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CC - Item 4A - Public Hearing to Consider Proposed Substantial Amendments to PY 2022-2023 and PY 2023-2024 Annual Action PlansROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: BEN KIM, CITY MANAGER DATE: DECEMBER 12, 2023 SUBJECT: PUBLIC HEARING TO CONSIDER PROPOSED SUBSTANTIAL I:\U 11WI 06104" &S 1117 7 W0111IMPtI , W41W11141 I4To) 1 CINI PLANS SUMMARY The purpose of this public hearing is to provide the public with an opportunity to comment on the proposed Substantial Amendments to the City's PY 2022-2023 and PY 2023-2024 Annual Action Plans. In accordance with the HUD 24 CFR Part 91.505, and Rosemead's Citizen Participation Plan, the City shall amend the approved Annual Action Plan if a "substantial change" is proposed by City staff or the City Council. On an annual basis, the City receives Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) funds. 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 Consolidated Plan is carried out each fiscal year (July 1 to 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 April 2020 and was submitted to the U. S. Department of Housing and Urban Development (HUD) in May 2020. The PY 2022-2023 Annual Action Plan was approved by the City Council at its meeting on May 31, 2022. The PY 2023-2024 Annual Action Plan was approved by the City Council at its meeting on May 9, 2023. 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; • Canceling an activity previously described in the Action Plan; AGENDA ITEM 4.A City Council Meeting December 12, 2023 Page 2 of 4 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, therefore requires Substantial Amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans. The following table exhibits the proposed substantial amendments to the CDBG program activities and allocation: PY 2022-2023 Proposed Annual Action Plan Substantial Amendment CDBG Project Original Proposed Proposed Source of Funding (Activity) Funding Funding Change City Hall ADA $265,838 $0 Cancel Funds will be allocated to 2023-24 Elevator Project Street Im rovement Project. PY 2023-2024 Proposed Annual Action Plan Substantial Amendments CDBG Project Original Proposed Proposed Source of Funding (Activity) Funding Funding Change Renovation at $289,667 $0 Cancel Funds will be allocated to 2023-24 Garvey Community Street Improvement Project. Center Project Street Improvement $0 $555,505 Add Funds are from the cancelled City Project Hall ADA Elevator and Renovation at Garvey Community Center projects. Homeownership $510,500 $305,869 Decrease Funds will be allocated to 2023-24 Assistance Program Commercial Improvement Program. Commercial $95,369 $300,000 Increase Funds are from CDBG Improvement Homeownership Assistance Program Program. Additional funding is needed because the Program was redesigned as a grant to make it more desirable to businesses and the res once has been high. In the public notice, staff proposed an increase of $34,631 to the Commercial Improvement Program. However, City staff are now proposing an increase of $204,631 because the response has been high, and many applications have been submitted. To date, staff has received multiple inquiries and 17 submitted applications. The Rosemead City Council has the authority to revise the above recommendations within the HUD regulations. City Council Meeting December 12, 2023 Page 3 of 4 STAFF RECOMMENDATION That the City Council: 1. Conduct a public hearing to receive community feedback on the proposed PY 2022-2023 and PY 2023-2024 Substantial Amendments. and 2. Approve its submission to HUD. FISCAL IMPACT There is no impact to the General Fund for conducting a public hearing and submitting the proposed Substantial Amendments to HUD. The increase in expenses related to the Commercial Improvement Program, amounting to $204,631 ($300,000 — $95,369), will be offset by reduction in the overall expense budget of the CDBG Homeownership Assistance Program for Fiscal Year 2023-24. STRATEGIC PLAN IMPACT The City's CDBG and HOME programs align with the City's 2030 Strategic Plan Mission statement to "provide quality programs, services, and support that builds community, increases opportunity, and makes Rosemead a great place to live, work, and play." 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 November 13, 2023. Copies of the proposed Substantial Amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans were available during the 30 -day public review and comment period from November 12, 2023 through December 12, 2023, at 5:00 PM. Copies of the proposed Substantial Amendments were available at Rosemead City Hall and on the City's website. Prepared by: Priscila Davila, Contract Housing Consultant Reviewed by: Lily Valenzuela, Deputy Director of Community Development City Council Meeting December 12, 2023 Page 4 of 4 Submitted by: Stan Wong, Interim Director of Community Development Attachment A: Proposed Substantial Amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans Attachment B: Rosemead Reader Public Notice — Substantial Amendments Attachment A Proposed Substantial Amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans CITY OF ROSEMEAD PRPOSPOSED SUBSTANTIAL AMENDMENTS TO PY 2022-2023 & PY 2023-2024 ANNUAL ACTION PLANS CITY OF ROSEMEAD PROPOSED SUBSTANTIAL AMENDMENTS TO PY 2022-2023 AND PY 2023-2024 ANNUAL ACTION PLANS Introduction On an annual basis, the City receives Community Development Block Grant (CDBG) and HOME Investment Partnership 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 Consolidated Plan is carried out each fiscal year (July 1 to 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 April 2020 and was submitted to the U. S. Department of Housing and Urban Development (HUD) in May 2020. 