REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: VANESSA NAVARRO, Senior Management Analyst Community Development Division SUBJECT ..Title ***RESOLUTION - Approving Substantial Amendment No. 2025-01 to the PY 2025-2026 Annual Action Plan to transfer $1,021,642.18, and any future NSP program income to the Community Development Block Grant (CDBG) program, and program available program income to the development of the Senior Activity Center (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council adopt the Resolution approving the Substantial Amendment No. 2025-01 to the PY 2025-2026 Annual Action Plan to transfer $1,021,642.18 of Neighborhood Stabilization Program (NSP) program income and any future NSP program income to the CDBG program and authorize submission to the U.S. Department of Housing and Urban Development (HUD). EXECUTIVE SUMMARY To further the City's commitment to the construction of a Senior Activity Center, staff identified $1,021,642.18 NSP program income on hand, that can be used in support of this activity. BACKGROUND The City of Fresno (City) is a federal entitlement community that received an allocation of Neighborhood Stabilization Program (NSP) funds from the U.S. Department of Housing and Urban Development (HUD) in 2008. NSP was established by the Housing and Economic Recovery Act (HERA) of 2008 for the purpose of stabilizing communities that suffered from foreclosures and abandonment. As established by HERA, NSP provided grants to all states and selected local governments, including the City, on a formula basis. HUD has since issued closeout notices that include the revised treatment of program income of NSP by allowing NSP program income received by a CDBG recipient to be transferred by the recipient from the NSP program to the CDBG program. On March 24, 2026, HUD approved the City's request to transfer the NSP program income on hand, a total of $1,021,642.18, and any future NSP program income to the CDBG program. Any transferred program income is subject to the CDBG program income regulations. For Program Year 2026-2027, the City is proposing to substantially amend its Program Year 2025-2026 Annual Action Plan to program the available program income to the development of the Senior Activity Center. In accordance with the City's Citizen Participation Plan, the Draft Substantial Amendment 2025-01 to the 2025-2026 Annual Action Plan was published for a 30-day public comment period. Citizen participation included: * May 17, 2026: Public Notice published in the Fresno Bee * May 18, 2026: Draft document published to the Housing and Community Development Division and City Clerk's webpages * May 18, 2026: Public notice distributed on social media and through e-mail distribution * June 16, 2026: End of 30-day public comment period During the 30-day public comment period, the City received zero comments. Those comments, along with any received at City Council, will be summarized and included with the City's responses to each in the final document submitted to HUD. ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. These plans, strategies and studies are an exempt activity under HUD NEPA Requirements (24 CFR 58.34 (1)). LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT There is no general fund impact. Adoption of Substantial Amendment 2025-01 will allow the City to amend its Program Year 2025-2026 Annual Action Plan to program available program income to the development of the Senior Activity Center. Attachment: Resolution to Adopt Substantial Amendment 2025-01