Report to Mayor and City Council
Tuesday, June 06, 2023
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER A SUBSTANTIAL AMENDMENT TO THE 2022-2023 ANNUAL ACTION PLAN
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I. SUMMARY
Staff proposes to amend the City’s 2022-2023 Annual Action Plan to reallocate previously-budgeted current year Community Development Block Grant (CDBG) funds to increase the available funding for the Neighborhood Pride (residential rehabilitation) Program.
U. S. Department of Housing and Urban Development (HUD) regulations, as well as the City’s Citizen Participation Plan, require that public hearings be held by the City Council regarding proposed Substantial Amendments prior to their submission to HUD.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. OPEN the Public Hearing, TAKE public testimony, and CLOSE the Public Hearing.
2. APPROVE the submission of a Substantial Amendment to the 2022-2023 Annual Action Plan to the U. S. Department of Housing and Urban Development.
3. AUTHORIZE the following reallocation of Community Development Block Grant (CDBG) funds within the 2022-2023 Annual Action Plan: $220,000.00 from Anderson Park Improvements to the Neighborhood Pride Program.
4. WAIVE further reading and ADOPT Resolution No. 23-099, A Resolution of the City Council of the City of Carson, California, Reallocating Current Year Community Development Block Grant Funds from Anderson Park Improvements to the Neighborhood Pride Program.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
Each year, the City receives from HUD an entitlement amount of CDBG funding based on the City’s overall population, its proportion of low- and moderate-income residents, and other demographic factors. However, if not all those funds are expended in the program year in which they were allocated, the result is the accumulation of unexpended funds in the City’s letter of credit balance with HUD.
The 2022-2023 Annual Action Plan included an allocation of $220,000 for improvements to Anderson Park, which is part of a larger project estimated at some $1.3 million. However, the deadline for bids on the project was set for May 18, meaning that project expenditures would not occur prior to the June 30 end of the City fiscal year and CDBG program year. Consequently, when the 2023-2024 Annual Action Plan was presented for approval at the April 18 Council meeting, that Action Plan included $220,000 for Anderson Park, with the caveat that a Substantial Amendment to the 2022-2023 Annual Action Plan would be presented, reallocating the $220,000 allocated there for Anderson Park to the Neighborhood Pride (residential rehabilitation) Program.
The originally-approved 2022-2023 Annual Action Plan had allocated $233,183 to the NPP. A Substantial Amendment approved by City Council on December 6, 2022 reallocated $863,174 in accumulated unspent prior years’ CDBG funds to the NPP, raising its allocation to $1,096.357. The recommended action would further increase the allocation for the NPP to $1,316,357; as shown below:
Allocations in 2022-2023 Annual Action Plan for Selected Activities:
Revised Allocation (following the Substantial Amendment on December 6, 2022)
Entitllement Prior Year Total Funds Funds Allocation
Anderson Park Improvements $220,000 $ 0 $ 220,000
Neighborhood Pride Program $233,183 $863,174 $1,096,357
Recommended Allocation
Entitlement Prior Year Total
Funds Funds Allocation
Anderson Park Improvements $ 0 $ 0 $ 0
Neighborhood Pride Program $453,183 $863,174 $1,316,357
Based on the original (current) Action Plan allocation, it was estimated that the NPP would serve approximately 20 households (low- and moderate-income owner-occupants of single-family residences and mobilehomes). The additional funding from the December 6, 2022 Substantial Amendment increased this estimate to a minimum of 80 households. The funding from this recommended action would increase program capacity by approximately 20 more households. This would enable the program to meet current demand. (As of this date, 29 dwellings have been completed, 10 more are in various states of progress, and there exists an interest list of approximately 100 residents.)
V. FISCAL IMPACT
No General Fund impact.
Within the Community Development Block Grant Fund:
Account 215-70-720-904-8008 (Anderson Park Improvements): Decrease by $220,000.00.
Account 215-70-720-964-6062 (Residential Rehabilitation/Neighborhood Pride Program): Increase by $220,000.00.
VI. EXHIBITS
1. The Proposed CDBG Substantial Amendment to the 2022-2023 Annual Action Plan, Draft for Public Review, May 4, 2023 (pgs. 5-7)
2. Resolution No. 23-099, A Resolution of the City Council of the City of Carson, California, Reallocating Current Year Community Development Block Grant Funds from Anderson Park Improvements to the Neighborhood Pride Program. (pgs. 8-9)
Prepared by: Keith Bennett, Housing Division