REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department THROUGH: PHIL SKEI, Assistant Director Planning and Development Department BY: AKIO LOPEZ, Senior Management Analyst Housing and Community Development Division SUBJECT ..Title ***RESOLUTION - Adopting Substantial Amendment 2024-01 to the Fiscal Year (FY) 2024-2025 Annual Action Plan and authorizing submission to the U.S. Department of Housing and Urban Development (HUD) to reprogram $1,214,423.49 in Community Development Block Grant (CDBG) and $135,571.41 in HOME investment Partnership (HOME) funds from prior year project savings (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council adopt Substantial Amendment 2024-01 to the 2024-2025 Annual Action Plan and authorize submission of Substantial Amendment 2024-01 to HUD. EXECUTIVE SUMMARY To further the City's commitment to develop, rehabilitate, and make available affordable housing, staff identified funds from prior year project savings in CDBG and HOME available to be reprogrammed. The purpose of the substantial amendment is to increase the availability of affordable housing for low-income 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 2024 Annual Action Plan to reprogram funds from project savings in CDBG and HOME to fund demolition in support of affordable housing, home repair, and Tenant Based Rental Assistance (TBRA). The substantial amendment reprograms $1,214,423.49 of CDBG for demolition and housing repair; and $135,571.41 of HOME funds for TBRA. Activities recommended for funding are: * $580,300 of CDBG funds for the demolition of the building at 4323-4333 N Blackstone in support of senior affordable housing development * $634,123.49 of CDBG funds for owner-occupied housing repair through the City's Senior Exterior Repair Program * $135,571.41 of HOME funds for TBRA In accordance with the City's Citizen Participation Plan, the Draft 2024-2025 Annual Action Plan Substantial Amendment 2024-01 was published for a 30-day public comment period. Citizen participation included: * February 9, 2025: Public Notice published in the Fresno Bee * February 12, 2025: Draft document published to the Housing and Community Development Division and City Clerk's webpages * February 12, 2025: Public notice distributed on social media and through e-mail distribution * March 14, 2025: End of 30-day public comment period During the 30-day public comment period, the City received five 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 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 2024-01 will allow the City to expend a total of $1.34 million of entitlement funding. Attachment: Resolution to Adopt Substantial Amendment 2024-01