Report to Mayor and City Council
Tuesday, February 15, 2022
Special Orders of the Day
SUBJECT:
Title
PUBLIC HEARING TO CONSIDER A SUBSTANTIAL AMENDMENT TO THE 2021-2022 ANNUAL ACTION PLAN AND CONSIDER ADOPTING RESOLUTION NO. 22-025 OF THE CITY OF CARSON, CALIFORNIA AMENDING THE 2021-2022 ANNUAL ACTION PLAN BUDGET (CITY COUNCIL)
Body
I. SUMMARY
Staff proposes to amend the City’s 2021-2022 Annual Action Plan to reallocate previously budgeted Community Development Block Grant (CDBG) funds to meet the current needs of the community. 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 2021-2022 Annual Action Plan to the U.S. Department of Housing and Urban Development.
3. AUTHORIZE the reallocation of $95,000 in Community Development Block Grant funds within the 2021-2022 Annual Action Plan from Commercial Loans and Grants (Commercial Rehabilitation) to Neighborhood Pride Program (Residential Rehabilitation).
4. WAIVE further reading and ADOPT Resolution No. 22-025, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, AMENDING THE 2021-2022 ANNUAL ACTION PLAN BUDGET TO REALLOCATE FUNDING WITHIN THE 2021-2022 ANNUAL ACTION PLAN”.
Body
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. This entitlement amount forms the basis of the City’s Annual Action Plan each year.
The City’s 2021-2022 Annual Action Plan, approved by City Council on April 20, 2021, allocated $95,000 to the Commercial Loans and Grants Program (Commercial Rehabilitation) in anticipation that there would be at least one commercial improvement project in the city this program year. However, at this point in the program year, it does not appear that a commercial improvement project will materialize. At the same time, there is a substantial waiting list for the Neighborhood Pride Program (Residential Rehabilitation), which was allocated $519,949 in the 2021-2022 Annual Action Plan. Thus, staff proposes to reallocate the $95,000 that had been designated for Commercial Loans and Grants to the Neighborhood Pride Program, increasing the Neighborhood Pride Program’s allocation by $95,000 for a total of $614,949.
V. FISCAL IMPACT
There will be no impact to the General Fund.
Within the Community Development Block Grant Fund the following adjustments are proposed:
• Account 215-70-720-964-6025 Commercial Loans and Grants (Commercial Rehabilitation): decrease of $95,000.
• Account 215-70-720-964-6062 Neighborhood Pride Program (Residential Rehabilitation): increase of $95,000.
Thus, no net impact.
VI. EXHIBITS
1. Proposed CDBG Substantial Amendment to the 2021-2022 Annual Action Plan (Draft for Public Review, January 12, 2022) (pgs.4-8)
2. Resolution No. 22-025 (pgs.9-10)
1.
Prepared by: Keith Bennett, Community Development Department and Saied Naaseh, Community Development Director