Agenda Item Wording:
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Conduct a second Public Hearing to approve and adopt the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME Investment Partnership American Rescue Plan Program (HOME-ARP) Allocation Plan Amendment for the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and HOME-ARP activities and projects.
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Deadline for Action: 4/17/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Margie Perez, Housing Specialist, 713-4460, margie.perez@visalia.city <mailto:margie.perez@visalia.city>; Melody Murch, Assistant Finance Director, 713-4379, melody.murch@visalia.city <mailto:melody.murch@visalia.city>; Renee Nagel, Finance Director, 713-4378, renee.nagel@visalia.city <mailto:renee.nagel@visalia.city>
Department Recommendation:
1. Conduct a second Public Hearing, allowing a final opportunity for citizens to provide input and comment on the proposed 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment;
2. Adopt and appropriate the FY 2023/24 Annual Action Plan proposed CDBG and HOME activities;
3. Approved and appropriate the FY 2022/23 proposed CDBG and HOME Action Plan Amendment;
4. Approve and appropriate the FY 2021/22 proposed HOME Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and
5. Authorize City Manager or their designee to enter into all contracts as listed in the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and
6. Authorize the City Manager or their designee to submit the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan to HUD.
Background Discussion:
As an entitlement community (EC) for CDBG and a participating jurisdiction (PJ) for HOME, the City of Visalia receives federal formula grants through the U.S. Department of Housing and Urban Development (HUD). This provides the City with annual direct grant funding for the benefit of low-income persons and households. As required by HUD, the City Council approved the 2020-2025, 5-year Consolidated (ConPlan) to guide the use of federal Community Development Block Grant (CDBG) and HOME Investment Partnership funding (HOME). HUD also requires the City to develop an Annual Action Plan to meet the CDBG and HOME objectives established in the 5-year Strategic Plan within the Council approved ConPlan. The 2023 Annual Action Plan is the 4th year of the 5-year ConPlan that has been produced based on the objectives established in the City’s 5-year Strategic Plan for the Program Years 2020/21 through 2024/25.
Staff is seeking final public comment on the priorities and activity allocations proposed for the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment. Tonight’s public hearing will complete the citizen participation process which has been conducted to obtain community input for the development of the proposed Program Year (PY) 2023 Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment. This is the second public hearing with the first having been held April 3, 2023. Council is asked to consider the comments, recommendations, and requests for funding as provided in further detail below and provide final approval.
2023 Proposed Annual Action Plan: The proposed 2023 Annual Action Plan consists of a total of $1,250,000 in projected CDBG resources, and $1,345,000 in projected HOME resources. The 2023 proposed CDBG and HOME resources, activities, and funding allocations are explained in further detail below.
2023 Proposed Community Development Block Grant (CDBG) Revenue and Expenses:
The CDBG 2023 projected resources include $1,200,000 in estimated annual grant allocation and $50,000 in estimated program income* for a total of $1,250,000 in 2023 CDBG projected resources as shown below in Table 1: 2023 CDBG Projected Resources. *CDBG program income is generated from repayment of CDBG funded first-time homebuyer and/or owner-occupied rehabilitation loans.
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Table 1: PY 2023 CDBG Projected Resources |
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Resources |
Amount |
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PY 2023 Annual Allocation |
$ 1,200,000 |
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PY 2023 Program Income |
50,000 |
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Total PY 2023 CDBG Projected Resources |
$ 1,250,000 |
The proposed programs for the 2023 Action Plan were formulated based upon applications received in response to a Notice of Funding Availability (NOFA).
The City released a NOFA from January 15th through February 15th, 2023, to solicit applications for the administration of the City’s PY 2023 CDBG public services, emergency and accessibility home repair program, and senior/disabled mobile home repair program. The NOFA was published in the Visalia Times Delta on 1/12/23 and 1/19/23. The NOFA was also posted on the City’s purchasing website, the Central Valley Purchasing System “BidNet”, and on the Kings Tulare Homeless Alliance listserv on January 20, 2023, making it available to over 330 recipients.
