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Agenda Report
May 20, 2024
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TO: Honorable Mayor and City Council
FROM: Housing Department
SUBJECT: PUBLIC HEARING: APPROVAL OF THE ANNUAL ACTION PLAN (2024-2025) AND RELATED FUNDING APPLICATIONS FOR THE
COMMUNIPf DEVELOPMENT BLOCK GRANT, HOME INVESTMENT
PARTNERSHIP ACT, AND EMERGENCY SOLUTIONS GRANT
PROGRAMS
RECOMMENDATION:
It is recommended that upon close of the public hearing the City Council take the following actions:
1) Find that the recommended action is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines per Section 15061(b)(3) the "common sense" exemption that CEQA only applies to projects that may have an effect on the environment;
2) Approve the Annual Action Plan, including the funding allocations set forth therein for Program Year 2024-2025 program activities under the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships (HOME) programs, for submittal to the U.S.
Department of Housing and Urban Development (HDD);
3) Approve the submittal of a grant application for CDBG Program Year 2024-2025 entitlement funds in the amount of $2,159,608, and $381,550 in program income, for a total availability of $2,541,158 for program activities; 4) Approve the submittal of a grant application for ESG Program Year 2024-2025 entitlement funds in the amount of $189,807 for program activities; 5) Approve the submittal of a grant application for HOME Program Year 2024-2025 entitlement funds in the amount of $685,489, and $126,416 in carryover funds for a total availability of $81 1,905 for program activities; and I
I
I
MEETING OF
05/20/2024AGENDA ITEM NO. _18_
Approval of PY24-25 Annual Action Plan
May 20, 2024
6) Authorize the City Manager to execute, and the City Clerk to attest, the Annual Action Plan (2024-2025), the grant applications, certifications, and any and all other documents deemed necessary by HDD to obtain the allocation of the aforementioned federal entitlement funds.
ADVISORY COMMISSION RECOMMENDATIONS
On March 12, 2024, the Northwest Commission approved staff's CDBG City Set-Aside award recommendations for City Council's consideration, which are listed in Attachment A.
On April 10, 2024, the Human Services Commission approved staff's CDBG public service award recommendations for City Council consideration, which are listed in Attachment A.
BACKGROUND:
Annual Action Plan (2024-2025):
The Annual Action Plan for Program Year 2024-2025 (the "Plan") is a HUD-required document which sets forth the projected uses of CDBG, ESG and HOME funds for the coming program year, and addresses the available resources for program implementation, activities to be undertaken, program guidelines, and monitoring. The Plan (attached hereto as Attachment B) addresses the efforts made toward accomplishing the goals and objectives in the fourth year of the City's Five-Year Consolidated Plan (2020-2024). The Plan was noticed in the Pasadena Star newspaper of its availability for public review and request for comment from April 18, 2024, through May 17, 2024, during which period no comments were received. Any public comments made at the Public Hearing on May 20, 2024, will be included in the Plan's final version.
Funding Availability:
Included in the City's submittal of the Plan to HDD is the submittal of grant applications for annual entitlement funding under the CDBG, ESG, and HOME programs. The available federal funding identified in the Plan consists of the proposed federal entitlement funds for 2024-2025, any unspent funds from previous program years, and anticipated program income. Annually, the City distributes these funds to address community needs through housing, homeless prevention, public services, infrastructure and public facility improvements, and for program administration. The table below summarizes anticipated federal funding availability for 2024-2025:
Approval of PY24-25 Annual Action Plan
May 20, 2024
Anticipated Funding Availability (2024-2025)
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1 | CDBG (Annual Entitlement) | $2,159,608
Amount
2 | CDBG (Program Income)$381,550
3Emergency Solutions Grant (ESG) (Annual Entitlement)$189,807 4HOME (Annual Entitlement)$685,489
5HOME (Unspent Carryover)$126,416
Total$3,542,870
*
*AII total available funds to be allocated in 2024-2025 for proposed activities are identified in Attachment A.
Goals and Funding:
The table below summarizes the proposed goals and funding to address community needs during Year 4 of the Five-Year Consolidated Plan (2020-2024).
Housing
Goals
Owner-Occupied Housing
Rehabilitated:
41 Housing Units
Multi-Unit New Construction:
100 Housing Units
Funding
CDBG: $560,000
HOME: $661,905
Public Service500 Persons AssistedCDBG: $322,236
Homelessness
Homeless Shelters:
25 Persons Assisted
Homelessness Prevention:
40 Persons Assisted
ESG: $173,097
Infrastructure
Improvements10,000 Persons AssistedCDBG: $400,000
Public Facility
Improvements7,500 Persons AssistedCDBG: $387,000
TOTAL PROGRAM FUNDING$2,504,238*
*Does not include administration funding
COUNCIL POLICY CONSIDERATION:
This proposed action supports the City Council Strategic Planning Three-Year Goals in the areas of improving, maintaining, and enhancing public facilities and infrastructure; improving mobility and accessibility throughout the City of Pasadena; and supporting and promoting the quality of life and the local economy.
Approval of PY24-25 Annual Action Plan
May 20, 2024
ENVIRONMENTAL ANALYSIS:
The action proposed herein is exempt from the California Environmental Quality Act (CEQA), pursuant to State CEQA Guidelines Section 15061 (b)(3), the "common sense" provision of CEQA which applies to projects which may have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The approval of the subject Annual Action Plan is a funding mechanism only and is excluded from the definition of "project" pursuant to State CEQA Guidelines Section 15378(b)(4). Furthermore, the proposed action does not constitute a final funding commitment to any of the identified activities, as the grant sub-recipients of the activities would be required to enter into contractual agreements. Pursuant to the terms of the contracts, appropriate environmental review of each funded activity will take place prior to commencement of any activity. Therefore, the action proposed herein will not have a significant effect on the environment and, hence, is not subject to CEQA.
FISCAL IMPACT:
The recommended actions will have no direct fiscal impact. City Council approval of the Plan and grant application submissions, and subsequent approval thereof by HUD, will result in a total allocation to the City of $3,542,870 in CDBG, ESG and HOME funds to support housing, community development, and homeless prevention activities. These federal funds will be included as revenue in the proposed FY 2025 operating budget of the Housing Department. Approval also enables the City to be eligible for other federally funded programs that are consistent with an adopted Five-Year Consolidated Plan and Annual Action Plan.
Respectfully submitted,
James Wong (May 14, 2024 13:36 POT)
William K. Huang
Housing Director
Prepared by:
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Randy Mabson
Program Coordinator
Approved by:
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MK
City Manager
Attachments: (2)
Attachment A-CDBG, ESG, and HOME 2024-25 Funding Recommendations Attachment B - 2024-25 Annual Action Plan (DRAFT)