NVF:AJM:JGH
10/5/2022
T-6436.021.001 / 1964190 1
Council Agenda: 10/18/2022
Item No.: 8.2(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF
SAN JOSE APPROVING THE FIRST SUBSTANTIAL
AMENDMENT TO THE FY 2022-2023 ANNUAL ACTION
PLAN
WHEREAS, in 2009, under the Housing Economic Recovery Act of 2008, the City of San José (“City”) was awarded a $5,628,283 grant to mitigate the impacts of the foreclosure crisis; and
WHEREAS, the U.S. Congress discontinued funding the Neighborhood Stabilization Programs (“NSP1”) and NSP1 recipients are in the process of closing out their programs; and
WHEREAS, the City successfully acquired and either resold or rented properties to income-eligible households, 14 owner-occupied single-family residences, and two fourplex apartments buildings, generating $3,127,329 in program income, of which $2,543,108 was re-invested into the NSP1 program; and
WHEREAS, program income are funds directly generated from loan repayments from these investments and under NSP1 regulations, program income received prior to, at the time of, or after closeout may be transferred to an annual Community Development Block Grant (“CDBG”) program and the transferred funds will become CDBG program income; and
WHEREAS, these funds are subject to CDBG statutory and regulatory requirements for CDBG program income; and
WHEREAS, the U.S. Department of Housing and Urban Development (“HUD”) recognizes that some grantees no longer have an adequate pool of NSP-eligible NVF:AJM:JGH
10/5/2022
T-6436.021.001 / 1964190 2
Council Agenda: 10/18/2022
Item No.: 8.2(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
foreclosed or abandoned properties in the specified targeted areas due to the difficulty to identify an NSP eligible property to acquire, rehabilitate and sale with these limited available funds in the current market; and
WHEREAS, there are other community needs that CDBG funding could be used to address and the City will convert and use these funds under CDBG eligible uses under the funding categories of: public Services, Community Development, and Administration, and as a result the CDBG program fund balance for FY2022-2023 will increase by the $584,220 transferred NSP1 program income, allowing for greater community impact and benefit; and
WHEREAS, the City Council approved the FY 2022-2023 Annual Action Plan (“Annual Action Plan”) for the expenditure of the entitlement an competitive grants that the City receives from the U.S. Department of Housing and Urban Development (“HUD”); and
WHEREAS, all entitlement jurisdictions such as San José that received HUD’s federal funds by formula allocation are required to have an adopted Citizen’s Participation Plan that describes the efforts that the City will take to encourage its residents to participate in developing federal spending plans; and
WHEREAS, HUD also requires a public process when a substantial amendment to programs funded in an Action Plan are proposed and according to the City’s Citizen’s Participation Plan, a Substantial Amendment constitutes a change to a previously adopted Annual Plan that increases or decreases by the greater of $100,000 or a 25% change in the amount allocated to a category of funding, makes a significant change to an activity’s proposed beneficiaries or persons served, or funds a new activity not previously described in the Action Plan; and
NVF:AJM:JGH
10/5/2022
T-6436.021.001 / 1964190 3
Council Agenda: 10/18/2022
Item No.: 8.2(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the FY 2022-2023 Annual Action Plan is being amended to decrease NPS1 program income funds by $584,220 and redirect funds to CDBG eligible uses and increase CDBG program income funds by $584, 220 and apply funds to other CDBG eligible uses; and
WHEREAS, the City desires to approve a Substantial Amendment to the FY 2022-2023 Annual Action Plan (“Substantial Amendment”), authorize the Housing Department to submit the Substantial Amendment to HUD, and authorize the Director of Housing to negotiate and execute agreements with grantees for the activities identified in this Annual Action Plan amendment and all related contract amendments, extensions, and changes, as set forth in the Memorandum of the Housing and Budget Departments dated September 26, 2022;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
A Substantial Amendment to the FY 2022-2023 Annual Action Plan decreasing NSP1 program income funds by $584,220 and redirecting funds to CDBG program eligible uses and increasing CDBG program income funds by $584,220 and applying funds to other CDBG eligible uses, as more particularly set forth in Memorandum from the Housing and Budget Departments dated September 26, 2022, is hereby approved. ///
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NVF:AJM:JGH
10/5/2022
T-6436.021.001 / 1964190 4
Council Agenda: 10/18/2022
Item No.: 8.2(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk