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CITY OF SALINAS
COUNCIL STAFF REPORT
DATE: NOVEMBER 28, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
LUIS OCHOA, SR COMMUNITY DEVELOPMENT ANALYST
TITLE: SUBSTANTIAL AMENDMENT S TO UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FISCAL YEAR 2017-18, 2018- 19, 2019- 20, 2020- 21, AND 2022- 23
ANNUAL ACTION PLANS
RECOMMENDED MOTION:
A motion to recommend the City Council approve a Resolution authorizing:
1. the submission of Substantial Amendment s to the United States Department of Housing and Urban Development (HUD) for Fiscal Year 2017-18, 2018-19, 2019-20, 2020-21, and 2022-23 Annual Action Plans.
2. the allocation of an additional $1,410,000 in available Community Development Block Grant program funds to the Hebbron Family Center project.
DISCUSSION:
Through prior Substantial Amendments to its FY 2020-2021 and FY 2021 -2022 Annual Action Plans and an allocation of its FY 2022- 2023 Annual Action Plan (AAP), the City has previously allocated $1,406,613 in Community Development Block Grant (CDBG) program funds to support the Hebbron Family Center (HFC) project. Subsequently, the City allocated an additional $240,502 in CDBG program funds from its FY 2023-2024 AAP towards the HFC and its activity delivery; totaling $1,647,115.
Following the demolition of the existing HFC facility and a reassessment of estimated architectural, predevelopment and construction costs by the Library and Community Services and Public Works , it became evident that the project now faces a significant funding shortfall of approximately $3.6 million. In response, Community Development Department (CDD) staff have identified approximately $1,410,000 in available CDBG funding to bridge funding gap. The table below shows the identified funds to be reallocated to the HFC project.
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AAP FY Project
No. CDBG Project Name Amount
Available
2017-18
1 Housing Rehabilitation, Housing Accessibility
Assistance, LBP
$117,435
4 Mid-Peninsula The Farm, Inc. – 21 Soledad Street
Housing Community
$575,494
2018-19 2 Mid-Peninsula - Moon Gate Plaza (21 Soledad St.) $453,862 2019-20 1 Housing Rehabilitation, Housing Accessibility Assistance, LBP
$97,712
3 Grid Alternatives Monterey County/City of Salinas Solar Affordable Housing Program
$3,703
2020-21 10 CDBG Program Planning and Administration $161,794 Total $1,410,000
The addition of the above funds to the HFC project would result in a total allocation of $3,054,115 and would be used to cover architectural plans, other predevelopment costs, construction activities and activity delivery. The project is currently in a Concept and Schematic phase but would quickly move to the issuance of a Request for Qualifications (RFQ) to identify a qualified general contractor to assume coordinate and finalize the design and construction of the facility.
In accordance with the City ’s HUD-approved Citizen Participation Plan (CPP), execution of a formal Substantial Amendment is required whenever an increase of more than 25% of a current CDBG project’s funding is proposed. The proposed reallocation of funds will require Substantial Amendments to Fiscal Year 2017-18, 2018-19, 2019-20, 2020-21, and 2022-23 AAPs.
In compliance with the City’s CPP, notices in English and Spanish of Public Hearing with a 30 - day public comment period were published in The Monterey Herald, a local newspaper, and the City’s webpage on Saturday, November 3, 2023. The notices were also posted at the Community Development Department, 65 W. Alisal St.; City Hall, 200 Lincoln Ave.; and the City’s libraries on or before Saturday, November 3, 2023. In addition to the previous mentioned efforts, the notices and draft Amendment Summary were distributed to the CDD Housing Distribution list via email.
A summary of the draft Substantial Amendments Summary has been made available for the mandatory 30-day public comment period commencing on November 3, 2023, and concluding with the scheduled Council public hearing on December 5, 2023. Applicable documents can be accessed at the Community Development Department, City Hall, public libraries, via the City's website, and is available upon request via email. Throughout the public comment period, the public is strongly encouraged to engage by reviewing and providing comments on the proposed Amendments.
The proposed Substantial Amendment will also assist the City in spending down its available CDBG funds and achieve compliance with its designated HUD expenditure ratio.
ATTACHMENTS:
City of Salinas Summary Substantial Amendments – Draft