TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
title
Community Development Block Grant (CDBG) FY 2022-23 Action Plan - Substantial Amendment.
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RECOMMENDATION
recommendation
1) Conduct a Public Hearing; 2) adopt Resolution 2025-067, approving the substantial amendment to the City of Chino's FY 2022-23 Annual Action Plan for the Community Development Block Grant (CDBG) Program; 3) transfer $31,500 in Fund 350 allocated funds from project G6231 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 $31,500 from the Economic Development Façade Improvements Project (G6231) to the Alley Improvement Project (SN240) with an adjustment to revenue in an equal amount.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers 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
• Responsible Long-Range Planning
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Revenue: |
Expenditure: CDBG FUND 350 |
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Transfer In: |
Transfer Out: |
BACKGROUND
Amendments to a CDBG Annual Action Plan are required whenever proposed changes to current project/program allocations are equal to or greater than 20% of the project funds, or if a project will be newly added or cancelled. 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.
Staff is proposing that the City of Chino’s FY 2022-23 CDBG Annual Action Plan be amended to reallocate $31,500 in funding from the Economic Development Façade Improvements Project (G6231) to the Alley Improvement Project (SN240). This amendment, which qualifies as a “Substantial Amendment” under CDBG Program regulations, will provide the following benefits: 1) ensure fund utilization during the current fiscal year; 2) aid in meeting HUD’s timeliness compliance requirements; and 3) meet immediate funding needs for the completion of the Alley Improvement Project (SN240).
On September 20, 2025, a public notice was published in the Chino Champion, advising the public of 1) the 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 October 21, 2025, City Council meeting. Tonight’s public hearing fulfills HUD’s public hearing requirements.
Following final adoption, the Substantial Amendment as shown in Exhibit 1-CDBG 2022-23 Action Plan-Substantial Amendment to the FY 2022-23 CDBG Annual Action Plan, will be submitted to HUD for review and approval.
ISSUES/ANALYSIS
The FY 2025-26 CDBG Annual Action Plan outlines the City of Chino’s planned use of CDBG funds, including unspent CDBG funds carried over from prior years. The proposed changes outlined in the amendment are as follows:
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Alley Improvement Project (SN240) |
Amended Budget |
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Original Budget - $518,124.65 (FY 2023-2024 funds) Additional Allocation - $31,500.00 (FY 2022-23 funds) |
$549,624.65 |
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Economic Development Façade Improvement Program (G6231) |
Amended Budget |
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Original Budget - $31,500 (FY 2022-23 funds) Revised Budget - $0 |
$0 |
It is recommended that the City Council conduct a Public Hearing, adopt Resolution 2025-067, approving the substantial amendment to the City of Chino's FY 2022-23 Annual Action Plan for the Community Development Block Grant (CDBG) Program, transfer $31,500 in Fund 350 allocated funds from project G6231 to project SN240, authorize the City Manager to execute all required documents pertaining to the amendment, and approve submission of the amendment to HUD.
Attachments: Exhibit 1 - CDBG 2022-23 Action Plan-Substantial Amendment
Resolution No. 2025-067