembers was last adjusted on May 14, 2024 by Ordinance No. 3781-C.S.

Charter Section 703(c) establishes salary limitations for Mayor and Councilmember salaries. The Section limits the salary of the Mayor as follows: “The salary of the Mayor shall not be more than 50 percent (50%) of the amount of the salary of a Judge of the Superior Court of Stanislaus County.” The salary of a Stanislaus County Superior Court Judge is currently $248,368; 50% of that amount is $124,184.

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
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City Council, May 12, 2026
Ordinance Amending Compensation for the Mayor and Councilmembers‘ Salaries pursuant to the Citizens’ Salary Setting Commission Final Recommendations

Page 2 of 3 ends

For Councilmembers, Charter Section 703(c) establishes the following salary limitation:
“The salary of a Councilmember shall not be more than 50 percent (50%) of the median family income for the Modesto Metropolitan Statistical Area as reported by the United States Census Bureau. The salary of each Councilmember shall be the same.” The median family income for the Modesto Metropolitan Statistical Area is $79,891; 50% of that amount is $39,945.

DISCUSSION & PUBLIC PARTICIPATION:

There are five (5) members appointed by the City Council serving on the Commission pursuant to the Commission’s requirements. In accordance with the Charter, the Commission held eight (8) meetings during the months of March and April, which included two (2) noticed public hearings on April 6, 2026, and April 13, 2026, to discuss possible salary recommendations for the Mayor and Councilmembers. Public input was solicited during the preparation of the Citizens’ Salary Setting Commission Final Report and Recommendations. The Commission reviewed information related to the duties of the Mayor and Councilmembers, compensation data from other cities, including cities in the surrounding area, listened to public comment, and had detailed discussions on what salaries they believe are fair and equitable.

At the April 28, 2026, City Council meeting, the Commission presented their final recommendation, including reasons for the recommendation, to the Council for acceptance. The recommendation was to increase the compensation for the Mayor from $54,000 to $57,348 annually and increase the compensation for Councilmembers from $30,000 to $31,860 annually.

Pursuant to Charter Section 703(d), “[w]hen such final recommendation has been submitted to the Council, it shall not thereafter be amended by the Commission.” Pursuant to Charter Section 703(d), “[u]pon receiving the final recommendation from the Commission, the Council may adopt the compensation as recommended by the Commission or may adopt compensation in some lower amount, but in no case may adopt compensation in some higher amount.”
On April 28, 2026, the Council accepted the Commission’s recommendation and directed staff to set a public hearing on May 12, 2026, to consider an Ordinance adjusting the salaries for the Mayor and Council Members pursuant to the Commission’s recommendation. Pursuant to Charter Section 703(d), a 20-day public hearing notice was published in the Modesto Bee on April 19, 2026. The 2026 Recommendations from the Commission regarding the salaries of the Mayor and Councilmembers are attached.

FISCAL IMPACT:

The recommendation of the Commission will increase the compensation for the Mayor from $54,000 to $57,348, for an annual increase of $3,348. The Commission also recommended an increase of the Councilmembers annual salary from $30,000 to $31,860 which will reflect an annual increase of $1,860. These increases will be covered through the annual budget adopted for FY 2026-27 and beyond. #22..
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City Council, May 12, 2026
Ordinance Amending Compensation for the Mayor and Councilmembers‘ Salaries pursuant to the Citizens’ Salary Setting Commission Final Recommendations

Page 3 of 3 ends

Mayor and Councilmember salaries are paid out of the General Fund and will not exceed the amounts approved pursuant to Charter Section 703.

COMMITTEE RECOMMENDATION:

Due to the nature of this item, it is not required to go to Council Committee.

CEQA/NEPA REQUIREMENTS:

This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.

RECOMMENDED COUNCIL ACTION:

Motion Introducing and waiving the first reading of an Ordinance amending Sections 2-

1.24 “Compensation of Mayor,” and 2-1.26 “Compensation of City Councilmembers,” of Chapter 1, “City Council Organization and Procedure,” of Title 2, “Administration,” of the Modesto Municipal Code, to increase the salaries of the Mayor and City Councilmembers pursuant to Charter Section 703 and the recommendations of the Citizen’s Salary Setting Commission of 2026.

Approved by: _____
Jose M. Sanchez, City Attorney
_____
Joseph P. Lopez, City Manager
Attachment:

1. Ordinance Amending Compensation for the Mayor and Councilmembers

2. Final Report: Recommendations for Mayor and Councilmembers Salaries

3. Modesto City Charter Section 703

4. MMC Sections 2-1.24 & 2-1.26 Reflecting Changes
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1 ORDINANCE NO. ________
ORDINANCE AMENDING SECTIONS 2-1.24 “COMPENSATION OF MAYOR,” AND 2-1.26 “COMPENSATION OF CITY COUNCILMEMBERS,” OF
CHAPTER 1, “CITY COUNCIL ORGANIZATION AND PROCEDURE,” OF TITLE 2, “ADMINISTRATION,” OF THE MODESTO MUNICIPAL CODE, TO

INCREASE THE SALARIES OF THE MAYOR AND CITY COUNCILMEMBERS PURSUANT TO CHARTER SECTION 703 AND THE RECOMMENDATIONS OF THE CITIZEN’S SALARY SETTING COMMISSION OF 2026
WHEREAS, on February 5, 2008, voters approved Measures M, titled “Accountability in City Hall,” which amended Modesto City Chater Section 703; and WHEREAS, Charter Section 703 sets out the processes for establishing the salaries for the Mayor and Councilmembers. Section 703(b) requires the formation of a Citizens’ Salary Setting Commission (“Commission”) whose function is to recommend the compensation for the Mayor and Members of the Council; and
WHEREAS, according to the Charter, the Commission shall meet between March 1st and April 30th of every even-numbered year and make any salary recommendation to the Council by April 30th; and
WHEREAS, compensation for the Mayor and Councilmembers was last adjusted on May 14th, 2024 by Ordinance No. 3781-C.S.; and WHEREAS, pursuant to Charter Section 703(b), the Council appointed five members to serve on the Commission; and
WHEREAS, the Commission held eight (8) public meetings during the months of March and April, which included two (2) noticed public hearings on April 6, 2026 and April 13, 2026 to discuss possible salary recommendations for the Mayor and Councilmembers. All Commission meetings were open to the public; and
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2 WHEREAS, the Commission reviewed information related to the duties of the Mayor and Councilmembers, compensation data from other cities, including cities in the surrounding area, and received comments from the public; and WHEREAS, Charter Section 703(c) establishes salary limitations for Mayor and Councilmember salaries. The Charter Section limits the salary of the Mayor as follows: “The salary of the Mayor shall not be more than 50 percent (50%) of the amount of the salary of a Judge of the Superior Court of Stanislaus County.” The salary of a Stanislaus County Superior Court Judge is currently $248,368; 50% of that amount is $124,184; and
WHEREAS, Charter Section 703(c) establishes the following Councilmember salary limitation: “The salary of a Councilmember shall not be more than 50 percent (50%) of the median family income for the Modesto Metropolitan Statistical Area as reported by the United States Census Bureau.

The salary of each Councilmember shall be the same.” The median family income for the Modesto Metropolitan Statistical Area is $79,891; 50% of that amount is $39,945; and
WHEREAS, at the April 28, 2026 Council meeting, the Commission presented their final recommendation, including reasons for the recommendation, to Council for acceptance. Pursuant to Charter Section 703(d), “[w]hen such final recommendation has been submitted to the Council, it shall not thereafter be amended by the Commission;” and
WHEREAS, the recommendation was to increase the compensation for the Mayor from fifty-four thousand dollars ($54,000) to fifty-seven thousand #22..
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3 three-hundred forty-eight dollars ($57,348) annually and increase the compensation for Councilmembers from thirty thousand dollars ($30,000) to thirty-one thousand eight-hundred sixty dollars ($31,860) annually; and WHEREAS, pursuant to Charter Section 703(d), “[u]pon receiving the final recommendation from the Commission, the Council may adopt the compensation as recommended by the Commission or may adopt compensation in some lower amount, but in no case may adopt compensation in some higher amount;” and WHEREAS, on April 28, 2026, Council accepted the Commission’s recommendation and directed staff to set a public hearing on May 12, 2026, to consider the recommended compensation increases by the Commission; and WHEREAS, pursuant to Charter Section 703(d), a 20-day public hearing notice was published in the Modesto Bee on April 19, 2026; and WHEREAS, the Council may only adopt changes to compensation by ordinance. Pursuant to Charter Section 703(d), “[s]alaries established by ordinance adopted pursuant to the provisions of this Section shall remain in effect until amended by a subsequent ordinance adopted pursuant to the provisions of this Section.”
NOW, THEREFORE, the City Council of the City of Modesto does ordain as follows:

SECTION 1. “COMPENSATION OF MAYOR” - AMENDMENT.

The City of Modesto Municipal Code Section 2-1.24, titled “Compensation of Mayor,” of Chapter 1, “City Council Organization and Procedure,” of Title 2, “Administration” is hereby amended to read as follows:
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4 “2-1.24 Compensation of Mayor.

The annual salary of the Mayor shall be fifty-seven thousand three-hundred forty-eight dollars ($57,348), pursuant to the recommendation of the Citizens Salary Setting Commission. In accordance with Section 703 of the Charter, the Mayor's compensation and appropriate benefits shall be reviewed by the Citizens Salary Setting Commission biannually, and a recommendation made to the City Council as to the appropriate compensation. The annual salary shall be payable from and after the operative date of the ordinance at the same time and in the same manner as the salaries are paid to other officers and employees of the City.”
SECTION 2. “COMPENSATION OF COUNCILMEMBERS” – AMENDMENT.

The City of Modesto Municipal Code Section 2-1.26, titled “Compensation of City Councilmember,” of Chapter 1, “City Council Organization and Procedure,” of Title 2, “Administration” is hereby amended to read as follows:
“2-1.26 Compensation of City Councilmembers.

The annual salary of each member of the City Council, except the Mayor, shall be thirty-one thousand eight-hundred sixty dollars ($31,860). In accordance with Section 703 of the Charter, the Councilmember's compensation and appropriate benefits shall be reviewed by the Citizens Salary Setting Commission biannually, and a recommendation made to the City Council as to the appropriate compensation. The annual salary shall be payable from and after the operative date of the ordinance at the same time and in the same manner as the salaries are paid to other officers and employees of the City.”
SECTION 3. SEVERABILITY.
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5 If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable, or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application any other person or circumstance. The City Council or the City of Modesto hereby declares that it would have adopted each section, sentence, clause, or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses, or phrases of this Ordinance be declared invalid, unenforceable or unconstitutional.

SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) The City Council hereby finds that the adoption of this Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) of the State CEQA Guidelines. Specifically, this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment because it does not authorize the construction of any new structures or other physical changes to the environment.

SECTION 5. EFFECTIVE DATE.

This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

SECTION 6. PUBLICATION.

At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; #22..
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6 and a notice shall be published once in the Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this Ordinance, the date of its introduction and the places where this ordinance is posted.

The foregoing ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, by Council Member _________, who moved its introduction and passage to print, which motion being duly seconded by Council Member_____, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Councilmembers:

NAYS: Councilmembers:

Absent: Councilmembers:

APPROVED:_________________________
SUE ZWAHLEN, Mayor
ATTEST:

BY: __________________________________
DIANE NAYARES-PEREZ City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: __________________________________
JOSE M. SANCHEZ, City Attorney
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7 FINAL ADOPTION CLAUSE
The foregoing ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the ____day of May , 2026, Councilmember ______________moved its final adoption, which motion being duly seconded by Councilmember ________________, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:_________________________________

SUE ZWAHLEN, MAYOR
ATTEST: ____________________________
DIANE NAYARES-PEREZ City Clerk
Effective Date: _________________, 2026
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1 City of Modesto Citizens Salary Setting Commission
2026-2028 Final Recommendation
Background / Context
The City Charter establishes the limits of compensation for City Council Members and Mayor. The Citizens Salary Setting Commission, composed of five (5) members, was appointed to determine the extent the salaries should be increased, if any. This commission, as required by the City of Modesto Charter Section 703(b), met “between March 1 and April 30th of every even numbered year.” Through Measure M, the five members shall be qualified electors residing within the City and appointed by the City Council, serving without compensation. Qualifications of the current commission include:
• A member from a bona fide local nonpartisan political organization with tax exempt status • A member of former Civil Grand Jury
• A member of bona fide local taxpayer’s association with tax exempt status • Two members who have demonstrated civic involvement and a capacity to serve in an honest, independent, and impartial fashion
In 2024, the Commission made the following recommendations:
• Increase the Mayor’s salary from $43,200 / year to $54,000 / year. • The Mayor received a 25% salary adjustment increase based on CPI from 2008 to 2024. • Increase the Council Member’s salary from 24,000 / year to $30,000 / year. • The Council received a 25% salary adjustment increase based on CPI from 2008 to 2024. • The 2024 Citizens’ Salary Setting Commission Recommendations can be found here.

