CC - Item 3A - Public Hearing on Consideration to Approve a Substantial Amendment to the FY 2021-22 Annual Action PlanROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER,/
DATE: SEPTEMBER 28, 2021
SUBJECT: PUBLIC HEARING ON CONSIDERATION TO APPROVE A
SUBSTANTIAL AMENDMENT TO THE FY 2021-22 ANNUAL
ACTION PLAN
SUMMARY
The proposed Substantial Amendment to the FY 2021-2022 Action Plan establishes two new
CDBG and HOME programs that increase homeownership opportunities by subsidizing home
prices to affordable levels for eligible participants.
In accordance with the HUD 24 CFR Part 91.505, and Rosemead's Citizen Participation Plan, a
Substantial Amendment is required to carry out an activity not previously described in the Action
Plan. In this case, a Substantial Amendment is required to identify the following activities in the
FY 21-22 Action Plan: (1): establish a Homeownership Assistance Program HOME activity and
(2) establish a Homeownership Assistance Program CDBG program activity.
DISCUSSION
The Annual Action Plan provides a concise summary of the actions, activities, and the specific
resources that will be used each year to address the priority needs and specific goals identified in
the Consolidated Plan. As required by federal requirements, the City Council approved the FY
2021-2022 Annual Action Plan on May. 11, 2021. City staff subsequently submitted the approved
Action Plan to HUD in June 2021. For FY 2021-22 the City received $749,375 in CDBG and
$337,512 in HOME funds.
The City's Citizen Participation Plan states that the City shall amend the approved Annual
Action Plan if a "substantial change" is proposed by City staff or the City Council. A
"substantial change" is defined as:
• Carrying out an activity not previously described in the action plan;
• Cancelling an activity previously described in the Action Plan;
AGENDA ITEM 3.A
City Council Meeting
September 28, 2021
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• Increasing or decreasing the amount to be expended on a particular activity from the
amount stated in the Action Plan by more than 50 percent; or
Substantially changing the purpose, scope, location, or beneficiaries of an activity.
The proposed changes meet one of these four criteria, as it establishes two new programs not
previously described in the Action Plan. Therefore, a Substantial Amendment is required to the
FY 2021-2022 Action Plan as shown in Attachment A.
The following table exhibits the proposed Substantial Amendment to the CDBG and HOME
program activities and allocations:
FY 2021-2022 Proposal Annual Action Plan Substantial Amendment
CDBG Budget Original Funding Proposed Funding Change
Homeownership - $710,500 Add — Program will
Assistance Program be funded using prior
CDBG funds
HOME Budget
Original Funding
Proposed Funding
Change
Gap Financing
-
$1,290,018
Add — Program will
Program
be funded using prior
HOME funds
HOME
The HOME funded Homeownership Assistance Program will subsidize market rate homes to
allow income eligible Rosemead residents to purchase those homes at an affordable rate. This
would give residents access to purchase homes, as well as increasing the City's affordable
housing stock. Per unit subsidy limits are established annually by HUD. Current per unit subsidy
limits are as follows:
2021 Per Unit HOME Subsidy Limits
Bedroom HOME Maximum Subsidy
2 $213,718
3 $276,482
4+ $303,490
Moreover, HOME subsidies would only be available to homes below a maximum purchase limit
established annually by HUD. The maximum purchase limit for 2021 is $636,500.
HOME subsidized properties would also follow a thirty-year (30) affordability period, and be
sold at affordable housing rates, established by HUD for the affordability term.
CDBG
The CDBG funded Homeownership Assistance Program will be used to subsidize market value
homes for income eligible participants. CDBG subsidies could be implemented through methods
City Council Meeting
September 28, 2021
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such as subsidizing interest rates or mortgage principal amounts. Unlike HOME program
funding, CDBG assistance programs is less restrictive and could be used to subsidize homes
beyond the HUD established HOME annual maximum purchase price of $636,500 and subsidy
limits (based on bedroom count) described above.
