CITY OF SANTA ANA JULY 1, JUNE 30, ANNUAL UPDATE SUBSTANTIAL AMENDMENT CDBG/HOME Reallocation

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1 CITY OF SANTA ANA JULY 1, JUNE 30, 2012 ANNUAL UPDATE SUBSTANTIAL AMENDMENT CDBG/HOME Reallocation

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3 SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR ACTION PLAN: HOME AND CDBG REPROGRAMMING INTRODUCTION The City of Santa Ana s Fiscal Year Annual Action Plan was submitted to the U.S. Department of Housing and Urban Development (HUD) on May 15, Among other items, the Plan allocated the city s anticipated HOME Program and Community Development Block Grant (CDBG) funds in a manner consistent with HOME and CDBG regulations and the city s past practice. As a consequence of unforeseen circumstances affecting both programs, the city has been unable to commit and spend these HOME and CDBG funds as quickly as it has in the past. In order to make fuller use of these funds and meet the need of low income residents for affordable, for sale housing opportunities, the city is creating a new program to be funded with unused HOME and CDBG program funds. Additionally, this new program will be run in accordance with federal guidelines established for the NSP2 program, and will assist the city to meet its goals for that program. Funding of this new program will require a reallocation of uncommitted HOME grant funds and unused CDBG grant funds generated by loan repayments. Additionally, the Annual Action Plan committed $890,000 in CDBG grant funds for purchase of new fire equipment to be used in a fire station serving a predominately low/mod area. Due to the recent outsourcing of the city Fire Department to the Orange County Fire Authority, the funds no longer need to be used for that purpose. Instead, they will be used for necessary repairs to fire stations serving low/mod areas of Santa Ana. Title 24 Section of the Code of Federal Regulations stipulates that participating jurisdictions shall amend their approved plans whenever they make one of the following decisions: 1. To make a change in its allocation priorities or a change in the method of distribution of funds; 2. To carry out an activity, using funds from any program covered by the Consolidated Plan (including program income) not previously described in the action plan; or 3. To change the purpose, scope, location, or beneficiaries of an activity. 1

4 The Regulation further requires that jurisdictions identify in their citizen participation plans the criteria they will use for determining what constitutes a substantial amendment. Consistent with these requirements, the Citizen Participation Plan adopted by the City of Santa Ana as a component of its 2010/ /15 Consolidated Five Year Plan identifies three criteria that will require a substantial amendment: 1. Changes in the use of CDBG funds from one eligible activity to another; 2. An activity is undertaken that was not previously included in the Consolidated Plan or subsequent action plans. 3. More than 30 percent of the most recent annual federal grant allocation is reallocated to other eligible program activities within the fiscal year. The proposed changes all meet one of these three criteria, and so require a substantial amendment. CITIZEN PARTICIPATION In accordance with 24 CFR (c)(3) for local governments, the substantial amendment Public Notice for the use of CDBG and HOME funds was released for citizen review and comments on March 30, During the 30-day public comment period from March 30, 2012 through April 30, 2012 the Public Notice for the Draft Substantial Amendment was made available during regular business hours between 8:00 a.m. and 5:00 p.m., Monday through Thursday in the following locations: 1)Housing Department, 20 Civic Center Plaza, 3rd Floor, 2)Community Development Agency, 20 Civic Center Plaza, 6th Floor, 3)Office of the Clerk of the Council, 20 Civic Center Plaza, Room 809, 4)the Main Public Library, 26 Civic Center Plaza, Santa Ana, California and 5)on the city s website. The Community Redevelopment and Housing Commission of the City of Santa Ana held a public hearing on April 3, 2012, at 6:00 p.m., at the City Council Chambers, 22 Civic Center Plaza, Santa Ana, California The City Council of Santa Ana will hear and vote on this Substantial Amendment to the Action Plan on April 16, A copy of the public hearing notice is presented in Attachment 1, along with a summary of citizen comments received at the public hearing and the remainder of the public comment period. The city s responses to these citizen comments are also included in Attachment 1. PROPOSED ACTIVITY AMENDMENTS The proposed amendments will create new projects for the Annual Action Plan entitled CDBG Foreclosed Homes Acquisition Program and CDBG Foreclosed Homes Acquisition Program. It will modify the HOME funding allocations established in the Plan, budget previously unused CDBG Program Income funds for the new project, and identify a changed use for $890,000 in CDGB grant funds. Attachment 2 describes these changes. 2

5 ATTACHMENT 1 PROOF OF PUBLICATION 30-DAY COMMENT PERIOD & PUBLIC HEARING & SUMMARY OF PUBLIC COMMENTS 3

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8 SUMMARY OF PUBLIC COMMENTS 5

9 ATTACHMENT 2: PROPOSED CDBG/HOME PROGRAM FUNDING REALLOCATION CDBG/HOME Program Funding Reallocation Project Name Fund Allocation New Allocation HOME Admin $229,596 $229,596 HOME CHDO $344,395 $0 HOME Multifamily Acquisition $121,974 $0 Or Rehabilitation HOME Single Family Housing $100,000 $0 Rehabilitation HOME New Construction $1,500,000 $0 HOME Foreclosed Homes $0 $2,295,965 Acquisition CDBG Foreclosed Homes 0 $1,000,000 Acquisition CDBG Public Facility $890,000 Fire Equipment CDBG Public Facility Fire Station 0 $890,000 6

10 CITY OF SANTA ANA COMMUNITY DEVELOPMENT AGENCY 20 CIVIC CENTER PLAZA, M-25 SANTA ANA, CA 92701

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