The City of Salinas Housing and Land Use Committee voted to recommend city council approve a substantial amendment to the city’s HUD annual action plans that would reallocate $5,490,000 in unspent Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds to projects the city says can be completed within the current fiscal year.

The amendment, presented by Francisco Granvila, management analyst for the Housing Division of the Community Development Department, is intended to address the city’s multi‑year delay in meeting HUD’s timeliness standard and to move funds into “shovel‑ready” public‑works and affordable‑housing activities. Granvila said the reallocations would restore funds to Chinatown construction when that project enters the construction phase and redirect monies to sidewalk and street‑lighting work in the Alisal neighborhood and to rehabilitation of existing affordable housing.

The amendment addresses the HUD timely‑expenditure requirement that entitlement jurisdictions maintain a line‑of‑credit balance within 1.5 times the annual grant amount 60 days before the end of the program year. Granvila told the committee the city has been out of compliance for four consecutive years because of project delays, COVID‑19 impacts and staffing turnover and is implementing an expenditure plan approved by HUD.

Key proposed reallocations described by staff include: increasing the Alisal neighborhood sidewalk and lighting project from $330,000 to $950,000, transferring $440,000 toward rehabilitation of Vista De La Terraza, and moving HOME funds previously allocated to the Republic Café (a city‑owned redevelopment site) into projects identified through the HOME NOFA process. Granvila said $2,480,000 previously tied to the Republic Café remained unspent and, combined with $1,950,000 in uncommitted HOME funds, created roughly $4.43 million available for affordable rental housing activities; staff proposed moving $2.4 million from the Republic Café allocation and $1.1 million from uncommitted HOME into NOFA‑selected projects.

Granvila also described public‑notice and citizen‑participation steps: a 30‑day public review period running October 18 through November 18, notices in English and Spanish in the Monterey Herald and postings at city facilities and the city website. He said public feedback will be incorporated into the final submission to HUD.

After staff presentation and brief committee questions about which fiscal years the HOME and CDBG funds originated in, Council Member Salazar moved the recommendation and Council Member Sandoval seconded. The roll call vote recorded Council Member Sandoval: Aye; Council Member Salazar: Yes; Chair Barajas: Aye. The motion passed.

The committee directed staff to continue community outreach and finalize any ministerial adjustments before the final submission to HUD.