The Citizens Salary Setting Commission makes recommendations using these parameters set forth by the City Charter:
• The recommendation is not an evaluation of the current officeholders, but rather to determine fair compensation for the responsibilities of the office itself. • The compensation limit for a City Council Member is half (50%) of the median family income (currently at $79,891) for the Modesto Metropolitan statistical area as reported by the United States Census Bureau.
• Council Member current salary: $30,000 per year.
• The compensation limit for the City Mayor is half (50%) of a Stanislaus Superior Court District Judge (currently at $248,368).
• Mayor current salary: $54,000 per year.
• Salaries are paid out of the General Fund of the City Expenses.

Table 1: Current Salary Compared to Charter Maximum
Position Current Salary Charter Maximum
Mayor $54,000 $124,184
Council Member $30,000 $39,945
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2 Guiding Principles Considered
Several principles guided this Commission and their recommendation:
• Public Responsibility: Compensation should remain modest and respectful of taxpayer resources.
• Workload Reality: Although these positions are described as part-time, actual responsibilities often include:
o Council meetings
o Preparation and review of agenda materials
o Committee Assignments
o Regional board participation
o Constituent meetings
o Community events
Analysis
The current Commission met a total of eight (8) times since the initial orientation meeting on February 27, 2026, to discuss and analyze data requested from and provided by City of Modesto staff.

The methodology included the following:
• Current Salary of the Stanislaus Superior Court Judge, median household, and Modesto fulltime wage earner • Current Population of Modesto, Modesto Expenses, and updated Comparable Tables o San Joaquin Valley Cities
o Charter Cities
o Expenses and Population
• CPI increase from 2024 to present
• Role of Mayor as full-time and part-time
• Other official duties including committee assignments • Both the Mayor and City Council Members have fringe benefits that are limited in scope. • Both the Mayor and City Council Members may participate in the City’s health plan at their own expense.

Findings
Table 2: Indicators comparing 2024 to 2026
Indicators 2024 2026
Population 218,989 219,786
City Expenses $525,973,774 $588,042,068
Median Household Income $73,375 $79,891
Individual Full Time Income $32,044 $32,706
CPI -- 5.4%
Note: Modesto’s population has been flat, median household income is up approximately 9%, personal median income is flat. CPI has risen by 5.4% since 2024. #22..
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3 Table 3: Comparable by Population and Expenses and Mayor Description Cities Salary Population1 Expenses2 Full/Part time
Glendale $26,276.00 183,761 $948,298,145 PT
Huntington Beach $22,805.00 190,515 $464,376,984 PT
Santa Rosa $26,640.00 177,300 $553,829,678 PT
Modesto $54,000.00 221,529 $588,042,068 PT
Burbank $23,949.00 101,793 $632,433,340 PT
Sunnyvale $48,041.00 157,557 $659,294,710 PT
San Bernardino $50,000.00 226,103 $387,341,916 FT
Berkeley $143,800.00 120,514 $603,357,325 FT
Bakersfield $83,440.00 423,592 $725,671,879 FT
Fresno $133,900.00 553,800 $1,474,265,521 FT
Sacramento $184,464.00 540,907 $1,622,100,000 FT
Stockton $97,107.00 326,977 $782,821,042 FT
Note: A Salary review of Comparable Cities by Population, Expenses, and Mayor position of Full or Part Time found higher salaries for Full Time Mayors, lower salaries for Part-time Mayors. The salary for Full Time ranges from San Bernardino at $50,000 to Sacramento at $184,654. The salary for Part-Time Mayors ranged from Huntington Beach at $22,805 to Modesto at $54,000. Within the comparable cities the Modesto Mayor is paid more than San Bernardino Full Time Mayor and is the Highest paid Part-Time Mayor. Salaries are only paid out of the General Fund for the City of Modesto, which for 2026 is projected to be $206,449,484.

Table 4: Stanislaus County Cities for Mayor
Cities Salary Population Expenses Full/Part-time
Modesto $54,000.00 221,529 $588,042,068 PT
Ceres $8,400.00 49,032 $80,179,376 PT
Hughson $3,600.00 8,107 $12,986,939 PT
Newman $3,000.00 12,242 $24,146,656 PT
Oakdale $4,445.00 23,209 $44,429,843 PT
Patterson $7,920.00 26,329 $117,898,654 PT
Riverbank $10,800.00 25,959 $31,416,956 PT
Waterford $3,600.00 9,338 $11,022,115 PT
Turlock $6,000.00 72,948 $149,283,449 PT
Note: Mayors within Stanislaus County are all part-time Mayors. The Modesto Mayor is the highest paid at $54,000.00, Riverbank Mayor is in second place at $10,800.00. 1 World Population Review https://worldpopulationreview.com/us-cities/california 2 California Cities Financial Data/State Controller https://bythenumbers.sco.ca.gov/ #22..
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4 Table 5: Comparable by Population and Expenses for Council Members Cities Salary Population Expenses Full/Part-time
Glendale $17,160.00 183,761 $948,298,145 PT
Huntington Beach $22,147.00 190,515 $464,376,984 PT
Sunnyvale $38,307.00 157,557 $659,294,710 PT
Santa Rosa $17,760.00 177,300 $553,829,678 PT
Burbank $23,949.00 101,793 $632,433,340 PT
Modesto $30,000.00 221,529 $588,042,068 PT
Berkeley $90,594.00 120,514 $603,357,325 FT
Bakersfield $20,062.00 432,592 $725,671,879 FT
Fresno $72,351.00 553,800 $1,474,265,521 FT
Sacramento $111,324.00 540,907 $1,622,100,000 FT
San Bernardino $40,728.00 226,103 $387,341,916 FT
Note: On review of Comparable Cities by Population, Expenses and Mayor position, the Commission found that Cities with Full-Time Mayor structure had higher salaries for the Council Members. Berkeley at $90,954 and San Bernardino at $40,728. Cities with Part Time Mayors had lower salaries; Sunnyvale the highest at $38,307 and Modesto Council Member’s salary at $30,000. The salaries are only paid out of the General Fund for the City of Modesto, which for 2026 is projected to be $206,449,484.

Table 6: Stanislaus County Cities for Council Members
Cities Salary Population Expenses Full/Part-time
Modesto $30,000.00 221,529 $588,042,068 PT
Ceres $6,000.00 49,032 $80,179,376 PT
Hughson $3,000.00 8,107 $12,986,939 PT
Newman $1,200.00 12,242 $24,146,656 PT
Oakdale $4,445.00 23,209 $44,429,843 PT
Patterson $4,752 .00 26,329 $117,898,654 PT
Riverbank $10,800.00 25,959 $31,416,956 PT
Waterford $3,600.00 9,338 $11,022,115 PT
Turlock $6,000.00 72,948 $149,283,449 PT
Note: All cities within Stanislaus County have a part-time Mayoral Structure, Modesto Council Members are paid the highest at $30,000.00.
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5 Recommendations
The 2026 Citizens Salary Setting Commission makes the following recommendation:

Table 7: Current Salary vs Recommended Salary for Fiscal Years 2027 and 2028 Position Current Salary Recommended Salary (6.2% increase) Mayor $54,000.00 $57,348.00
Council Members $30,000.00 $31,860.00
The rationale for this recommendation:

The office of Mayor and Council Members choose to run for the office because they desire to serve and improve our community by making a positive impact. Through their service they become the voice of their constituents.

After our review of the data from several data points, our recommendation is to increase the respective salaries by 6.2% after considering CPI (5.4%) and Median Household (9%).

April 14, 2026
Respectfully submitted,
Sandy Sutton, Chair
Citizens’ Salary Setting Commission

#22..
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6 APPENDIX
Glossary of Terms
CPI: CPI stands for Consumer Price Index, a measure of inflation. It tracks inflation by the average change in prices paid by consumers for goods and services. CPI gauges the cost of living and purchasing power of money.

Charter City: Modesto is a Charter City, it operates under its own charter, which is our local constitution. Charter Cities can establish their own laws and regulations, particularly in areas like taxation and land use. A Charter or changes to a Charter requires the local vote by residents. There are 125 cities in California that have adopted Charters.

General Law City: Operates under the general laws of California, rather than a city charter. It is governed by the California Government Code, which outlines its powers and responsibilities. General Law Cities have limited flexibility compared to Charter Cities.

City Manager: Serves as the chief executive officer of the city, overseeing daily operations of all the departments within the city. They are responsible for implementing city policies and managing municipal departments. The city manager develops and proposes budgets, and financial updates.

Engages with residents to address concerns and gather feedback. Leads emergency response efforts and public safety initiatives.

Full Time Mayor: Typically found in large cities, they are full time, they dedicate their entire time to overseeing city operations, leading initiatives, and managing staff. Their role is involved in daily governance and budgetary oversite.

Part Time Mayor: Typically balances their duties with other employment. The City Manager oversees the day-to-day operations of the city. The Mayor is the ceremonial lead for all political and representative purposes, and by the Governor for military purposes. The Mayor makes recommendations to the City Manager on policy, programs; and can request budgetary information.

They do not hire or evaluate staff.

Household: A household includes all the people who occupy a housing unit (such as a house or apartment) as their usual place of residence. A household can consist of family members, roommates, or unrelated individuals. A household is often responsible for shared expenses like rent, utilities, and groceries.

Median Household Income: This income level represents the middle-income of a household in an area. Half of the households earn more than the median, and half earn less. It is often used to gauge economic health and living standards of a city.

Per Capita Income: Per capita income measures the average income earned per person in a specific area. It is calculated by dividing the total income of a region by its population. This metric helps assess the economic health and standard of living in a city. #22..
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Created: 2025-12-16 12:34:15 [EST]
(Supp. No. 70)

Page 1 of 3 ends

SECTION 703. COMPENSATION FOR ELECTED OFFICIALS.
(a) Compensation and Reimbursement. The Mayor and each member of the Council shall be paid as compensation for his or her services as a member of the Council for each calendar month during which he or she is a member of the Council a monthly salary together with appropriate benefits which shall be established by ordinance only after the Citizen's Salary Setting Commission has made a written recommendation for compensation pursuant to the strict limits of the section, such written recommendation has been published for review pursuant to the requirements of this section, and the mandated public hearings required by this section have been held on the recommendation.

The Mayor and members of the Council shall also receive reimbursement for expenses incurred while performing official duties of their office only so long as evidence of such expenses incurred is presented to the City in the manner prescribed for all other employees of the City.

No compensation or reimbursement shall be established for any member of the Council, including the Mayor, except as provided in this Section.
(b) Citizen's Salary Setting Commission. There shall be established a Citizen's Salary Setting Commission, hereinafter "Commission," whose function shall be to recommend the compensation it deems appropriate for the Mayor and members of the Council. This Commission shall meet between March 1st and April 30th of every even-numbered year.

The Citizen's Salary Setting Commission shall consist of five qualified electors residing within the City and shall be appointed by the City Council pursuant to the provisions below:
(A) Strong consideration shall be given to composing the Commission of:
(i) a retired Stanislaus County judge as chairperson;
(ii) one member from a bona fide local taxpayer's association with tax exempt status under the relevant provisions of the Internal Revenue Code;
(iii) one member from a bona fide local nonpartisan political organization, with tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, dedicated to encouraging informed and active participation in government;
(iv) one member from, a former Civil Grand Jury who has served in that role within in the previous five years;
(v) additional members who have demonstrated civic involvement and a capacity to serve in an honest, independent, and impartial fashion.
(B) No member of the Commission shall be a relative by blood or marriage within the third degree of the Mayor, a member of the Council, any Charter officer, or any department head or deputy department head.
(C) No member of the Commission shall be an employee of the City nor any bargaining unit for employees of the City, nor be a person who receives compensation from the City or from bargaining units of the City in any manner, including retirement benefits. (D) No member of the Commission shall be a lobbyist or other person with business before the City that represents an economic interest in excess of the limit for material financial effect as established by local ordinance for the time periods established by local ordinance. (E) In all other respects, the members of the Commission shall be chosen pursuant to the provisions of this Charter.
(F) Members of the Commission shall serve without compensation. #22..
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Created: 2025-12-16 12:34:15 [EST]
(Supp. No. 70)

Page 2 of 3 ends

Except as provided herein below, the regular term of office of each member of the Commission shall be four years.

The initial five members of the Commission shall be appointed during the month of March 2008. Two of the members so appointed shall be appointed for a term expiring on December 31, 2010. Three of the members, including the initial chairperson, so appointed shall be appointed for a term expiring on December 31, 2012.

