REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, AICP, Director Planning & Development Department PHILIP SKEI, Assistant Director Planning & Development Department BY: VANESSA NAVARRO, Senior Management Analyst Community Development Division SUBJECT ..Title ***RESOLUTION - Adopting and approving submission of Substantial Amendment 2019-09 to the 2019-2020 Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD) to reprogram $1,017,841.96 in Community Development Block Grant Coronavirus (CDBG-CV) funds to prevent, prepare for, and respond to the Coronavirus (COVID-19), and authorizing the City Manager or their designee to sign all necessary implementing documents. (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council approve a resolution adopting Substantial Amendment 2019-09 to reprogram $1,017,841.96 of CDBG-CV funds from Program Administration and Compliance to Homeless Facilities. EXECUTIVE SUMMARY To fully expend the CDBG-CV allocation by the grant expenditure deadline of April 2027, staff identified $1,017,841.96 in CDBG-CV funds allocated to Program Administration and Compliance that can be reprogrammed and used to aid in the acquisition, conversion, and/or rehabilitation of facilities to be used as temporary shelters and/or transitional housing for the homeless. BACKGROUND The City of Fresno (City) is a federal entitlement community that receives annual allocations of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). 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. On February 18, 2021, City Council approved Substantial Amendment 2019-06 to the Program Year 2019-2020 Annual Action Plan accepting and allocating CDBG-CV funds including the allocation of $1,115,986 for Program Administration and Compliance and $1,332,385 for Homeless Facilities. Since that time, the City has determined less funding is needed for the administration of CDBG-CV funds through the April 2027 expenditure deadline and the funds can be used to aid in the acquisition, conversion, and/or rehabilitation of facilities to be used as temporary shelters and/or transitional housing for the homeless. For Program Year 2019-2020, the City is proposing to make a substantial amendment to its submitted plan to reprogram the $1,017,841.96 balance of CDBG-CV funds from Program Administration and Compliance to Homeless Facilities. In accordance with the City's Citizen Participation Plan, the Draft Substantial Amendment 2019-09 to the 2019-2020 Annual Action Plan was published for a 30-day public comment period. Citizen participation included: � March 29, 2026, 2026: Public Notice published in the Fresno Bee � March 30, 2026: Draft document published to the Housing and Community Development Division and City Clerk's webpages � March 31, 2026: Public notice distributed on social media and through e-mail distribution � April 28, 2026: End of 30-day public comment period During the 30-day public comment period, the City received 12 comments. Of the comments received, a majority agreed that Program Administration and Compliance funds should be reprogrammed to support homeless activities, including Homeless Facilities. 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 Adoption of Substantial Amendment 2019-09 will allow the City to reprogram $1,017,841.96 of CDBG-CV funds from Program Administration and Compliance to the acquisition, conversion, and/or rehabilitation of facilities to be used as temporary shelters and/or transitional housing for the homeless. Attachments: Resolution to Adopt Substantial Amendment 2019-09