Title
Public Hearing to Consider Amendments to the Community Development Block Grant Action Plans for Fiscal Years 2019-20 through 2024-25 and Authorize the Interim City Manager to Negotiate and Execute Related Documents, Agreements and Modifications. (City Manager’s Office 20321843 and 20321845)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The purpose of the public hearing is to consider approving amendments to the Community Development Block Grant (CDBG) Action Plans for Fiscal Years (FY) 2019-20 through 2024-25 to fund non-housing public improvements, including Americans with Disabilities Act (ADA) upgrades throughout the City of Alameda (City), the Day Center Relocation Project located at the formal Naval Base at Alameda Point, residential rehabilitation and other eligible projects. To fund the proposed activities, staff proposes to: 1) Reallocate the previously awarded, and now available, $614,392.10 of CDBG funds, and 2) Reprogram CDBG entitlement funds to pay for CDBG-eligible public improvements and residential rehabilitation.
BACKGROUND
The City is an entitlement recipient of Community Development Block Grant (CDBG) funds from the Federal Department of Housing and Urban Development (HUD). Each year, the City receives an allocation of approximately $1,000,000 of CDBG funding. CDBG funds can be used to finance programs and activities that benefit low- and moderate-income households, and to help prevent or eliminate blight. To receive CDBG funding, the City must submit an annual Action Plan to the Department of Housing and Urban Development (HUD), detailing the programs and activities that address the needs identified in the City’s approved Five-Year Consolidated Plan. The Action Plan is approved by City Council and includes programs, activities, and the associated funding amounts for the fiscal year. A public hearing is required for any amendment to the annual Action Plan if the City cancels an activity, adds an activity, or substantially changes the purpose, scope, location, or beneficiaries of an activity.
If a program or activity is cancelled or does not use the total funding allocation, the remaining funds are carried forward to the next fiscal year. Until these funds are specifically reprogrammed, the grant year remains open. This has been an ordinary part of the CDBG process since the program's inception in 1974. Recently, HUD has made additional efforts to ensure that uncommitted or unexpended federal funds are utilized promptly. For the CDBG program, uncommitted funds will be recaptured if not used within eight years of the original entitlement allocation. Therefore, prior year funds must be reprogrammed.
Staff is proposing amendments to the Action Plans for FY 2019-20 through 2024-25. In accordance with 24 CFR 91.105(c)(2) and subpart B of the federal regulations relative to citizen participation for Community Planning and Development Programs, staff recommends that City Council consider proposed amendments to the CDBG Action Plans for FY 2019-20 through FY 2024-25, reallocating $614,392.10 of CDBG funds. The recommended programs and funding amounts for the proposed amendment are further described in the discussion section.
All citizen participation requirements have been met for the public hearing, with publication of the notice in the November 2025 Alameda Journal, as well as in Chinese, Spanish, Tagalog, and Vietnamese-language newspapers. Accommodations are available for non-English speaking residents and persons with disabilities to participate in the public comment process.
DISCUSSION
Each year staff receives approval from City Council regarding recommendations for activities to be funded with the annual allocation of CDBG and HOME funds. In May 2025, City Council approved the new Five-Year (FY 2025-29) Consolidated Plan and the first year of the Five-Year Action Plan. Each annual Action Plan includes carry forward funds (i.e., unexpended funds) from the prior year and those remaining funds are allocated within the same grant year until a project is complete, or a project is identified, and funds are reprogrammed to the new project.
Staff proposes amendments to the Action Plans for FYs 2019-20 through 2024-25 to reprogram $614,392.10 in CDBG funding to provide necessary funding to the Day Center project and additional funds toward residential rehabilitation projects for low- and moderate-income residents. Reprogramming these funds for new projects will help ensure timely expenditure of resources in FYs 2025-26 and make funds available to projects that need these funds to proceed. Therefore, staff recommends reprogramming these funds to be used for the eligible activities.
Staff recommends allocating the funds to the public improvements and residential rehabilitation categories so that they may be used for any of the potential eligible projects.
1) The Day Center (Day Center) is a safe and welcoming place for people who are unhoused and provides services, overnight emergency shelter and safe parking. Services include connection with social services such as housing, health, mental health, substance use treatment as well as classes, meals, wellness checks, once per week mobile showers and laundry, referrals and enrichment activities. The program is currently located at 431 Stardust Place, an Alameda Point building owned by the City. This building is slated to be demolished as part of Phase 2 of the City Council approved development project, Rebuilding the Existing Supporting Housing of Alameda Point (RESHAP) Phase 2. The Day Center is being relocated to Alameda Point Building 2, Wing 3, located at 1041 W. Midway Ave. Staff is proposing to allocate approximately $550,000 in CDBG funding for construction. Without these funds, there is not sufficient capital funding to complete the Day Center relocation project.
