DATE: JUNE 21, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
TITLE: UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FY 2022-2023 ANNUAL ACTION PLAN RECOMMENDED MOTION:
A motion to approve a Resolution approving the United States Department of Housing and Urban Development (HUD) Fiscal Year (FY) 2022-2023 Annual Action Plan (AAP) and its submittal to HUD; authorizing the City Manager to incorporate any necessary minor modifications based upon community feedback prior to the submission; and authorizing the Mayor or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications and related documents implementing the funding allocations set forth in the AAP.
RECOMMENDATION:
It is recommended that the City Council conduct a public hearing to consider and approve the City’s FY 2022-2023 Annual Action Plan and authorize the City Manager to incorporate any necessary minor modifications based upon community input and submit the AAP to HUD.
EXECUTIVE SUMMARY:
The City of Salinas (City) currently administers three federal HUD entitlement programs; Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Emergency Solutions Grants (ESG), which have assisted and improved numerous low and moderate-income households and neighborhoods in Salinas.
To remain eligible for annual allocations of CDBG, HOME, and ESG funds, the City must prepare and submit a FY 2022-2023 Annual Action Plan in support of its five-year FY 2020-2024 Consolidated Plan (Con Plan). The HUD submission deadline for the City’s FY 2022-2023 AAP is August 1, 2022.
BACKGROUND:
The City is currently operating under its HUD approved FY 2020-2024 Con Plan which covers the period of July 1, 2020 through June 30, 2025. This plan was approved by the City Council on August 4, 2020, and provides a strategic, overarching 5-year plan for addressing identified needs and establishing priorities as they pertain to HUD Entitlement CDBG, HOME and ESG funding. The FY 2022-2023 AAP represents the City’s third year of proposed projects, activities, programs, and funding amounts to be implemented in alignment with the City’s HUD FY 2020-2024 Con Plan.
In accordance with the City’s approved Citizen Participation Plan (CPP), and to assist in the development of the AAP, the City issued its annual Notice of Funding Availability (NOFA) on January 22, 2022, soliciting applications for HOME, Permanent Local Housing Allocation (PLHA), City American Rescue Plan Act (ARPA), City Housing Successor Agency (HSA), and California Department of Housing and Community Development (HCD) ESG funding. Under the criteria set forth in the annual NOFA process, HCD ESG and HOME project applications are competitively ranked. Additionally, in support of City Council priorities and strategies and the robust public consultation process that supported the creation of the Alisal Vibrancy and Chinatown Revitalization Plans, HUD CDBG and ESG fund are to be self-directed in this year’s AAP.
DISCUSSION:
On February 3, 2022, City staff conducted a virtual NOFA Workshop to provide information about the application process and address questions from the public and potential applicants. Following the application due date of February 22, 2022 applications were evaluated and ranked by a panel of City of staff and community partners. Final FY 2022-2023 AAP funding recommendations were presented to the Housing and Land Use Committee on June 7, 2022 and received unanimous support to move the item forward to the City Council for a final public hearing and approval consideration. The committee also directed staff to explore additional funding for Fair Housing and Tenant/Landlord support services to be considered later through the amendment process.
As a result of HUD’s late release of FY 2022-23 AAP allocations and the Council’s planned July Summer Recess, this year’s public comment period commenced on June 4, 2022 and will continue through July 5, 2022. Barring the receipt of any significant comments, the approved AAP would be submitted to HUD prior to the August 1, 2022 deadline. In the event that significant changes are required as a result of received public input, the City would then take appropriate action to amend its AAP. The FY 2022-2023 AAP includes funding recommendations for each of the City’s HUD entitlement allocations as well as any accrued Program Income (PI). Annual funding available this year includes $2,073,339 (CDBG); $60,000 (CDBG PI); $911,007 (HOME); $313,000 (HOME PI) and $178,942 (ESG). The following tables summarize proposed funding recommendations for FY 2022-2023 AAP CDBG, HOME and ESG projects and activities.
Emergency Solutions Grants (ESG) Funding Recommendations FY 2022-2023
Agency
Activity
Staff Recommendation
City of Salinas Housing Division
Program Administration (7.5%)
$13,421
City of Salinas Housing Division
Street Outreach Program
$79,000
SHARE Center Operator
SHARE Center Operations
$86,521
Total
$178,942
HOME Investment Partnerships Program Funding Recommendations FY 2022-2023
Agency
Activity
Staff Recommendation
City of Salinas Housing Division
Program Administration (10%)
$122,400
Future Agency to be Determined
Future Activity to be Determined
$1,101,607
Total
$1,224,007
Community Development Block Grant (CDBG) Funding Recommendations FY 2022-2023
Agency
Activity
Staff Recommendation
City of Salinas
Housing Division
Program Administration (20%)
$426,667
City of Salinas
Activity Delivery Sherwood Recreation Center – Phase 4
$70,000
City of Salinas
Activity Delivery Chinatown Improvements
$30,000
City of Salinas
Chinatown Improvements
$577,980
City of Salinas
Sherwood Recreation Center- Phase 4
$792,892
Eden Council for Hope and Opportunity
Fair Housing and Tenant/Landlord Services
$100,000
City of Salinas
Salinas Outreach and Response Team
$135,800
Total
$2,133,339
CEQA CONSIDERATION:
The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) per Guidelines Section 15378. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability. Activities utilizing federal funds are also subject to the National Environmental Policy Act (NEPA) and will be evaluated prior to expending any funds.
STRATEGIC PLAN INITIATIVE:
This agenda item is in alignment with the multiple City Council strategic goals by providing additional resources and programming in the following areas:
Economic Development
Housing/Affordable Housing
Infrastructure and Environmental Sustainability
Youth and Seniors
DEPARTMENTAL COORDINATION:
This agenda item is administered by the City’s Community Development Department (CDD) Housing Division. The City’s Finance and Legal departments have contributed staff time, advice, and other expertise. Additional coordination with other divisions in CDD and the Public Works and Library and Community Services Departments is anticipated as proposed projects move forward.
FISCAL AND SUSTAINABILITY IMPACT:
It is estimated that the City is eligible to receive a total of $10,000,000 (CDBG), $4,000,000 (HOME) and $900,000 (ESG) of HUD funding allocations during the FY 2020-2024 Con Plan period. City Council approval of the FY 2022-2023 AAP would make the City eligible to receive $3,536,288 in HUD FY 2022-2023 CDBG, HOME, and ESG Entitlement funding. No General Fund impact is associated with this agenda item. Funding to carry out these activities has been appropriated as part of the FY 2022-2023 Budget.
ATTACHMENTS:
FY 2022-2023 AAP Resolution
FY 2022-2023 Funding Recommendation Tables - Draft
FY 2022-2023 HUD Annual Action Plan - Draft
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