City of Salinas
FY 2025-26
Consolidated Annual Performance Evaluation Report
(CAPER - July 1, 2025 through June 30, 2026)
City of Salinas
Community Development Department, Housing Division
65 W. Alisal St, 2nd Floor.
Salinas, CA 93901
(831) 758-7334
DRAFT
CAPER i
OMB Control No: 2506-0117 (exp. 07/31/2015)
Table of Contents
CR-05 - Goals and Outcomes .................................................................................................................... 1 CR-10 - Racial and Ethnic composition of families assisted ...................................................................... 7 CR-15 - Resources and Investments 91.520(a) ......................................................................................... 8 CR-20 - Affordable Housing 91.520(b) .................................................................................................... 14 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................ 16 CR-30 - Public Housing 91.220(h); 91.320(j) ........................................................................................... 18 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) .................................................................................... 19 CR-40 - Monitoring 91.220 and 91.230 ................................................................................................... 23 CR-45 - CDBG 91.520(c) ........................................................................................................................... 24 CR-50 - HOME 91.520(d) ......................................................................................................................... 25 CR-58 – Section 3 .................................................................................................................................... 28 CR-60 - ESG 91.520(g) (ESG Recipients only) .......................................................................................... 30 CR-65 - Persons Assisted ......................................................................................................................... 32 CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes ................................................................. 35 CR-75 – Expenditures .............................................................................................................................. 36 Attachment A: Public Participation ........................................................................................................... 1 Public Hearing and Summary of Comments ......................................................................................... 1 Proof of Publication – Will be attached once available ........................................................................ 2 Attachment B: Monitoring Procedures ..................................................................................................... 1 Attachment C: IDIS Report – PR 26 ........................................................................................................... 1 Attachment D: CAPER Resolution ............................................................................................................. 1
DRAFT
CAPER 1
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This is an overview that includes major initiatives and highlights th ose that were proposed and executed throughout the program year. The City of Salinas (City) is designated as an entitlement community for three funding programs administered by HUD: Community Development Block Grant (CDBG); HOME Investment Partnerships; and Emergency Solutions Grants (ESG). The FY 2025-26 Consolidated Annual Performance Evaluation Report (CAPER) describes the City’s affordable housing and community development activities between July 1, 2025, through June 30, 2026. The CAPER also provides an evaluation of the City’s progress in carrying out the goals and objectives as stated in the Five -Year Consolidated Plan FY 2025-2029 and the FY 2025-2026 Action Plan. Salinas has identified the following housing goals. Housing goals include applicable activities the City took during FY 2025-26.
Increased Decent and Affordable Housing:
The City aims to expand affordable housing opportunities for lower- and moderate-income households, including those with special needs (seniors, large households, farmworkers, disabled, homeless, etc.) . Affordable rental housing is prioritized due to funding limitations and urgency of needs. • Vista De La Terraza Rehabilitation: The City allocated $440,000 from CDBG and $ 610,000 from HOME CHDO funds for the rehabilitation of an existing multifamily development that will assist up to 40 housing units.
The CDBG funds come from FY 2025-2026. The HOME-CHDO funds are comprised from the following fiscal years: $120,801 from FY 2021-2022, $136,651 from FY 2022-2023, $121,836 from FY 2023-2024, $109,452 from FY 2024-2025, and $ 121,260 from FY 2025-2026. The rehabilitation of the project is anticipated to begin in the second quarter of FY 2026-2027.
• Saint George Apartments: The City allocated $610,000 in HOME funds through a substantial amendment in November 18, 2025. This project is intended to create up to 36 100% affordable units for seniors. The project is currently undergoing an environmental review. • 200 Casentini Street Apartments: The City allocated $ 3,387,768 in HOME funds t hrough a substantial amendment in November 18, 2025. This project is intended to create up to 88 multifamily housing units. The project is currently undergoing an environmental review and will be submitting their CDLAC application in September 206. The project is intended to break ground in May 2027. • Housing Services Program: Although no funding was allocated in FY 2025-2026, the City does plan to bring back this program in FY 2026-2027 Annual Action Plan. This program is intended to provide rehabilitation assistance for homeowners. During FY 2026-2027, City staff intend to develop program guidelines and pursue partnerships for program operations.
Enhanced Homeless Prevention, Services, and Facilities:
The City uses ESG and CDBG funds to coordinate services and facilities for the homeless. This is a citywide priority with an emphasis on the Chinatown area. The City's strategy for addressing homeless needs is three -pronged: 1) homeless prevention; 2) homeless services; and 3) homeless facilities. The intent is to reduce the risk of homelessness, and address the needs of those rendered homeless using a continuum of care approach by supporting services and facilities that complement the existing Continuum of Care system. • Salinas Outreach and Response Team: Funding for the Salinas Outreach and Response Team (SORT) totaled $329,465 consisting of $221,390 in CDBG Entitlement Funds and $108,075 in ESG funds. The City has drawn down $118,655 in CDBG and $34,141 in ESG for SORT during FY 2025-26. SORT serves those living unsheltered throughout the City of Salinas. The SORT Team operates from 21 Soledad Street (Suite B), in Salinas, California. The SORT team provides the following services: street outreach, essential services, targeted engagement, housing linkages, resources, supportive services and referrals to facilitate movement of those living unsheltered towards becoming housed. A total of 108 persons were enrolled and engaged in street outreach services through CDBG and ESG in FY 25-26, and 17 persons were successfully housed through street-based coordination and support.
DRAFT
CAPER 2
OMB Control No: 2506-0117 (exp. 07/31/2015)
Additionally, $1,190,337 in HOME -ARP funds were allocated in FY 2025 -26. However , these funds are intended to be spent in FY 2026-27 & 2027-28.
• Community Homeless Solutions – The City allocated $78,962 i n ESG funds for Community Homeless Solutions’ CNC Rapid Rehousing program. This program enrolled a total of 177 persons in the rapid rehousing program. All allocated funds were spent in FY 2025-26.
Enhanced Neighborhood Conditions
The City will provide a range of community development activities, including community and supportive services, expansion/improvement to community facilities and infrastructure, and economic development activities. The City will coordinate services and improvements in a manner that concentrate investments in specific neighborhoods in order to provide more lasting and impactful improvements.
• ECHO Housing – Housing Rights and Tenant/Landlord Services: ECHO Housing conducts a yearly fair housing audit, housing rights counseling and tenant/landlord mediation. Responds to evictions and assists with the additional demand for eviction mitigation. This Project was funded in the amount of $102,300 through FY 2025-26 CDBG Entitlement Funds. All allocated funds were spent in FY 2025-26. A total of 394 persons were assisted..
• Natividad Creek Restroom Rehabilitation Projects: All construction activities and safety inspections were completed on November 10, 2025. On December 9, 2025, City Council officially accepted the project. On February 23, 2026, the required federal closeout documents were collected from all parties involved in the project and subsequently, closed this activity in HUD IDIS online portal, marking the official closure of the project. This project is anticipated to serve 33,880 residents. • Hebbron Family Center Project: All major construction activities were completed in December 2025 . On June 9, 2026, all the closeout documents were collected from all participating parties on the project. On June 16, 2026, City Council officially accepted the thus concluding the construction of the new facility. There are a few minor invoices still pending from the project manager, so City staff anticipate final drawdowns to happen in early September 2026. At that point, City staff will be able to fully close this activity in IDIS which is targeted for mid-October 2026. This project is intended to serve over 60,000 residents. • Sherwood Recreation Center Project: The Sherwood Recreation Center Phase IV is a retrofit project located at 920 N. Main St., Salinas, CA, on a City -owned parcel. The project involves converting the former Municipal Swimming Pool Building (approximately 12,895 sq ft) into a functional recreation center focused on youth sports programs. The scope of work includes exterior improvements like hazardous material remediation, roof repairs, façade repairs, installation of new windows and doors, improved accessibility features, parking area upgrades , landscaping, and interior improvements. Allocated CDBG program funds would be used to cover administrative costs, construction activities, and other unforeseen costs. Through its Fiscal Years 2021-2022, 2022-2023, 2023-2024 & 2024-2025 Annual Action Plans (AAP) the City allocated a total of $3,951,795.20 of CDBG program funds towards the preliminary design, soft costs, and construction costs for the Sherwood Recreation Center Phase IV project. Following bid opening for the construction of the project and an update of other estimated construction costs it was determined that the project has a funding shortfall of approximately $595,000. The City of Salinas identified $550,000 in unspent CDBG funds from the Republic Café project and $45,000 from the Housing Referrals and Tenant/Landlord Services previously allocated in the FU 2023-24 Annual Action Plan. In December 2025, the City awarded a contractor the final phrase of the renovation project. As of mid -June 2026, the project was 89% complete. The Sherwood Recreation Center renovations will be completed during the 1st quarter p FY 2026-27, and with the grand opening tentatively scheduled for mid-September 2026.
• Chinatown Neighborhood Improvements: The Chinatown Neighborhood Improvements is not project that includes one parcel, but rather the entire Chinatown neighborhood as highlighted in the City’s Chinatown Revitalization Plan. This project is being managed by the City’s Community Development Dep artment.
Through is fiscal year allocations from 2022-23, 2025-26, and 2026-27, this neighborhood project received a total of $ 823,797 in CDBG entitlement funds towards construction activities with an additional $ 55,000 earmarked for Activity Delivery. In FY 2022-23, City staff collaborated with the Salinas Downtown Community DRAFT
CAPER 3
OMB Control No: 2506-0117 (exp. 07/31/2015)
Board which includes stakeholders from the business sector, nonprofits, and neighborhood residents.
