The Salinas City Council on Nov. 18 approved substantial amendments to how the city spends federal Community Development Block Grant (CDBG) and HOME funds, shifting money toward projects officials say are ready to spend and one‑off rehab work in Chinatown.

Lisa Brenton, the city’s community development director, told the council the changes respond to a HUD timeliness test that limits how much grant money a jurisdiction may hold unspent. Brenton said staff recommended shifting roughly $1.05 million in CDBG dollars — including $620,000 to an Alisal neighborhood revitalization area and about $440,000 toward affordable‑housing rehabilitation — and repurposing previously uncommitted HOME funds and an allocation tied to the Republic Cafe site so the city meets federal expenditure deadlines.

"We are in our fourth year of not being timely," Brenton said, adding staff has worked cooperatively with HUD and is now dropping below a problematic ratio.

Council members pressed staff on which projects were "shovel ready" and how the changes would affect Chinatown work. Brenton said some Chinatown work (including environmental review) remains in early phases; the short‑term move is intended to fund projects that can execute quickly to reduce the city's spending ratio before next spring’s HUD review.

Members of the public from Chinatown expressed support for the reallocation as a practical step toward advancing the neighborhood’s master plan and repairing buildings damaged by recent fires.

A motion to approve the amendments passed on a recorded vote.

What happens next: Brenton told the council any future discretionary project funded by the federal dollars will still be subject to CEQA and NEPA because of the federal funding source. Council members said they expect staff to return with specific project schedules and continue outreach to affected neighborhoods.