Staff Recommended 2023 Annual Action Plan Activities:
Staff has included the proposed 2023 Annual Action Plan activities and their respective funding, as Attachment D: 2023 AAP & 2022 AAP Amendment Tables. The public hearing to be conducted tonight will allow Council, and the public, a final opportunity to comment, discuss, and direct any necessary changes to the proposed project and program allocations. In addition to the activities described below, the 2023 proposed CDBG administration budget is $250,000. This is 20% of the annual grant allocation and program income, which is the maximum amount of administration allowed by HUD for CDBG grants.
The PY 2023 Proposed CDBG Public Services are listed below and included in Table 2: PY 2023 CDBG Proposed Public Services.
• Kings Tulare Homeless Alliance (KTHA) - At $20,000 for weekly operation of the Visalia Local Initiatives Navigation Center (LINC) to provide wrap-around services for people experiencing homelessness, including mental health assessments/enrollments, housing counseling, birth certificates, CA ID vouchers, mainstream benefit enrollment, social security advocacy, substance abuse program enrollments, veteran services, hygiene kits, and food. KTHA will also oversee the annual PIT count expected in January 2024. In addition, KTHA serves as the local Continuum of Care (CoC).
• Family Services of Tulare County - At $50,000 for case management services for chronically homeless persons in Visalia who are receiving a Permanent Supportive Housing (PSH) voucher through HUD CoC Tulare Housing First grants. These funds are also used as match to secure the CoC Tulare Housing First grants and PSH vouchers. The Tulare Housing First program is funded with a federal (HUD) grant and vouchers are available countywide.
• Kings View PATH Program - At $50,000 to provide direct homeless services and homeless prevention services which will include case management, transportation assistance, legal document assistance, linkage to employment services, and completion of the VI-SPDAT (Vulnerability Index - Service Prioritization Decision Assistance Tool) assessment. Direct client assistance includes security deposits, rental application fees, motel vouchers, legal document fees, interview clothing assistance, food vouchers, hygiene kits, and emergency rental assistance to prevent evictions.
• Fair Housing Education - At $7,500 to provide fair housing education which was identified as a community need during the development of the 5-year ConPlan and Analysis of Impediments to Fair Housing Choice.
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Table 2: PY 2023 CDBG Proposed Public Services |
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Kings Tulare Homeless Alliance |
$ 20,000 |
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Family Services Voucher Program |
50,000 |
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Kings View PATH Program |
50,000 |
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Fair Housing Education |
7,500 |
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Total PY 2023 CDBG Proposed Public Services |
$ 127,500 |
The PY 2023 CDBG Proposed Affordable Housing Projects are listed below and included in Table 3: PY 2023 CDBG Projected Affordable Housing.
• Self-Help Enterprises - At $75,000 to administer a Senior Mobile Home Repair Program (SMHRP) to provide 6 senior and/or disabled owner-occupied mobile homeowners with necessary repairs including roof repair/replacement, accessibility improvements, floor repair/replacement, and energy efficient improvements. Self-Help Enterprises (SHE) applied for $100,000; however, only $75,000 in SMHRP funds were expensed by SHE for this program in FY 2021-2022. As a result, the PY 2023 CDBG NOFA only advertised $75,000 for a Senior Mobile Repair Program.
• Code-Enforcement - At $175,000 to provide code enforcement inspections in CDBG eligible low-moderate income target areas to address substandard housing. This funding pays the full cost of one staff position which is responsible for code enforcement in CDBG Target Areas. Code Enforcement has been funded with CDBG annually since the 1993/94 Fiscal Year (29 years). Code Enforcement activities were identified as an objective during the development of the 5-year Consolidated Plan.
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Table 3: PY 2023 CDBG Proposed Affordable Housing |
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Senior Mobile Home Repair Program |
$ 75,000 |
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Code Enforcement |
175,000 |
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Total PY 2023 CDBG Proposed Affordable Housing |
$ 250,000 |
The PY 2023 CDBG proposed facility improvement projects are listed below and included in Table 4: PY 2023 CDBG Projected Facility Improvement Projects.
