REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department THROUGH: PHILIP SKEI, Assistant Director Planning and Development Department BY: BRANDON SISK, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title ***RESOLUTION - Adopting Substantial Amendment 2022-01 to the Fiscal Year (FY) 2022-2023 Annual Action Plan and authorizing submission to the U.S. Department of Housing and Urban Development (HUD) to reprogram $3,840,768.21 in Community Development Block Grant (CDBG) funds from prior year CDBG project savings and repayment (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council adopt Substantial Amendment 2022-01 to the 2022-2023 Annual Action Plan and authorize submission of Substantial Amendment 2022-01 to HUD. EXECUTIVE SUMMARY To further the City's commitment to develop affordable housing, staff identified funds from prior year project savings and funds available from the City's repayment of Federal funds to program. The purpose of the Substantial Amendment is to increase availability of safe and affordable housing through land acquisition and demolition. BACKGROUND The City of Fresno (City) is a federal entitlement community that receives an annual allocation of grant funds from the U.S. Department of Housing and Urban Development (HUD) for the following entitlement programs: * Community Development Block Grant (CDBG) * HOME Investment Partnerships (HOME) * Emergency Solutions Grant (ESG) * Housing Opportunities for Persons with AIDS (HOPWA) As an entitlement community, the City is required to prepare an Annual Action Plan detailing the uses of entitlement funds to meet its affordable housing and community development goals as outlined in its Consolidated Plan. The City is proposing to make a Substantial Amendment to its Program Year 2022 Annual Action Plan to reprogram funds from program savings and other sources, and program funds available from the City's repayment to HUD. As presented to the City Council's ad hoc committee on CDBG on December 12, 2022, the Substantial Amendment will reprogram and program $3,840,768.21 of CDBG funds to acquire land and finance the necessary demolition of buildings to further the development of safe and affordable housing. Activities recommended for funding are: * $2,840,768.21 of CDBG funds to acquire land for the development of safe and affordable housing * $1,000,000 of CDBG funds to demolish buildings for the development of safe and affordable housing Citizen Participation * November 2, 2022: Public Notice distributed via Fresno Bee * November 2, 2022: Public notice distributed on social media, through the Housing and Community Development Division (HCD) email distribution list and City Clerk website * November 2, 2022: Draft documents published to HCDD webpage and City Clerk webpage for 30-day public comment period * December 1, 2022: End of 30-day public comment period ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378 and is exempt for NEPA purposes pursuant to 24 CFR 58.34. LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT Adoption of Substantial Amendment 2022-01 will allow the City to expend $3.8 million of entitlement funding. Attachments: Resolution - Substantial Amendment 2022-01 Public Draft of Substantial Amendment 2022-01 Public Comments on Substantial Amendment 2022-01