Salinas committee backs FY2024-25 HUD CAPER, hears public concern over Chinatown fund transfer

The Salinas Housing and Land Use Committee voted unanimously on Sept. 23 to recommend approval of the City of Salinas' fiscal 2024-25 Consolidated Annual Performance and Evaluation Report (CAPER) and to authorize submittal to the U.S. Department of Housing and Urban Development after a presentation by Vincent Montgomery, planning manager in the Salinas Community Development Department.

The CAPER, a federally required report summarizing how HUD funds were used, shows the city managed nearly $15,000,000 across five HUD program areas in fiscal year 2024-25, according to Montgomery. He told the committee the funding supported five public-facility projects (including the Sherwood Recreation Center and an Early Childhood Development Center), targeted public services and homelessness interventions, and that some HOME and HOME-ARP funds remain uncommitted pending project alignments and HUD approvals. "This report is a federally mandated summary of how we've utilized HUD funding to advance our community development goals," Montgomery said.

The presentation outlined program highlights: Community Development Block Grant (CDBG) and CDBG-CV funds supported five facility projects and public services reaching more than 200 households; CDBG-CV provided technical assistance to about 166 small businesses and 54 households; the Emergency Solutions Grant (ESG) funded rapid rehousing and outreach assisting 197 households; and the HOME program holds roughly $3,700,000 (including prior-year allocations) earmarked for housing development and preservation. Montgomery said HOME-ARP planning follows HUD's May 2023 allocation-plan approval and that about $2.48 million remains reserved for future HOME-ARP commitments.

Committee members asked about next steps for uncommitted funds and tenant legal services. Council member Sandoval asked when staff would return with recommendations for deploying uncommitted funding; Montgomery said the city issued a notice of funding availability and had received five applications, and that staff expects to bring recommendations in mid- to late October and anticipates a staff report on Oct. 7 to the City Council with recommendations. Sandoval also raised limited available legal-assistance resources for tenants; Montgomery said the city plans to expand its agreement with Eden Council for Hope and Opportunity (ECHO) to provide additional housing support and workshops, and that the exact contract increase had not yet been determined.

During the public-comment period at the start of the meeting, a resident criticized a prior decision to transfer funds related to a Chinatown project, saying the council's prior action lacked sufficient public engagement and rested on the determination of the community development director. "I think that that decision was, not properly made," the resident said, adding that the decision appeared based "solely" on the community development director and that a quorum was barely present when the vote occurred. Committee members did not take formal action on that public comment during the meeting; Montgomery and staff did not present new findings about that prior transfer in this session.

The committee approved the staff recommendation to submit the CAPER to HUD by roll-call vote, with a motion from Council member Sandoval and a second from Council member Salazar. The committee also approved the meeting's consent agenda earlier in the session (motion by Council member Salazar, second by Council member Sandoval); both motions passed 3-0 (Council member Sandoval, Council member Salazar and Chair Barajas voting yes).

Montgomery described the CAPER as reflecting both completed projects and ongoing work, and emphasized that some HOME and HOME-ARP expenditures are pending to align with longer-term housing developments. He said CDBG program administration expenditures were near full efficiency, and that the city had already expended a portion of program-administration allotments for HOME and HOME-ARP.

Before adjourning, Chair Barajas requested staff provide a presentation to the Housing and Land Use Committee and the Future Growth Area Committee on Assembly Bill 1033 and options for the city to adopt an ordinance allowing accessory dwelling units to be sold separately from the primary dwelling unit; Council member Salazar seconded the request.

Votes at a glance: - Consent agenda: Motion to approve (mover: Council member Salazar; second: Council member Sandoval). Vote: Sandoval ' Yes; Salazar ' Yes; Chair Barajas ' Yes. Outcome: approved. - CAPER (Item ID 25-309): Motion to accept staff recommendation and authorize submission of the FY2024-25 Consolidated Annual Performance and Evaluation Report to HUD (mover: Council member Sandoval; second: Council member Salazar). Vote: Sandoval ' Yes; Salazar ' Yes; Chair Barajas ' Yes. Outcome: approved.

Staff contact information listed during the presentation was the Salinas Housing Division at (831) 758-7334 and materials were posted at cityofsalinas.gov. Committee members and staff indicated additional staff reports and a staff recommendation on funding allocations will be returned to the council and committee in October.