• ADA Compliance Project - Tree Wells - $622,500 for ADA Compliance Projects, which includes design and construction for tree well rehabilitation in the downtown area per the request of the Disability Advocacy Committee (DAC) in 2020, prior to its disbandment into the Citizens Advisory Committee. The current condition of the tree wells creates barriers to accessibility in the downtown area and this project is a high priority for the DAC. *Any increase or decrease of PY 2023 CDBG annual allocation or program income will be an adjustment to ADA Compliance Project.
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Table 4: PY 2023 CDBG Proposed Facility Improvement Projects |
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ADA Compliance Projects - Tree Wells Project |
$ 622,500 |
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Total PY 2023 CDBG Proposed Public Facility Improvement Projects |
$ 622,500 |
PY 2023 Proposed HOME Investment Partnership Program (HOME) Revenue and Expenses:
The PY 2023 HOME projected revenue includes $545,000 in HOME estimated annual grant allocation, and $800,000* in estimated program income as identified in Table 5: PY 2023 HOME Projected Resources. *HOME program income is normally generated from repayment of HOME funded first-time homebuyer or owner-occupied rehabilitation loans. However, a higher HOME program income is expected due to the sale of 5-single family HOME funded homes on NW 5th Avenue and N Court Street.
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Table 5: PY 2023 HOME Projected Resources |
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PY 2023 Annual Allocation |
$ 545,000 |
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PY 2023 Program Income |
800,000 |
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Total PY 2023 HOME Projected Resources |
$ 1,345,000 |
The PY 2023 Proposed HOME funding is listed below and included in Table 6: PY 2023 HOME Proposed Funding.
• HOME Administration: $75,000 for PY 2023 HOME Admin and Planning. This amount is well within the 10% allowed for administration of the HOME program by HUD.
• The Lofts Project: $634,375 towards construction of an 80-unit affordable rental housing complex. The PY 2023 HOME funds directed to the Lofts Project will be funded with HOME program income received from the sale of the five affordable single-family houses constructed at NW 5th Avenue. This final piece of funding will complete the City’s HOME commitment of $2,350,898 to the Lofts Project, which was approved by Council on 11/16/2020.
• HOME CHDO Multi-Family: $635,325 to HOME CHDO Multi-Family development as approved by Council in the current 5-year Consolidated Plan. As a HOME Participation Jurisdiction, the City is required to provide at least 15% of the annual HOME funds awarded to a Community Housing Development Organization (CHDO) to develop affordable housing. Self-Help Enterprises (SHE) is currently the only CHDO for the City of Visalia. The CHDO 15% has been combined with additional HOME funds to provide for a CHDO multi-family project as specified in the current 5-Year ConPlan. A HOME CHDO multi-family project has not yet been identified and a CHDO will need to provide a proposal for a potential eligible HOME CHDO multi-family project. Staff will return to Council at a later date with a HOME CHDO multi-family project proposal for Council’s review and approval. *Any increase or decrease of PY 2023 HOME annual allocation or program income will be an adjustment to the HOME CHDO Multi-Family project.
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Table 6: PY 2023 HOME Proposed Funding |
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HOME Administration |
$ 75,000 |
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The Lofts Project |
634,375 |
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HOME CHDO-Multi-Family |
635,625 |
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Total PY 2023 HOME Proposed Funding |
$ 1,345,000 |
The PY 2022 Annual Action Plan Amendment:
The Program Year (PY) 2022 Community Development Block Grant (CDBG) Annual Action Plan (AAP) Amendment includes $150,000 of additional program income and reappropriation of $7,500 in unspent fair housing education funds, due to not having a fair housing conference in FY 22-23. Additional fair housing education funds will be included in the FY 23-24 Action Plan for an in-person fair housing conference. A total of $157,000 of CDBG funds will be appropriated towards the existing ADA Compliance Project - Transit Pathway (CP0420), bringing the total of that project to $499,940, as shown below in Table 7: PY 2022 CDBG Annual Action Plan Amendment.