Feedback from this board revealed strong support for infrastructure, sanitation, and beautification projects. In August 2022, City staff completed an Exempt Environmental Review Record (ERR) for the soft cost activities of the project and begin with the design phase of the project In FY 2023 -24, the Community Development Department collaborated with the Public Works Department to refine the project scope. This project will focus on ADA curb cuts, sidewalk repairs, street repairs, and lighting improvements throughout the neighborhood.
The ERR for hard cost activities began on June 2025 and as part of Section 106 of the National Historic Preservation Act of 1966, began tribal consultations on April 3, 2026, met with one tribal group where City staff provided the Tribal Historic Preservation Officer with additional time to provide specific information on any Tribal Cultural Resources within the Project area. Anticipation for conclusion of the tribal consultation is set for mid -July 2026 and for the overall process, this target is set for late September 2026 when the City receives the Authorization for Use of Grant Funds (AUGF). At that stage, it will allow the city to enter into contracts with general contractors to begin construction activities of this projects outlined scope of work .
Procurement activities are projected to conclude in second quarter of FY 26-27.
• Alisal Neighborhood – Streetlight and Sidewalk Improvements – The Alisal Neighborhood Revitalization Strategy Area (NRSA) is not a project that includes one parcel, but rather the entire HUD designated NRSA as highlighted in the City’s Alisal Vibrancy Plan. The project proposes various infrastructure improvements, including (1) streetlight improvements; and (2) Americans with Disabilities Act (ADA) curb cut upgrades and ramps along with additional miscellaneous infrastructure improvements as -needed to facilitate the project activities identified above. This project is being managed by the City’s Community Development Department.
Through is fiscal year allocations from 2022-23, 2025-26, and 2026-27, this neighborhood project received a total of $ 1,256,619 in CDBG entitlement funds towards construction activities with an additional $ 78,000 earmarked for Activity Delivery. On May 21, 2026, City staff completed an Exempt Environmental Review Record (ERR) for the soft cost activities of the project. As of June 2026, City staff is working through the ERR for the hard cost activities of the project and the ERR is targeting late July 2026 to begin the Section 106 Tribal Consultation stage as part of the National Historic Preservation Act of 1966 which is one of the lengthiest segments of the review . Based on the current trajectory and assuming no additional time extensions are required during the remaining sections of this review, a target for completion is projected for November 2026 which includes receiving the Authorization for Use of Grant Funds (AUGF) and allow the city to begin procurement of general contractors that will execute the scope of work for this project. Procurement activities are projected to conclude in second quarter of FY 26-27.
• Acquisition of Properties in Chinatown Neighborhood - During FY 2025-2026, the City of Salinas received $1,173,419 in CDBG Program Income from the February 9, 2026, sale of City-owned property located at 342 Front Street. Because these proceeds were not included in the adopted FY 2025 -2026 Annual Action Plan, the City processed a Second Substantial Amendment in accordance with its Citizen Participation Plan and applicable CDBG requirements. Following the required 30-day public review and comment period, the Salinas City Council conducted a public hearing and, on April 21, 2026, approved the Second Substantial Amendment and the allocation of the Program Income. Of the available Program Income, $1,085,000 was allocated for the acquisition of real property at 43 Soledad Street in the Salinas Chinatown Neighborhood. The acquisition is intended to support future activities consistent with the Chinatown Neighborhood Revitali zation Plan, with the option to temporarily lease the property back to Victory Mission, Inc. for continued operations for up to five years or until an alternative site is secured. The CEST Environmental Review Record converted to Exempt was marked complete on June 22, 2026. City staff continue to work on due diligence activities related to this acquisition activity.
Planning and Program Administration
The City will continue to implement the CDBG, HOME, and ESG programs in compliance with all applicable regulations and requirements. The caps for program administration costs (20 percent for CDBG, 10 percent for HOME, and 7.5 percent for ESG) do not provide adequate funds to perform all the general planning, program implementation, reporting, DRAFT
CAPER 4
OMB Control No: 2506-0117 (exp. 07/31/2015)
and monitoring functions required by these programs. Therefore, as allowed by HUD, the City allocates a portion of the activity funding to delivery costs that are directly associated with implementation of specific activities or programs.
DRAFT
CAPER 5
OMB Control No: 2506-0117 (exp. 07/31/2015)
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.
Table 1 - Accomplishments – Program Year & Strategic Plan to Date Goal Category Source / Amount Indicator
Unit of
Measure
Expected –
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected –
Program
Year
Actual –
Program
Year
Percent
Complete
Increased
Decent and
Affordable
Housing
Affordable
Housing HOME $865,249
Rental units
constructed
Household
Housing Unit 25 0 0.0% 0 0 NA
Homeowner Housing
Rehabilitated
Household
Housing Unit 25 0 0.0% 0 0 0.0%
Enhanced
Homeless
Facilities and
Services
Enhanced
Homeless
Prevention,
Services, and
Facilities
CDBG: $221,390
ESG: $108,075
Homeless Person
Overnight Shelter
Persons
Assisted 1,300 0 0.0% 0 0 0.0%
Homelessness
Prevention
Persons
Assisted 25 0 0.0% 0 0
Public Service
activities other than
Low/Moderate Income
Housing Benefit
Persons
Assisted 500 0.0% 150 220 440.0%
TBRA/Rapid Re-
Housing
Households
Assisted 50 26 52.0% 25 26 104.0%
Non-Homeless
Special Needs CDBG: $1,567,534.00
Public Facility or
Infrastructure
Activities other than
Persons
Assisted 10,000 0.0% 2,750 0.0%
DRAFT
CAPER 6
OMB Control No: 2506-0117 (exp. 07/31/2015)
Goal Category Source / Amount Indicator
Unit of
Measure
Expected –
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected –
Program
Year
Actual –
Program
Year
Percent
Complete
Enhanced
Neighborhood
Conditions
Non-Housing
Community
Development
Low/Moderate Income
Housing Benefit
Public Service
activities other than
Low/Moderate Income
Housing Benefit
Persons
Assisted 4,000 338 8.5% 100 338 338.0%
Economic
Development
Businesses
Assisted 25 0 0.0% 0 0 0.0%
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.
During FY 2025 -26, the City continued to implement the priority needs established in the City’s curren t FY 202 5-29 Consolidated Plan. All High Priority Needs identified in the Consolidated Plan received funding from CDBG, HOME, and/or ESG programs. The City was able to achieve or remain on track to achieve most of its goals and objectives. Specifically, the City pursued the following affordable housing projects (described in detail earlier):
• Soledad Street – the City approved the allocation of funds to purchase the funding to buy the Chinatown Victory Mission shelter on Soledad Street. The City has purchased three properties for the development of affordable housing, including 55 units affordable to families at 34 -40 Soledad Street, 30 affordable studios/one-bedrooms at 45 Soledad Street.
DRAFT
CAPER 7
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted). 91.520(a)
CDBG HOME ESG
White 67 0 36
Black or African American 3 0 16
Asian 1 0 2
American Indian or Naïve American 2 0 3
Asian and White 2 0 0
Native Hawaiian or Other Pacific
Islander 2 0
13 Other 0 0 2
Total 78 0 209
Hispanic 57 0 146
Non-Hispanic 19 0 56
Narrative
The City assisted 338 residents/households with public services that are available citywide . However, some of the assisted residents preferred not to answer or didn’t provide an answer for ethnicity, which are not included provided above as “Other”. About 76 percent of those assisted with CDBG were Hispanic.
The City rehabilitated eight units with CDBG and HOME funds. Tenant data is not yet available.
In addition, the table above also includes 224 persons assisted with ESG funds. Only persons enrolled into the HMIS are included in this table. For additional details on ESG-funded homeless prevention and intervention services, please refer to the SAGE – HMIS database and report.
DRAFT
CAPER 8
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source
Resources Made
Available
Amount Expended
During Program Year
CDBG Public $9,955,010 $2,372,030.81
HOME Public $7,372,178 $255,041
ESG Public $213,315 $125,252
Table 2 - Resources Made Available
Narrative
The City is an entitlement jurisdiction for CDBG, HOME, and ESG funds, and received $2,179,417 in CDBG funds, $791,387 in HOME funds, and $188,399 in ESG funds for FY 2025 -2026. In addition, the CDBG program received Program Income (PI) of $1,219,588) (larger due to the sale of 342 Front Street) and the HOME program received a PI of $24,416.04.
Identify the geographic distribution and location of investments Target Area
Planned
Percentage
of Allocation
Actual
Percentage
of Allocation
Narrative Description
Alisal Neighborhood
Revitalization Strategy Area 10 17
Projects in this area include Alisal
Neighborhood – Sidewalk Improvements,
Hebbron Family Center, Natividad Creek Park
Restroom Rehabilitation, and rehabilitation of
Vista de la Terraza apartments
Chinatown Revitalization Area 36 8
Projects in this area include CNC Rapid
Rehousing Services by Community Homeless
Solutions, Chinatown Neighborhood
Improvements, and Acquisition of Properties
in Chinatown Neighborhood
Table 3 – Identify the geographic distribution and location of investments Narrative
Alisal Neighborhood Revitalization Strategy Area (NRSA) This area represents one of the most distressed neighborhoods in the City. Th is area ha s some of the highest concentrations of poverty and substandard living conditions in the City. The area faces challenges such as inadequate public infrastructure, high levels of unemployment, high levels of poverty, and violent criminal activity. Within the Alisal NRSA, 23% of all residents live in poverty, a higher proportion than the City overall (19 %).
