Substantial Amendment #2 Program Year 2018-19 Annual Action Plan Hearing Notice

This notice is hereby given that a Public Hearing to consider a Substantial Amendment #2 to the City of Modesto Program Year (PY) 2018-19 Annual Action Plan will be held by the Modesto City Council on March 12, 2019 at 5:30 p.m. in the Council Chambers, Basement Level, Tenth Street Place, 1010 10th Street, Modesto, California. 

The purpose of the Substantial Amendment #2 to the City of Modesto PY 2018-2019 Annual Action is to address the U.S. Department of Housing and Urban Development (HUD) Department’s reduction of the City of Modesto 2018-2019 Community Development Block Grant allocation.  The 2018-2019 CDBG grant allocation was reduced from $2,003,752 to $1,618,617; this reflects a reduction of $385,135. 

As a result of the above mentioned funding level changes, the following changes are proposed as part of Amendment #2:

Entitlement Funding Changes:  

1. CDBG Planning and Administration:  

a.    Reduction of CDBG Planning and Administration entitlement funds budget by $77,027; new entitlement amount for administration activities:  $323,723.

b.    The City anticipates receiving $160,000 of Program Income for administration activities, which will be programmed through this Amendment #2, for a total of $483,723.

2.    Affordable Housing – Acquisition (Entitlement):  

a.    Allocate $189,600 to the acquisition of a transitional housing project.

3.    Advocates for Justice

a.    Per the request of Advocates for Justice, defund a public service grant in the amount of $22,899. 

Revolving Loan Fund changes:

After a budget analysis, an additional $449,587 has been identified for programming in Revolving Loan Fund (RLF) activities.  These funds will be used to expand the use of RLF funds by converting activities previously funded with entitlement funds to be funded with RLF.

1.    Water/Sewer Connection Program

       a.    Defund this activity by $139,477, leaving a balance of $200,000 for program activities, due to current interest in the program.

2.    Fresno CDFI Small Business Loans

       a.    Defund this activity in the amount of $100,000 in CDBG Entitlement funds and budget with an equal amount of Revolving Loan Funds.  

3.    Affordable Housing – Acquisition (RLF):  

       a.    Create an Affordable Housing – Housing Acquisition Revolving Loan Fund activity and add $443,629.

4.    Affordable Housing – Owner Occupied Housing Rehabilitation:  

      a.    Add $145,435 of RLF funds to program budget for a total of $561,272.

      b.    Defunded Mobile Home housing rehabilitation activity by $180,000 in CDBG Entitlement funds; this was added to Owner Occupied Housing Rehabilitation via RLF.  

             Mobile Homes projects will be assisted through this activity.

In compliance with Citizen Participation regulations, a 30-day public comment period will begin February 9, 2019 and conclude on March 12, 2019.  The city will present the draft Amendment #2 at the following public meetings. 

•    January 8, 2018:  Steering Community Stratford at Beyer Park; 3529 Forest Glenn Dr Modesto (D5), 6:00 pm.

•    January 16, 2019: West Modesto King Kennedy Collaborative; 601 S. Martin Luther King Ave Modesto (D2), 5:30 pm.

•    January 28, 2019:  Delwood Neighborhood Alliance; 1600 Carver Rd Modesto (D3), 7:00 pm.

•    February 4, 2019:  Airport Neighborhood Community Collaborative; 801 Empire Avenue Modesto (D4), 3:30 pm.

•    February 6, 2019: Church of the Cross; 3936 Dale Rd Modesto (D1), 5:30 pm.

•    February 14, 2019:  Citizens Housing & Community Development Division Committee Meeting; 1010 10th Street Modesto, 12:00 p.m.

•    February 20, 2019:  Orchard Park Neighborhood Alliance; 1813 Oakdale Rd Modesto (D6), 5:30 pm.

•    February 21, 2019:  Stanislaus County System of Care (CSOC), Continuum of Care (CoC) Meeting, 2:30 p.m.

Interested persons will be given the opportunity to provide oral and/or written comments at the Public Hearing on March 12, 2019.  All written comments must be submitted by March 11, 2019 at 4:30 PM. Please direct written comments to the City of Modesto, Attention: Community Development Manager, Community Development Division at the address listed below: 

In Person:    1010 Tenth Street, Suite 3100, Modesto, CA 95354

                      Between the hours of 8:30 a.m. and 4:30 p.m.

Email:            Community Development Division

Phone:           (209) 577-5211 

If you challenge the proposed allocation in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing.

If you require a translator, please contact the Community Development Division office at Community Development Division or (209) 577-5211, no fewer than two business days prior to the meeting to make the necessary arrangements.

In compliance with the Americans with Disabilities Act (ADA), the City of Modesto does not discriminate against persons with disabilities and is an accessible facility. Any person with a disability who requires a modification or accommodation to be able to participate is asked to contact the Community Development Division at Community Development Division or (209) 577-5211, no fewer than two business days prior to the workshop to allow for reasonable arrangements.