Commencing in December 2010, new appointments shall be made during the month of December of each evennumbered year to fill the offices of the members whose terms are expiring at the end of such even-numbered years. Such appointments shall be for regular terms of four years commencing on the first day of January of the following odd-numbered year and expiring on the 30-first day of December of the second even-numbered year thereafter.

No Commission member may serve for more than two terms. A Commission member may be removed from office at any time for misconduct, inefficiency or willful neglect in the performance of the duties of his or her office providing the Council first states in writing the reasons for such removal and gives such member an opportunity to be heard before the Council in his or her own defense. No tax dollars shall be expended on behalf of a Commission member for such defense. If a vacancy occurs before the expiration of a member's term, the Council shall appoint a qualified person to fill such vacancy for the remainder of the unexpired term of such member. (c) Salary Limitations and Penalties. The salary of the Mayor shall not be more than 50 percent (50%) of the amount of the salary of a Judge of the Superior Court of Stanislaus County.

The salary of a Councilmember shall not be more than 50 percent (50%) of the median family income for the Modesto Metropolitan Statistical Area as reported by the United States Census Bureau. The salary of each Councilmember shall be the same.

Any appropriate benefits established under this provision may not include retirement or pension benefits of any sort.

No recommendation shall be made by the Commission except upon the affirmative vote of three members of the Commission.

No recommendations may be made in odd-numbered years. The recommendation of the Commission will be made to the Council by April 30th of every even-numbered year to be effective for a two-year period commencing not before July 1 of that even numbered year. Failure of the Commission to make a recommendation in any even numbered year within the prescribed time shall be deemed to be a recommendation that no changes be made to existing compensation levels.

Any monthly salary shall be reduced by one-fourth for each regular meeting of the Council not attended by a councilmember each month, unless absent on official duty with the consent of the Council. (d) Process to Set Compensation. Each recommendation by the Commission, together with the reasons for the recommendation, shall be made in writing by the Commission.

Before any such recommendation is provided to the Council, a draft recommendation shall be made available to the public and the Commission shall hold at least two public hearings on the matter before it adopts its final recommendation.

When such final recommendation has been submitted to the Council, it shall not thereafter be amended by the Commission.

Upon receiving the final recommendation from the Commission, the Council may adopt the compensation as recommended by the Commission or may adopt compensation in some lower amount, but in no case may adopt compensation in some higher amount. The Council may only adopt all such compensation by ordinance and after a public hearing of which legal notice is published in a newspaper of general circulation within the City at least 20 days prior to said hearing. Salaries established by ordinance adopted pursuant to the provisions of this Section shall remain in effect until amended by a subsequent ordinance adopted pursuant to the provisions of this Section. #22..
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Created: 2025-12-16 12:34:15 [EST]
(Supp. No. 70)

Page 3 of 3 ends

The compensation being paid to Councilmembers as of the effective date of this Section shall continue until any subsequent compensation is established pursuant to the requirements of this Section. (e) Subject to Referendum.

Any final decision by the Council on compensation under this Section shall be subject to the referendum provisions of the Charter.
(As amended April 29, 1971, November 4, 1980, and February 5, 2008) #22..
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Created: 2025-12-16 12:34:20 [EST]
(Supp. No. 70)

Page 1 of 1 ends

2-1.24 Compensation of Mayor.

The annual salary of the Mayor shall be fifty-sevenfour thousand, three hundred and forty-eight dollars ($57,348.0054,000.00), pursuant to the recommendation of the Citizens' Salary Setting Commission. In accordance with Section 703 of the Charter, the Mayor's compensation and appropriate benefits shall be reviewed by the Citizens' Salary Setting Commission biannually, and a recommendation made to the City Council as to the appropriate compensation. The annual salary shall be payable from and after the operative date of the ordinance at the same time and in the same manner as the salaries are paid to other officers and employees of the City. (Added by Ord. 3487-C.S., § 1, effective 6-26-08; Amended by Ord. 3781-C.S, § 1, effective 7-4-24) #22..
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Created: 2025-12-16 12:34:20 [EST]
(Supp. No. 70)

Page 1 of 1 ends

2-1.26 Compensation of City Councilmembers.

The annual salary of each member of the City Council, except the Mayor, shall be thirty- one thousand, eight hundred and sixty dollars ($31,860.0030,000.00). In accordance with Section 703 of the Charter, the Councilmember's compensation and appropriate benefits shall be reviewed by the Citizens' Salary Setting Commission biannually, and a recommendation made to the City Council as to the appropriate compensation. The annual salary shall be payable from and after the operative date of the ordinance at the same time and in the same manner as the salaries are paid to other officers and employees of the City. (Added by Ord. 3487-C.S., § 1, effective 6-26-08; Amended by Ord. 3781-C.S, § 1, effective 7-4-24) #22..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 22, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community & Economic Development SUBJECT: Adoption of the 2025 California Building Codes CONTACT: Oscar Diaz, Chief Building Official,
[email protected], 209-571-5885
DESCRIPTION:

Hearing to consider approving Final Adoption of Ordinances repealing and replacing Chapters 1, 2, 3, 7, and 11 of Title 9 of the Modesto Municipal Code to adopt by reference, the 2025 California Building, Plumbing, Electrical, Mechanical, and Existing Building Codes. (Funding Source: General Fund, Building Permit Fees) STRATEGIC PLAN ELEMENT:

These mandatory state codes are in line with the 205-2026 City of Modesto’s Strategic Plan Commitment Great Safe Neighborhoods, “Provide a safe and inviting community in which to live, work, and visit.”
BACKGROUND:

The International Code Council develops the model codes on a three-year code cycle.

The codes are known as “The International Building Codes”. The California Building Standards Commission (CBSC) is the responsible State body for all building code development. Every three (3) years, the CBSC conducts code development hearings to gain input from developers, building officials, local and state government leaders and other interested parties to review the Building Code Standards for the State of California.

These standards contain the minimum building requirements for the State of California and are mandatory throughout the State. This ordinance updates the City Building Codes to align with the new 2025 California Codes.
#23..
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City Council, May 12, 2026
Adoption of the 2025 California Building Codes

Page 2 of 4 ends

DISCUSSION:

Title 9 of the City of Modesto Municipal Code contains the City of Modesto’s building codes. These codes are primarily adopted by reference to the adopted State standards.

The California Building Standards Code (Building Code) is published by the California Building Standards Commission and filed with the Secretary of State, pursuant to Health and Safety Code Section 18938. Every three years, the Commission amends the Building Code and cities and counties are obligated to adopt the new standards. The most recently adopted version of the Building Code became effective January 1, 2026, and included the following:
• California Building Code
• California Mechanical Code
• California Electrical Code
• California Plumbing Code
• California Residential Code
• California Wildland-Urban Interface code
• California Green Building Standard Code
Assembly Bill 130, which was signed into law on June 30, 2025, prohibits any local amendments to codes affecting residential buildings until 2031 and allows development to continue under currently approved “master plans” for ten years.

Notable changes in the 2025 codes include:
• Sleeping lofts for single family dwellings.
o Sleeping lofts were previously only allowed in tiny homes. • More detailed requirements for the construction of decks and balconies. • Smoke alarms required in stacked non-sprinklered dwellings will require smoke alarms that provide an alert in the adjacent unit.
• Electrical Requirements
o Kitchen receptacles all need to be GFCI protected even when not mounted on the counter.
o All food preparation areas outside of the kitchen need GFCI protection o Drinking water coolers and bottle fillers will need to be GFCI protected. o Hotels will need to have surge protection devices to protect guest’s electronics.

Although each new edition contains minor technical changes, modifications and clarifications, these changes can be incorporated in the design of the projects and will have a minimal to moderate impact on constructability.

On Tuesday, April 7, 2026, the first reading of the proposed ordinance was approved as a consent item. This hearing is required for the final adoption of the ordinance.

Government Code section 6066 requires a public hearing to be scheduled on the second reading and the notice of the hearing to be posted in a local newspaper. A public notice of the hearing was published on April 17th and April 24th. #23..
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City Council, May 12, 2026
Adoption of the 2025 California Building Codes

Page 3 of 4 ends

FISCAL IMPACT:

The implementation of this Code requires additional training for existing staff. Funding is budgeted in the FY 25/26 Building Safety Division budget. We do not anticipate any other funding requirements to implement this Code.

COMMITTEE RECOMMENDATION:

This item was presented to the Safety and Communities Committee on March 9, 2026, who recommended its approval.

CEQA/NEPA REQUIREMENTS:

This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Motion approving final adoption of Ordinance 3808-C.S. repealing and replacing Chapter 1 ”Building Code” of Title 9, “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Building Code.

Motion approving final adoption of Ordinance 3809-C.S. repealing and replacing Chapter 2 “Plumbing Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Plumbing Code.

Motion approving final adoption of Ordinance 3810-C.S. repealing and replacing Chapter 3 “Electrical Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Electrical Code.

Motion approving final adoption of Ordinance 3811-C.S. repealing and replacing Chapter 7 “Mechanical Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Mechanical Code.

Motion approving final adoption of Ordinance 3812-C.S. repealing and replacing Chapter 11 “Existing Building Code” of Title 9 “Building Regulations” of the Modesto Municipal Code to adopt by reference the 2025 California Existing Building Code.

Approved by:

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

1. Proposed Building Code Ordinance

2. Proposed Plumbing Code Ordinance

3. Proposed Electrical Code Ordinance
#23..
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City Council, May 12, 2026
Adoption of the 2025 California Building Codes

Page 4 of 4 ends

4. Proposed Mechanical Code Ordinance

5. Proposed Existing Building Code Ordinance
#23..
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ORDINANCE NO. 3808-C.S.

EFFECTIVE DATE: June 11, 2026
- 1 -
ORDINANCE NO. 3808-C.S.

AN ORDINANCE REPEALING AND REPLACING CHAPTER 1, “BUILDING CODE,” OF TITLE 9, “BUILDING REGULATIONS” OF THE MODESTO MUNICIPAL CODE TO ADOPT BY REFERENCE THE 2025 CALIFORNIA

BUILIDNG CODE
WHEREAS, Health and Safety Code Section 18938 makes provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the State and effective one hundred and eighty days after publication by the California Building Standards Commission (the Commission), or at a later date established by the Commission; and WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such changes in such provisions as the city determines, pursuant to Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making changes pursuant to Health and Safety Code Section 17958.5, must make an express finding that such changes are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS, under Health and Safety Code Section 17958.7, changes pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings, and the changes, have been filed with the California Building Standards Commission; and
#23..
- 1212 -
ORDINANCE NO. 3808-C.S.

EFFECTIVE DATE: June 11, 2026
- 2 -
WHEREAS, the City is not proposing any amendments to the California Building Code; and
WHEREAS, Government Code Section 50022.2 permits enactment of City Ordinances that adopt codes or statutes, including codes of the State of California, by reference; and
WHEREAS, notice of the Ordinance was published in accordance with Government Code Sections 50022.3 and 6066; and that such notice was sufficient to give notice to interested persons of the purpose of the ordinance and the subject matter thereof.

NOW, THEREFORE, the City Council of the City of Modesto does hereby ordain as follows:

SECTION 1. REPEAL AND REPLACEMENT OF CODE.

Chapter 1, “Building Code” of Title 9, “Building Regulations” of the Modesto Municipal Code is hereby repealed in its entirety and replaced with the following.

Chapter 1. BUILDING CODE
Article 1. Adoption by Reference of the 2025 California Building Code 9-1.101 Adoption by Reference of the 2025 California Building Code.

That certain document, one (1) copy of which is on file in the Office of the Chief Building Official of the City of Modesto, being marked and designated as the 2022 California Building Code, California Code of Regulations, Title 24, Part 2, Volumes 1 and 2, as published by the International Code Council, as now existing, or hereafter amended, regulating and governing the conditions of all properties, buildings, and structures; by providing the standards for facilities and other physical things and conditions essential to ensure that structures are safe, sanitary and fit for occupancy and use; and the condemnation of buildings and structures unfit for human occupancy and use and the demotion of such structures; providing for the issuance of permits and collection of fees therefor; and providing penalties for the violation thereof; and each and all of the regulations, provisions, penalties, conditions and terms of said 2025 California Building #23..
- 1213 -
ORDINANCE NO. 3808-C.S.

EFFECTIVE DATE: June 11, 2026
- 3 -
Code on file in the Office of the Chief Building Official of the City of Modesto is hereby referred to, adopted and made a part hereof, as if fully set out in this ordinance, with the additions, deletions, insertions and changes, if any, prescribed in this Chapter, be and hereby is adopted as the Building Code of the City of Modesto. 9-1.101.2 Adoption by Reference of the 2025 California Residential Code.