In FY 2025-26, the Hebbron Family Center project had a total of $409,075 in CDBG funds remaining to complete this project, but only $317,267 were expended. The Hebbron Family Center was completed and had it’s grand reopening January 31, 2026. On June 9, 2026, all the closeout documents were collected from all participating parties on the project. On June 16, 2026, City Council officially accepted the project thus concluding the construction of the new facility. There are a few minor invoices still pending from the project manager, so City staff anticipate final drawdowns to happen in late July or early August 2026. At that point, City staff will be able to fully close this activity in IDIS.
The Natividad Creek Park Restroom Rehabilitation and ADA Improvements Project had a total of $109,817 remaining in CDBG funds to complete the project, however only $81,466 were spent at the end of the project. As of the start of FY 2026, the Natividad Creek project is completed and has been closed.
DRAFT
CAPER 9
OMB Control No: 2506-0117 (exp. 07/31/2015)
The City allocated a total of $1,006, 619 in CDBG funds to the Alisal Neighborhood – Sidewalk Improvements in FY 2025-26, however no expenditures have been requested. The project is currently going through the Environmental Review process with construction to start the second quarter of FY 2026-27.
The rehabilitation of Vista de la Terraza project was allocated $440,000 in CDBG and $610,000 in HOME funds, for a total of $ 1,050,000. This project is being managed by C ommunity Housing Improvement Systems and Planning Association (CHISPA), a local non-profit developer, and is currently in the Environmental Review phase. It is estimated that the construction phase can start in the second quarter of FY 2026-27.
Chinatown Area
The 12 blocks that form the Chinatown area are located primarily within Census Tract 18.02 Block Group (BG) 2. This BG has a population of about 2,193, with 69.8 percent being low and moderate income. The Chinatown area is identified as a HUD Slum and Blight designated local target area, as it is currently isolated from the rest of the City and is seeing serious issues of homelessness, unreported violence and a high percentage of low- and moderate-income residents (see discussion below).
During FY 2025-26, the City allocated $78,962 funds to provide s ervices to address the needs of the unsheltered in this area includ ing funding to provide Rapid Rehousing in the Chinatown Navigation Center (CNC) that benefit the unhoused population in Chinatown. In 2026, CNC faced closure due to lack of funding, even though the City approved funds to keep the center in operation through the winter, the center was ultimately closed in March 2026.
CDBG funds were allocated to the Salinas Outreach and Response Team (SORT) to provide services such as engagement, linkages and referrals to other services. This program will benefit residents in the Chinatown area and throughout the City.
The City is in the process of implementing the Chinatown Revitalization Plan which includes infrastructure improvements and new affordable housing opportunities. During FY 2025-26, the City had allocated $47,612 in CDBG funds to complete the Environmental Review process, with $26,675 spent. This project is currently funded through the FY 2026-27 Annual Action Plan and General funds. Construction is expected to start in the third quarter of FY 2026 -
27. In February 202 6, the City received an unexpectedly large amount of Program Income through the sale of the 342 Front Street facility. The City then allocated $1 ,085,000 in CDBG funds toward the Acquisition of Properties in Chinatown Neighborhood to support the City’s ongoing neighborhood revitalization efforts . The City has identified a potential property to acquire and is going through the Environmental Review process before entering into a sales and purchase agreement. If successful, the City will be closing on this property by end of the second quarter of FY 2026-
27. Chinatown Slum and Blight Designation
On May 16, 2019, Kimberly Nash, the Director of the Community Planning and Development Division, accepted the Chinatown Slum and Blight Designation Report. With the designation of Chinatown as a Slum and Blight Area, the City has a greater opportunity to revitalize it. Chinatown is at the heart of Salinas and it’s an integral part of the City’s rich history. This designation was effective July 1, 2017, and will continue for a period of 10 years after. The designation covers an area of six-blocks that are physically separated from the surrounding Downtown and the Intermodal Transit Center by the Union Pacific railroad tracks and by the main arterials such as East Market Street, Sherwood Drive, East Rossi Street, Monterey Street and North Main Street. The neighborhood includes the following minor streets: East Lake Street, California Street, Soledad Street, Market Way, Bridge Street. Within the neighborhood, t here are three (3) alleys: Bridge, Rossi, and Lake.
Leveraging
Explain how federal funds leveraged additional resources (private, state, and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land DRAFT
CAPER 10
OMB Control No: 2506-0117 (exp. 07/31/2015)
or property located within the jurisdiction that were used to address the needs identified in the plan.
For Public Services subrecipients, ESG funding is often an essential source of funding that allows access to other funds. None of the subrecipients’ essential safety net programs are funded exclusively by ESG. Local community foundations require matching funding and City of Salinas CDBG funds have frequently fulfilled that requirement. There are also other more subtle forms of leverage. Public investment in a particular neighborhood (upgrading water mains or installing traffic signals or street lighting), for example, can be an inducement for additional investment by area property owners affected by the improvements.
The City of Salinas is advancing its Chinatown Revitalization Plan with predevelopment designs for over 80 units of mixed-use affordable housing, historic preservation of the fire -damaged Republic Café and Lotus Inn into a cultural center, and targeted public land control along Soledad Street. The city acquired seven properties on Soledad Street, leveraging about $1.5 million in state planning grants and working with architecture firms to formulate developer-ready concepts. Public open houses held in mid -2026 showed broad support for the housing designs, alongside resident concerns regarding local homelessness support services.
HOME Match Contribution: For FY 2025-2026, the City of Salinas was eligible for a 50-percent reduction in HOME match requirements based on the City’s poverty index of 14.25 percent.
Fiscal Year Summary – HOME Match
1. Excess match from prior Federal fiscal year $6,372,712
2. Match contributed during current Federal fiscal year $0
3. Total match available for current Federal fiscal year (Line 1 plus Line 2) $6,371,712
4. Match liability for current Federal fiscal year $0
5. Excess match carried over to next Federal fiscal year (Line 3 minus Line 4) $6,371,712 Table 4 – Fiscal Year Summary - HOME Match Report
DRAFT
CAPER 11
OMB Control No: 2506-0117 (exp. 07/31/2015)
Match Contribution for the Federal Fiscal Year
Project No. or
Other ID
Date of
Contribution
Cash
(non-Federal
sources)
Foregone
Taxes, Fees,
Charges
Appraised
Land/Real
Property
Required
Infrastructure
Site
Preparation,
Construction
Materials,
Donated labor
Bond
Financing Total Match
N/A
Table 5 – Match Contribution for the Federal Fiscal Year
HOME MBE/WBE report
Program Income – Enter the program amounts for the reporting period Balance on hand at
beginning of reporting
period
Amount received during
reporting period
Total amount expended
during reporting period
Amount expended for
TBRA
Balance on hand at end of
reporting period
$754,575.17 $24,416.04 $2,441.64 $0 $774,105.33
Table 6 – Program Income
DRAFT
CAPER 12
OMB Control No: 2506-0117 (exp. 07/31/2015)
Minority Business Enterprises and Women Business Enterprises – Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Total
Minority Business Enterprises
White Non-
Hispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic Hispanic
Contracts
Number 0 0 0 0
Dollar
Amount 0 0 0 0
Sub-Contracts
Number 0 0 0 0
Dollar
Amount 0 0 0 0
Total
Women
Business
Enterprises Male
Contracts
Number 0 0 0
Dollar
Amount $0.0 $0.0 $0.0
Sub-Contracts
Number 0 0 0
Dollar
Amount $0.0 $0.0 $0.0
Table 7 – Minority Business and Women Business Enterprises
Minority Owners of Rental Property – Indicate the number of HOME assisted rental property owners and the total amount of HOME funds in these rental properties assisted Total
Minority Property Owners
White Non-
Hispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic Hispanic
Number 0 0 0 0 0 0
Dollar
Amount
$0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Table 8 – Minority Owners of Rental Property
DRAFT
CAPER 13
OMB Control No: 2506-0117 (exp. 07/31/2015)
Relocation and Real Property Acquisition – Indicate the number of persons displaced, the cost of relocation payments, the number of parcels acquired, and the cost of acquisition Parcels Acquired 0 $0
Businesses Displaced 0 $0
Nonprofit Organizations Displaced 0 $0
Households Temporarily
Relocated, not Displaced 0 $0
Households
Displaced Total
Minority Property Enterprises
White Non-
Hispanic
Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic Hispanic
Number 0 0 0 0 0 0
Cost $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Table 9 – Relocation and Real Property Acquisition
DRAFT
CAPER 14
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.
One-Year Goal Actual
Number of homeless households to be
provided affordable housing units
0 0
Number of non-homeless households to be
provided affordable housing units
5 0
Number of special-needs households to be
provided affordable housing units
0 0
Total 5 0
Table 10 – Number of Households
One-Year Goal Actual
Number of households supported through
rental assistance
0 194
Number of households supported through
the production of new units
5 0
Number of households supported through
the rehab of existing units
0 0
Number of households supported through
the acquisition of existing units
0 0
Total 5 194
Table 11 – Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.
