That the City Council:
A. Receive public comments; 
 

B. APPROVE AND ADOPT RESOLUTION NO.___ ENTITLED: A RESOLUTION OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBSTANTIAL AMENDMENT TO THE ANNUAL ACTION PLAN FOR FISCAL YEAR 2022-2023; 

C. Consider and approve the Fiscal Year 2023-2024 Annual Action Plan for the City of La Habra Community Development Block Grant Program; and,
 

D. Approve and authorize the City Manager to execute the City of La Habra’s annual application and certifications and submit the Annual Action Plan to the U.S. Department of Housing and Urban Development for its Community Development Block Grant Funding Approval/Agreement in the amount of $595,411 of CDBG funds.

 
Substantial Amendment to the FY 2022-2023 Annual Action Plan
The FY 2022-2023 Annual Action Plan was adopted by the City Council on April 18, 2022.  The City's Citizen Participation Plan requires the City to approve, by resolution, a Substantial Amendment to the Annual Action Plan whenever a "substantial" change is proposed.  For the purpose of the Annual Action Plan, a “substantial change” is defined as:

1. Addition of a new project not previously identified in the Action Plan, without regard to funding source;
2. Cancelation of an existing project identified in the Action Plan, without regard to funding source;
3. A change that significantly alters the purpose, scope, location or beneficiaries of a project; or,
4. Changes in the use of CDBG funds from one eligible project to another eligible project meeting the set dollar amount thresholds.

The Substantial Amendment process allows the public an opportunity to provide input on proposed changes to the use of CDBG funding. In order to comply with the City’s approved Citizen Participation Plan and Consolidated Plan implementing regulation 24 CFR 91.105, a Substantial Amendment must be made available to the public for a 30-day review period, followed by a public hearing before City Council that allows for additional input and comments before approval of the Substantial Amendment. The proposed Substantial Amendment was made available for public review and comment, in conjunction with the proposed FY 2023-2024 Annual Action Plan, from March 17, 2023 through April 17, 2023. A notice regarding this public review period and program documentation was advertised in the Orange County Register, and program documents were made available on the City's website, and at the City's Community Center facility, City Hall, and the La Habra Branch of the Orange County Public Library. At the time of the preparation of this report, staff had not received any public comments. 

If approved by Council, the proposed Substantial Amendment would cancel the Alley Improvement Program previously approved for FY 2022/2023 and reallocate this funding ($199,605) to other already approved CDBG eligible programs, shown below.          

Proposed Increase for
Construction Project Adjustments
 

FY	Program Name	Proposed Amount
2020-21	Alley Improvement Program	$60,000
2020-21	Old Reservoir Park	$6,750
2022-23	Child Development Playground	$60,855
	Total	$127,605

 
Fiscal Year 2023-2024 Annual Action Plan 

The City’s proposed FY 2023-2024 Annual Action Plan allocation is $595,411, reflecting a $40,903 funding reduction compared to last year’s allocation. There are no prior year carryovers to be allocated in FY 2023-2024. 

The Annual Action Plan includes a participatory process that provides the public an opportunity to provide input. In accordance with La Habra’s Citizen Participation Plan, the La Habra Community Services Commission (CSC) accepts public comments on funding priorities for the upcoming year. The Commission has conducted two public meetings regarding CDBG funding priorities. On January 11, 2023, the Commission considered presentations from public services and City departments that submitted requests for CDBG funding, and then on February 8, 2023, the Commission met and made their final recommendations for funding levels for Public Services. 

The table below lists the Fiscal Year 2023-2024 funding recommendations for the City's CDBG program: 

As noted above, this draft Fiscal Year 2023-2024 Annual Action Plan was made available for public review and comment, in conjunction with the proposed Substantial Amendment, from March 17, 2023, through April 17, 2023. At the time of the preparation of this report, staff had not received any public comments. 

If approved, the proposed Substantial Amendment would reallocate a total of $199,605 of prior year CDBG funds to wage compliance and construction projects for Public Facilities & Improvement Programs, as described in this report. There will be no adverse impact to the General Fund if the proposed Substantial Amendment is approved.

The City of La Habra’s CDBG Entitlement for Fiscal Year 2023-2024 is $595,411.  If the Annual Action Plan is approved by City Council, these funds will be allocated to programs and services as described in this report. The approval of these recommended funding allocations will have no adverse impact to the City's General Fund.

GENERAL PLAN RELEVANCE:
LU. 2.3 Places to Work
LU. 2.5 Places Supporting the Quality of Life
LU. 17.1 Adequate Community-Supporting Uses
ED. 2.1 Business Attraction
ED. 2.2 One-Stop Business Assistance
ED. 2.3 Business Attraction-Retention
ED.7.1 Adult Health & Lifestyle Enrichment Programs
ED. 7.5 New Homebuyer Counseling
ED. 7.8 Resident Nutrition
H. 2.1 Maintain Residential Character
H. 2.3 Supportive Public Facilities
H.2.8 Rehabilitation & Home Improvement Program
H.3.2 Assistance to Prevent Housing Discrimination
H.3.5 Special Needs of the Homeless

CITY GOALS AND OBJECTIVES:
Goal 2: Management of Public Revenues and Fiscal Assets

Goal 3: Maintenance and Improvement of City Infrastructure

Goal 5: Development Activity and Business Assistance