City Council

(36) 24­0500 EXEMPTION and CIVIL RIGHTS, EQUITY, IMMIGRATION, AGING AND DISABILITY COMMITTEE REPORT relative to the 50th Program Year (2024­25) of the Housing and Community Development Consolidated Plan. Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR: 1. FIND that the 2023­2027 50th Program Year (PY) (2024­25) of the Housing and Community Development Consolidated Plan (PY 50 Con Plan) will not have a significant effect on the environment pursuant to the City's California Environmental Quality Act (CEQA) Guidelines and in compliance with the CEQA of 1970; that the Notice of Exemption reflects the independent judgment of the lead agency of the City of Los Angeles; that the document constituting the record of proceedings in this matter is located in the custody of the City Clerk; and. acknowledge the Notice of Exemption for the PY 50 Con Plan, submitted by the Community Investment for Families Department (CIFD). All new federally funded projects are subject to environmental review under the National Environmental Policy Act (NEPA) requirements and per the U.S. Department of Housing and Urban Development regulations before any commitment of federal funds for expenditure unless they are exempt from such review. The City has determined that some action is programmatically exempted per Code of Federal Regulations (CFR) Section 58.34 and categorically excluded per CFR Section 58.35(a)(b) from this annual environmental requirement. The commitment of funding for new projects that could result in a direct or indirect physical change to the environment is also subject to environmental review under the CEQA if implementation of the project is authorized as part of the budgeting process. The City has determined that some action is programmatically exempt under CEQA Guidelines for General Exemptions, Article 18 Statutory Exemptions Section 15260 through 15285, and Article 19 Categorical Exemptions Section 15300 Tuesday - June 18, 2024 - through 15333. PAGE 38 Federal Regulations (CFR) Section 58.34 and categorically excluded per CFR Section 58.35(a)(b) from this annual environmental requirement. The commitment of funding for new projects that could result in a direct or indirect physical change to the environment is also subject to environmental review under the CEQA if implementation of the project is authorized as part of the budgeting process. The City has determined that some action is programmatically exempt under CEQA Guidelines for General Exemptions, Article 18 Statutory Exemptions Section 15260 through 15285, and Article 19 Categorical Exemptions Section 15300 through 15333. Those projects that are not exempted or not yet defined are approved, subject to the following: (1) confirmation that the project to be funded is categorically excluded under NEPA per 24 Code of CFR, Part 58 and exempt under CEQA per the Guidelines before project implementation; or (2) appropriate environmental review before project implementation. All projects involving new construction and/or major rehabilitation will require the preparation of a Mitigated Negative Declaration/Environmental Assessment and Finding of No Significant Impact Statement on a site­by­site basis. 2. NOTE and FILE the Communication from the Mayor dated May 1, 2024 relative to the PY 50 Con Plan. 3. APPROVE the recommendations listed in the Chief Legislative Officer (CLA) report dated June 3, 2024, attached to the Council file, as amended, to add Hospitality Training Academy (Council District 13) and CHIRLA Building Renovation (Council District 1) to the updated Community Development Block Grant (CDBG) Vested and Future Priority Projects List, Recommendation No. 17 contained in said CLA report. Fiscal Impact Statement: The City Administrative Officer (CAO) reports that PY 50 CDBG will provide approximately $22.6 million to support positions (direct salaries: $13.3 million; expenses, including contracts: $3.3 million; and related costs reimbursement: $6.0 million). For PY 50, the CAO has calculated total related costs to be approximately $8.5 million. Of this amount, approximately $6.0 million can be funded with CDBG funds. This leaves $2.5 million in unfunded related costs that the Council and Mayor may consider funding with the General Fund. For reference, the PY 49 estimated $1.2 million in related costs to be paid by the General Fund. The City’s Financial Policies state that the City will pursue program grants, but will limit financial support of these programs to avoid commitments beyond available funding. The CAO further reports that Cost Allocation Plan (CAP) 46 is used to calculate the 2024­25 related costs. In most cases, CAP 46 is higher than CAP 45, which was used to calculate related costs in PY 49. There is CDBG Coronavirus Aid, Relief, and Economic Security balance available to fund some of the Tuesday - June costs salaries and related 18, 2024 - CIFD. The amount PAGE for the of City39 resources, CDBG funds. This leaves $2.5 million in unfunded related costs that the Council and Mayor may consider funding with the General Fund. For reference, the PY 49 estimated $1.2 million in related costs to be paid by the General Fund. The City’s Financial Policies state that the City will pursue program grants, but will limit financial support of these programs to avoid commitments beyond available funding. The CAO further reports that Cost Allocation Plan (CAP) 46 is used to calculate the 2024­25 related costs. In most cases, CAP 46 is higher than CAP 45, which was used to calculate related costs in PY 49. There is CDBG Coronavirus Aid, Relief, and Economic Security balance available to fund some of the salaries and related costs for the CIFD. The amount of City resources, specifically the General Fund, to be dedicated to leverage CDBG grant program activities is a policy decision for the Mayor and Council.