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CDBG & HOME Substantial Amendments Summary - Draft

Housing and Land Use Committee
October 21, 2025

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CDBG & HOME Substantial Amendments Summary - Draft
Meeting
October 21, 2025
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Housing and Land Use Committee
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Text extracted from the city's file for reading and search. Open the original on legistar2.granicus.com. That file is the official record.

city of salinas
Summary OF SUBTANTIAL AmendmentS
TO HUD FY 2023-2024, 2024-2025, 2025-2026 Annual Action Plans The City of Salinas (“City”) is an Entitlement City in the U.S. Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) Program, Emergency Solutions Grant (ESG) Program, and HOME Investment Partnership Program (HOME).

The City proposes various Substantial Amendments to de-obligate and reallocate funds from multiple Fiscal Year (FY) Annual Action Plans (AAPs). The City has identified $1,060,000 in previously allocated CDBG funds that remain unspent from Chinatown Neighborhood Improvements from FY 2025-2026 AAPs. Similarly, the City has identified $2,482,022 in previously allocated HOME Funds that remain unspent and de-obligate funding from the Republic Café from FY 2023-2024 AAP. In addition, the City has identified $1,949,572.63 in unallocated HOME funds from Affordable Housing Projects from FY 2024-2025 & 2025-2026 AAPs.

Per the Citizen Participation Plan, a Substantial Amendment (“Amendment”) is defined as follows:

For larger projects, over $200,000, an increase of 25 percent or more in project funding. Changes that are less than $50,000 are not considered substantial.

An increase of 25 percent or more in project beneficiaries (i.e. income groups, limited clientele groups, residents of a targeted area) or a change in purpose, scope or location which would change the project beneficiaries by more than 25 percent.

A determination by the Community Development Director, that the change is substantial even though it falls below the standards in Section 1 and 2 above.

For ESG components, as long as the maximum 60% threshold for Street Outreach and Emergency Shelter is not exceeded, funding can be moved within the other components to meet expenditure requirements without a substantial amendment.

The reallocation and de-obligation of funds would meet section 1 & 3 above.

ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
Introduction
Through this substantial amendment, the City will de-obligate and reallocate funds from multiple Fiscal Year Annual Action Plans (AAPs). The City has identified $1,060,000 in previously allocated CDBG funds that remain unspent from Chinatown Neighborhood Improvements from FY 2025-2026 AAPs. Similarly, the City has identified $2,482,022 in previously allocated HOME Funds that remain unspent and de-obligate funding from the Republic Café from FY 2023-2024 AAP. In addition, the City has identified $1,949,572.63 in unallocated HOME funds from Affordable Housing Projects from FY 2024-2025 & 2025-2026 AAPs.

Currently, the City is pursuing multiple affordable housing projects using CDBG and HOME entitlement funds, as well as HOME CHDO Reserve funds. The City is in the process of evaluating the feasibility and merits of each potential project for funding. The City will be using HOME and HOME CHDO Set-Aside funds to sponsor several affordable housing projects involving a combination of activities including but not limited to; new construction of affordable multi-family rental housing and rehabilitation of affordable multi-family rental housing. Additionally, CDBG funds will be used to support public improvement projects, such as streetlights and curb cut ADA ramps, primarily in low- and moderate-income neighborhoods as well as the rehabilitation of affordable multi-family rental housing.

AP-12 Participation - 91.115, 91.300(c)
Summary of citizen participation process/Efforts made to broaden citizen participation In accordance with the City’s Citizen Participation Plan, public notices in English and Spanish were published in The Monterey Herald and on the City’s website on or before October 18, 2025. Notices were also posted at the Community Development Department (65 W. Alisal Street), City Hall (200 Lincoln Avenue), and City libraries. Additionally, the draft amendment summary was distributed via email to the Community Development Department’s Housing Distribution List. The draft Substantial Amendment Summary is available for public review during the mandatory minimum 30-day comment period, beginning on or before October 18, 2025, and concluding with the scheduled City Council hearing on November 18, 2025. Documents are accessible at the Community Development Department, City Hall, public libraries, and online. Copies may also be requested via email. The public is strongly encouraged to review and provide feedback on the proposed amendments.

These Public Notices and the Draft Summary of Substantial Amendment to FY 2023-2024, 2024-2025, 2025-2026 AAPs are available for review at the following locations:

Public Notices – at City of Salinas’ website:
https://www.cityofsalinas.org/Newsroom/Public-Notices
Draft Summary of Substantial Amendment to FY 2023-2024, 2024-2025, 2025-2026 AAPs – at City of Salinas website: https://www.cityofsalinas.org/Residents/Community/Housing-Community-Development Public notices and draft Amendment can also be reviewed in person at the following locations:

Community Development Department, 65 W. Alisal Street, Salinas, CA 93901; City Clerk’s Office, City Hall, 200 Lincoln Avenue, Salinas, CA 93901; John Steinbeck Library, 350 Lincoln Avenue, Salinas, CA 93901; Cesar Chavez Library, 615 Williams Road, Salinas, CA 93905; El Gabilan Library, 1400 North Main Street, Salinas, CA 93901.

The documents can also be requested via email at [email protected]. Write “Substantial Amendments to the FY 2023-2024, 2024-2025, & 2025-2026 AAP” in the subject line of the email.