STAFF RECOMMENDATION
That the City Council take the following actions:
1. Conduct a public hearing and receive public testimony; and
2. Approve a Substantial Amendment to the FY 2021-22 Annual Action Plan.
FISCAL IMPACT
There is no fiscal impact to the General Fund.
STRATEGIC PLAN IMPACT
The Substantial Amendment to FY 2021-22 Annual Action Plan implements the "Key
Organizational Goals" of ensuring the City's continued financial viability by actively pursuing
quality economic development enhance public safety and quality of life, and beautify residential
neighborhoods and commercial corridors. It implements the first strategy by pursuing economic
development opportunities to encourage new high quality and affordable housing stock.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process, which includes a
public hearing notice published in the Rosemead Reader on August 28, 2021. Copies of the
proposed Substantial Amendment to FY 2021-2022 Annual Action Plan was available during the
public review and comment period from August 26, 2021, through September 28, 2021.
Prepared by: Submitted by:
Andres Rangel, Man ement Analyst Ben Kim, As ' ant City Manager
Attachment A: Draft Substantial Amendment to FY 2021-22 Annual Action Plan
Attachment B: Rosemead Reader Public Notice — Substantial Amendment
Attachment A
Draft Substantial Amendment to
FY 2021-22 Annual Action Plan
CITY OF ROSEMEAD
PROPOSED SUBSTANTIAL AMENDMENT
TO FY 2021-2022
ANNUAL ACTION PLAN
Introduction
On an annual basis, the City receives Community Development Block Grant (CDBG)
and HOME Investment Partnership (HOME) Program funds. In order to receive these
grant funds, the City must adopt a Consolidated Plan. The Consolidated Plan serves as
the City's 5 -year planning document for the use of the funds. The Consolidate Plan is
carried out each fiscal year (July 1 — June 30) through an Annual Action Plan. The
Annual Action Plan provides a concise summary of the actions, activities, and the
specific resources that will be used each year to address the priority needs and specific
goals identified by the Consolidated Plan. The City's current Consolidated Plan was
adopted by the City Council in May 2021 and its current fiscal year (2021-2022)
Annual Year Annual Action Plan was submitted to the U.S. Department of Housing
and Urban Development (HUD) in June 2021.
The City's Citizen Participation Plan states that the City shall amend the approved
Annual Action Plan if a "substantial change" is proposed by City staff or the City
Council. For the purpose of the Action Plan, a "substantial change" is defined as:
• Carrying out an activity not previously described in the Action Plan;
• Cancelling an activity previously described in the Action Plan;
• Increasing or decreasing the amount to be expended on a particular activity
from the amount stated in the Action Plan by more than 50 percent; or
• Substantially changing the purpose, scope, location, or beneficiaries of an
activity.
A summary of the proposed substantial amendments to the CDBG and HOME Annual
Action Plans are shown below:
FY 2018-19 Annual Action Plan
HOME Program — Cancel Affordable Housing Project.
FY 2019-20 Annual Action Plan
HOME Program — Cancel Affordable Housing Project.
CDBG Program — Cancel Acquisition of Land Project
FY 2020-21 Annual Action Plan
CDBG Program — Cancel Acquisition of Land Project.
FY 2021-2022 Annual Action Plan
HOME Program — Add Homeownership Assistance Program.
Funded with prior years HOME funds.
CDBG Program — Add Homeownership Assistance Program.
Funded with prior years CDBG funds.
Review and Comment Period
Copies of the proposed substantial amendment to FY 2021-2022 Annual Action Plan is
available during the public review and comment period from August 28, 2021, through
September 28, 2021. Copies of the proposed amendment will be available for public
review on the City's website at www.cityofrosemead.org/cd.
Those people wishing to comment on the proposed amendments should submit written
comments no later than 6:00 p.m. on Monday, September 28, 2021 to Priscila Davila,
CDBG/HOME Consultant, at 8838 E. Valley Blvd., Rosemead CA 91770, by email to
prisciladhkyahoo.com, or by telephone at 562-673-3388. You may also contact Andres
Rangel, Management Analyst, at arangelkcityofrosemead.org or by telephone at 626-
569-2153. With any questions concerning this notice.
