Agenda Item: 1
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: May 23, 2023
SUBJECT: SUBSTANTIAL AMENDMENT TO THE 2020-21 ANNUAL ACTION PLAN
DEPARTMENT: Community Development
PRESENTER: Tracy Sullivan
RECOMMENDED ACTION
City Council approve the Draft Substantial Amendment to the 2020-21 Annual Action Plan and funding recommendations contained therein, and authorize the City Manager or designee to execute all required documents, subject to approval of the City Attorney.
BACKGROUND
Each year, the City of Santa Clarita (City) receives approximately $1.4 million in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). This entitlement allocation is based on a formula that takes into account population, poverty levels, and overcrowding.
In order to receive CDBG funds, the City is required to submit a Consolidated Plan (Con Plan) at least every five years. The current Con Plan addresses the five-year period of 2019-20 to 2023- 24 and was adopted by the City Council on April 23, 2019.
The City is also required to submit an Annual Action Plan every year, which outlines the specific ways that each year's CDBG Entitlement funds will be spent. Entitlement funds must adhere to the following spending caps: a maximum of 15 percent toward public services, a maximum of 20 percent toward administration, and a minimum of 65 percent toward capital projects.
Furthermore, any unspent funds from a prior year, regardless of the original identified use, must only be spent on capital moving forward.
With every CDBG dollar spent, the City must ensure compliance with CDBG program guidelines, as well as federal cross-cutting regulations. For capital projects, this entails ensuring an environmental review process is performed under the National Environmental Policy Act
(NEPA). In addition, HUD requires that entitlement jurisdictions carry out CDBG-funded programs in a timely manner and prevent an accumulation of unspent money.
Over the last three fiscal years, the City has allocated a total of $1,792,356 in CDBG Entitlement funds with the intent to spend these funds to assist with the development of a permanent, year- round homeless shelter (Shelter Project). The ability to spend CDBG funds on the Shelter Project was later deemed ineligible by HUD due to noncompliance under NEPA regulations. This determination by HUD has prevented the City from spending CDBG funds on the Shelter Project, and requires the City to update the Fiscal Year 2020-21 Annual Action Plan to reallocate the approximately $1.8 million toward a different project in order to ensure timely expenditures.
The mechanism to update the Annual Action Plan is known as a Substantial Amendment (SA), which requires a public hearing before the City Council.
The Draft SA reallocates the funding for park improvement projects. This recommendation is based on past successes administering CDBG funds for similar projects, such as the Canyon Country Inclusive Park Project and the West Creek Inclusive Park Project. As shown, CDBG provides necessary funds to expand accessibility at park locations and incorporate inclusive play elements for underserved populations. Future park sites that have been identified for this funding include Valencia Glen Park and Old Orchard Park.
Park improvements achieve the City’s Con Plan Priority to Improve and Expand Facilities and Infrastructure, and additionally meet the HUD National Objective of Low/Mod Income Limited Clientele – Removal of Architectural Barriers.
On April 9, 2023, the City published a notice of the proposed Substantial Amendment to the FY 2020-2021 Annual Action Plan informing the public of the 30 -day public comment period and the public hearing to be held on May 23, 2023.
ALTERNATIVE ACTION
Other action as directed by City Council.
FISCAL IMPACT
Projects recommended for funding will utilize CDBG funds and will not impact the General Fund.
ATTACHMENTS
Public Hearing Notice
Substantial Amendment 5.23.23