2) Housing and Human Services Division (HHS) offers financial assistance to individuals and organizations in need of housing rehabilitation or minor home modifications. The Minor Home Modification Program helps eligible individuals make essential modifications to their homes. The Housing Rehabilitation Program provides financial and technical assistance to homeowners for emergency repairs for up to $15,000. Applications will continue to be accepted on a rolling basis. To be eligible, applicants must be residents of the City and a low- or moderate-income homeowner or commit to a term of using the shelter to house low- or moderate-income residents. In May 2025, City Council approved funding residential rehabilitation projects and activities in the amount of $340,126 for FY 2025-26. Today, staff proposes to reprogram and reallocate $64,392.10 from prior years funding to finance residential rehabilitation.
All eligible projects require staff to complete the necessary environmental review process before contracts are executed. If approved, these CDBG public improvement funds will be allocated for construction costs related to the Day Center Relocation in addition to funding from the Prohousing Incentive Program grant, FY 2023-24 California Budget Bill as well as City General Funds. The federal environmental review was completed in September 2025. The construction contract award is recommended for City Council approval on this same agenda and if approved, construction will begin in December.
Following City Council approval, grant modifications and/or new agreements will be implemented to carry out the approved activities. The form of grant modification and/or new agreement is the same as previously approved by the City Council and the City Attorney’s office.
|
Category |
Revised Activity Description |
Amended Action Plan FY 2025- 26 Reprogrammed Funds |
Previously Approved Action Plan FY 2025-26 |
|
Public Improvements |
Public improvements, including the Day Center Relocation, Bessie Coleman Court Sewer Lateral and Renovations, Alameda Food Bank Facility Improvements, Alameda Boys & Girls Club Security Enhancements and other eligible activities/projects |
FY19-20 ($13,513.53) FY23-24 ($230,613.03) FY24-25 ($305,873.44) |
$354,996.00 |
|
A. Non-Housing Public Improvement Subtotal: |
$550,000.00 |
$354,996.00 |
|
Residential Rehabilitation |
Residential Rehabilitation, including minor home modifications such as grab bars and transfer poles, and housing rehabilitation for low- to moderate-income individuals. |
FY24-25 ($64,392.10) |
$340,126.00 |
|
B. Residential Rehabilitation Subtotal: |
$64,392.10 |
$340,126.00 |
|
Action Plan FY 2025-26 Amendments Subtotal |
$614,392.10 |
$695,122.00 |
|
Action Plan FY 2025-26 REVISED TOTAL |
$1,309,514.10 |
The revised Action Plan FY 2025-26 total funds is $1,309,514.10 which will position the City to meet HUD timeliness so that all CDBG funds are appropriated and utilized locally.
ALTERNATIVES
• Hold a public hearing to consider an amendment to the FY 2019-20 through 2024-25 CDBG Action Plans and authorize the Interim City Manager to negotiate and execute related documents, agreements, and modifications to implement the programs described above.
• While CDBG regulations require that a public hearing be held to amend the Action Plan, City Council may modify the recommendations prior to acceptance.
• Decline to move forward with amending the FYs 2019-20 through 2024-25 CDBG Action Plans at this time. Staff does not recommend this option as it would result in unused funds that could be recaptured by the federal government unless allocated toward another project or program.
FINANCIAL IMPACT
There is no impact on the General Fund. The funds available to be reprogrammed within the CDBG Action Plans are budgeted in the Housing and Human Services CDBG Fund (Fund 203).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed Action Plan amendments are consistent with the City's CDBG/HOME Five-Year Consolidated Plan and citizen participation requirements. This action supports the City Strategic Plan, project HH2c to relocate and expand the Day Center and overnight shelter.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
Under federal law, the execution of agreements and final funding commitments related to this action are subject to satisfactory environmental clearance pursuant to 24 CFR Part 58. Additionally, this action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no climate impacts from conducting a public hearing to amend the City’s CDBG Action Plans for fiscal years 2019-20 through 2024-25.
RECOMMENDATION
Hold a public hearing to consider amendments to the CDBG Action Plans for fiscal years 2019-20 through 2024-25 and authorize the Interim City Manager to negotiate and execute related documents, agreements and modifications.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
By,
C’Mone Falls, Housing and Human Services Manager
Andre Fairley, HHS Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Citizen Participation Plan