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AGENDA ITEM NO. 7.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 10/27/2026 Originating Department: Housing |
City Manager:
Department Head:
SUBJECT:
Public Hearing on the Draft Substantial Amendments to the 2026-2027 Action Plan for the Community Development Block Grant (CDBG) Program and Section 108 Loan Guarantee Application.
RECOMMENDED MOTION:
The staff advises that the City Council:
- Open and conduct a public hearing to receive comments on the draft Substantial Amendments to the 2026-2027 Action Plan and Section 108 Loan Guarantee Application;
- Close the public hearing;
- Approve the Substantial Amendments to the 2026-2027 Action Plan and Section 108 Loan Guarantee Application, reallocating a total of $825,000 to the City’s Senior Center Improvements project, consisting of $325,000 in CDBG funds and $500,000 in Section 108 Loan proceeds;
- Authorize the City Manager, or designee, to finalize, execute, and submit the Substantial Amendments and any associated certifications or documentation to the U.S. Department of Housing and Urban Development (HUD) for review and approval, as applicable;
- Authorize the City Manager, or designee, to execute and amend agreements and other documents necessary to implement the approved amendments, subject to applicable HUD requirements.
DISCUSSION:
The City of Hawthorne (City) receives annual allocations of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to support eligible housing, community development, and public improvement activities. The City’s 2026-2027 Action Plan identifies that activities and funding allocations established to address these community needs.
The City also utilizes HUD’s Section 108 Loan Guarantee Program, which provides financing for eligible community development and capital improvement projects.
Proposed Funding Amendments
The City proposes Substantial Amendments to its 2026-2027 Action Plan and HUD-approved Section 108 Loan Guarantee Application to reallocate additional funding to the Senior Center Improvements project. The proposed amendments would redirect a total of $825,000 from previously approved activities to the Senior Center, increasing the project’s total budget from $3,449,000 to $4,274,000.
The proposed amendments consist of the following reallocations:
Since the proposed changes involve reallocating funds among previously approved activities, the City is processing the revisions as substantial amendments in accordance with its Citizen Participation Plan (CPP) and applicable HUD requirements. Upon approval by the City Council, the amendments will be finalized and submitted to HUD.
The City also utilizes HUD’s Section 108 Loan Guarantee Program, which provides financing for eligible community development and capital improvement projects.
Proposed Funding Amendments
The City proposes Substantial Amendments to its 2026-2027 Action Plan and HUD-approved Section 108 Loan Guarantee Application to reallocate additional funding to the Senior Center Improvements project. The proposed amendments would redirect a total of $825,000 from previously approved activities to the Senior Center, increasing the project’s total budget from $3,449,000 to $4,274,000.
The proposed amendments consist of the following reallocations:
- CDBG Funds: ($325,000): Reallocate $325,000 from the Section 108 Loan Repayment activities to the Senior Center Improvement project, reducing the Loan Repayment activity budget from $555,000 to $230,000. This adjustment reflects the revised repayment requirements resulting from the delayed award of the City’s Section 108 loan.
- Section 108 Loan Proceeds ($500,000): Reallocate $500,000 previously designated for the Jim Thorpe Park project to the Senior Center Improvements project, eliminating the Jim Thorpe Park project allocation.
| Activity | Source | Original | Change | Revised |
| Section 108 Loan Repayment | CDBG | $555,000.00 | - $325,000.00 | $230,000.00 |
| Senior Center Project | CDBG | $0.00 | + $325,000.00 | $325,000.00 |
| S108 | $3,449,000.00 | + $500,000.00 | $3,949,000.00 | |
| Jim Thorpe Park Project | S108 | $500,000.00 | - $500,000.00 | $0.00 |
| Senior Center Total | CDBG & S108 | $3,449,000.00 | + $825,000.00 | $4,274,000.00 |
Since the proposed changes involve reallocating funds among previously approved activities, the City is processing the revisions as substantial amendments in accordance with its Citizen Participation Plan (CPP) and applicable HUD requirements. Upon approval by the City Council, the amendments will be finalized and submitted to HUD.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None.
FISCAL IMPACT:
The proposed Amendments would reallocate $825,000 in existing federal funding, consisting of $325,000 in CDBG funds and $500,000 in Section 108 Loan proceeds, to the Senior Center Improvements project. The Amendments would increase the Senior Center Improvements project budget from $3,449,000 to $4,274,000 without requiring additional federal funding. The revised CDBG allocation for Section 108 loan repayment reflects the City’s updated repayment requirements following the delayed award of the loan. The City remains responsible for meeting its existing Section 108 loan repayment obligations. No additional General Fund appropriation is requested as part of the proposed amendments.
NOTICING PROCEDURE:
In accordance with federal regulations and the City’s Citizen Participation Plan, a Notice of Public Hearing and Review was published in the Hawthorne Press-Tribune on September 24, 2026. The draft Substantial Amendments to the 2026-2027 Action Plan and Section 108 Loan Guarantee Application have been available for public review and comment at City Hall, the Hawthorne Public Library, and on the City’s website from September 25, 2026, through and including October 27, 2026.
In addition, there is 72 hours of posted notice pursuant to the Ralph M. Brown Act.
In addition, there is 72 hours of posted notice pursuant to the Ralph M. Brown Act.