DATE: DECEMBER 6, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
BY: FRANCISCO BRAMBILA, COMMUNITY DEVELOPMENT ANALYST TITLE: FOURTH SUBSTANTIAL AMENDMENT TO UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FY 2019-2020 ANNUAL ACTION PLAN RECOMMENDED MOTION:
A motion to approve a Resolution authorizing:
the submission of a Fourth Substantial Amendment to the City of Salinas United States Department of Housing and Urban Development FY 2019-2020 Annual Action Plan; and the City manager or designee to execute, for and on behalf of the City, any agreements and related documents for CDBG-CV and ESG-CV funded projects and activities as outlined in the Fourth Substantial Amendment Summary to the FY 2019-2020 AAP.
EXECUTIVE SUMMARY:
Through the Coronavirus Aid, Relief and Economic Security (CARES) Act, approved by Congress on March 27, 2020, the United States Department of Housing and Urban Development (HUD) made available an additional $3.064 billion dollars for programs such as the Community Development Block Grant (CDBG) Program and Emergency Solutions Grants (ESG) Program. HUD utilized its existing grant formula methodology to allocate funds to entitlement jurisdictions, such as the City of Salinas (City), supplemental FY 2019-2020 Annual Action Plan (AAP) CARES Act COVID-19 (CV) allocations. On April 2, 2020, HUD awarded the City FY 2019-2020 CARES Act Phase 1 allocations of $1,190,782 for CDBG-CV and $617,245 for ESG-CV. A second allocation of $5,814,926 of FY 2019-2020 CARES Act Phase 2 ESG-CV funding was allocated on June 9, 2020 and a third allocation of $1,209,375 of Phase 3 CDBG-CV funding was allocated on September 11, 2020. To date, three Substantial Amendments to the City’s FY 2019-2020 AAP have been executed by the City to allow for the thoughtful allocation of most of the City’s awarded CV funds to various projects and activities, but a small portion remained unallocated for future consideration. This Fourth Substantial Amendment (Amendment) will allocate, consolidate, and reconcile all of the City’s awarded CV funding.
BACKGROUND:
On May 26, 2020, the City Council conducted a public hearing to approve a Substantial Amendment to its FY 2019-2020 AAP to accept and allocate $1,190,782 of HUD CDBG-CV Phase 1 funding and $617,245 of HUD ESG-CV Phase 1 funding. Shortly thereafter on June 9, 2020, HUD notified the City that it would receive an additional allocation of $5,814,926 of ESG-CV Phase 2 CARES Act funding. On June 23, 2020, the City Council conducted a public hearing and approved a Second Substantial Amendment to the FY2019-2020 AAP to allow for the receipt and compliant programming of both Phase 1 and Phase 2 CARES Act CDBG-CV and ESG-CV funds. On September 11, 2020, HUD again notified the City of an additional $1,209,375 in CARES Act Phase 3 CDBG-CV funding. In order to fully access this funding and move forward with planned projects, the City Council conducted a public hearing on January 19, 2021 and approved a Third Substantial Amendment to its FY 2019-2020 AAP which included a small unallocated amount of awarded CDBG-CV and ESG-CV funding.
DISCUSSION:
A Substantial Amendment is a formal process that a jurisdiction can exercise to modify an existing HUD approved Consolidated Plan (Con Plan) or AAP. Amendments are also required when seeking to fund new activities not previously identified in a Con Plan and AAP or if an increase in current activity funding or total activity beneficiaries exceeds a certain percentage threshold. The Amendment process requires a public notice outlining proposed Amendment actions, a minimum five (5) day public review and comment period, a public hearing, and approved Council Resolution authorizing submission to HUD.
Annually, the City, as a HUD entitlement jurisdiction, is required by HUD to submit an AAP for review and approval. The AAP serves as the City’s official grant application to HUD for its annual entitlement allocations of CDBG, HOME and ESG funds. The AAP describes eligible projects, programs, and funding amounts for each fund source as well as a description of its relationship to objectives contained in the City’s broader five-year Con Plan. Per direction from HUD, jurisdictions awarded CV funds were required to execute a Substantial Amendment to accept and incorporate each of the additional one-time CV allocations into its FY 2019-2020 AAP. In follow up to three prior amendments, this Fourth Substantial Amendment seeks to make final modifications and additions to various FY 2019-2020 AAP CDBG-CV and ESG-CV activities and funding amounts to allow for full, compliant expenditure of all funds within stipulated expenditure timeframes. The following tables list all activities, components, and funding amounts of the proposed fourth Amendment. Complete descriptions are listed in the attached Substantial Amendment Summary.
CDBG-CV Allocation
Name of Organization
Name of Activity
Current Funding
4th Sub. Amendment
City of Salinas
Administration
$480,031
$480,031
City of Salinas
Grow Salinas Fund – COVID-19
$332,069
$216,344
City of Salinas
Economic Development Technical Assistance
$400,000
$400,000
City of Salinas
Housing Information and Referral Services & Fair Housing $400,000
$512,790
Salvation Army
Homeless Encampment Meal Deliveries
$76,679
$58,035
Downtown Streets Team
Salinas Downtown Streets Team
$238,000
$238,000
Eden Council for Hope and Opportunity
Fair Housing and Tenant/Landlord Services
$84,000
$184,000
Food Bank for Monterey County
Food Bank for Monterey County
$310,957
$310,957
To be determined
To be determined
$78,421
$0
Total CDBG-CV Funding:
$2,400,157
$2,400,157
ESG-CV Allocations
Name of Organization
ESG Component
Existing Funding
4th Sub. Amendment
City of Salinas
Administration
$643,216
$643,216
Street Outreach
$25,000
$364,105
Emergency Shelter
$708,890
$975,546
HMIS
$50,000
$0
Community Homeless Solutions
Emergency Shelter
$1,606,631
$1,562,923
Downtown Street Teams
Street Outreach
$238,633
$575,740
Salvation Army
Street Outreach
$75,000
$78,098
Coalition of Homeless Service Providers
Emergency Shelter
$0
$100,000
HMIS
$0
$37,545
Bay Area Community Service
Emergency Shelter
$0
$563,865
Central Coast Center for Independent Living
Emergency Shelter
$0
$569,743
Rapid Re-Housing
$0
$179,500
Step Up on Second Change
Emergency Shelter
$0
$150,000
University Corporation at Monterey Bay
Street Outreach
$0
$150,000
Rapid Re-Housing
$0
$231,890
Interim Inc.
Street Outreach
$0
$173,863
Emergency Shelter
$0
$76,137
To be determined
Street Outreach
$721,816
$0
Homeless Prevention
$1,000,000
$0
Rapid Re-Housing
$1,362,985
$0
Total ESG-CV Funding:
$6,432,171
$6,432,171
DEPARTMENT COORDINATION:
The Community Development Department Housing & Community Development Division regularly coordinates and consults with the City Attorney, Finance Department, and HUD Region IX staff regarding its AAP projects, activities, and funding.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The receipt and administration of the HUD CARES Act CDBG-CV and ESG-CV funding will advance the City of Salinas Strategic Plan 2022-2025 Goals and Strategies of Public Safety, Housing/Affordable Housing, and Effective and Culturally Responsive Government.
FISCAL AND SUSTAINABILITY IMPACT:
Applicable FY 2019-2020 AAP Cares Act Covid-19 funds are appropriated and available in CDBG - Covid 19 and ESG-CV HUD fund accounts.
ATTACHMENTS:
Resolution
Substantial Amendment Summary
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