The City currently has several affordable housing projects underway, including under the Chinatown Revitalization Plan. As discussed above, the City has acquired seven sites in total (three for housing) for the implementation of this Plan which includes new affordable housing opportunities. While the City did not approve building permits for any affordable units during FY 2025-2026, the City continues to move forward with future affordable housing plans, many of which are currently in the pipeline. Additionally, the City pursues other affordable housing-related goals such as rehabilitation efforts.
The following projects are currently in the pipeline for future development using CDBG and HOME program funds:
• Casentini Street Project : 88-unit affordable housing building approved on June 11, 2026 (owned by the Housing Authority of Monterey County). The project is currently undergoing an environmental review and anticipate to break ground in the fourth quarter of FY 2026-2027.
DRAFT
CAPER 15
OMB Control No: 2506-0117 (exp. 07/31/2015)
• Vista de la Terraza Rehabilitation – rehabilitation of a 40-unit, 100% affordable project. The rehabilitation is intended to begin in the second quarter of FY 2026 -2027. (Owned by Community Housing Improvement Systems and Planning Association, Inc. (CHISPA))
• St. George Apartments Project: 36 -unit, 100% affordable, senior housing development. Project is currently undergoing an environmental review and seeking capital for the development of the project. (Owned by CHISPA).
• Soledad Street / Chinatown Revitalization (34-40 Soledad St.): City-backed plans for a 5 to 6-story mixed-use building bringing 55 affordable family units with up to three bedrooms • Chinatown Senior Housing (45 Soledad St.): Planned component focusing on 30 affordable senior housing units (studios and one-bedrooms) with ground-floor retail and historic site restorations.
Discuss how these outcomes will impact future annual action plans.
The City will continue to coordinate with applicable parties to develop affordable housing throughout the City, including through the Chinatown Revitalization Plan, Housing Authority, and in coordination with Housing Element goals.
Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.
Number of Persons Served CDBG Actual HOME Actual
Extremely Low-income 0 0
Low-income 0 8
Moderate-income 0 0
Total 0 8
Table 12 – Number of Persons Served
Narrative Information
The City utilizes its CDBG and HOME funds to provide affordable housing for the low-income population.
DRAFT
CAPER 16
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The Salinas Outreach and Response Team participates in the planning and facilitation of homeless outreach meetings in partnership with the Coalition of Homeless Service Providers . This includes all the homeless service providers including Interim Inc, Junipero Franciscan Workers, Community Human Services , Access Support Network, and Community Homeless Solutions. These meetings were created to improve system processes and coordination of outreach services to address the complex needs of the unsheltered regionally. In FY 2025-26, The City of Salinas funded both Chinatown Navigation Center Rapid Rehousing Program and The Salinas Outreach and Response Team through ESG. Both programs demonstrate greater successes as outlined in the ESG narrative.
City of Salinas : The City also participates in regional planning and coordination efforts, including the Outreach Committee Team, HMIS Oversight Committee, Homeless Prevention and Rapid Rehousing Program Committee, and Encampment Response Team (ERT). These efforts support improved system coordination, data oversight, housing resource identification, and coordinated responses to encampments. The City also meets with the Coalition of Homeless Services Providers by participating in a monthly Administration and Implementation Meeting. The City has also attended bi -monthly meetings with the Community Foundation of Monterey County. Leaders from Monterey County, including City Managers, key City staff, non-profit institutions and the Community Foundation have met to try and create solutions to alleviate conditions in Chinatown and provide solutions, including housing and resources.
City staff also participate in the Salinas Downtown Community Board group that meets monthly to create a vision for Chinatown. This group is composed of service providers, City and County staff , and o ther stakeholders in the neighborhood. City staff also attend the Housing Pipeline Committee meetings held by the Coalition of Homeless Service Providers . The purpose of this group is to aid in understanding the availability of housing resources for homeless residents and to create new solutions to facilitate additional housing supply throughout the County. In addition, City staff participate in the Homeless Management Information System (HMIS) Oversight Committee meetings as well as the Homeless Prevention and Rapid Rehousing Program committee (HPRP). The City’s Mayor also sits on the Leadership Council for the Regional Continuum of Care (CoC).
Addressing the emergency shelter and transitional housing needs of homeless persons Homeless Funding: In 2016 the City became the administrative entity (AE) to administer State ESG and California Emergency Solutions and Housing (CESH) programs for San Benito and Monterey Counties. This collaboration has added emergency homeless funding and increased capacity to serve homeless in our CoC. In 2022, the City and County partnered together to create a similar project to project room key , now called the Emergency Motel Program.
The City of Salinas funded the operations of the EMP through Encampment Resolution Funding. This program ended in June 2026. A total of 10 clients participating in the EMP were transitioned to permanent supportive housing at the 1030 Fairview Ave. property after being acquired by the Housing Authority of the County of Monterey.
Emergency Shelter: The City in collaboration with the County of Monterey fund the operations of the SHARE Center, a low-barrier navigation s helter with 10 0 beds. The SHARE Center is currently operated by Community Human Services. The City’s share of funding comes from its General Funds and State grants.
Community Homeless Solutions (CHS) and Victory Mission provide alternative emergency shelters to the homeless population in Salinas. However, the Chinatown Navigation Center was closed in March 2026 due to the lack of funding, which significantly reduced the City’s capacity for emergency housing by 40 beds Helping low-income individuals and families avoid becoming homeless, especially extremely low - income individuals and families and those who are: likely to become homeless after being DRAFT
CAPER 17
OMB Control No: 2506-0117 (exp. 07/31/2015)
discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs
Discharge Policies: On May 8, 2007, the City of Salinas adopted a Discharge Coordination Policy pertaining to the discharge of persons from publicly funded institutions and systems of care. As the City neither owns nor operates any such facilities, the impact was largely symbolic. The Countywide Continuum of Care organization seeks to coordinate discharge policies among publicly funded institutions and systems of care. The “Lead Me Home: The Game Plan for Housing Homeless People in Monterey and San Benito Counties” established the Discharge Planning Committee as well as Action Teams for Foster Youth, Health and Criminal Justice seeing to develop a county-wide discharge planning policy.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
In Salinas, homeless service agencies generally work to get homeless individuals into permanent housing as quickly as possible.
Community Housing Solutions: CHS provided rapid re-housing services to 177 persons.
Salinas Outreach and Response Team: SORT provided rapid re-housing services to 17 persons.
DRAFT
CAPER 18
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The Housing Authority of the County of Monterey (HACM) serves as the housing authority for the County as a whole except the City of Soledad. HACM has converted all public housing units countywide to Project -Based Rental Assistance. To-date, the City has completed a total of 27 California Tax Credit Allocation Committee (CTCAC) Local Review Agency (LRA) Project Evaluation Forms for HACM regarding proposed Residential Assistance Demonstration (RAD) proposed projects.
The City of Salinas owns and manages two single family properties, and one duplex housing unit, which are a total of four residential units. These units are considered “public housing,” and were purchase d by the City through grants received through different departments at the State of California.
Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
HACM has taken the lead in developing innovative models to enable the homeless and other low-income families to achieve economic independence and self -sufficiency. Their multi -faceted plan to improve the operation of public housing units and assist clients toward self-sufficiency is detailed in their periodically updated Five Year Action Plan.
Actions taken to provide assistance to troubled PHAs
HACM has not been designated by HUD as “troubled.”
DRAFT
CAPER 19
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i)
The most critical barrier to affordable housing in Salinas is that the need for decent, affordable housing far exceeds the City's available resources. With the elimination of redevelopment funds, the City's ability to address its affordable housing needs was seriously compromised. The City continues to aggressively pursue funding available at the local, state, and federal levels to supplement its limited funds.
The City values its partnership with nonprofit housing developers such as CHISPA, MidPen, HACM, Eden Housing Inc., and other non-profit developers in pursuing innovative strategies to address the City’s affordable housing needs and providing more permanent housing options for homeless and low income residents throughout the City. The City also updated its Inclusionary Housing Ordinance in June 2017 to add more flexible options for developers to produce affordable units on -site. Projects that are 100% affordable are exemp t under the updated Inclusionary Housing Ordinance.
On September 13, 2022, Community Development Department staff presented an Administrative Report to the City Council on the Inclusionary Housing Ordinance and the Downtown Area Exemption (“Downtown Exemption”). the City recognizing these barriers established an Adaptive Reuse Ordinance in 2018 that relaxes or eliminates identified development standards to incentivize the conversion of these older, underutilized commercial buildings and the additional costs associ ated with implementation of the Inclusionary Housing Ordinance has the potential to make conversion economically infeasible. On October 18, 2022, after lengthy discussion, the City Council recommended that the Downtown Exemption be amended to only include adaptive reuse projects because the conversion of older, in some cases historic, buildings is costly and risky, and these bu ildings are more likely to remain underutilized and vacant.
The City also has a Density Bonus Ordinance which provides incentives and concessions to developers who propose a certain percentage of affordable housing in their developments. The City continues to adjust to the latest law updates being put into effect by the State of California regarding Density Bonus Projects. 100% affordable housing projects can pursue up to five concessions and unlimited number of waivers.
The City’s Zoning Ordinance has been updated to allow more flexibility for auxiliary (accessory) dwelling units to be constructed. In the last couple of years, ADU ’s has been the biggest source of new housing units being produced withing City limits.
