Print Back to Calendar Return
    22.    
City Council Regular
Meeting Date: 11/10/2020  

SUBJECT:
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM 2019-2020 ANNUAL ACTION PLAN SUBSTANTIAL AMENDMENT 
RECOMMENDATION:
  1. Approve the proposed Substantial Amendment to the 2019-2020 Annual Action Plan for the Community Development Block Grant Program. 
     
  2. Authorize the City Manager to execute all agreements and related documents pertaining to the submission.
     
  3. Adopt A Resolution entitled: A RESOLUTION OF THE CITY OF CHINO HILLS, ADOPTING A BUDGET AMENDMENT FOR FISCAL YEAR 2020-21 INCREASING THE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS BY $413,747 FOR THE CARES ACT THIRD ROUND FUNDING ALLOCATION.
BACKGROUND/ANALYSIS:
On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security (CARES Act) was signed into law to respond to the growing effects of COVID-19. The CARES Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds. Of this amount, the Department of Housing and Urban Development (HUD) allocated $2 billion based on the fiscal year 2019-2020 Community Development Block Grant (CDBG) formula as part of the first round of fund allocations; the City of Chino Hills' allocation was $245,261.  The second round of allocations were awarded to the States.  The third round of allocations were to be allocated to states and local governments at the discretion of the HUD Secretary on a rolling basis.  On September 11, 2020, the third round of funds were allocated.  The City of Chino Hills' allocation was $413,747. The cumulative amount for all allocation rounds is $659,008.  

The CDBG-CV special allocation enables communities to effectively address the impact of COVID-19 on their communities, especially low and moderate-income residents. The CDBG-CV special allocation is governed through HUD; therefore, as an entitlement city, the City of Chino Hills must comply with HUD prescribed statues and regulations to add this special funding to the current 2019-2020 Annual Action Plan. 

The City's Citizen Participation Plan states that the Annual Action Plan will need to be formally amended whenever there is a "substantial amendment" defined as (1) a substantial change to the purpose, scope, location or beneficiary of an activity or (2) any cumulative change equal to or in excess of 25% of the City’s entitlement funds for that program year. Both of the requirements were met as a result of the CARES Act allocation. 
 
The first substantial amendment to the City's 2019-2020 Annual Action Plan was approved on June 23, 2020 to allocate the first round of CDBG-CV funds in the amount of $245,261 to the Microenterprise Business Grant Program. The second proposed amendment is to allocate the second round of CDBG-CV funds in the amount of $413,747 as described below: 
 
Proposed Project  Original Allocation Substantial Amendment #1 Substantial Amendment #2 Description
Microenterprise Business Grant Program $0 $245,261  
Provide grants in the amount of $5,000 to small businesses with five or fewer employees who demonstrate financial need or negative impact as a result of COVID-19. Businesses must be private for-profit operating legally within the City. Non-profit entities and home-based businesses are not eligible.   
 
Small Business Grant Program  $0 $0 $250,000 Provide grants in the amount of $5,000 to $10,000 to small businesses with 35 or fewer employees who pledge to retain or create permanent employment for persons of low- and moderate-income for a period of 2 years and demonstrate negative impact as a result of COVID-19. 
Public Services $0 $0 $163,747 Provide various public services to low- income and moderate-income individuals who have been negatively impacted by COVID-19. 
 
The Small Business Grant Program is anticipated to be launched by November 30, 2020.  Applications will be accepted through December 14, 2020. In addition to the standard marketing mechanisms, a direct outreach effort will be made to identified businesses with 35 or fewer employees prior to the November 30, 2020 launch date.    

As stated in the newly amended Citizen Participation Plan and waiver received from HUD, substantial amendments to the Action Plan for COVID-19 activities require a public hearing with citizens given an opportunity to comment and review for a period no less than five days. The Substantial Amendment was noticed for public review November 2, 2020 through November 9, 2020. Any public comments received will be included in the final report.   
ENVIRONMENTAL (CEQA) REVIEW:
This proposed action is exempt from review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.), because it does not involve any commitment to a specific project which could result in a potentially significant physical impact on the environment; and, constitutes an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Accordingly, this action does not constitute a "project" that requires environmental review (see specifically 14 CCR § 15378(b)(4-5)).
 
FISCAL IMPACT:
Community Development Block Grant funds are provided by the U.S. Department of Housing and Urban Development. The proposed budget amendment will increase the expenditure and revenue budget in the Community Development Block Grant Fund by $413,747. There will be a zero net effect on fund balance. There is no impact to the General Fund with this item. 
Attachments
2019/2020 Annual Action Plan Substantial Amendment
Resolution
Exhibit No. 1 - Budget Amendment

AgendaQuick©2005 - 2021 Destiny Software Inc., All Rights Reserved