That certain document, one (1) copy of which is on file in the office of the Chief Building Official at the City of Modesto, being marked and designated as the California Residential Code, 2025 edition, California Code of Regulations Title 24, Part 2.5 as published by the International Code Council, regulating and governing the conditions of residential detached one- and two-family dwellings by providing the standards for facilities and other physical things and conditions essential to ensure that these structures are safe, sanitary and fit for occupation and use; and the demolition of such structures as herein provided, providing for the issuance of permits and collection of fees therefor; and providing penalties for the violation thereof, and each and all of the regulations; provisions, penalties, conditions and terms of said building code on file in the office of the Chief Building Official of Modesto are hereby referred to, adopted and made part hereof, as if fully set out in this ordinance with the additions, deletions and changes, if any prescribed in this chapter, be and hereby are adopted by reference as the Building Code of the City of Modesto.
9-1.101.3 Adoption by Reference of the 2025 California Green Building Standards Code.

That certain document, one (1) copy of which is on file in the office of Chief Building Official at the City of Modesto, being marked and designated as the California Green Building Standards Code, 2025 edition, California Code of Regulations Title 24, Part 11 as published by the International Code Council, regulating and governing the conditions for energy efficiency, water efficiency and conservation, material conservation and resource efficiency for residential and nonresidential buildings hereby referred to, adopted and made part hereof, as if fully set out in this ordinance with the additions, deletions and changes, if any prescribed in this chapter, be and hereby is adopted by reference as the Green Building Code of the City of Modesto.

SECTION 2. SEVERABILITY
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. This City Council declares that it would have adopted this ordinance irrespective of the #23..
- 1214 -
ORDINANCE NO. 3808-C.S.

EFFECTIVE DATE: June 11, 2026
- 4 -
invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT
The proposed Ordinance is exempt from CEQA under the general rule in CEQA Guidelines section 15061(b)(3), that CEQA only applies to projects that have the potential for causing a significant effect on the environment.

SECTION 4. EFFECTIVE DATE
This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

SECTION 5. PUBLICATION
At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this ordinance, the date of its introduction and the places where this Ordinance is posted.
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ORDINANCE NO. 3808-C.S.

EFFECTIVE DATE: June 11, 2026
- 5 -
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 7th day of April 2026, by Councilmember Williams, who moved its introduction and passage to print, which motion being duly seconded by Councilmember Wright, was upon roll call carried and ordered printed and published by the following vote:

AYES: Councilmembers: Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams Wright, Mayor Zwahlen
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: __________________________
SUE ZWAHLEN, Mayor
ATTEST:

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: __________________________________
JOSE SANCHEZ, City Attorney
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ORDINANCE NO. 3808-C.S.

EFFECTIVE DATE: June 11, 2026
- 6 -

FINAL ADOPTION CLAUSE
The foregoing Ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 12th day of May 2026, Councilmember ?? moved its final adoption, which motion being duly seconded by Councilmember ??, was upon roll call carried and the Ordinance adopted by the following vote:

AYES: Councilmembers: Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: _________________________
SUE ZWAHLEN, Mayor
ATTEST:

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
Effective Date: June 11, 2026
#23..
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ORDINANCE NO. 3809-C.S.

EFFECTIVE DATE: June 11, 2026
- 1 -
ORDINANCE NO. 3809-C.S.

AN ORDINANCE REPEALING AND REPLACING CHAPTER 2, “PLUMBING CODE” OF TITLE 9, “BUILDING REGULATIONS” OF THE MODESTO MUNICIPAL CODE TO ADOPT BY REFERENCE THE 2025 CALIFORNIA PLUMBING CODE WHEREAS, Health and Safety Code Section 18938 makes provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the State and effective one hundred and eighty days after publication by the California Building Standards Commission (the Commission), or at a later date established by the Commission; and
WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such changes in such provisions as the city determines, pursuant to Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making changes pursuant to Health and Safety Code Section 17958.5, must make an express finding that such changes are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS, under Health and Safety Code Section 17958.7, changes pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings, and the changes, have been filed with the California Building Standards Commission; and WHEREAS, Government Code Section 50022.2 permits enactment of City Ordinances that adopt codes or statutes, including codes of the State of California, by reference; and #23..
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ORDINANCE NO. 3809-C.S.

EFFECTIVE DATE: June 11, 2026
- 2 -
WHEREAS, the City is not proposing any amendments to the California Plumbing Code; and
WHEREAS, notice of the Ordinance was published in accordance with Government Code Sections 50022.3 and 6066; and that such notice was sufficient to give notice to interested persons of the purpose of the ordinance and the subject matter thereof; and NOW, THEREFORE, the City Council of the City of Modesto does hereby ordain as follows:

SECTION 1. REPEAL AND REPLACEMENT OF CODE.

Chapter 2, “Plumbing Code” of Title 9, “Building Regulations” of the Modesto Municipal Code is hereby repealed in its entirety and replaced with the following.

Chapter 2 PLUMBING CODE
Article 1. Adoption by Reference of the 2025 California Plumbing Code 9-2.101 Adoption by Reference of the 2025 California Plumbing Code.

That certain document, one (1) copy of which is on file in the Office of the Chief Building Official of the City of Modesto, being marked and designated as the 2025 California Plumbing Code, California Code of Regulations, Title 24, Part 5, as published by the International Association of Plumbing and Mechanical Officials (IAPMO), as now existing, or hereafter amended, regulating and governing the erection, alteration, installation, repair, relocation, replacement, addition to, use or maintenance of plumbing and drainage systems and parts thereof for the protection of public health and safety, providing for the issuance of permits and collection of fees, providing penalties for the violation thereof; and each and all of the regulations, provisions, penalties, conditions and terms of said 2025 California Plumbing Code on file in the Office of the Chief Building Official of the City of Modesto is hereby referred to, adopted and made a part hereof, as if fully set out in this ordinance, with the additions, deletions, insertions and changes, if any, prescribed in this Chapter, be and hereby is adopted as the Plumbing Code of the City of Modesto.
#23..
- 1219 -
ORDINANCE NO. 3809-C.S.

EFFECTIVE DATE: June 11, 2026
- 3 -
SECTION 2. SEVERABILITY
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. This City Council declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

The proposed Ordinance is exempt from CEQA under the general rule in CEQA Guidelines section 15061(b)(3), that CEQA only applies to projects that have the potential for causing a significant effect on the environment.

SECTION 4. EFFECTIVE DATE
This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

EFFECTIVE DATE: June 11, 2026
- 4 -
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 7th day of April 2026, by Councilmember Williams, who moved its introduction and passage to print, which motion being duly seconded by Councilmember Wright, was upon roll call carried and ordered printed and published by the following vote:

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: __________________________________
JOSE SANCHEZ, City Attorney
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ORDINANCE NO. 3809-C.S.

EFFECTIVE DATE: June 11, 2026
- 5 -

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
Effective Date: June 11, 2026
#23..
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ORDINANCE NO. 3810-C.S.

EFFECTIVE DATE: June 11, 2026
- 1 -
ORDINANCE NO. 3810-C.S.

AN ORDINANCE REPEALING AND REPLACING CHAPTER 3, “ELECTRICAL CODE” OF TITLE 9, “BUILDING REGULATIONS” OF THE MODESTO MUNICIPAL

CODE RELATING TO BUILDING REGULATIONS TO ADOPT BY REFERENCE THE 2025 CALIFORNIA ELECTRICAL CODE
WHEREAS, Health and Safety Code Section 18938 makes provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the State and effective one hundred and eighty days after publication by the California Building Standards Commission (the Commission), or at a later date established by the Commission; and
WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such changes in such provisions as the city determines, pursuant to Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making changes pursuant to Health and Safety Code Section 17958.5, must make an express finding that such changes are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS, under Health and Safety Code Section 17958.7, changes pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings, and the changes, have been filed with the California Building Standards Commission; and WHEREAS, The City is not proposing any amendments to the California Building Code; and
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ORDINANCE NO. 3810-C.S.

EFFECTIVE DATE: June 11, 2026
- 2 -
WHEREAS, Government Code Section 50022.2 permits enactment of City Ordinances that adopt codes or statutes, including codes of the State of California, by reference; and WHEREAS, notice of the Ordinance was published in accordance with Government Code Sections 50022.3 and 6066; and that such notice was sufficient to give notice to interested persons of the purpose of the ordinance and the subject matter thereof.

NOW, THEREFORE, the City Council of the City of Modesto does hereby ordain as follows:

SECTION 1. REPEAL AND REPLACEMENT OF CODE.

Chapter 3 entitled “Electrical Code” of Title 9 “Building Regulations” is hereby repealed in it’s entirely and replaced with the following:

Article 1. - Adoption by Reference of the 2025 California Electrical Code 9-3.101 - Adoption by Reference of the 2025 California Electrical Code.

That certain document, one (1) copy of which is on file in the Office of the Chief Building Official of the City of Modesto, being marked and designated as the 2025 California Electrical Code, California Code of Regulations Title 24, Part 3, as published by the National Fire Protection Association (NFPA), as now existing, or hereafter amended, regulating, governing and providing standards for the erection, installation, repair, relocation, replacement, addition to, use, or maintenance of electrical systems and parts thereof for the protection of public health and safety, providing for the issuance of permits and collection of fees, providing penalties for the violation thereof; and each and all of the regulations, provisions, penalties, conditions and terms of said 2025 California Electrical Code on file in the Office of the Chief Building Official of the City of Modesto is hereby referred to, adopted and made a part hereof, as if fully set out in this ordinance, with the additions, deletions, insertions, and changes if any, prescribed in this Chapter, be and hereby is adopted as the Electrical Code of the City of Modesto.

EFFECTIVE DATE: June 11, 2026
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would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

SECTION 4. EFFECTIVE DATE
This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: __________________________________
JOSE SANCHEZ, City Attorney
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ORDINANCE NO. 3810-C.S.

EFFECTIVE DATE: June 11, 2026
- 5 -

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
Effective Date: June 11, 2026
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ORDINANCE NO. 3811-C.S.

EFFECTIVE DATE: June 11, 2026
- 1 -
ORDINANCE NO. 3811-CS
AN ORDINANCE REPEALING AND REPLACING CHAPTER 7, “MECHANICAL CODE” OF TITLE 9, “BUILDING REGULATIONS” OF THE MODESTO MUNICIPAL CODE TO ADOPT BY REFERENCE THE 2025 CALIFORNIA MECHANICAL CODE WHEREAS, Health and Safety Code Section 18938 makes provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the State and effective one hundred and eighty days after publication by the California Building Standards Commission (the Commission), or at a later date established by the Commission; and
WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such changes in such provisions as the city determines, pursuant to Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making changes pursuant to Health and Safety Code Section 17958.5, must make an express finding that such changes are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS, under Health and Safety Code Section 17958.7, changes pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings, and the changes, have been filed with the California Building Standards Commission; and WHEREAS, Government Code Section 50022.2 permits enactment of City Ordinances that adopt codes or statutes, including codes of the State of California, by reference; and #23..
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ORDINANCE NO. 3811-C.S.

EFFECTIVE DATE: June 11, 2026
- 2 -
WHEREAS, the City is not proposing any amendments to the California Building Code; and
WHEREAS, notice of the ordinance was published in accordance with Government Code Sections 50022.3 and 6066; and that such notice was sufficient to give notice to interested persons of the purpose of the ordinance and the subject matter thereof.

NOW, THEREFORE, the City Council of the City of Modesto does hereby ordain as follows:

SECTION 1. REPEAL AND REPLACEMENT OF CODE.

Chapter 7, “Mechanical Code” of Title 9, “Building Regulations” of the Modesto Municipal Code is hereby repealed in its entirety and replaced with the following.

Chapter 7. MECHANICAL CODE
Article 1. - Adoption by Reference of the 2025 California Mechanical Code 9-7.101 - Adoption by Reference of the 2025 California Mechanical Code.

That certain document, one (1) copy of which is on file in the Office of the Chief Building Official of the City of Modesto, being marked and designated as the 2025 California Mechanical Code, California Code of Regulations, Title 24, Part 4, as published by the International Association of Plumbing and Mechanical Officials (IAPMO), as now existing, or hereafter amended, which said Code governs and provides proper regulations of mechanical systems and parts thereof, including, but not limited to, addition to or erection, installation, alteration, repair, relocation, replacement, use, or maintenance of any heating, ventilation, cooling, refrigeration systems or equipment thereof; incinerators or parts or equipment thereof; or other miscellaneous heat producing appliances, parts or equipment thereof; providing for the issuance of permits and collection of fees therefor; providing for the inspection thereof; providing penalties for the violation thereof; and each and all of the regulations, provisions, penalties, conditions and terms of said 2025 California Mechanical Code on file in the Office of the Chief Building Official of the City of Modesto is hereby referred to, adopted and made a part hereof, as if fully set out in this ordinance, with the additions, deletions, insertions, and changes, if any, prescribed in this Chapter, be and hereby is adopted as the Mechanical Code of the City of Modesto. #23..
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ORDINANCE NO. 3811-C.S.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT.

