DATE: MAY 14, 2024
DEPARTMENT: COMMUNITY DEVELOPMENT DEPARTMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: FRANCISCO BRAMBILA, ACTING PLANNING MANAGER
BY: CRISTINA GONZALEZ, COMMUNITY DEVELOPMENT ANALYST
TITLE: UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FY 2024-2025 ANNUAL ACTION PLAN RECOMMENDED MOTION:
A motion to approve a Resolution:
approving the City of Salinas’ United States Department of Housing and Urban Development (HUD) Fiscal Year (FY) 2024-2025 Annual Action Plan (AAP) and authorizing its submittal to HUD; and authorizing the Interim City Manager to incorporate any necessary minor modifications based upon community feedback and final HUD allocation prior to submissions to HUD; and authorizing the Mayor, or designee, for and on behalf of the City, to execute any related agreements, contracts, certifications, or amendments related to the funding allocations set forth in the FY 2024-2025 AAP.
EXECUTIVE SUMMARY:
The City of Salinas (City) currently administers three (3) 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 throughout the jurisdiction.
To remain eligible for annual allocations of its entitlement funds, the City must prepare and submit a FY 2024-2025 Annual Action Plan in support of its five-year Program Years (PY) 2020-2024 Consolidated Plan (Con Plan). The HUD submission deadline for the City’s FY 2024-2025 AAP is August 16, 2024.
BACKGROUND:
The City is currently operating in Year Four of its HUD approved Program Year 2020-2024 Consolidated Action Plan (Con Plan) which covers the period of July 1, 2020, through June 30, 2025. The Con Plan was approved by the City Council on August 4, 2020, and provides a strategic, overarching 5-year plan for addressing identified needs and establishes priorities pertaining to HUD CDBG, HOME and ESG entitlement funding. The FY 2024-2025 AAP represents the City’s fifth and final year of proposed projects, activities, programs, and funding amounts to be implemented in alignment with the City’s HUD PY 2020-2024 Con Plan.
FY 2024-2025 Annual Action Plan (AAP)
In accordance with the City’s Citizen Participation Plan (CPP), and to assist in the development of the AAP, the City relied on the robust public participation and consultation for the creation of the existing Alisal Vibrancy Plan, Chinatown Revitalization Plan and the Parks, Rec & Libraries Master Plan to self-direct its CDBG and ESG funds. To maintain responsiveness to the ever-changing development environment within its jurisdiction, the City continues to maintain an open application for “shovel ready” affordable housing projects seeking HOME funding. The City continues to regularly engage with developers to best gauge projects, timelines, and potential amounts of funding, but has yet to receive an application for its FY 24-25 funding. The City is opting reserve this allocation and offer it to “shovel ready” affordable housing projects when available.
In preparation of Council’s consideration of this item, this year’s thirty (30) day AAP public comment period initiated with required publication and posting on April 13, 2024, and will conclude on May 14, 2024. Final funding recommendations are being presented to the City’s Housing and Land Use Committee to request support to move the item forward to the City Council for a final public hearing and consideration of approval. Barring the receipt of any significant comments that might require minor modifications, the approved AAP will be submitted to HUD prior to the August 16, 2024, deadline. If significant changes are required as a result of received public input, the City would then take appropriate action to amend its AAP.
The FY 2024-2025 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 $2,015,627 (CDBG); $60,000 (CDBG PI); $812,241 (HOME FY 24-25); $100,000 (HOME PI); and $379,288 (HOME prior FY’s PI) and $182,225 (ESG). The following tables summarize proposed funding recommendations for FY 2024-2025 AAP CDBG, HOME and ESG projects and activities.
Community Development Block Grant (CDBG)
Agency
Activity
Staff Recommendation
City of Salinas
Program Administration (20%)
$415,125
City of Salinas
Sherwood Recreation Center – Phase 4
$1,360,502
Eden Council for Hope and Opportunity
Fair Housing and Tenant/Landlord Services
$75,000
City of Salinas
Housing Referrals and Tenant/Landlord Services
$25,000
City of Salinas
Salinas Outreach and Response Team
$200,000
Total
$2,075,627
HOME Investment Partnerships Program
Agency
Activity
Staff Recommendation
City of Salinas
Program Administration (10%)
$91,224
Future Agency to be Determined
Future Affordable Housing Activity
(Including Activity Delivery)
$699,180
Future Agency to be Determined
Future CHDO Activity to be Determined
$501,125
Total
$1,291,529
Emergency Solutions Grants (ESG)
Agency
Activity
Staff Recommendation
City of Salinas
Program Administration (7.5%)
$13,667
City of Salinas
Salinas Outreach and Response Team
$100,000
Community Homeless Solutions
Rapid Re-housing Program
$68,558
Total
$182,225
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.
STRATEGIC PLAN INITIATIVE:
This agenda item supports each of the City of Salinas Strategic Plan 2022-2025 Goals and Strategies including Economic Development, Housing/Affordable Housing, Infrastructure and Environmental Sustainability, Public Safety, Youth and Seniors, and Effective and Culturally Responsive Government.
DEPARTMENTAL COORDINATION:
The FY 24-25 AAP is administered by the City’s Community Development Department Housing and Community Development Division in coordination with the City Attorney, Public Works, Library and Community Services, and Finance departments.
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 allocation during the PY 2020-2024 Con Plan period. Council approval of the FY 2024-2025 AAP would make the City eligible to receive $3,070,093 in HUD FY 2024-2025 CDBG, HOME, and ESG entitlement funding. No General Fund impact is associated with this item.
ATTACHMENTS:
Resolution FY 2024-2025 AAP
FY 2024-2025 HUD Annual Action Plan – Draft
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