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Table 7: PY 2022 CDBG Annual Action Plan Amendment |
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Resources |
Approved |
Adjustments |
Proposed |
|
PY 2022 Annual Allocation |
$ 1,183,482 |
$ - |
$ 1,183,482 |
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PY 2022 Program Income |
50,000 |
150,000 |
$ 200,000 |
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Prior Year Resources |
1,834,163 |
- |
$ 1,834,163 |
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Total Resources |
$ 3,067,645 |
$ 150,000 |
$ 3,217,645 |
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Expenditures |
Approved |
Adjustments |
Proposed |
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Administration |
$ 262,500 |
$ - |
$ 262,500 |
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Kings Tulare Homeless Alliance |
20,000 |
- |
20,000 |
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Family Services Voucher Program |
45,000 |
- |
45,000 |
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Kings View PATH Program |
35,000 |
- |
35,000 |
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Fair Housing Education |
7,500 |
(7,500) |
- |
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Emergency Repair and ADA Program |
50,000 |
- |
50,000 |
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Senior Mobile Home Repair Program |
100,000 |
- |
100,000 |
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Code Enforcement |
150,000 |
- |
150,000 |
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ADA Compliance Project - Transit Pathway CP0420 |
342,440 |
157,500 |
499,940 |
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Navigation Center Development |
2,055,205 |
- |
2,055,205 |
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Total Expenditures |
$ 3,067,645 |
$ 150,000 |
$ 3,217,645 |
The PY 2022 HOME Annual Action Plan Amendment includes reappropriation of $120,000 of prior year HOME resources from unspent Tenant-Based Rental Assistance (TBRA) program funds contracted to end on December 31, 2022, toward a First Time Homebuyer (FTHB) assistance program for additional secondary financing for the five HOME assisted single-family homes developed on NW 5th Avenue and N Court Street, bringing the NW 5th Avenue Project HOME FTHB assistance total to $245,000, as shown below in Table 8: PY 2022 HOME Annual Action Plan Amendment.
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Table 8: PY 2022 HOME Annual Action Plan Amendment |
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Resources |
Approved |
Adjustments |
Proposed |
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PY 2022 HOME Allocation |
$ 546,791 |
$ - |
$ 546,791 |
|
PY 2022 Program Income |
200,000 |
- |
200,000 |
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Prior Year Funds |
- |
120,000 |
120,000 |
|
Total Resources |
$ 746,791 |
$ 120,000 |
$ 866,791 |
|
Expenditures |
Approved |
Adjustments |
Proposed |
|
HOME Admin |
$ 70,750 |
$ - |
$ 70,750 |
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First Time Homebuyer Program - NW 5th Ave. |
125,000 |
120,000 |
245,000 |
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The Lofts Project |
551,041 |
- |
551,041 |
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Total Expenditures |
$ 746,791 |
$ 120,000 |
$ 866,791 |
HOME-ARP Funds: The City has been awarded $1,840,059 in 2021 HOME-ARP funds to reduce homelessness and increase housing stability for the following Qualifying Populations (QP).
• Homeless
• At-risk of homelessness
• Fleeing/attempting to flee domestic violence, dating violence, sexual assault, stalking, or human trafficking
• Greatest risk of housing instability
o Annual income less than 30% of the area median income (AMI) and is experiencing severe cost burden (i.e., paying more than 50% of monthly household income toward housing costs)
o Annual income less than 50% of the AMI and meets one of the conditions of “At risk of homelessness” as defined in 24 CFR 91.5(iii)
HOME-ARP funds can be used for the following four eligible activities:
1. Permanent Affordable Rental Housing
2. Non-Congregate Shelters
3. Tenant-Based Rental Assistance
4. Supportive Services
The Majestic Project: On July 18, 2022, Council awarded RFP 21-22-28 to the RH Community Builders to convert the Majestic Motel into Permanent Affordable Rental Housing for people experiencing homelessness in accordance with HOME-ARP Qualifying Populations, with the use of $1.8 million in HOME-ARP and $900,000 in SAH funds. This project is currently undergoing an environmental review, which is expected to be completed this summer, allowing the City to move forward with the contracts for this project.