SECTION 4. EFFECTIVE DATE
This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: __________________________________
JOSE SANCHEZ, City Attorney
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ORDINANCE NO. 3811-C.S.

EFFECTIVE DATE: June 11, 2026
- 5 -

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
Effective Date: June 11, 2026
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ORDINANCE NO. 3812-C.S.

EFFECTIVE DATE: June 11, 2026
- 1 -
ORDINANCE NO. 3812-C.S.

AN ORDINANCE REPEALING AND REPLACING CHAPTER 11, “EXISTING BUILDING CODE” OF TITLE 9, “BUILDING REGULATIONS” OF THE MODESTO MUNICIPAL CODE TO ADOPT BY REFERENCE THE 2025

CALIFORNIA EXISTING BUILIDNG CODE
WHEREAS, Health and Safety Code Section 18938 makes provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the State and effective one hundred and eighty days after publication by the California Building Standards Commission (the Commission), or at a later date established by the Commission; and WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such changes in such provisions as the city determines, pursuant to Health and Safety Code Section 17958.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making changes pursuant to Health and Safety Code Section 17958.5, must make an express finding that such changes are reasonably necessary because of local climatic, geological or topographical conditions; and
WHEREAS, under Health and Safety Code Section 17958.7, changes pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings, and the changes, have been filed with the California Building Standards Commission; and
#23..
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ORDINANCE NO. 3812-C.S.

EFFECTIVE DATE: June 11, 2026
- 2 -
WHEREAS, Government Code Section 50022.2 permits enactment of City Ordinances that adopt codes or statutes, including codes of the State of California, by reference; and
WHEREAS, the City is not proposing any amendments to the California Existing Building Code; and
WHEREAS, notice of the Ordinance was published in accordance with Government Code Sections 50022.3 and 6066; and that such notice was sufficient to give notice to interested persons of the purpose of the ordinance and the subject matter thereof.

NOW, THEREFORE, the City Council of the City of Modesto does hereby ordain as follows:

SECTION 1. REPEAL AND REPLACEMENT OF CODE.

Chapter 11, “Existing Building Code” of Title 9, “Building Regulations” of the Modesto Municipal Code is hereby repealed in its entirety and replaced with the following.

Chapter 11. EXISTING BUILDING CODE
Article 1. Adoption by Reference of the 2025 California Existing Building Code
9-1.101 Adoption by Reference of the 2025 California Existing Building Code.

That certain document, one (1) copy of which is on file in the Office of the Chief Building Official of the City of Modesto, being marked and designated as the 2025 California Existing Building Code, California Code of Regulations, Title 24, Part 10, as published by the International Code Council, as now existing, or hereafter amended, regulating and governing the conditions of all properties, buildings, and structures; by providing the standards for facilities and other physical things and conditions essential to ensure that structures are safe, sanitary and fit for occupancy and use; and the #23..
- 1234 -
ORDINANCE NO. 3812-C.S.

EFFECTIVE DATE: June 11, 2026
- 3 -
condemnation of buildings and structures unfit for human occupancy and use and the demotion of such structures; providing for the issuance of permits and collection of fees therefor; and providing penalties for the violation thereof; and each and all of the regulations, provisions, penalties, conditions and terms of said 2025 California Existing Building Code on file in the Office of the Chief Building Official of the City of Modesto is hereby referred to, adopted and made a part hereof, as if fully set out in this ordinance, with the additions, deletions, insertions and changes, if any, prescribed in this Chapter, be and hereby is adopted as the Existing Building Code of the City of Modesto.

SECTION 4. EFFECTIVE DATE
This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption. #23..
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ORDINANCE NO. 3812-C.S.

EFFECTIVE DATE: June 11, 2026
- 4 -
SECTION 5. PUBLICATION
At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this ordinance, the date of its introduction and the places where this Ordinance is posted.
#23..
- 1236 -
ORDINANCE NO. 3812-C.S.

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: __________________________________
JOSE SANCHEZ, City Attorney
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- 1237 -
ORDINANCE NO. 3812-C.S.

EFFECTIVE DATE: June 11, 2026
- 6 -

By: __________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
Effective Date: June 11, 2026
#23..
- 1238 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 7, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Program Year 2026-2027 Annual Action Plan
CONTACT: Meggan Clifford, Senior Community Development Program Specialist [email protected], 209-577-5311
DESCRIPTION:

Hearing to consider approving the 2026-2027 Annual Action Plan and the acceptance of the 2026-2027 Annual HUD Allocation in the amount of $2,816,391. (Funding Source:

HUD Entitlement Funding)
STRATEGIC PLAN ELEMENT:

This item supports quality of life consistent with the City Council’s 2025-2026 Strategic Plan Goal C: In partnership with public agencies, develop and implement a comprehensive housing and homelessness action 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 to 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 2025 to 2030 (July 1, 2025 to June 30, 2030).

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 #24..
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City Council, May 12, 2026
Program Year 2026-2027 Annual Action Plan

Page 2 of 5 ends

(HOME), and Emergency Solutions Grant (ESG) funds. The Annual Action Plan (AAP) must align and support the priorities in the City’s 2025-2030 Consolidated Plan.

DISCUSSION:

The City of Modesto’s Program Year (PY) 2026-2027 Annual Action Plan represents the second (2nd) plan of the City of Modesto’s 2025-2030 Consolidated Plan. The PY 2026- 2027 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 2026-2027 grant allocations:

CDBG $ 1,858,751
ESG $ 166,895
HOME $ 790,745
Total $ 2,816,391
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 of 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:

CDBG Project Categories
• Program Planning and Administration: Program funds will pay for eligible planning and administration expenses incurred in the development and implementation of funded projects.
• Housing Rehabilitation Administration Activity Delivery: Activity delivery costs for the delivery and implementation of the City’s Housing Rehabilitation Program.
• Economic Development: Eligible economic development activities including but not limited to small business loans for job creation/retention and/or microenterprise assistance.
• Public Facilities: Support public facilities projects in low/moderate income neighborhoods including the following projects:
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City Council, May 12, 2026
Program Year 2026-2027 Annual Action Plan

Page 3 of 5 ends

• Affordable Housing – Acquisition, Rehabilitation: Acquisition and/or rehabilitation of properties for conversion into affordable housing units.

Projects may include:
o Acquisition and Rehabilitation of new affordable housing units • Housing Rehabilitation: Provide assistance to eligible homeowners for health and safety related home repairs.

Revolving Loan Fund Activities
Affordable Housing – Owner Occupied Housing Rehabilitation. This program assists low-income owner-occupied households with health and safety repairs in the form of loans and grants.

Public Services
Up to fifteen percent (15%) of the overall CDBG allocation may be used to fund CDBG public service grants awarded to eligible organizations that serve low- and moderate-income residents. Public service activities including the City’s activity delivery costs, to eligible non-profit organizations. These are awarded through a competitive application process and will be awarded when we receive the allocation from HUD.

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
• 7
th Street Village – Development of a 79-unit rental housing mixed-use building in Downtown.
• Surplus Property Strategy – City staff will be reviewing options to partner with Developers to leverage city-owned property for the construction of affordable housing.
• Other Potential Projects could include:
o Affordable Housing – Rehabilitation and Construction
o Community Housing Development Organization (CHDO) Set-Aside o Community Housing Development Organization (CHDO) Operating Support
Citizen Participation Process
#24..
- 1241 -
City Council, May 12, 2026
Program Year 2026-2027 Annual Action Plan

Page 4 of 5 ends

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. The public noticing period will be available from April 08, 2026 through May 12, 2026. The public review period serves as an opportunity for the public to provide comments on the draft AAP document.

A series of community meetings are being held during the months of April and May 2026 to provide information about the City’s HUD programs and discuss the PY 2026- 2027 Annual Action Plan. The following is a list of the community meetings:

Date Time Location
April 8, 2026 10:00 am West Modesto Collaborative
April 8, 2026 5:30 pm Stanislaus Homeless Alliance
April 9, 2026 1:00 pm Citizen Housing & Community Development Committee
April 16, 2026 2:30 pm Stanislaus Community System of Care May 12, 2024 5:30 pm City Council Public Hearing
Any comments received during the public review period or during the Council public hearing will be incorporated into the final Program Year 2026-2027 Annual Action Plan that is submitted to HUD. A copy of the Draft Program Year 2026-2027 Annual Action Plan.

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.

FISCAL IMPACT:

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.

Failure to comply could 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 2026-2027, the City will receive $2,816,391 from the three federal programs. There is no impact to the General Fund.
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- 1242 -
City Council, May 12, 2026
Program Year 2026-2027 Annual Action Plan

Page 5 of 5 ends

COMMITTEE RECOMMENDATION:

This item was presented to Citizen’s Housing and Community Development Committee on April 9, 2026, and was recommended to forward to Council for approval.

CEQA/NEPA REQUIREMENTS:

This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Program Year 2026-2027 Annual Action Plan, accepting U.S.

Department of Housing and Urban Development (HUD) program funds awarded through the Program Year 2026-2027 Annual Action Plan as required by HUD and authorizing the City Manager, or his designee, to negotiate and execute any related program agreements, contracts, or other documentation required for implementation.

Approved by:

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

1. Resolution

2. Program Year 2026-2027 Annual Action Plan
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5/12/2026/CED/MClifford/Item XX 1 2026-xxxx

MODESTO CITY COUNCIL
RESOLUTION NO. 2026-xxxx
RESOLUTION APPROVING THE 2026-2027 ANNUAL ACTION PLAN,
ACCEPTING U.S. DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT (HUD) PROGRAM FUNDS AWARDED THROUGH THE
PROGRAM YEAR 2026-2027 ANNUAL ACTION PLAN AS REQUIRED BY

HUD AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO

NEGOTIATE AND EXECUTE ANY RELATED PROGRAM AGREEMENTS,

CONTRACTS, OR OTHER DOCUMENTATION REQUIRED FOR

IMPLEMENTATION
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) 2026-2027 Annual Action Plan represents the second (2nd) plan of the City of Modesto’s 2025-2030 Consolidated Plan; and
WHEREAS, the PY 2026-2027 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 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 #24..
- 1244 -
5/12/2026/CED/MClifford/Item XX 2 2026-xxxx
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
WHERES, 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 2026-2027 Annual Action Plan; and
WHEREAS, a series of community meetings were held during the month of April and May 2026 to provide information about the City’s HUD programs and discuss the PY 2026-2027 Annual Action Plan; and #24..
- 1245 -
5/12/2026/CED/MClifford/Item XX 3 2026-xxxx
WHEREAS, any comments obtained from the community meetings will be incorporated into the Program Year 2026-2027 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 08, 2026 and will close with a public hearing at the City Council meeting on May 12, 2026; and
WHEREAS, in Program Year 2026-2027, the City is to receive $1,858,751 in CDBG funds, $166,895 in ESG funds, and $790,745 in HOME funds for a total amount of $2,816,391 from the three federal programs.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the 2026-2027 Annual Action Plan and accepts the 2026-2027 annual U.S Department of Housing and Urban Development allocation in the amount of $2,816,391.

BE IT FURTHER RESOLVED that the City Manager, or his
designee, is authorized to submit the 2026-2027 Annual Action Plan including applicable documentation and to make the necessary steps to implement the provision of this resolution.
#24..
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5/12/2026/CED/MClifford/Item XX 4 2026-xxxx
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 12th day of May, 2026, 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
#24..
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DRAFT Program Year 2026-2027
Annual Action Plan
Prepared by:

Community and Economic Development Department
City of Modesto Consolidated Plan 2025 - 2030 - Year 2
Approved by Resolution Number: Draft
#24..
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Table of Contents
Executive Summary ........................................................................................................ 3 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ................................................. 3 PR-05 Lead & Responsible Agencies – 91.200(b) ............................................................. 5 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) .......................................................... 6 Expected Resources ..................................................................................................... 32 AP-15 Expected Resources – 91.220(c)(1,2) .................................................................. 32 Annual Goals and Objectives ......................................................................................... 37 AP-20 Annual Goals and Objectives ............................................................................ 37 Projects ...................................................................................................................... 39 AP-35 Projects – 91.220(d) ......................................................................................... 39 AP-38 Project Summary............................................................................................. 42 AP-50 Geographic Distribution – 91.220(f) ................................................................... 46 Affordable Housing ...................................................................................................... 47 AP-55 Affordable Housing – 91.220(g) ......................................................................... 47 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ..................................... 53 AP-75 Barriers to affordable housing – 91.220(j) .......................................................... 62 Program Specific Requirements ..................................................................................... 72 AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ............................................... 72 Executed HUD Certifications and SF-424 ......................................................................... 78 City of Modesto Resolution 2026-XXX ............................................................................ 78 #24..
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Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Modesto’s Program Year (PY) 2026-2027 Annual Action Plan (AAP) represents the second (2nd) year plan of the City of Modesto’s 2025-2030 Consolidated Plan (the Consolidated Plan). The PY 2026-2027 AAP identifies activities to be undertaken during the program year to address community priority needs identified in the Consolidated Plan. Further, the PY 2026-2027 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 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 2026-2027 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 2026-2027 Annual Action Plan 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.