The City updated its Housing Element for the 2023 -2031 planning period. This update will establish the City housing programs and activities for the next eight years to facilitate the development and preservation of housing. The approved Housing Element includes a number of actions to mitigate constraints to housing development, including Zoning Code amendments to facilitate the development of housing for special needs populations. The 2023-2031 Housing Element was adopted by City Council on December 5, 2023. The State found this document to be in substantial compliance on February 8, 2024.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The homeless are among the most underserved group in Salinas, with ESG funding at a level far below what is needed to address the City's homeless issues. In response, the City has used its CDBG allocation to provide public facilities and services that can benefit this group. In FY 2025 -26, the City also used its State ESG allocation to help finance services and projects that served this underserved population.
In addition, the City has been working with the Counties of Monterey and San Benito Continuum of Care to implement homeless programs and services using State ESG funds. The City serve s as the lead agency for administering the DRAFT
CAPER 20
OMB Control No: 2506-0117 (exp. 07/31/2015)
State ESG program. These funds are used for homeless prevention services, emergency shelter services, rapid rehousing, and outreach.
The following agencies were approved for funding with FY 25-26 State ESG Funds:
• City of Salinas – Program Administration and The Salinas Outreach and Response Team • Community Homeless Solutions – Rapid Rehousing Program • Community Human Services – Rapid Rehousing Program
• Interim, Inc McHOME – Street Outreach Program
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) As a condition required to receive HUD funds, the City of Salinas complies with HUD's Lead Safe Housing Regulation (Title 24, Part 35). Potential project sites with housing units constructed prior to 1978 are tested by a certified lead inspection firm (for lead paint and, where applicable, for other possible materials containing lead, such as ceramic tiles). When found, lead remediation is performed by certified LBP contractor before the General Contractor is permitted to begin construction activities.
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City’s anti-poverty strategy is enumerated below, with specific FY 2025-26 actions noted within each category:
1. Continue to support the efforts of housing developers providing affordable housing opportunities in Salinas, particularly rental and multi-family housing. There are several large projects in the pipeline within City limits and that the City foresee contributing CDBG, HOME, other State program funds and City owned properties in the upcoming fiscal Years. This includes financial assistance through state grant funds for the acquisition of a 1030 Fairview Ave by the Housing Authority of the County of Monterey. The is in the process of executing conditional award letters to three projects after the Environmental Review is completed. These projects include Division St. properties, Saint George Senior Apartments, and 200 Casentini Street Apartments. The City is also working on request for proposals for City owned properties located on 45 Soledad St., 34-38 Soledad St. & 37 Soledad St. These projects collectively could provide both permanent and permanent supportive housing to low-income households and homeless individuals.
2. As of FY 2025-26, the Housing Services Program , which provided Housing Rehabilitation Loan s, Housing Accessibility Ass istance (HAA) Grants, and Lead Based Paint (LBP) Grants is being re -evaluated. This program has been included in the 2025-2029 Consolidated Plan to be reinstated in the future.
3. Continue to support fair housing services to enable seniors to remain in their own homes, and to address basic needs.
4. Continue to support homeless service providers in Salinas and the larger community. Community Homeless Solutions served 177 persons and the City’s Salinas Outreach and Response Team served 125 persons.
5. The Hebbron Family Center (HFC) reopened in February 2026 and offers, will offer a safe, fun, and positive environment where youth and city residents would be able to participate in a variety of enrichment activities in a recreational setting. HFC will offer a Youth Homework Center, Drop -in After School program, Summer Program, Girl Scout Troop 541, Karate Classes, Read Grow Play, Citizenship Classes, Food Bank and a variety of other recreation programs. The HFC was demolished and the new HFC is currently under the building permit phase.
6. Continue to promote Section 3 Employment and Economic Opportunities for low-income residents and business concerns through the City’s various housing programs and public improvement projects. Section 3 Clause is included in all bid package for public works projects as well as all affordable housing projects funded with federal funds. Section 3 information is collected annually and reported back to HUD through IDIS. The City transitioned into the new HUD Section 3 Rule. City will work with developer s, consultants, and general contractors to comply with the new Section 3 Rule.
DRAFT
CAPER 21
OMB Control No: 2506-0117 (exp. 07/31/2015)
7. The City instituted a pilot Rental Assistance program using State program funds and General funds in FY 2025-26. This program will continue through FY 2026 -27. This program provides short-term financial relief and supportive services to residents facing eviction due to non -payment of rent. The program aims to help households remain in stable housing, prevent displacement, and reduce the risk of homelessness.
8. The City has been partnering with other agencies to provide long term rental assistance to currently unhoused households. This program is primarily funded using ESG and State funds.
Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City will continue to pursue other sources of fund s to leverage HUD funding and entice housing developers to create affordable housing developments within the City . The City continues to engage local affordable housing developers and to learn the future housing development plans and offer existing and future sources of funds from the State of California and HUD.
The City is committed to continue funding the SHARE Center, and SORT using HUD, State and local funds, to alleviate homelessness using HUD, state and local funds.
The City has also established a Housing and Land Use Committee to oversee the use of HUD funds. This committee provides an additional forum for nonprofits and stakeholders to communicate with the City and community members regarding housing and community development needs and plans for future projects. The committee is tasked with the objective of enhancing coordination and improving the effectiveness and efficiency in using HUD funds. Specifically, the committee evaluated the planned projects and funding , with input from the service providers and stakeholders, made changes to the criteria for allocating funds, and established a minimum grant amount for each agency before final awards are approved by City Council through the approval of the City’s Annual Action Plan.
The City utilizes City Data Services for efficient and accurate management of the grant funds.
Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City of Salinas partners with its strong network of public and private housing and social service agencies to provide housing and community development programs in the City. Coordination efforts are ongoing. In addition, the City is working with the Co unties of Monterey and San Benito Continuum of Care to implement homeless programs and services using State ESG funds. This funding source available to the region allow s the City to provide an increased level of services for the homeless and at-risk homeless. The City serves as the lead agency for this funding program.
The City is also in constant contact and collaboration with the Housing Authority of the County of Monterey (HACM) in the development of affordable housing projects and the provision of housing vouchers for projects funded with federal, state and local funds.
Identify actions taken to overcome the effects of any impediments identified in the jurisdiction’s analysis of impediments to fair housing choice. 91.520(a) The 2023-2031 Housing Element was adopted by City Council on December 5, 2023. The State found this document to be in substantial compliance on February 8, 2024. A major focus of this update is the new State requirement to affirmatively further fair housing. The Housing Element contain s a range of meaningful actions to address five fair housing themes, including:
• Fair housing outreach and enforcement
o Target outreach to areas with concentrations of racial/ethnic minority populations and concentrations of renter-households
o Target code enforcement activities in Alisal Neighborhood Revitalization Strategy Area ( NRSA) where substandard housing units are more common
• Housing mobility
DRAFT
CAPER 22
OMB Control No: 2506-0117 (exp. 07/31/2015)
o Proactively pursue and leverage governmental and non -governmental funds to increase the inventory of affordable housing
o Pursued Prohousing Incentive Program ( PIP) funding and the City maintains a Prohousing Designation
o Amend the Zoning Code to facilitate the development of affordable housing and a variety of housing types, including emergency shelters, supportive housing, low barrier navigation centers, etc. • New opportunities in high resource areas
o Acquire and assemble sites to develop affordable housing, particularly in high opportunity areas o Promote the establishment of Affordable Housing Overlay Zones in “High Opportunity Areas” that include a bundle of effective and flexible incentives to encourage developers to build affordable housing
o Facilitate ADU/JADU construction through promotion on the City website, subsidies for owners providing affordable ADUs, and extension of elimination of development impact fees for ADUs between 800-1,200 sq. ft.
o Implement the Family Homeless Challenge Grant by purchasing single family homes and construction of ADUs for unhoused families
o Reassess and reinstate the First Time Homebuyer Program
• Place-based strategies for neighborhood improvement
o Explore the creation of a Community Revitalization Investment Authority for Downtown, Chinatown, and Alisal
o Develop and adopt the East Area Specific Plan
o Reassess and reinstate the Housing Services Program
o Increase public services through the establishment of a CBDO focused on youth services, fair housing services and tenant/landlord counseling, and/or small business counseling, education, and technical assistance services
• Tenant protection and anti-displacement
o Adopted a Residential Rental Registration Ordinance which will allow the City to broaden the tenant- landlord services
o Adopted a rent stabilization ordinance, tenant relocation assistance ordinance, and just cause for eviction ordinance
DRAFT
CAPER 23
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements During FY 2025-26, the City performed a desk review monitoring of all CDBG, ESG, and HOME subrecipients through its on-line grant management system, City Data Services (CDS). The City conducted virtual monitoring's of programs and case files of its subrecipients.
The City’s monitoring procedures for the implementation of its CDBG, HOME, and ESG programs are summarized in Attachment B.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.
Citizen participation is one of the most important components of the Consolidated Plan (CP) process.
Publicity: Public notices for a public hearing were released in The Monterey County Herald to inform the public that a draft CAPER was available for review and public comment. The public notices were also posted at the City’s website, the City’s Libraries, City Hall, City Council Chambers and Community Development Department; and were distributed to the City’s NOFA distribution list
Public Review of Draft Documents: The City conducted a minimum of 15-day public review period from August 28, 2026 to September 12, 2026. The Draft CAPER was made available at the following locations:
• the City website: https://www.cityofsalinas.org/Residents/Community/Housing-Community-Development • in-person at the Community Development Department, City Clerk’s office at City Hall, John Steinbeck Library, Cesar Chavez Library, and El Gabilan Library
• and through mail when requested.
