REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department BY: BRANDON SISK, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title ***RESOLUTION - Adopting submission of Substantial Amendment 2020-03 to the Fiscal Year (FY) 2020-2021 Annual Action Plan and authorizing submission to the U.S. Department of Housing and Urban Development (HUD) to reprogram $4,181,189.24 in Community Development Block Grant (CDBG) funds from prior year CDBG project savings and repayments (Subject to Mayor's Veto). ..Body RECOMMENDATION Staff recommends the City Council adopt Substantial Amendment 2020-03 to the 2020-2021 Annual Action Plan and authorize submission of Substantial Amendment 2020-03 to HUD. EXECUTIVE SUMMARY Staff has identified $4,181,189.24 in CDBG fund project savings and cancelled projects which may be reprogrammed for eligible activities. In order to reprogram CDBG funds, HUD requires a Substantial Amendment to the 2020-2021 Annual Action Plan (Substantial Amendment 2020-03). Reprogramming these funds will allow the City to utilize the funds to support the development of a senior center and public infrastructure. BACKGROUND In accordance with CDBG regulations, the City must have a balance no greater than one and one-half (1.5) times its annual grant remaining in the Line of Credit, 60 days prior to the end of the program year. Staff assessed the projected expenditures of all open CDBG projects to determine if it would be able to meet the May 2, 2022, timeliness test. In doing so, staff identified $4,181,189.24 in project savings and project balances needing to be reprogrammed in order for the City to ensure timely performance. The City proposes to use the $4.1 million to: * Increase the CDBG funds available for the acquisition of property for a Senior Center; * Increase the CDBG funds available for the Burroughs Elementary Neighborhood Street Reconstruction Project; * Fund the Olive-Maple-Whitney-Chestnut Street Improvement Project; * Fund the Maple-Gettysburg-Woodrow Street Improvement Project. In order to reprogram the funds, HUD requires a Substantial Amendment to the City's 2020-2021 Annual Action Plan. SUBSTANTIAL AMENDMENT PROCESS: The Substantial Amendment process involves publishing the draft Substantial Amendment for a 30-day public comment period. On December 1, 2021, the City made Substantial Amendment 2020-03 available on the City's website and provided public notice regarding the opportunity for public comment. Citizen Participation * December 1, 2021 - Public Notice Published in Fresno Bee * December 1, 2021 - Information published on social media * December 1, 2021 - Draft Substantial Amendment Published - Minimum 30-day public review period commences * December 31, 2021 - Public Review Period closes * January 13, 2022 - City Council consideration of the Substantial Amendment The City received zero public comments during the public comment period. 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 Adoption of the 2020-03 Substantial Amendment is required to reprogram CDBG funds to allow the City to acquire property for the development of a senior center and provide neighborhood street improvements. Attachments: Resolution 2020-2021 Annual Action Plan Substantial Amendment 2020-03