TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
title
Community Development Block Grant (CDBG) 2025-30 Consolidated Plan and 2025-26 One-Year Action Plan.
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RECOMMENDATION
recommendation
1) Conduct a public hearing to receive comment; 2) approve the 2025-30 Five-Year Consolidated Plan, which includes the 2025-26 One-Year Action Plan governing the use of Community Development Block Grant (CDBG) funds; 3) Carryover an estimated amount of $80,080.01 in unexpended funds from Program Year 2023-24; 4) authorize the City Manager to execute all required United States Department of Housing and Urban Development (HUD) documents and submit the 2025-30 Five-Year Consolidated Plan inclusive of the 2025-26 One-Year Action Plan to HUD; and 5) authorize staff to complete all federal environmental reviews per 24 Code of Federal Regulations (CFR), Part 58.
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FISCAL IMPACT
The City has received an allocation from HUD in the amount of $585,259 for the 2025-26 CDBG Program Year. Corresponding program revenues and expenditures have been included in the FY 2025-26 budget.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Public Service Excellence through Internal and External Partnerships
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BACKGROUND
In accordance with HUD regulations, the City is required to prepare and submit a CDBG Consolidated Plan every five years. This plan directs the utilization of CDBG funds and includes a One-Year Action Plan for FY 2025-26 that outlines projects recommended for funding that are consistent with the needs and priorities identified in the Five-Year Consolidated Plan.
In preparing the Five-Year Consolidated Plan and accompanying One-Year Action Plan, the following efforts were undertaken:
1. On January 27, 2025, the Community Services Parks and Recreation Commission (Commission) received presentations from non-profit public service providers, followed by a comprehensive review of applicant projects by a selected sub-committee. The sub-committee prioritized and ranked the projects and made preliminary funding recommendations. Each program was evaluated based on need, eligibility, and consistency with the needs assessment included within the Consolidated Plan.
2. On February 10 and 20, 2025, community meetings were held at the Neighborhood Activity Center. These meetings fulfilled requirements outlined in the City’s adopted CDBG Citizen Participation Plan. Community members, including residents, non-profit organizations, local government agencies, businesses and private developers were notified of the meetings in advance through public notices in the newspaper, flyers, social media, and email distribution providing ample opportunity for interested parties to provide valuable input and express any community needs or perceived gaps in services.
3. On February 24, 2025, following the comprehensive review of CDBG applicants, the sub-committee presented preliminary funding recommendations to the Commission. The Commission evaluated the recommendations and took appropriate action to forward the recommendations attached to the City Council agenda (Exhibit 1) for consideration.
In addition to public service applications, Capital Improvement Project (CIP) applications were received and reviewed by staff using the same criteria as the public service projects. Funding recommendations are also displayed in Exhibit 1.
ISSUES/ANALYSIS
The primary objective of the CDBG program is “the development of viable urban communities by providing adequate housing, a suitable living environment, and expanding economic opportunities, principally for persons of low and moderate-income.” The One-Year Action Plan details the programs and projects to be funded with the City’s 2025-26 CDBG allocation.
Evaluation criteria included the following:
• Meets HUD’s national objectives and eligibility requirements.
• Consistent with the Needs Assessment; and
• Minimizes any duplication of service.
Exhibit 1 details the public services projects recommended for funding by the Commission and include corresponding proposed funding amounts with a minimum amount of $10,000. The allocation for public service programs is $87,789 which accounts for 15% of the total CDBG allocation, as established by HUD regulations. Additionally, Exhibit I presents staff's recommendation for projects to be funded under the CIP category in the amount of $270,419.
Each program year, HUD reviews the City’s accomplishments and utilization of funds from the prior year through the Consolidated Annual Performance and Evaluation Report (CAPER). Major subject areas in the CAPER include a narrative that states financial resources, the number of households and persons assisted, and an assessment of annual performance. The CAPER assesses programs for low- and moderate-income families, economic development initiatives, social services programs, and various public improvement projects.
The public hearing being held during this City Council meeting meets HUD’s Citizen Participation requirements for adopting the Five-Year Consolidated Plan and the One-Year Action Plan. A 30-day public review period began on Tuesday, April 1, 2025, and ended on Thursday, May 1, 2025. This period allowed community members to submit written input on the Five-Year and One-Year Plans. No comments were received during the public comment period. After final adoption, the Five-Year Consolidated Plan and the One-Year Action Plan will be submitted to HUD for review and approval.
In closing, the Commission respectfully presents its funding recommendations to the City Council. These recommendations have been thoroughly evaluated based on HUD requirements, alignment with the needs assessment, the potential for duplicating services, and the funding amounts available.
Attachments:
Exhibit 1: CDBG FY 2025-26 Funding Recommendations
Exhibit 2: 2025-30 Five-Year Consolidated Plan and 2025-26 One-Year Action Plan