The Consolidated Plan, amendments, annual Action Plans, and performance reports will be available for five years at Salinas Community Development Department.
Public Hearing and Public Meeting: The City conducted a public hearing at its Housing and Land Use Committee regular meeting on September 8, 2026, at 4:00 PM in the City of Salinas Rotunda. The City also conducted a Public Meeting at its City Council meeting on September 15, 2026, at 4:00 PM in the City of Salinas Rotunda.
DRAFT
CAPER 24
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.
The City processed three substantial amendments to the CDBG program during the fiscal year. The first substantial amendment, approved by the City Council on September 9, 2025, provided $595,000 in additional funding , from previously unspent funds, necessary to fully fund the Sherwood Recreation Center Building Improvement Project. The second substantial amendment, approved on November 18, 2025, allocated CDBG and HOME funds to support the rehabilitation of Vista de la Terraza. , and the Alisal N eighborhood – Sidewalk Improvements projects. The third substantial amendment, approved on April 21, 2026, appropriated CDBG program income generated from the sale of the City's 342 Front Street facility. This program income was allocated toward the acquisition of real property in the Salinas Chinatown Neighborhood, supporting the City's ongoing neighborhood revitalization efforts ; the Alisal Neighborhood – Sidewalk Improvements; and program administration. [BEDI grantees] Describe accomplishments and program outcomes during the last year.
Not applicable.
DRAFT
CAPER 25
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-50 - HOME 91.520(d)
Include the results of on-site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations Please list those projects that should have been inspected on -site this program year based upon the schedule in §92.504(d). Indicate which of these were inspected and a summary of issues that were detected during the inspection.
For those that were not inspected, please indicate the reason and how you will remedy the situation.
The following list below represents all of the City's HOME-assisted affordable multi-family rental housing projects and shows the total number of HOME assisted units in each project:
• California House (436 California Street) – 5 units
• Gateway Apartments (25 Lincoln Avenue) – 20 units
• Haciendas Phase I (233 Calle Cebu) – 6 units
• Haciendas Phase II (241 Calle Cebú) – 4 units
• Haciendas Phase III (Hikari) – 9 units
• Haciendas Phase IV (34 E. Rossi Street) – 3 units
• Jardines Del Monte (1253 Del Monte Avenue) – 5 units
• La Gloria Apartments (539 E. Market Street) – 10 units • Los Padres Apartments (1260 John Street) - 5 units
• Lupine Gardens (300 Casentini Street) – 20 units
• Parkside Manor Phase I (1112 Parkside Street) - 6 units • Sherwood Village (808 N. Main Street) – 43 units
• Sun Rose Apartments (439 Soledad Street) – 8 units
• Tresor Apartments (1041 Buckhorn Drive) – 8 units
• Tynan Village (323 Front Street) – 41 units
• Wesley Oaks (138 Carr Avenue) – 6 units
• Vista de la Terraza (165-177 Carr Avenue)- 8 units
• Moon Gate Plaza – 12 Units
City staff were not able to complete any on-site inspection of affordable units in FY 2025-26. Yet, at the beginning of FY 2026-27, the Housing and Community Development Division will ensure to physically inspect all of the above listed HOME units. City staff will conduct an on-site HOME site visit which includes an internal unit inspection for each HOME- assisted unit, common area and external property inspection. City staff will use HOME checklist to cross reference the property conditions. The Housing and Community Development Division will keep a list of when the HOME units were inspected and what was the outcome of these inspections.
For the years that a HOME onsite inspection is not required and in accordance with the HOME final rule and §92.504(d), the City uses its customized online grant management software system (City Data Services), which allows all property owners/managers to annually submit unit i nspection reports and data as part of the City’s Annual Compliance Monitoring. The desk monitoring review consist s of developer property unit inspection reports, annual income recertification reports, insurance documentation in which the developer submits annually to the City through CDS.
City staff has established a HOME spreadsheet which informs staff when the inspections are due on each of the properties and will continue to use this spreadsheet. In accordance with the HOME final rule and §92.504(d), the City will ensure that on-site inspections will occur within 12 months after project completion and at least once every 3 years thereafter during the period of affordability. In addition, the property owner/manager must annually certify to the City that each building and all HOME-assisted units in the project are suitable for occupancy, considering State and local health, safety, and other applicable codes, ordinances, and requirements, and the ongoing property standards established by the City to meet the requirements of §92.251. The City will ensure that inspections will be based on a statistically valid sample of units appropriate for the size of the HOME-assisted project, as set forth by HUD.
DRAFT
CAPER 26
OMB Control No: 2506-0117 (exp. 07/31/2015)
Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units. 92.351(b) There are three components to the City’s “affirmative marketing” of activities funded by the HUD entitlement grants: 1) Outreach regarding program design and administration; 2) Marketing of programs operated by the City; and 3) Marketing of activities operated by sub-recipients and sub-grantees.
Language barriers can be an impediment to accessing housing of choice. Reflective of the demographics in the City,
73.5 percent of all Salinas residents spoke languages other than English at home, according to the American Community Survey (ACS). Over half of these residents spoke English “less than very well.” Linguistic isolation is more severe among Hispanics than among Asians, with approximately 69.3 percent of Salinas residents speaking “Spanish or Spanish Creole1” at home compared to only 3. 2 percent speaking “Asian and Pacific Islander languages.” Among “Spanish or Spanish Creole” speaking households approximately 51.0percent spoke English “less than very well”.
The City’s Citizen Participation Plan (CPP) includes guidelines for Limited English Proficiency (LEP).
The City also had hard copies and electronic brochures (English and Spanish) for the Housing Services Program when it was available.
Outreach Regarding Program Design and Administration: In keeping with the updated CPP, notices for Action Plan, CAPER, and community development needs hearings and annual Request for Proposals are typically published in Spanish and English in the local newspaper s, City’s websites, libraries, City Hall and Community Development Department. The City also subscribes to the California Relay Service to accommodate TDD (telecommunication devices for the deaf) users; published public notices provide a TDD number. The City also provides notice to local agencies that serve groups that may need notice in a different format. Spanish/English translation is typically made available during City Council meetings and at every public hearing regarding Action Plans and other HUD -funded topics.
Marketing of Programs Operated by City: The City’s HUD-funded activities are administered by the Housing and Community Development Division of the Community Development Department. Of the current full-time positions allocated to the Division, at least five are certified by the City as bilingual English/Spanish, including the first point of contact for telephone and walk -in inquiries. Promotional materials are produced in both English and Spanish as well as marketing when published in newspapers. From time to time, targeted outreach for housing rehabilitation and first- time homebuyer activities is focused upon Spanish-speaking residents, including information to bilingual realtors and mortgage loan packagers, and Spanish language Public Service Announcements to the local news media.
Marketing of Programs Operated by Subrecipients: All City funding agreements employing funds from HUD grants require affirmative marketing activities. The City’s monitoring plan includes verification that affirmative marketing is being employed. Many of the funded non -profit agencies routinely provide t heir services in a bilingual format. City housing activities that are not HUD-funded (e.g., inclusionary housing and density bonus programs) routinely require affirmative marketing to the community.
Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics The City received 24,416.04 in HOME program income. Program income has primarily been used to augment funding for the City’s multi-family housing projects underway.
1 American Community Survey offers the following sub-categories for members of the population that “Speak a language other than English”:
“Spanish or Spanish Creole”; “Other Indo-European languages”; “Asian or Pacific Island languages”; and “Other languages” DRAFT
CAPER 27
OMB Control No: 2506-0117 (exp. 07/31/2015)
Describe other actions taken to foster and maintain affordable housing. 91.220(k) (STATES ONLY:
Including the coordination of LIHTC with the development of affordable housing). 91.320(j) In addition to using HOME funds for the creation of affordable housing units, the City also has an Inclusionary Housing Ordinance that requires a specific percentage of affordable units to be included in new housing developments within City limits. The City updated this Ordinance in 2017 to improve its effectiveness in fostering affordable housing.
The City also has a Density Bonus Ordinance that developers can utilize, in which the developer would provide a certain percentage of affordable housing units in exchange for a greater unit density for the project.
City staff assists with the completion of the California Tax Credit Allocation Committee (CTCAC) Local Review Agency (LRA) Evaluation Forms for all affordable housing project that pursue CTCAC funding within the jurisdiction.
DRAFT
CAPER 28
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided During FY 2025-26, the City’s expended funds primarily on public and homeless services, as well as program administration. These programs are not subject to Section 3 requirements. Projects subject to Section 3 requirements include:
▪ Hebbron Family Center
▪ Early Childhood Development Center Project
Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 2 0 0 0 0
Total Labor Hours 14,879
Total Section 3 Worker Hours 0
Total Targeted Section 3 Worker Hours 0
Table 13 – Total Labor Hours
Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers 0
Outreach efforts to generate job applicants who are Other Funding Targeted Workers. 1
Direct, on-the job training (including apprenticeships). 1 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training. 0
Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). 0
Outreach efforts to identify and secure bids from Section 3 business concerns. 1
Technical assistance to help Section 3 business concerns understand and bid on contracts. 0
Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. 1
Provided or connected residents with assistance in seeking employment including: drafting resumes, preparing for interviews, finding job opportunities, connecting residents to job placement services.
