SECOND SUBSTANTIAL AMENDMENT TO HUD FY 2025-2026 ANNUAL ACTION PLAN April 21, 2026
City Council
Orlando Reyes, Assistant Director
Community Development Block Grant Program Income
City received $1,173,419 in CDBG Program Income
Funds generated from sale of 342 Front Street
Allocation of funds requires a Substantial Amendment to Annual Action Plan projects Three projects have been identified
Chinatown Property Acquisition
Alisal Neighborhood Revitalization Strategy Area Sidewalk Improvements Program Administration
Proposed Allocation
Alisal Neighborhood Revitalization Strategy Area Sidewalk Improvements Allocate additional $56,619 to existing project
Increases project funding to $1,006,619
Expands the project scope
CDBG Program Planning and Administration
Allocate an additional $31,800
Increases funding to $473,683
Supports compliance and program delivery
Within the 20% regulatory limit
Proposed Allocation(Continued)
Chinatown Property Acquisition
$1,085,000 for 43 Soledad Street
Strategic investment opportunity
Potential affordable housing or economic development
Leaseback option up to 4 years to Victory Mission Inc.
Allows time for environmental review and procurement
Consistent with goals identified in the Chinatown Revitalization Plan
Proposed 2nd Amendment to FY 2025-2026 AAP
Project No.
CDBG Project Name
Current Allocation
Proposed Adjustment
Recommended Allocation
3 Alisal Neighborhood Revitalization Strategy Area Sidewalk Improvements $950,000
$56,619
$1,006,619
9 CDBG Program Planning and Administration
$441,883
$31,800
$473,683
11 Acquisition of Real Property in the Salinas Chinatown Neighborhood $0
$1,085,000
$1,085,000
Total
$1,391,883
$1,173,419
$2,565,302
Citizen Participation Plan
30-day Notice of Public Hearing and Public Comment Period Started on March 21, 2026 and Ends on April 21, 2026
Notices of Public Hearing posted on March 21, 2026
The Monterey Herald, City’s website, Community Development Department, City Hall, Libraries, Housing Division and City’s Gov Delivery Distribution Lists Draft Amendment for Public Review
Available from March 21, 2026, through April 21, 2026
City’s website, Community Development Department, City Hall, Libraries, Housing Division and City’s Gov Delivery Distribution Lists, and per email request Public Hearing
City Council Meeting on April 21, 2026
CEQA/NEPA Consideration
The City of Salinas has determined that the proposed action (Substantial Amendment) is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Any subsequent discretionary projects resulting from this action will be assessed for CEQA/NEPA applicability.
Strategic Plan Initiative
Economic Development, Housing and Infrastructure
Fiscal and Sustainability Impact
No General Fund Impact
2nd Substantial Amendment relate to CDBG Funds
RecommendedMotion
It is recommended that City Council approve a Resolution authorizing:
The submission of the Second Substantial Amendment to FY 2025-2026 Annual Action Plan (AAP) to the United States Department of Housing and Urban Development (HUD); and The allocation of $1,173,419 in Community Development Block Grant Program Income funds from FY 2025-2026 AAP to projects described in the Summary of Second Substantial Amendment to HUD FY 2025-2026 AAP; and The City Manager, or designee, to incorporate any necessary modifications to the Substantial Amendment based on community feedback, and to execute any agreements and related documents for HUD-funded projects and activities as outlined in the Summary of Second Substantial Amendment to HUD 2025-2026 AAP.
Questions?
For more information, contact Housing Division
(831) 758-7334
https://www.cityofsalinas.org/Your-Government/Departments/Community-Development