The City will present the proposed amendment to the Housing and Land Use Committee on:

Tuesday, October 21, 2025, at approximately 3:30 p.m. or soon after City Council Rotunda, 200 Lincoln Ave Salinas, CA 93901 The public is encouraged to make comments in person during the Public Hearing to consider final adoption of proposed Amendment which will take place on:

Tuesday, November 18, 2025, at approximately 4:00 p.m. or soon after City Council Rotunda, 200 Lincoln Ave Salinas, CA 93901 Public comments can also be submitted via email to the Community Development Department at [email protected] prior to the Public Hearing; or can be mailed to:

City of Salinas
Community Development Department Housing Division
Attn: Lisa Brinton, Community Development Director
City of Salinas
65 W. Alisal Street, 2nd Floor
Salinas, CA 93901
AP-15 Expected Resources – 91.320(c) (1,2)
The City has identified $1,060,000 in previously allocated CDBG funds that remain unspent from Chinatown Neighborhood Improvements from FY2025-26 AAPs. Similarly, the City has identified $2,482,022 in previously allocated HOME Funds that remain unspent and de-obligate funding from the Republic Café from FY2023-24 AAP. In addition, the City has identified $1,949,572.63 in unallocated HOME funds from Affordable Housing Projects from FY2024-25 & FY2025-26 AAPs, including $608,038.08 in CHDO reserve funds.

AP-38 Project Summary
Project Summary Information – FY23-24
1 Project Name
Republic Café Housing Project
Target Area
Chinatown Area
Goals Supported
Enhanced Neighborhood Conditions
Needs Addressed
Public Facilities and Infrastructure Improvements
Funding
HOME: $2,482,022 $0
Description
The Republic Cafe Housing Project would include Rehabilitation of the Republic Cafe building located in Chinatown at 37-39 Soledad St. which will include five live-work affordable housing units. First floor will consist of an Asian American museum. The project will be a 100% affordable to low and very low-income households.

Target Date
6/30/2024
Estimate the number and type of families that will benefit from the proposed activities This project would benefit five low/moderate income households Location Description
The Republic Café building located in Chinatown at 37 Soledad St. Salinas, CA 93901 Planned Activities
This project will provide for the rehabilitation of the Republic Café building located in Chinatown at 37 Soledad St. to convert the building into an Asian experience museum and five live-work affordable housing units.

Project Summary Information – FY24-25
8 Project Name
HOME Future Affordable Housing Activity To Be Determined Target Area
Not applicable
Goals Supported
Increased Decent and Affordable Housing
Needs Addressed
Affordable Rental Housing Opportunities
Funding
HOME: $1,126,001 $0
Description
Project to be determined in the future to allocate HOME funds.

Target Date
06/30/2025
Estimate the number and type of families that will benefit from the proposed activities 5 Location Description
To be determined
Planned Activities
To be determined
Project Summary Information – FY25-26
5 Project Name
Chinatown Neighborhood Improvements
Target Area
Chinatown
Goals Supported
Enhanced Neighborhood Conditions
Needs Addressed
Public Facilities and Infrastructure Improvements
Funding
CDBG: $1,100,817 $50,817
Description
ADA sidewalk curb cut ramps at the Chinatown neighborhood, reconstruction of Sun St., Peach Dr., & Cherry Dr., new streetlights and other general infrastructure improvements.

Matrix Code: 03K/03L
National Objective: LMA
Presumed Benefit: No
Target Date
6/30/2026
Estimate the number and type of families that will benefit from the proposed activities This project would benefit the 1,400 low/moderate income persons in Chinatown Area Location Description
Chinatown Area
Planned Activities
Activities include predevelopment, such as environmental assessments and design; installation of ADA sidewalk curb ramps and other sidewalk repairs at different locations; the reconstruction of Sun St., Peach Dr., & Cherry Dr.; installation of new streetlights; other general infrastructure improvements; and activity delivery. 6 Project Name
Alisal Neighborhood Revitalization Strategy Area - Streetlights Phase 1Sidewalk Improvements Target Area
Alisal Neighborhood Revitalization Strategy Area
Goals Supported
Enhanced Neighborhood Conditions
Needs Addressed
Public Facilities and Infrastructure Improvements
Funding
$330,000$950,000
Description
Activities in Phase 1 include installing streetlights in the area bounded by Kern Street, North Madeira Avenue, Alisal Street, and Market Street and installing ADA sidewalk curb ramps at different locations throughout the ANSRA area.

Matrix Code: 03K
National Objective: LMA
Presumed Benefit: No
Target Date
6/30/2026
Estimate the number and type of families that will benefit from the proposed activities 14,560 households
Location Description
This will target the ANRSA area.

Planned Activities
Activities in Phase 1 include installing streetlights in the area bounded by Kern Street, North Madeira Avenue, Alisal Street, and Market Street and installing ADA sidewalk curb ramps at different locations throughout the ANSRA area. 10 Project Name
HOME Multifamily Affordable Housing Project to be determined Target Area
Citywide
Alisal Neighborhood Revitalization Strategy Area
Goals Supported
Increased Decent and Affordable Housing
Needs Addressed
Affordable Rental Housing Opportunities
Funding
HOME: $823,571.48 $4,431,594.63
CDBG $440,000
Description
Project to be determined in the future to allocate HOME, and CHDO and CDBG funds will be used to sponsor several projects from the Multifamily NOFA involving activities such as the new construction and rehabilitation of affordable multifamily rental housing.

Matrix Code: 14B
National Objective: LMH
Presumed Benefit: No
Target Date
6/30/2026 6/30/2030
Estimate the number and type of families that will benefit from the proposed activities To be determined 46 Low/Mod Housing Units
Location Description
To be determined City wide
Planned Activities
To be determined New construction and rehabilitation of affordable multifamily rental housing City of Salinas
FY 2023-2024, 2024-2025, 2025-2026 Annual Action Plan Amendments 5 OMB Control No: 2506-0117 (exp. 09/30/2021)

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