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; • 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. The proposed changes meet one of these four criteria, and so require a substantial amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans. The following table exhibits the proposed substantial amendments to the CDBG program activities and allocation: PY 2022-2023 Proposed Annual Action Plan Substantial Amendment CDBG Project Original Proposed Proposed Source of Funding (Activity) Funding Funding _Change City Hall ADA $265,838 $0 Cancel Funds will be allocated to 2023 - Elevator Project 24 Street Improvement Project. PY 2023-2024 Proposed Annual Action Plan Substantial Amendments CDBG Project Original Proposed Proposed Source of Funding (Activity) Funding Funding Change Renovation at $289,667 $0 Cancel Funds will be allocated to 2023 - Garvey Community 24 Street Improvement Project. Center Project Street Improvement $0 $555,505 Add Funds are from the cancelled City Project Hall ADA Elevator and Renovation at Garvey Community Center projects. Homeownership $510,500 $305,869 Decrease Funds will be allocated to 2023 - Assistance Program 24 Commercial Improvement Program. Commercial $95,369 $300,000 Increase Funds are from CDBG Improvement Homeownership Assistance Program Program. Additional funding is needed because the Program was redesigned as a grant to make it more desirable to businesses and the response has been high. CITIZEN PARTICIPATION Review and Comment Period Copies of the proposed substantial amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans were made available during the 30 -day public review and comment period from November 12, 2023 through December 12, 2023, at 5:00 PM. Copies of the proposed Substantial Amendments were made available at Rosemead City Hall and on the city's website: httl2s://www.cityofrosemead.org/government/city departments /city clerk/ public notices. As of the date of this Public Hearing, no written or verbal comments were made on the proposed Substantial Amendments. Public Hearing The Rosemead City Council will conduct a public hearing on Tuesday. December 12, 2023. at 7:00 PM • at Rosemead City Hall, located at 8838 East Valley Boulevard, Rosemead, California 91770. At that time, citizens and other interested parties will be invited to provide comments on the proposed Substantial Amendments. This item has been noticed through the regular agenda notification process, which includes a public hearing notice published in the Rosemead Reader on November 13, 2023. Copies of the proposed Substantial Amendments to PY 2022-2023 and PY 2023-2024 Annual Action Plans are available during the public review and comment period from November 13, 2023 through December 12, 2023 at 5:00 PM. Public Comments Insert any comments received during the public review/comment period, and public hearing into Final Substantial Amendments submitted to HUD. Attachment B Rosemead Reader Notice MAYOR: SmLy MAYOR PRO TEM: MARGARET CLARK COUNCIL MEMBERS: SANDRA ARI. WA SEAN D"G Pou.v Low City of &sewad 8838 E. VALLEY BOULEVARD ROSEMEAD, CALIFORNIA 91770 TELEPHONE (626) 569-2100 FAX (626) 307-9218 CITY OF ROSEMEAD COMBINED NOTICE OF REVIEW/COMMENT PERIOD AND PUBLIC HEARING FOR THE PROPOSED SUBSTANTIAL AMENDMENTS TO THE PY 2022-2023 AND PY 2023-2024 ANNUAL ACTION PLANS NOTICE IS HEREBY GIVEN that the City of Rosemead has a copy of the proposed Substantial Amendments for Program Years (PY) 2022-2023 and 2023-2024, as required by the City's Citizen Participation Plan and the United States Department of Housing and Urban Development (HUD). REVIEW AND COMMENT PERIOD NOTICE IS HEREBY FURTHER GIVEN that the publication of this notice commences a minimum 30 -day public review period as required under Federal Regulation 24 CFR 91.105, and the City's Citizen Participation Plan. This public review and comment period begins November 13, 2023, and will run through December 12, 2023, at 5:00 PM. Copies of the proposed Substantial Amendments will be available at Rosemead City Hall and on the city's website: fts://www.ciiyofrosemead.org/govermnent/ciiy departments/city clerk/ public notices. The public is invited to submit written comments on the proposed document to the Housing Division at 8838 E. Valley Blvd., Rosemead, CA 91770 or by email to Housin ivisionna ciVofrosemead.org. For any questions concerning this notice please telephone Ms. Lily Valenzuela, Deputy Director of Community Development at (626) 569-2142 or Itrinh@cityofrosemead.org. PUBLIC HEARING NOTICE IS HEREBY FURTHER GIVEN that the Rosemead City Council will conduct a public hearing on Tuesday. December 12, 2023, at 7:00 PM, at Rosemead City Hall, located at 8838 East Valley Boulevard, Rosemead, California 91770. At that time, citizens and other interested parties will be invited to provide comments on the proposed Substantial Amendments. If you have a request for accommodation under the ADA, please contact Ericka Hernandez, City Clerk, at (626) 569-2100. FOR FURTHER DETAILS: The City Council Agenda and Staff Report will be available on the City's website under "City Calendar" (www.cityofrosemead.org) at least 72 hours in advance of the public hearing. Any person interested in the above proceedings may provide comments in support of, or in opposition to, the item(s) indicated in this notice by providing oral public comments at the public hearing, submitting in writing through email at publiccomment@cityofrosemead.org before 5:00 p.m. on Tuesday, December 12, 2023, or by calling (626) 569-2100. Notice and Publication Date: November 13, 2023