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):
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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 the Camp2Home initiative’s Street Outreach component and the outreach team has made 7,026 contacts and provided 6,000 services including case management, health services and met 4,000 basic needs for individuals experiencing homelessness. As the frontline effort Street Outreach’s is geared towards connection to shelter. Once an individual is sheltered, they were engaged in connections to job training programs with the Downtown Streets Team which to date served 937 individuals and successfully placed 113 individuals into employment. Downtown Streets Team ended operations in October 2025. Job training continued within Camp2Home with HopeWorks, a job readiness program in partnership with United Way and Modesto Gospel Mission. Through the Camp2Home initiative 183 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 PY 2024, 3,224 low-income individuals were assisted with CDBG and 825 homeless or at risk for homelessness individuals were assisted through with ESG funds.

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

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

6. To help meet the needs of the rising number of individuals experiencing homelessness, the City released a bridge housing request for proposals for host sites, operators and service providers.

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 identified to expand the reach to active community groups and accommodate the needs of low-income residents, particularly persons with Limited English Proficiency.

Spanish interpretation was available 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/AnnualAction-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. #24..
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 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) 2024-2025 Annual Action Plan represents the fifth (5th) year plan of the City of Modesto’s 2020-2024 Consolidated Plan. The PY 2024-2025 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.

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
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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, Equity Commission, Housing Rehabilitation Loan Committee 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 Community Development staff with comments regarding the City’s Consolidated Plan:
 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/CommunityEconomic-Development-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 #24..
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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.

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 #24..
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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. Often times, BHRS and City HUD funding resources are leveraged together when partnering with local affordable housing developers.

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 Housing Support Program (HSP), the Housing Disability Advocacy Program (HDAP), 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.

Through the Stanislaus Homeless/Blight Work group, the City regularly meets with community partners including the County Sheriff’s Highway Patrol Department, City Police Department, Probation Department, Fire Department, Homeless Outreach providers, City/County Public Works Departments, and supportive service providers to strategize blight abatement and service coordination throughout the community with a focus on unsheltered homelessness.

Hospital Council includes Northern & Central California partners with Stanislaus County as well as the City of Modesto in monthly meetings. This collaborative partnership has a shared 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 cooperation is to alleviate individuals experiencing homelessness from being discharged to the street.

The City participates on the local Board of the Federal Emergency Management Agency’s (FEMA’s) Emergency Food and Shelter Program (EFSP) which provides supplemental grants to local government and nonprofit organizations to support and expand existing programs that aid individuals and families who are, or are at risk of, experiencing hunger and/or homelessness.

California Advancing and Innovating Medi-Cal (CalAIM) is a long-term commitment to transform Medi-Cal, making the program more equitable, coordinated, and person-centered to help people maximize their health and life trajectory. CalAIM puts people’s needs at the center of care, addressing social drivers of health, and transforming services for communities that have been historically under resourced. #24..
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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 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 #24..
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Emergency Shelter, the Salvation Army, Family Promise, Modesto Gospel Mission, HopeWorks, 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.

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 nonfunded 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. #24..
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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. 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

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
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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
g. Anti-poverty Strategy
h. 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. 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
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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

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
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. 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
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c. Services-homeless

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
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
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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
c. Non-Homeless Special Needs
d. Economic Development
e. Anti-poverty Strategy

1. Agency/Group/Organization
City of Turlock

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

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

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
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b. Services-Education
c. Services-Employment

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

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

PROJECT SENTINEL

2. Agency/Group/Organization Type
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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. 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.

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? #24..
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a. Homeless Needs - Chronically homeless
b. Homeless Needs - Families with children
c. Homelessness Needs - Unaccompanied youth
d. 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.

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

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

4. Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? #24..
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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
Stanislaus County Hospital & Shelter Partners

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

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

1. Agency/Group/Organization
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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

1. Agency/Group/Organization
State Historic Preservation Office

2. Agency/Group/Organization Type
Government – State of California

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

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? #24..
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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.

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

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
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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

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? #24..
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a. Homelessness Needs - Unaccompanied youth
b. Homelessness Strategy
c. Non-Homeless Special Needs

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.
https://www.modestogov.com/2099/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
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Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
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. Broadband
Deployment, Affordability, and Digital Equity Programs
(ca.gov)
2022-2027
Local Hazard
Mitigation
Plan
Stanislaus County –
Office of Emergency
Services
The Stanislaus County Office of Emergency Services
developed the 2022-2027 Multi-Jurisdictional Hazard
Mitigation Plan update to make the County, and its 10
participating jurisdictions, and its residents less
vulnerable and more resilient to future hazard events.

Modesto
Housing Plan
City of Modesto The Modesto Housing Plan outlines a strategic approach to expanding housing choices by addressing
barriers to development and promoting diverse,
attainable housing options. The plan emphasizes the
need to meet shifting household demands, support
walkable neighborhoods, and ensure housing
affordability. Serving as a guiding document, it will
shape long-term planning efforts, inform the City's
General Plan and Housing Element, and support
increased housing production across all income
levels.

Table 3 – 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. #24..
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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 2025. Compliance with the 2025 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
Landslide hazards were evaluated for the City, and based on the analysis and available mapping, no significant vulnerabilities or impacts were identified. Within the City limits of Modesto, landslide risk is considered minimal, including for 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 of Modesto could be significantly affected by extreme flooding, and the probability of future flood events is considered high, with historical data showing an incident approximately every 14 years. Although the likelihood of recurrence is elevated, emergency officials typically receive advance notice of potential flooding, allowing first responders time to warn and evacuate residents.

Populations most at risk include individuals who cannot self-evacuate—such as the elderly, young children, and persons with disabilities. The homeless population is also highly vulnerable during flood events and may require expanded notification and relocation support. Homeless outreach teams, coordinated through law enforcement, have prioritized early notification efforts for unsheltered individuals during flood threats.

Based on the flood history within Stanislaus County, the City of Modesto and surrounding areas are considered likely to experience future flood hazards. The City participates in the National #24..
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Flood Insurance Program (NFIP), and flood risks are included in this vulnerability assessment to support public awareness, preparedness, and mitigation planning.

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 ., on behalf of the FCC, 15,311 Modesto low-moderate-income residents have taken advantage of this program. Not unsurprising the majority, or approximately 23,009 households as of February 8, 2024, are from the zip codes that make up Modesto’s most vulnerable areas.

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 #24..
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of Modesto has a Citizen Participation Plan (CPP). The community outreach process included 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 7, 2026, through May 12, 2026. During the Citizen Participation process, community meetings were held to inform community groups of the 2026-2027 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.

Citizen Participation Outreach
Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
News Paper Ad –
Modesto Bee
Non- targeted/broad
community

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

N/A N/A
Email - City of Modesto
Listserv
Non- targeted/broad
community

N/A N/A
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Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Email - SHA Listserv  Nontargeted/broad
community

N/A N/A
Stanislaus
Community System
of Care
 Minorities
 Non-English
Speaking -
 Persons with
disabilities
 Nontargeted/broad
community
 Residents of
Public and
Assisted
Housing
To be provided after
the meeting
To be provided after the
meeting
West Modesto
Collaborative
 Minorities
 Non-English
Speaking -
 Persons with
disabilities
 Nontargeted/broad
community
 Residents of
Public and
Assisted
Housing
To be provided after
the meeting
To be provided after the
meeting
Stanislaus
Homeless Alliance
 Nontargeted/broad
community
To be provided after
the meeting
To be provided after the
meeting
Hybrid Community
Meeting – CH&CDC
 Nontargeted/broad
community
To be provided after
the meeting
To be provided after the
meeting
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Mode of Outreach Target of Outreach Summary of
response/attendance
Summary of
comments received
Public hearing –
Hybrid City Council
 Minorities
 Non-English
Speaking -
 Persons with
disabilities
 Nontargeted/broad
community
 Residents of
Public and
Assisted
Housing
To be provided after
the meeting
To be provided after the
meeting
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
For Program Year 2026-2027, the City of Modesto was awarded $1,858,751 of Community Development Block Grant (CDBG) program funds, $790,745 of HOME Investment Partnerships (HOME) Program funds, and $166,895 of Emergency Solutions Grant (ESG) funds.

The table below is a draft summary of expected resources in PY 2026-2027. This is subject to change.

Anticipated Entitlement Resources
Progra
m 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
$ 1,858,75
1 $ 250,00
0 $5,970,448 $ 6,222,30
6 $ 4,500,00
0 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
$ 790,745 $ 130,00
0 $ 6,683,60
7 $ 7,604,35
2 $2,250,000 Expected
Uses: Rental
Housing
Rehabilitation
Rental
Housing New
Construction
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ESG –
Public
Federal
Shelter, HMIS,
Outreach,
Rapid
Rehousing,
Homeless
Prevention.
$ 166,895 $ 0 $ 66,450 $ 233,345 $ 450,000 Expected
Uses:

Homeless
Services
Homeless
Prevention
Rapid ReHousing
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 2025-2030 Consolidated Plan and this Annual Action 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 2026-2027 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 #24..
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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 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. The City accesses many of the following State funding programs through partnerships with nonprofit housing developers, housing authorities, and community-based organizations. These partnerships allow the City to leverage State resources in combination with federal funding sources such as Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and other local funding sources to support affordable housing development and community improvement projects. By coordinating these funding streams, the City and its partners are able to expand the availability of affordable housing, support infrastructure improvements necessary for residential development, and provide housing and supportive services for low- and moderate-income households, including individuals experiencing homelessness, seniors, veterans, and other special needs populations.

The City will continue to pursue opportunities to collaborate with qualified development partners and apply for available State funding programs that support local housing priorities.

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.  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.
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 Local Housing Trust Fund Program (LHTF): Provides matching funds to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing, transitional housing and emergency shelters.  Surplus Land Act/Excess Sites Program: Identifies state and local public land that can be used for affordable housing development.
 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.  Behavioral Health Services Act (MHSA): State funds administered at the county with a focus on homelessness, substance use disorders, and severe mental illness, requiring counties to direct 30% of funds to housing. Homeless Housing, Assistance, and Prevention Program (HHAP): HHAP is a block grant program designed to provide jurisdictions with onetime grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges.
 California Advancing and Innovating Medi-Cal (CalAIM): CalAIM is a 1.85 billion initiative to build up the capacity and infrastructure of on-the-ground partners such as community-based organizations (CBOs), public hospitals, county agencies, tribes, and others, to successfully participate in the Medi-Cal delivery system as California widely implements Enhanced Care Management and Community Supports and Justice Involved services under CalAIM.

If appropriate, describe publicly owned land or property located within the jurisdiction that 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.
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 State requires that land that can be zoned for emergency shelters can also be used for supportive housing
The City of Modesto is actively identifying City-owned properties that can be used to expand the local affordable housing supply, in compliance with the Surplus Land Act. To support this effort, the City recently implemented a new asset management system to efficiently track and evaluate properties that may be suitable for affordable housing development. Eligible properties are intended to be transferred to nonprofit organizations for the creation of housing for low-income households, or for rehabilitation and subsequent sale to qualified low-income buyers.

To address the rising number of individuals experiencing homelessness, the City has implemented a Bridge Housing strategy to provide interim housing while residents transition to permanent housing. The City has issued Request for Qualifications (RFQ)s for host sites, site operators, and service providers. In partnership with the County, the City is proposing the use of City-owned sites to support this alternative housing model, including the development of Bridge Housing villages with supportive services for residents By leveraging these publicly owned assets and partnerships, the City of Modesto is actively expanding both temporary and permanent housing options, addressing homelessness, and promoting neighborhood revitalization.
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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
–
2025-2030
Affordable
Housing
Non-Housing
Community
Development
Affordable
Housing
CDBG: $ 5,510,773
HOME: $ 7,362,275
ESG: $0
Rental units
constructed:
49 Household
Housing Unit
Homeowner
Housing
Rehabilitated:
10 Household
Housing Unit
Work Towards
Addressing and
Preventing
Homelessness
–
2025-2030
Homeless Addressing
and
Preventing
Homelessness
CDBG: $159,406
ESG: $220,828
Public service
activities for
Low/Moderate
Income
Housing
Benefit: 45
Households
Assisted
Homelessness
Prevention: 60
Persons
Assisted
Enhance
Infrastructure
and Public
Facilities
–
2025-2030
Non-Housing
Community
Development
Enhance
Infrastructure
and Public
Facilities
CDBG: $ 550,000
HOME: $0
ESG: $0
Public Facility
Access to Jobs,
Education, and
Other
Economic
Development
Services
–
2025-2030
Non-Housing
Community
Development
Public
Services
Community
and Economic
Development
CDBG: $189,406 Public Service
Other: 513
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Administration –
2025-2030
CDBG: $1,669,613
HOME: $93,395
ESG: $12,517
NA
Table 5 – 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 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. #24..
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Projects
AP-35 Projects – 91.220(d)
Introduction
Projects
Introduction
The projects to be undertaken in the 2026-27 program year (July 1, 2026 to June 30, 2027) 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. The City will also provide enhancements to public facilities and infrastructure.