HOME-ARP Allocation Plan Amendment: When the original HOME-ARP Allocation Plan was established in early spring of 2022, a HOME-ARP project had not yet been identified. As a result, the HOME-ARP Allocation Plan is being amended to provide preference for HOME-ARP Qualifying Populations people experiencing homeless for the HOME-ARP funded Majestic Project, as shown in Attachment C: Draft HOME-ARP Allocation Plan Amendment.
Public Hearing for Adoption: The 30-day public comment period for the review of the draft 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including HOME-ARP Allocation Plan Amendment began on March 17th through April 17th, 2023. During the 30-day public comment period the draft plans were available for public review on the City’s website at www.visalia.city <http://www.visalia.city>. Public notices were published on City’s social media outlets, and in the Visalia Times Delta on March 15th, March 17th, and March 31st, 2023. Public notices were also included in Kings/Tulare Homeless Alliance and the Visalia Chamber of Commerce email listservs. A public hearing was conducted on April 3, 2023, to allow public comment and input. The proposed plans were also presented at the Citizens Advisory Committee (CAC) on April 5, 2023, to receive additional public input. Tonight’s public hearing is the final step in the public comment period. The adopted 2023 Annual Action Plan is due to HUD no later than May 15, 2023.
Fiscal Impact:
Approval of this item will appropriate $1,250,000 of FY 2023 annual CDBG grant funds, $1,345,000 of FY 2023 annual HOME grant funds, and authorize the proposed amendments to the Allocation Plan for $1,840,059 in HOME-ARP funds, the 2022 Action Plan, and 2021 Action Plan . CDBG, HOME, and HOME-ARP funds are to be received on a reimbursement basis. This will require submission of the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan to HUD in the Integrated Disbursement and Information System (IDIS) to properly track and report on separate activities. In addition, this item will authorize the carry forward of 2022 CDBG and HOME activities as shown in Table-7: 2022 CDBG Action Plan Amendment and Table-8: 2022 HOME Action Plan Amendment.
Prior Council Action: Click or tap here to enter text.
• April 20, 2020 - Adoption of 5-year (2020/21 - 2024/25) Consolidated Plan
• November 16, 2020 - Council authorized a preliminary award letter for a commitment to Self-Help Enterprises in $2,350,898 of HOME funds to construct the Lofts 80-unit multi-family project.
• December 20, 2021 - HOME-ARP Public Hearing to review and comment on the development of HOME-ARP Allocation Plan.
• July 18, 2022 - Approval of RFP-21-22-28 to RH Community Builders for $1.8 million in HOME-ARP funds and $900,000 in Successor Agency Housing (SAH) funds for the development of the Majestic Motel to Permanent Affordable Rental Housing.
• April 3, 2023 - Review PY 2023 Annual Action Plan, PY 2022 Action Plan Amendment, and HOME-ARP Allocation Plan Amendment.
Other: None
Alternatives: None
Recommended Motion (and Alternative Motions if expected):
recommendation
Staff Recommends that Council:
1. Conduct a second Public Hearing, allowing a final opportunity for citizens to provide input and comment on the proposed 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment;
2. Adopt and appropriate the FY 2023/24 Annual Action Plan proposed CDBG and HOME activities;
3. Approved and appropriate the FY 2022/23 proposed CDBG and HOME Action Plan Amendment;
4. Approve and appropriate the FY 2021/22 proposed HOME Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and
5. Authorize City Manager or their designee enter into all contracts as listed in 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan Amendment; and
6. Authorize the City Manager or their designee to submit the 2023 Annual Action Plan, 2022 Action Plan Amendment, and 2021 Action Plan Amendment including the HOME-ARP Allocation Plan to HUD.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Click or tap here to enter text.
• Attachment A: 2023 Annual Action Plan
• Attachment B: 2022 Action Plan Amendment
• Attachment C: HOME-ARP Allocation Plan Amendment
• Attachment D: 2023 AAP & 2022 AAP Amendment Tables
• Attachment E: 2023 AAP & Amendments PPT