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2 THE CITY OF CITY COUNCIL AGENDA REPORT PLEASANTON_ November 17, 2020 City Manager TITLE: APPROVE THE SECOND SUBSTANTIAL AMENDMENT TO FISCAL YEAR 2019-2020 ANNUAL ACTION PLAN TO ACCESS $450,530 IN THE THIRD ROUND OF COMMUNITY DEVELOPMENT BLOCK GRANT CORONAVIRUS (CDBG-CV) FUNDS AND ALLOCATE THE CDBG-CV FUNDS TO RESPOND TO COVID-19 SUMMARY The federal government passed The Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136 on March 27, 2020 and allocated funding to the Community Development Block Grant (CDBG) program for activities to support infectious disease response, specifically for COVID-19. On July 6, 2020, the U.S. Department of Housing and Urban Development (HUD) awarded the City $201,314 in the first round of CDBG COVID-19 funds (CDBG-CV1) to prevent, prepare for, and respond to the coronavirus (COVID-19) pandemic. On September 16, 2020, HUD notified the City that it has been awarded an additional $450,530 in the third round of CARES Act CDBG funding (CDBG-CV3). However, in order to access this new, additional CDBG-CV3 funding allocation, HUD is requiring the City to again amend its FY 2019-2020 Annual Action Plan as it did previously to secure its CDBG-CV1 funding. The City must again amend its FY 2019-2020 Annual Action Plan to identify the proposed activities for the expenditure of the CDBG-CV3 funds to continue to address the COVID-19 crisis. RECOMMENDATION It is recommended that the City Council approve the Second Substantial Amendment to the FY 2019-2020 Annual Action Plan, as required by HUD, to allocate $450,530 CDBG-CV3 funds as follows: • $150,530 Tri-Valley Food Distribution - Alameda County Food Distribution • $150,000 Rental Assistance - CityServe of the Tri-Valley • $150,000 Health Response and Prevention - Axis Community Health FINANCIAL STATEMENT The approval of the second substantial amendment to the FY 2019-2020 Action Plan will not have a direct fiscal impact on the City. The City will receive $450,530 in CDBG- CV3 funds.