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 2026
9 AFFORDABLE HOUSING - OWNER OCCUPIED REHABILITATION
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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.

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.

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  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
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 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. #24..
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AP-38 Project Summary
Project Name Project Utilization
Administration  Target Area: N/A
 Goals Supported: Administration
 Needs Addressed: N/A
 Funding
 CDBG: $1,319,613
 HOME: $93,395
 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 and HOME activities.

HOUSING

REHABILITATION

ADMINISTRATION

ACTIVITY DELIVERY
(14H)
 Target Area: N/A
 Goals Supported: Administration
 Needs Addressed: N/A
 Funding CDBG: $350,000
 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: 6/30/2027
 Estimate the number and type of families that will benefit from the 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.
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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: 6/30/2027
 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. 
PUBLIC FACILITIES  Target Area: Citywide
 Goals Supported: Enhance Infrastructure and Public Facilities  Needs Addressed: Enhance Infrastructure and Public Facilities  Funding CDBG: $550,000
 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: 6/30/2027
 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. 
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AFFORDABLE

HOUSING -

AQUISITION,

REHABILITATION,

HOMELESSNESS
 Target Area: Citywide
 Goals Supported: Improve Quality and Increase Affordable Housing  Needs Addressed: Affordable Housing
 Funding:
o CDBG: $5,060,773
o HOME: $7,362,275
o 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: 6/30/2027
 Estimate the number and type of families that will benefit from the proposed activities: There is an estimated 91 units created by this activity
 Location Description: Citywide
 Planned Activities: Acquisition, Rehabilitation, Construction of affordable housing units
PUBLIC SERVICES  Target Area: Citywide
 Goals Supported
o Work Towards Ending Homelessness
o Access to Jobs, Education, and Other Services
 Needs Addressed: Public Services
 Funding
o CDBG: $ 348,812
 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: 6/30/2027
 Estimate the number and type of families that will benefit from the proposed activities Assist over 742 individuals below 80% of AMI #24..
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through public service activities
 Location Description: Citywide
 Planned Activities: General Public Service Activities HESG -
ENTITLEMENT 2026  Target Area: Citywide
 Goals Supported: Work Towards Ending Homelessness
 Needs Addressed: Addressing and Preventing Homelessness  Funding: ESG: $233,345
 Description: General Administration and Partner with local nonprofits to provide essential services and outreach to individuals and households at risk for homelessness.
 Target Date: 6/30/2027
 Estimate the number and type of families that will benefit from the proposed activities: Assist over 1,003 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 (RLF): $450,000
 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: 6/30/2027
 Estimate the number and type of families that will benefit from the proposed activities: This project is estimated to serve approximately #24..
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20 households
 Location Description: Citywide
 Planned Activities: Homeowner Rehabilitation
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.
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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 currently evaluating and advancing pro housing policies through its Housing Plan to support the development of additional housing at all income levels. The Housing Plan provides a strategic framework for identifying and removing regulatory and policy barriers that may constrain housing production. Through this effort, the City is aligning its long-term planning approach with state housing priorities and strengthening its competitiveness for state and federal funding opportunities that support the development and expansion of affordable housing. 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 30
Special-Needs 0
Total Households 93
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Types of Housing Production Households
Rental Assistance 30
The Production of New Units 0
Rehab of Existing Units 15
Acquisition of Existing Units 48
Total Households 93
Discussion
 Rental Assistance (households; homeless/ non-homeless): 30 Households o Community Housing and Shelter Services (CHSS) will assist a minimum of 7 homeless households with Rapid Rehousing Rental Assistance.
o Community Housing and Shelter Services (CHSS) will assist a minimum of 15 nonhomeless households with Homeless Prevention. o Turning Point will assist 8 households with Rapid Rehousing Rental Assistance.  Production of new Units (households): 0 Units
 Rehab of Existing Units (households): 15 Units
o The City will assist 15 households via the City’s owner-occupied housing rehabilitation program.
o Acquisition of Existing Units
o Needham Street – 48 homeless units
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AP-60 Public Housing – 91.220(h)
Introduction
In Stanislaus County, public housing needs, housing choice vouchers, affordable housing and other specific Housing and Urban Development (HUD) funds and services are addressed by two housing authorities:
 The Stanislaus Regional 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.

The Housing Authorities are responsible for providing safe, decent, and high-quality affordable housing and services to eligible persons. The Housing Authorities provide the following City of Riverbank Housing Authority:

Owns and Operates 90 Public Housing Units
Stanislaus Regional Housing Authority:

Approximately 4900 HUD Vouchers through the Housing Choice Voucher (formerly Section 8), Continuum of Care (formerly Shelter Plus Care), Veterans Affairs Supportive Housing (VASH), Emergency Housing (EHV), and Mainstream Voucher Programs.

Owns and Operates 647 Public Housing Units
Family Self Sufficiency Programs
Resident Opportunity and Self Sufficiency Programs
In addition to the HUD supported units and vouchers, Stanislaus Regional Housing Authority owns/manages an additional 1150 affordable units.

Actions planned during the next year to address the needs of public housing 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.

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 #24..
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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 2020-2024, 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:
 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.
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 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 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 #24..
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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. Most recently the Stanislaus Regional Housing Authority was designated as Housing Authority of the Year by HUD for Projects like the conversion of a local hotel into a new regional administrative office called “The 1612” which will also include the conversion of hotel units into 144 affordable workforce e studio apartments.
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AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City of Modesto participates in the County-wide 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.

Since the inception of the regional plan, the CoC has been working to further define the execution 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 been strategized through working groups and with the introduction of the Stanislaus Homeless Alliance (SHA). This revamping of the CoC includes a partnership with HomeBase resulting in a more efficient CoC application and NOFA process with aims to increase CoC funding.

In the coming year, the City will continue to partner with local service providers and agencies with the goal of reducing and ending homelessness via street outreach, homeless prevention, and rapid rehousing.

In addition, the City will work with the CoC on addressing the emergency shelter and transitional housing needs of homeless persons as well as continuing to find creative approaches to addressing homelessness and special needs populations.

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 experiencing homelessness to permanent housing and independent living through a network of housing linked to supportive services.

The City continues to work with the CoC’s continuum-wide Coordinated Entry System (CES) to assess the needs of individuals experiencing homelessness and match them right services given the unique circumstances which includes consideration for 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 of the CES and address any issues that arise. The CoC will provide continued training for participating service providers as well as continue developing any necessary tools to effectively manage the system.

Coordinated entry provides assessments used to support collaborative decision-making processes across agencies to provide the appropriate assistance required to support individuals experiencing #24..
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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 individuals experiencing homelessness within the community:

1. Camp2Home: Through the Camp2Home initiative, Modesto created a unique set of partnerships and funding that creates a continued 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, shelter, robust job training, permanent employment, and permanent housing. These partnerships include: The Community Health and Assistance Team (CHAT) is a partnership program with the Modesto Police Department (MPD) designed to use trained Outreach Specialists to respond to qualifying 911 calls, received through the 911 communications center. The trained specialists can provide immediate de-escalation, assessment, and follow up services 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 the MPD’s Homeless Engagement and Response Team (HEART). CHAT provides alternatives to traditional police responses and continues to expand in order to meet the needs of the community.

2. With the closure of Downtown Streets Team, non-profit organization, to create a safe and engaging space to train individuals experiencing homelessness, the City of Modesto worked with The Modesto Gospel Mission to create a new program that would allow the work DST had started to continue within the City of Modesto. HopeWorks and a partnership with the local ACES and Berberian Shelters and Modesto Gospel Mission is a key component of the Camp2Home program in helping individuals to attain permanent housing through assisting them in obtaining job training and job placement. In this effort, the City of Modesto has partnered with HopeWorks to create a safe and engaging space to employee individuals experiencing homelessness. HopeWorks projects are beautification projects within the City limits, which include basic tasks such as litter cleanup in the community. To date, the HopeWorks team has removed 12,811 pounds of trash 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.

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

CHS’ goal, through street outreach, is to engage with youths experiencing homelessness 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 began operations of the Youth Navigation Center. This Youth Navigation Center has enhanced current outreach efforts and services for the youth population with everything being #24..
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available at one location.

4. Community Assessment, Response, and Engagement (CARE) Multidisciplinary (MDT) personnel strategy: The CARE team is a joint strategy with 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 and 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 their reporting requirements as well with the CoC. The City will continue to be a partner in the CARE team program in efforts to increase outreach and engagement to households and individuals experiencing homelessness.

5. Hospital Council’s Northern and Central California partners with Stanislaus County as well as the City of Modesto in their sheltering meetings. This collaborative partnership has a shared 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 cooperation is to alleviate individuals experiencing homelessness from being discharged to the 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 individuals experiencing homelessness. The Access Center Emergency Shelter (ACES) is a low barrier (drug and alcohol testing are not required to enter) emergency shelter facility aimed at reducing barriers for individuals choosing to enter an emergency shelter. ACES is designed to allow participants to enter with pets, partners, and possessions, which are often-cited impediments for individuals experiencing homelessness 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:
o 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 #24..
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skills, interpersonal and jobs skills training, assistance with obtaining medial insurance and assistance related to advancing educational opportunities. o Hutton House is an emergency shelter for runaway, homeless, and youth in crisis who are ages 13-17.
o 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 transitional housing 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.

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.  The Access and Emergency Shelter - provides 182 low-barrier year-round beds to unaccompanied homeless adult men and women.
 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 #24..
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with special medical needs.
 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.
 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
 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, 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 737 emergency shelter/transitional housing beds in Modesto. The emergency shelter beds available in Modesto are from the following organizations:
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Modesto Emergency Shelter Beds
Agency Number of Beds
Center for Human Services 47
Children’s Crisis Center 35
Haven Women’s Shelter 10
Modesto Gospel Mission 172
Salvation Army – Berberian Shelter 195
Salvation Army – ACES Shelter 182
Turning Point 12
Dignity Village 42
STANCO – Transitional Housing Sites 33
Family Promise 24
TOTAL 752
Source: 2023 Department of Housing and Urban Development and Coordinated Entry Bed Availability 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. This occurs through the CoC’s continued partnerships and growth with collaborating agencies, as well as the system yielding 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 an individual 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, 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 wraparound 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 such as but not limited too financial assistance, security deposits, legal services, credit repair, utility payments, and counseling. The CoC and its partners have a shared goal, to prevent and end homelessness through attaining and sustaining stable and secure 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 #24..
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with children, veterans and their families, and unaccompanied youth so they may receive security deposit assistance. The City Camp2Home Program also assists with self-sufficiency 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 retain their housing. The following are recent strategies that have been implemented locally in which the City will continue to be a partner in the planned efforts to help individuals experiencing homeless transition from homelessness to housing.

Empire Migrant Center:

CSA partners with the Housing Authority, STANCO, and CHSS to house families experiencing homelessness during the cold-weather months in vacant family units at the Empire Migrant Center. The Empire Migrant Center is used as a cold-weather shelter for families experiencing homelessness. 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 families experiencing homelessness in these units during the months of December through March. This project will be a multi-year partnership allowing CSA to place families experiencing homelessness each winter in housing and provide case management services with a goal to permanently house these 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 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 to one building creating a clear pathway for youth/young adults to strengthen the chances of dealing with crisis and housing instability. Most importantly, this Center established a coordinated system of care for this vulnerable population and serve youth within the entire region of 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) #24..
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 Access to housing services including permanent housing slots designed for youth with diverse circumstances
 On-site education and employment services
HopeWorks Program:

Another key effort led in Modesto aimed at reducing the number of people living in poverty and provide housing opportunities to individuals experiencing homelessness is the HopeWorks Program. HopeWorks is a workforce development program providing paid transitional employment, job readiness, and supportive services for individuals facing barriers to employment. Through meaningful work and personalized support, HopeWorks helps people restore dignity, build confidence, and take real steps toward long-term stability and independence. The HopeWorks 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 further employment, and assisting with vital documents. The daily meaningful activity for members includes outreach and engagement of 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, 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 rapid rehousing program criteria.

