TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
title
Community Development Block Grant (CDBG) FY 2024-25 Action Plan - Substantial Amendment.
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RECOMMENDATION
recommendation
1) Conduct a Public Hearing; 2) adopt Resolution 2025-010, approving the substantial amendment to the City of Chino's FY 2024-25 Annual Action Plan for the Community Development Block Grant (CDBG) Program; 3) transfer $298,868.65 in Fund 350 allocated funds from project PF253 to project SN240; 4) authorize the City Manager to execute all required documents pertaining to the amendment; and 5) approve submission of the amendment to the United States Department of Housing and Urban Development (HUD).
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FISCAL IMPACT
Requires the transfer of $298,868.65 from the Community Garden Pumpkin Patch Project (PF253) to the Alley Improvement Project (SN240) for a new total project allocation of $518,124.65; with an adjustment to revenue in an equal amount to the Alley Improvement Project (SN240).
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above supports and furthers the City’s core organizational values and the strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Responsible Long-Range Planning
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Revenue: 3508030-59500-PF253 TO SN240 |
Expenditure: 3508030-40003-PF253 TO SN240 |
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Transfer In: |
Transfer Out: |
BACKGROUND
The purpose of this proposed Substantial Amendment to the City of Chino’s FY 2024-25 CDBG Annual Action Plan is to amend the approved FY 2024-25 CDBG program budget. The original budget, which was adopted on June 4, 2024, allocated $298,868.65 to the Community Garden Pumpkin Patch Project (PF253), which has since been cancelled.
Following cancellation of the above-mentioned project, staff evaluated options for reallocation of the funds and discovered that the City’s Alley Improvement Project (SN240) would benefit from additional funding as it would allow the project scope to be expanded to address additional alleyway segments needing rehabilitation. This amendment will enable the utilization of these funds during the current fiscal year to address the immediate needs of the Alley Improvement Project.
Amendments to a CDBG Annual Action Plan are required whenever proposed changes to current project/program allocations are equal to or greater than 25% of the original allocation, or if a project will be newly added or cancelled altogether. Amendments that meet or exceed this standard are considered “Substantial Amendments”. In compliance with the City’s Citizen Participation Plan under regulation 24 CFR 91.105, Substantial Amendments require that a public hearing be conducted to solicit comment on the proposed amendment.
On March 1, 2025, a public notice was published in the Chino Champion, advising the public of 1) availability of the proposed amendment for review; 2) the opportunity to submit comments or concerns regarding the amendment; and 3) a public hearing to consider the proposed amendment and receive public comment at the April 1, 2025, City Council meeting. Tonight’s public hearing fulfills HUD’s public hearing requirement.
Following final adoption, the Substantial Amendment to the FY 2024-25 CDBG Annual Action Plan will be submitted to HUD for review and approval.
ISSUES/ANALYSIS
The FY 2024-2025 CDBG Annual Action Plan outlines the City of Chino’s planned use of CDBG funds. The proposed changes outlined in the amendment are as follows:
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Proposed Project Budget Increase or Decrease of 25% or More |
CDBG Allocation |
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FY 2023-24 Alley Improvements Project - SN240 (Increase Allocation) Original Budget - $219,256 (FY 2023-2024 funds) Additional Allocation - $298,868.65 (FY 2024-25 funds) |
$518,124.65 |
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Proposed Project Cancellation/Reallocation |
CDBG Allocation |
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FY 2024-25 Community Garden Pumpkin Patch (Cancel and Reallocate) Original Budget - $298,868.65 (FY 2024-25 funds) Revised Budget - $0 |
$0 |
Attachment - Resolution 2025-010