0 Held one or more job fairs. 1
Provided or connected residents with supportive services that can provide direct services or referrals. 0
Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation. 0 Assisted residents with finding childcare. 0
DRAFT
CAPER 29
OMB Control No: 2506-0117 (exp. 07/31/2015)
Assisted residents to apply for, or attend community college or a four year educational institution. 0
Assisted residents to apply for, or attend vocational/technical training. 0 Assisted residents to obtain financial literacy training and/or coaching. 0 Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 0
Provided or connected residents with training on computer use or online technologies. 0
Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. 2 Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.
0 Other. Sun Rose – Submitted DAS forms, Hire Union Carpenters 2 Table 14 – Qualitative Efforts - Number of Activities by Program
DRAFT
CAPER 30
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-60 - ESG 91.520(g) (ESG Recipients only)
ESG Supplement to the CAPER in e-snaps
For Paperwork Reduction Act
1. Recipient Information—All Recipients Complete
Basic Grant Information
Recipient Name SALINAS
Organizational DUNS Number 010919447
EIN/TIN Number 946000412
Identify the Field Office San Francisco
Identify CoC(s) in which the recipient or
subrecipient(s) will provide ESG assistance
Monterey County
ESG Contact Name
Prefix Ms.
First Name Lisa
Middle Name
Last Name Brinton
Suffix
Title Community Development Director
ESG Contact Address
Street Address 1 200 Lincoln Ave
Street Address 2
City Salinas
State CA
ZIP Code 93901-
Phone Number (831)758-4239
Extension
Fax Number
Email Address [email protected]
DRAFT
CAPER 31
OMB Control No: 2506-0117 (exp. 07/31/2015)
ESG Secondary Contact
Prefix Mr.
First Name Francisco
Last Name Brambilla
Suffix
Title Management Analyst
Phone Number (831) 758-7334
Extension
Email Address [email protected]
2. Reporting Period—All Recipients Complete
Program Year Start Date 07/01/2025
Program Year End Date 06/30/2026
3a. Subrecipient Form – Complete one form for each subrecipient Subrecipient or Contractor Name Community Homeless Solutions City Marina
State CA
Zip Code 93933
UEI FNS8C7JNC7H6
Is subrecipient a victim services provider No
Subrecipient Organization Type Other Non-Profit Organization ESG Subgrant or Contract Award Amount $174,270
Subrecipient or Contractor Name Salinas Outreach and Response Team (SORT) City Salinas
State CA
Zip Code 93901
UEI
Is subrecipient a victim services provider No
Subrecipient Organization Type Government
ESG Subgrant or Contract Award Amount $108,075
DRAFT
CAPER 32
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-65 - Persons Assisted
Reporting for ESG funding is now completed in a separate system SAGE.
4. Persons Served
4a. Complete for Homelessness Prevention Activities
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 15 – Household Information for Homeless Prevention Activities
4b. Complete for Rapid Re-Housing Activities
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 16 – Household Information for Rapid Re-Housing Activities
4c. Complete for Shelter
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 17 – Shelter Information
DRAFT
CAPER 33
OMB Control No: 2506-0117 (exp. 07/31/2015)
4d. Street Outreach
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 18 – Household Information for Street Outreach
4e. Totals for all Persons Served with ESG
Number of Persons in
Households Total
Adults 0
Children 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 19 – Household Information for Persons Served with ESG
5. Gender—Complete for All Activities
Total
Male 0
Female 0
Transgender 0
Don't Know/Refused/Other 0
Missing Information 0
Total 0
Table 20 – Gender Information
DRAFT
CAPER 34
OMB Control No: 2506-0117 (exp. 07/31/2015)
6. Age—Complete for All Activities
Total
Under 18 0
18-24 0
25 and over 0
Don’t Know/Refused/Other 0
Missing Information 0
Total 0
Table 21 – Age Information
7. Special Populations Served—Complete for All Activities Number of Persons in Households
Subpopulation Total
Total
Persons
Served –
Prevention
Total Persons
Served – RRH
Total
Persons
Served in
Emergency
Shelters
Veterans 0 0 0 0
Victims of
Domestic
Violence
0 0 0 0
Elderly 0 0 0 0
HIV/AIDS 0 0 0 0
Chronically
Homeless 0 0 0 0
Persons with Disabilities:
Severely Mentally Ill 0 0 0 0
Chronic
Substance Abuse 0 0 0 0
Other Disability 0 0 0 0
Total (unduplicated if
possible) 0 0 0 0
Table 22 – Special Population Served
DRAFT
CAPER 35
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-70 – ESG 91.520(g) - Assistance Provided and Outcomes
8. Shelter Utilization
Number of New Units – Rehabbed 0
Number of New Units – Conversion 0
Total Number of bed - nights available 0
Total Number of bed - nights provided 0
Capacity Utilization 0
Table 23 – Shelter Capacity
9. Project Outcomes Data measured under the performance standards developed in consultation with the CoC(s)
The City’s ESG program is designed to complement the Monterey County Continuum of Care system, focusing on homeless prevention, rapid re-housing, and providing emergency shelters and essential services.
To further enhance the City’s ability to meeting the outcome and performance goals in the Continuum of Care Strategy, the City is taking the lead in the implementation of State ESG funds.
DRAFT
CAPER 36
OMB Control No: 2506-0117 (exp. 07/31/2015)
CR-75 – Expenditures
11. Expenditures
11a. ESG Expenditures for Homelessness Prevention
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Expenditures for Rental Assistance 0 0 0
Expenditures for Housing Relocation and
Stabilization Services - Financial Assistance 0 0 0
Expenditures for Housing Relocation & Stabilization
Services - Services 0 0 0
Expenditures for Homeless Prevention under
Emergency Shelter Grants Program 0 0 0
Subtotal Homelessness Prevention 0 0 0
Table 24 – ESG Expenditures for Homelessness Prevention
11b. ESG Expenditures for Rapid Re-Housing
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Expenditures for Rental Assistance 0 0 0
Expenditures for Housing Relocation and
Stabilization Services - Financial Assistance 0 0 0
Expenditures for Housing Relocation & Stabilization
Services - Services 0 0 0
Expenditures for Homeless Assistance under
Emergency Shelter Grants Program 0 0 0
Subtotal Rapid Re-Housing 0 0 0
Table 25 – ESG Expenditures for Rapid Re-Housing
11c. ESG Expenditures for Emergency Shelter
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Essential Services 0 0 0
Operations 0 0 0
Renovation 0 0 0
Major Rehab 0 0 0
Conversion 0 0 0
Subtotal 0 0 0
Table 26 – ESG Expenditures for Emergency Shelter
DRAFT
CAPER 37
OMB Control No: 2506-0117 (exp. 07/31/2015)
11d. Other Grant Expenditures
Dollar Amount of Expenditures in Program Year
2019 2020 2021
Street Outreach 0 0 0
HMIS 0 0 0
Administration 0 0 0
Subtotal 0 0 0
Table 27 - Other Grant Expenditures
11e. Total ESG Grant Funds
Total ESG Funds Expended 2019 2020 2021
0 0 0
Table 28 - Total ESG Funds Expended
11f. Match Source
2019 2020 2021
Other Non-ESG HUD Funds 0 0 0
Other Federal Funds 0 0 0
State Government 0 0 0
Local Government 0 0 0
Private Funds 0 0 0
Other 0 0 0
Fees 0 0 0
Program Income 0 0 0
Total Match Amount 0 0 0
Table 29 - Other Funds Expended on Eligible ESG Activities
11g. Total
Total Amount of Funds
Expended on ESG
Activities
2019 2020 2021
0 0 0
Table 30 - Total Amount of Funds Expended on ESG Activities
DRAFT
CAPER A-1
OMB Control No: 2506-0117 (exp. 07/31/2015)
Attachment A: Public Participation
Public Hearing and Summary of Comments
Public presentation
Public Hearing- September 10, 2024, at 4:00PM
During public hearing, staff received a comment regarding allocating funding to build additional housing for the resident and less recreational facilities.
Written Comments
No written comments were received.
DRAFT
CAPER A-2
OMB Control No: 2506-0117 (exp. 07/31/2015)
Proof of Publication – Will be attached once available
DRAFT
CAPER B-1
OMB Control No: 2506-0117
Attachment B: Monitoring Procedures
The City Housing Division maintains accurate records, both program and financial, pertaining to community development activities, including housing and emergency shelter grant activities. Emergency Solutions Grant (ESG) and CDBG-funded public service activ ities are monitored continuously. Documentation, including activity reports, is required to be submitted with all payment requests. All loan servicing functions (pay -offs, partial payments, subordinations, annual affidavits, etc.) of outstanding loans in t he City loan portfolio are also handled in -house using City Data Services (CDS) interactive computer software system. The City utilizes CDS for loan servicing and monitoring functions for activity reports (monthly, quarterly, annually), invoices, inspections, progress payments, loan payoffs and audit confirmations.
The City’s Labor Compliance Officer through the Public Works Department as well as City hired consultants oversee compliance with federal labor standards requirements (e.g., Davis-Bacon) for all Capital Improvement Projects (CIPs) assisted with CDBG funds. Further more, division staff oversees compliance with all federal labor standards requirements on a project -by-project basis for all other CDBG and HOME -assisted projects, beginning with contract drafting and pre-construction conferences and proceeding through the necessary contractor submittals to project close- out. In limited instances, qualified subrecipients (e.g., HACM and CHISPA) have the resources to oversee federal labor standards with their own staff or enter into a service contract with a Labor Compliance Consulting entity to oversee all federal labor compliance responsibilities.