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, HopeWorks, 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 or at risk of homelessness. Additionally, The Turning Point Housing Assessment Team (HAT) 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.

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 #24..
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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 outlines key strategies 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 institutions is an integral 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, homeless prevention assistance, while scarce, is provided through an ESG sub-recipient (Community Housing and Shelter Services). 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 experiencing homelessness. 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, located in Modesto, which provides 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 #24..
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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 of Modesto’s 6th‑Cycle Housing Element, part of the City’s General Plan, is a state mandated planning document that identifies housing needs, evaluates constraints, and sets goals, policies, and programs to address those needs for all income levels. It serves as a key tool to identify barriers to affordable housing development and preservation, including regulatory, physical, economic, and environmental factors. The Housing Element was adopted by the City December 2023, and approved by the California Department of Housing and Community Development (HCD) April 2024. The Housing Element provides a framework for addressing these barriers through targeted programs and implementation strategies. Many factors can independently inhibit affordable housing, but more often multiple barriers intersect to limit development or preservation. These include market mechanisms, government codes and regulations, physical constraints, and environmental considerations.

There are a wide variety of factors that influence whether, where, when, how, and what type of housing is constructed. While many factors enable, guide, and even incentivize housing construction, almost all pose some sort of limitation or constraint as well. Our land use policies and regulations are necessary but, by definition, establish limits on growth and development. These limits work with, influence, and are balanced by market forces. Of those types of barriers, below is a summarized list of specific barriers:
 Market barriers
 Construction costs
 Land and labor costs
 Loan/Credit issues for households
 Governmental barriers
 Growth Management, Land use, and Zoning Regulations
 Permit fees, Property Taxes
 Residential development standards, Site Improvement Costs  Parking requirements
 Development permit procedures
 Building codes
 Environmental barriers
 Natural disasters
There are several codified policies in Modesto that may contribute to the current lack of affordable housing.

Land Use Controls / Zoning Standards: Residential zoning designations, allowed uses, and development standards influence housing types and densities that can be built and may constrain the development of housing.
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Permit Processing and Procedures: The requirements of the permit processing procedure have the potential to act as a constraint to the development of housing. The time and uncertainty of the review and revision cycle can contribute significantly to the overall cost of the project, ability to obtain and maintain funding, and the cost of each dwelling unit. Certainty and consistency in permit processing procedures and reasonable processing times are important to ensure that the developmental review and approval process does not act as a constraint to development by adding excessive costs or discouraging housing development.

Development Fees: The City of Modesto imposes a couple of development impact fees, including for capital facilities, sewer, and water development. Typically, fees per unit for high-density residential are lower than fees per unit for low-density residential. Development fees for the City of Modesto for the fiscal year 2023 – 2024 can be as high as $30,720 which may significantly impact housing development.

Infrastructure Constraints: The availability of infrastructure and services to meet new demands created by new residential development is another potential constraint to housing development. The City has adopted an initiative two ordinances that can constrain extension of sewer infrastructure into new residential areas. Measure A (passed in 1979) and Measure M (passed in 1997) require that any planned extension of sewer infrastructure beyond the existing development area be subject to an advisory citizen vote. Measure M expanded Measure A so that it included all sewer system improvements inside the service area. Votes are held only during regularly scheduled elections (March and November); thus they can delay the potential City of Modesto Housing Element Constraints on Housing City of Modesto 261 extension of infrastructure for up to six months. The vote is advisory an allows Modesto residents to voice their opinions on growth before it happens.

The City of Modesto regularly evaluates local building codes, development regulations, market conditions, and housing and non-housing policies through planning and reporting processes such as the Consolidated Plan, the Annual Action Plan, and the Housing Element. These planning efforts provide the City with opportunities to identify and assess regulatory, procedural, and market-related factors that may affect the development and preservation of housing. The City recognizes that outdated building codes, land use policies, and development standards may create barriers to housing development across a range of income levels. The City prioritizes continuously reviewing and updating local policies and ordinances to address their potential impacts on the housing market, particularly for households earning less than 80 percent of the Area Median Income (AMI), and to support the development and preservation of affordable housing opportunities.

The City continues to review how the City’s codes can be adjusted to plan for the future. The City is doing this with the adoption of the Modesto Housing Plan adopted July 2022, to establish a vision for the future of Modesto's residential neighborhoods, and for expanded housing opportunities throughout Modesto.The Housing Element Update also considered the information provided in the Modesto Housing Plan, for which the City conducted public outreach. Guided by community feedback throughout the process, the Housing Plan works to promote greater housing diversity and opportunities. The Housing Plan relied on community input and feedback to make zoning and policy recommendations for enabling a wide range of housing choices at all levels of affordability. The Housing Element draws on the #24..
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feedback and results of the Housing Plan and implements some of the policies as identified in the Housing Plan.

The planning process used 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, 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 began preparing 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 adopted its 6th Cycle Housing element December 2023. This Housing Element identifies goals, policies, and programs that guide housing policy for the City for the 2023 – 2031 planning period. 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 #24..
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limitations, and policies affecting the return on residential investment The City continues to make efforts 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;  Reducing or removing governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible such as reviewing local regulations and fees periodically to ensure that they do not unduly constrain the production of housing.
 Providing a broad range of housing opportunities to meet the needs of all income levels, with emphasis on providing housing that meets the special needs of the community. Including establishing and/or supporting programs to supply below market-rate housing for extremely low-, very low-, low-, and moderate-income households.
 Providing financial incentives such as fee deferrals and exemptions for developments meeting affordable and special housing needs of the community such as the deferral of Capital Facilities Fees for projects providing low-income housing.
 Developing programs that Assist qualified households to purchase homes through homebuyer assistance resources.
 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 and providing certainty and consistency in permit processing procedures and reasonable processing times are important to ensure that the developmental review and approval process does not act as a constraint to development by adding excessive costs or discouraging housing development.

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. As part of the impact fee exemption ordinance, low, very low, and special needs housing developments are exempt from the City’s Capital Facilities Impact Fees (developer fees). The CFF Policies and Procedures currently provides credits/exemptions for projects that meet any of the following criteria for affordable housing projects:

1. Very Low and Low Income Housing - Any Very Low and Low Income housing units (which is defined as households earning 51 – 80% AMI) constructed or expanded by the Housing Authority of the County of Stanislaus or by any entity in which the Housing Authority is a major partner.

2. CHDO Housing - Housing constructed or expanded by a CHDO Organization that will be made affordable to households earning sixty (60%) or less of the Area Median Income. #24..
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3. Affordable Housing - Housing constructed or expanded that will be made affordable to households earning eighty percent (80%) or less of the Area Median Income.

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, and in 2024, its 4th year allocation of $831,356. The City is applying for its 5th year allocation in the amount of $637,206 in Spring 2026. All of the goals from the City’s 2023- 2031 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.

The Housing Element outlines the City of Modesto’s goals, policies, and implementation programs for the preservation, conservation, improvement, and production of housing for the 2023–2031 planning period. The goals, policies, programs, and quantified objectives are designed to help ensure housing opportunities for all existing and future residents of the community.

Goal Number 1: Provide adequate residential sites to accommodate projected housing needs and encourage the production of a variety of housing types. This goal focuses on encouraging the provisions #24..
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of a variety of housing options, ensuring that adequate land is available at a range of densities to accommodate existing and projected housing needs, and facilitating the development of entry-level housing as well as the development of increased housing options including accessory dwelling units.

Goal Number 2: Provide a broad range of housing opportunities to meet the needs of all income levels, with emphasis on providing housing that meets the special needs of the community. This goal will facilitate the establishment and/or support programs to supply below market-rate housing for extremely low-, very low-, low-, and moderate-income households. It will also support the provision of financial incentives such as fee deferrals and exemptions for developments meeting affordable and special housing needs of the community. Through this goal the City will promote the development of affordable housing throughout the community and facilitate the development of housing for the unmet needs of lower income special needs groups, including the disabled, elderly, homeless, and large families.

Goal Number 3 of the Housing Element is “Reduce or remove governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible”.

Through this goal the city will focus on ensuring that land use regulations, including zoning, subdivision, and permitting processes, are consistent with and supportive of state and federal laws. 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. Through this goal the City also commits efforts to review local regulations and fees periodically to ensure that they do not unduly constrain the production of housing.

Through the Housing Elements goals 4-6 the City will maintain and conserve the existing housing stock in a sound, safe, and sanitary conditions, ensure the provision of adequate housing for all persons regardless of income, age, sex, race, or ethnic background, consistent with the Fair Housing Act, and increase awareness, availability of information, and participation in housing programs. #24..
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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 2024-2025 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 2025-2030 Consolidated Plan estimates that 53% of owner-occupied low-income households and 61% of renter-occupied low-income households are living in units built before 1980. Because lead-based building materials was banned in 1978, 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 housing program policies that align with federal requirements and will continue to implement them consistently. The City’s Lead-Based Paint Policy fully complies with HUD regulations regarding the identification and mitigation of lead-based paint hazards. In accordance with HUD standards, the level of lead remediation required is determined by the amount of federal subsidy invested in each project.

City staff provides homeowners with the HUD-approved pamphlet, “Protect Your Family from Lead in Your Home,” whenever lead-based paint is identified or presumed. The City’s Homeowner Rehabilitation Program Policies and Procedures adhere to 24 CFR 35.100 Subpart J §35.930(b), §35.930(c), and #24..
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§35.930(d). In addition, contractors performing work in homes where lead-based paint is present or assumed to be present must provide the EPA pamphlet, “The Lead-Safe Certified Guide to Renovate Right,” prior to starting any renovation activities.

All housing rehabilitation projects are subject to federal Lead-Based Paint regulations, and contractors must be properly certified in lead-safe work practices. Costs associated with lead testing, inspections, clearances, and abatement are eligible and will be covered through the City’s housing rehabilitation loan program using federal 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 2024-2025 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 (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.
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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 with 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 decisionmaking 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.

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 #24..
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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 relies on non-profit organizations and for-profit developers to build and acquire, develop, and rehabilitate affordable units. The City 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 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.
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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 #24..
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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 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:

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.

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

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

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) In accordance with HUD regulations and in consultation with Continuum of Care stakeholders the City developed written standards for the provision and prioritization of the Emergency Solutions #24..
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Grant.

The standards include both general statutory and regulatory standards and guidance applicable to all ESG-funded program components as well as component-specific standards. 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 system.

The CoC continues to work with partners and stakeholders in the implementation of the Coordinated Entry System (CES) process. Coordinated Entry (CE) is the foundation of the City’s homeless response system and serves as the point of entry to connect households experiencing homelessness to resources need to address their housing crisis. Households experiencing homelessness complete a standard assessment tool that considers the household’s situation and identifies the best type of housing intervention to address their situation. A community queue of eligible households is generated from the standard assessment and is used to fill spaces in the permanent housing programs, including permanent supportive housing and rapid rehousing. This coordinated process reduces the need for people to have to seek assistance at every service 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 #24..
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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 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 #24..
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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 services funded under ESG.

5. Describe performance standards for evaluating ESG.

General performance measures have been established by the City for each program component.

Performance measures are based on applicable system and project-level goals established by HUD for the ESG program and City strategic priorities. The City may establish specific performance targets for certain measures. However, nothing prohibits a local CoC or subrecipient from establishing additional performance measures or higher performance expectations.

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.
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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/ Executed HUD Certifications and SF-424
This section is to be added once this plan is adopted.

City of Modesto Resolution 2026-XXX
This section is to be added once this plan is adopted.
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

May 12, 2026
Date: April 17, 2026
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Vacancy, Recruitment, and Retention Report
CONTACT: Christina Alger, Director of Human Resources, [email protected], 209-571-5126
DESCRIPTION:

Hearing to consider receiving an Informational Report of vacancies, recruitment, and retention efforts to comply with Assembly Bill 2561. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

This item supports the 2025 – 2026 Strategic Plan’s Service and Delivery Goals and Strategies: Building a High-Performance Organization by Attracting and Retaining High Performance Employees.

BACKGROUND:

On September 22, 2024, Governor Gavin Newsom signed Assembly Bill 2561 into law, which amends the Meyers-Milian Brown Act (“MMBA”) to create a new requirement for public agencies to present the status of their vacancies before City Council and provide a status for such vacancies at least once per fiscal year.

The legislative history of this bill reflects that the California legislature determined that job vacancies in local government pose a “widespread and significant problem” for the public sector for a number of reasons. High rates of job vacancies result in impacts to:
• the agency’s public service delivery; and
• the employees who are forced to handle heavier workloads due to understaffing, leading to burnout and increased turnover, thus further exacerbating staffing challenges.
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City Council, May 12, 2026
Vacancy, Recruitment, and Retention Report

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Modesto City CouncilMay 12, 2026

Modesto City Council
May 12, 2026