Public Hearin
This item has been noticed through the regular agenda notification process, which
includes a public hearing notice published in the Rosemead Reader on August 28, 2021.
Copies of the proposed Substantial Amendment to FY 2021-2022 Annual Action Plan
is available during the public review and comment period from August 28, 2021,
through September 28, 2021.
The City will hold a virtual public hearing during the council meeting on Tuesday,
September 28, 2021 at 7:00 pm. At that time, citizens and other interested parties will
be invited to provide comments on the proposed amendment to FY 2021-2022 Annual
Action Plan.
Public Comments
The City will incorporate any comments received during the review/comment period.
Attachment B
Rosemead Reader Public Notice
Substantial Amendment
CITY OF ROSEMEAD
COMBINED NOTICE OF REVIEW/COMMENT
PERIOD AND PUBLIC
HEARING FOR PROPOSED SUBSTANTIAL
AMENDMENTS
TO CDBG AND HOME ANNUAL ACTION PLANS
NOTICE IS HEREBY GIVEN THAT the City of Rosemead is pro-
posing amendments to its CDBG and HOME Annual Action Plans.
On an annual basis, the City receives Community Development
Block Grant (CDBG) and HOME Investment Partnership Program
funds. To receive these grant funds, the City must adopt a Con-
solidated Plan. The Consolidated Plan serves as the City's 5 -year
planning document for the use of the funds. The Consolidated Plan
is carried out each fiscal year (July 1 —June 30) through an Annual
Action Plan. The Annual Action Plan provides a concise summary
of the actions, activities, and the specific resources that will be used
each year to address the priority needs and specific goals identi-
fied by the Consolidated Plan. The City's current Consolidated Plan
was adopted by the City Council in May 2020 and its current fiscal
year (2021-2022) Annual Year Annual Action Plan was submitted to
the U. S. Department of Housing and Urban Development (HUD)
in June 2021.
The City's Citizen Participation Plan stales that the City shall
amend the approved Annual Action Plan if a "substantial change"
is proposed by City staff or the City Council. For the purpose of the
Action Plan, a "substantial change" is defined as:
Carrying out an activity not previously described in the Ac-
tion Plan;
Canceling an activity previously described in the Action
Plan;
Increasing or decreasing the amount to be expended on a
particular activity from the amount stated in the Action Plan
by more than 50 percent; or
Substantially changing the purpose, scope, location, or
beneficiaries of an activity.
A summary of the proposed substantial amendments to the CDBG
and HOME Annual Action Plans are shown below.
FY 2018-19 Annual Action Plan
HOME Program — Cancel Affordable Housing Project.
FY 2019-20 Annual Action Plan
HOME Program — Cancel Affordable Housing Project.
CDBG Program — Cancel Acquisition of Land Project
FY 2020-21 Annual Action Plan
CDBG Program — Cancel Acquisition of Land Project.
FY 2021-2022 Annual Action Plan
HOME Program— Add Homeownership Assistance Program.
Funded with prior years HOME funds.
CDBG Program — Add Homeownership Assistance Program.
Funded with prior years CDBG funds.
Review and Comment Period
Copies of the proposed substantial amendments to the CDBG and
HOME Annual Action Plans will be available during the public re-
view and comment period from August 26, 2021 through Septem-
ber 28, 2021. Copies of the proposed amendments will be avail-
able for public review on the City's website at www.cityofrosemead.
org/cd.
Those people wishing to comment on the proposed amendments
should submit written comments no later than 5:00 p.m. on Sep-
tember 28, 2021, to Andres Rangel, Management Analyst, at 8838
E. Valley Blvd., Rosemead CA 91770, by email to arangel@cityo-
frosemead.org, or by. telephone at 626-569-2153.
Public Hearing
The City Council will hold a public hearing during the council meet-
ing on Tuesday, September 28, 2021, at 7:00 pm. At that time,
citizens and other interested parties will be Invited to provided com-
ments on the proposed amendments to the CDBG and HOME An-
nual Action Plans.
Ericka Hernandez
City Clerk
City of Rosemead
Publish: August 26, 2021
ROSEMEAD READER
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