The City continues to implement its formal process of executing a Memorandum of Record (MOR) with other City departments upon allocation of CDBG funds for Capital Improvement Projects (CIPs). The MOR continues to serve as an alternate method to a Funding Agreement for ensuring program compliance for federally assisted CIPs. Since implementation of the MOR process, compliance issues have declined, and successful compliance has increased. The Community Development Department, and Housing and Community Development Division staff, requires that Public Works and other departments that were allocated CDBG funds submit report in City Data Services (CDS) . The City reviews and monitor s regularly and ensures compliance through monthly and quarterly desk reviews and attends construction meetings throughout the duration of the project.
The City has also implemented various steps to further ensure compliance by all CIPs with applicable CDBG program regulations. The MOR was enhanced to include additional language pertaining to submittal of reports on a timely manner. This will assist with early detection of critical project impediments with potential to impact the annual CDBG Timeliness Ratio criteria and will allow for implementation of effective remediation steps. Further language was added to the MOR regarding compliance with 24 CFR Part 570.505 applicable to real property within the City’s control which was acquired or improved in whole or in part using CDBG funds in excess of $25,000 and Change of Use Requirements for all Public Facilities & Improvements eligible under §570.201(c). A key focus during assessments is compliance with the adopted Consolidated Plan and the City's Housing Element, plus support to the City Council’s Goals. Information gathered is employed to evaluate progress towards established goals; to confirm compliance wit h statutory and regulatory requirements of governing federal legislation (e.g., National Affordable Housing Act); to determine possible revisions to City policy and procedure, including the Consolidated Plan and Housing Element; and, to prepare performance reports such as this document.
Monitoring Consolidated Plan and HUD Program Compliance: Program compliance is analyzed and evaluated during the review of proposals when crafting the Annual Action Plan. In FY 2023-24, the City self-directed the allocation of CDBG, HOME, and ESG funds. Any proposed amendments to the current or past Action Plans during the program year are evaluated for program compliance before carrying forward with the substantial amendment. In each case, the various timeliness rules, with respect to commitment and expenditure of funds, are also considered. All funding agreements contain deadlines governing timely use of funds. Subrecipient funding agreements require compliance with not only the relevant federal regulations and OMB guidance, but are drafted to ensure that funded activities are carried out as contemplated in the Action Plan. Division staff continues to closely monitor the performance of other City departments whenever they rec eive allocations of the federal funds in question through the implementation of the Memorandum of Record (MOR) used for program and reporting compliance of CDBG assisted projects.
DRAFT
CAPER B-2
OMB Control No: 2506-0117
Compliance with Housing Standards: Compliance with housing standards is ongoing. Housing Division staff schedules visits to assisted housing sites following completion of construction or rehabilitation. Recipients of deferred payment rehabilitation loans are evaluated every five years to determine feasibility and continued use of a deferred loan or conversion to amortize loans; the process includes a site visit to determine the upkeep of the unit and gathering of financial household information to determine eligibility. Desk monitoring of completed new construction projects is conducted to determine the appropriate intervals for performing site visits; in addition, almost all major projects receive restricted financing from other sources (e.g., federal tax credits, State funds), which typically include rigorous ongoing monitoring requirements.
In addition, transitioning of the multi -family reporting process into the CDS database was completed in FY 2013 -14.
The CDS database tracks all funded CDBG and HOME multi-family projects from award phase, construction phase to project completion. Thereafter, the project moves into the annual reporting category where it will remain active, meaning Annual Data Collection Forms will be submitted until the expiration of the affordability period. This provides Grantees with a more efficient data gathering process and offers a more consistent method in collecting annual reports and reviewing data for compliance. City staff c ontinues to work with the CDS database programmers to ensure accurate compliance with project’s income/rent restrictions. Various challenges were encountered as numerous affordable housing projects have multiple rent/income restrictions imposed by other pr ogram regulations such as the City’s Inclusionary Housing Program and the Housing Successor Agency (HSA) . Thus, making it arduous to achieve comprehensive program compliance for each restricted unit. In FY 2023-24, Housing Division staff implemented system changes to attain a more comprehensive program compliance for all existing affordable housing projects.
As stated previously, City staff continues to enforce revised reporting policies for all CDBG and HOME projects. Annual, Quarterly or Monthly Reporting is accomplished through CDS. Grantees continue to submit Quarterly Progress Reports (QPR) with reporting periods as follows: Period 1- July 1 to September 30; Period 2-October 1 to December 31; Period 3- January 1 to March 31; and Period 4 -April 1 to June 30. Current reporting requirements during Period four for all CDBG and HOME assisted projects remains th e same as prior years as grantees are required to submit an Annual Project Narrative following the end of the fiscal year.
While the City no longer offers the First-Time Homebuyer Program (FTHB) for new assistance, all active FTHB program participants are monitored to determine that homeowners are using subject properties as their principal place of residence, maintaining proper hazard insurance and are current on property taxes. Additional monitoring takes place throughout the year as homeowners contact staff to receive information on refinancing, subordination, loan payoff or just to ask questions about their loans. During these consultations, staff confirms that the information provided matches information in their project file.
As part of the City’s deferred rehabilitation loan program, staff has prepared a plan to begin the monitoring of these loans every five years as stipulated in their agreement; subject properties will be monitored for: deferred loan continued eligibility, using home as their principal place of residence, maintaining proper hazard insurance and are current on property taxes. The City also utilizes CDS as a notification tool to remind staff when a loan is due for a review.
Public Services: Staff prepares an Annual Monitoring Plan. Monitoring of program progress, accomplishments, and compliance with HUD program rules is an ongoing activity conducted by staff by means of thorough review of monthly and quarterly reimbursement requests, activity reports, and rate of expenditures.
Staff completes a Risk Assessment of every subrecipient every year and in most cases, a Desk Review Monitoring, utilizing two checklists designed for that purpose. The Desk Review Monitoring draws on information in the file, but also documents submitted du ring the application process ( e.g., annual agency audit) since most have submitted applications for the following fiscal year. To determine compliance with accommodations for Persons of Limited English Proficiency, staff requests copies of outreach materials and applications.
Monitoring standards used are HUD’s forms under CDBG standards “Checklist for On-site Monitoring of a Subrecipient” in the “Managing CDBG, A Guidebook for Grantees on Subrecipient Oversight”, as well as City of Salinas' CDBG Desk Guide and ESG Manual. Forms used to complete the monitoring visit are in the “CPD Grantee Monitoring Handbook” under CDBG Entitlement depending upon the type of activity provided. Staff notifies the agency about potential visit dates to conduct a site visit and requests revie w of program documents such as but not limited to agency's payroll DRAFT
CAPER B-3
OMB Control No: 2506-0117
ledger, employee timecards, receipts for other claimed expenses, the most recent financial audit, personnel policies, equal opportunity policy, case files, and client files that support the reported data for Salinas clients (as noted on the Monthly and Quarterly Activity Data Report). After the monitoring visit, a follow up letter is sent stating the results of the visit. If there are any issues or signs of noncompliance, it is discussed in detail with the program manager/executive director to assist in bringing the agency in compliance at the exit conference. Currently there have been no findings for any agency. Staff is currently in the follow-up phase of the onsite monitoring process.
CDBG - Public Facilities: Public Facility Improvement Projects (where improvements have been completed) are required to annually submit an “Annual Data Collection Form” designed to capture service data such as: the total number of direct beneficiaries, race and ethnicity of each b eneficiary, and all data required under HUD’s Community Planning and Development Performance Measurement System. The City’s Housing staff has currently transitioned all open projects to the CDS website, thus streamlining the reporting process and creating an improved database of all funded projects. As in prior reports, all data continues to be gathered on a monthly and/or quarterly and annual basis.
Upon receipt of data, staff continues to review to ensure compliance with appropriate national objectives.
CDBG - Capital Improvement Projects: Staff continues to monitor projects during the design phase, bid opening phase, construction phase and completion phase to ensure compliance with all applicable federal provisions (i.e., Davis-Bacon, Minority Business Enterprise/Women Business Enterprise, Section 3, Executive Order 11246, Executive Order 11063, and Title 24 CFR Part 85). The City continues to revise and improve its existing tools to assist with project monitoring during these phases. Such tools include Federal Labor Compliance Checklist; Contractor and Subcontractor Compliance Worksheet; Quarterly Progress Report; and monthly or bi-weekly correspondence with the subrecipient or assigned City of Salinas Construction Inspector. Additionally, the City continues to review the previously develop ed standard CDBG Bid Specification Package that includes all applicable federal forms and provisions to ensure all forms and data are current. The City will continue to assess current process es and research better methods for ensuring compliance with all federal provisions. Currently, the established process continues to significantly reduce the amount of staff time previously required to achieve compliance. As previously mentioned, Labor compliance in Capital Improvement Projects continues to be a high priority.
DRAFT
CAPER C-1
OMB Control No: 2506-0117
Attachment C: IDIS Report – PR 26
The City’s PR 26 – CDBG Financial Summary Report is attached on the following pages.
DRAFT
CAPER D-1
OMB Control No: 2506-0117 (exp. 07/31/2015)
Attachment D: CAPER Resolution
CAPER City resolution is pending and will be attached upon approval by the Salinas City Council.
DRAFT