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 Community Development Division SUBJECT ..Title Actions pertaining to funding provided by the U.S. Department of Housing and Community Development Office of Community Planning and Development (HUD CPD): 1. ***RESOLUTION - Adopting Substantial Amendment 2022-02 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 $1,417,211.98 in HOME Investment Partnership (HOME) funds from prior year HOME project savings; and authorizing the City Manager or designee to sign all implementing documents as approved to form by the City Attorney (Subject to Mayor's veto) ..Body RECOMMENDATION Staff recommends the City Council adopt Substantial Amendment 2022-02 to the 2022-2023 Annual Action Plan; and authorize the City Manager or designee to sign all necessary implementing documents as approved to form by the City Attorney. EXECUTIVE SUMMARY To further the City's commitment to develop and rehabilitate affordable housing, staff identified funds from HOME program administration and rehabilitation savings that are available for reprogramming. The purpose of the substantial amendment is to reprogram the funds available to increase the availability of safe and affordable housing for low-income and special needs households. 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 HOME program administration and rehabilitation savings. The substantial amendment reprograms $1,417,211.98 in HOME program savings from previous years to fund affordable housing development or rehabilitation for low-income and special needs households. The funds will be awarded through the City's 2023-2024 Notice of Funding Availability for Affordable Housing Development which closes on July 14, 2023. Citizen Participation * May 19, 2023: Public Notice distributed via Fresno Bee * May 19, 2023: Public notice distributed on social media, through the Housing and Community Development Division (HCDD) email distribution list * May 19, 2023: Draft documents published to HCDD webpage for 30-day public comment period * June 19, 2023: End of 30-day public comment period The City received two public comments during the public comment period which are included in the attached Public Draft of Substantial Amendment 2022-02. A summary of comments received by the City during the July 20, 2023, City Council meeting will be considered and included in the final Substantial Amendment submitted to HUD. 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 2022-02 will allow the City to expend $1.4 million of entitlement funding. Attachments: Resolution - Substantial Amendment 2022-02 Public Draft of Substantial Amendment 2022-02