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AGENDA ITEM NO. 6.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 02/11/2025 Originating Department: Housing |
City Manager:
Department Head:
SUBJECT:
Public Hearing on the Draft Substantial Amendment to the 2024-2025 Action Plan for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs
RECOMMENDED MOTION:
The staff recommends the City Council:
1. Conduct a public hearing and receive comments on the draft substantial amendment to the 2024-2025 Action Plan for the use of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds.
2. Adopt the amended 2024-2025 Action Plan and authorize the City Manager, or designee, to submit the plan to the United States Department of Housing and Urban Development (HUD).
3. Authorize the City Manager, or designee, to negotiate, execute, and amend contracts with subrecipients or professional service providers as necessary to implement the CDBG and HOME projects identified in the 2024-2025 Action Plan.
4. Authorize the City Manager, or designee, to execute, amend, and submit to HUD all plans and documents necessary to administer the 2024-2025 CDBG and HOME programs.
1. Conduct a public hearing and receive comments on the draft substantial amendment to the 2024-2025 Action Plan for the use of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds.
2. Adopt the amended 2024-2025 Action Plan and authorize the City Manager, or designee, to submit the plan to the United States Department of Housing and Urban Development (HUD).
3. Authorize the City Manager, or designee, to negotiate, execute, and amend contracts with subrecipients or professional service providers as necessary to implement the CDBG and HOME projects identified in the 2024-2025 Action Plan.
4. Authorize the City Manager, or designee, to execute, amend, and submit to HUD all plans and documents necessary to administer the 2024-2025 CDBG and HOME programs.
DISCUSSION:
On May 12, 2020, the City of Hawthorne Council adopted the 2020-2024 Consolidated Plan, which outlines the City’s strategic approach to meeting housing and community development needs over a five-year period using HUD entitlement funds. The 2024-2025 Action Plan represents the fifth and final year of this Consolidated Plan, detailing how the City will invest its CDBG and HOME funds to achieve its goals.
For the 2024-2025 program year, the City is set to receive $1,177,964 in CDBG funds and $508,759.41 in HOME funds from HUD. In addition, the City will allocate $2,098,003.13 in prior year unprogrammed CDBG funds and $4,490,956.12 in prior year unprogrammed HOME funds to critical activities for the period from July 1, 2024, to June 30, 2025.
A substantial amendment to the 2024-2025 Action Plan is proposed to capitalize on a recent opportunity to acquire and develop an affordable housing complex. This strategic shift prioritizes funding to this vital project, ensuring the City’s resources are used effectively to address the most urgent community needs. The amendment includes adjustments to both CDBG and HOME activities, ensuring alignment with our housing development priorities.
Key Amendments to CDBG activities:
Key Amendments to HOME activities:
Approval of the draft substantial amendment is categorically exempt from environmental review under the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA). HUD requires that all funded activities undergo an appropriate environmental review before any commitment or release of funds.
For the 2024-2025 program year, the City is set to receive $1,177,964 in CDBG funds and $508,759.41 in HOME funds from HUD. In addition, the City will allocate $2,098,003.13 in prior year unprogrammed CDBG funds and $4,490,956.12 in prior year unprogrammed HOME funds to critical activities for the period from July 1, 2024, to June 30, 2025.
A substantial amendment to the 2024-2025 Action Plan is proposed to capitalize on a recent opportunity to acquire and develop an affordable housing complex. This strategic shift prioritizes funding to this vital project, ensuring the City’s resources are used effectively to address the most urgent community needs. The amendment includes adjustments to both CDBG and HOME activities, ensuring alignment with our housing development priorities.
Key Amendments to CDBG activities:
- Cancelled: Acquisition of Real Property ($1,311,078.38)
- Increased: Public Housing Modernization (increased by $1,188,256.38 to $1,388,256.38)
- Increased: Commercial Rehabilitation Program (increased by $122,822 to $705,651)
Key Amendments to HOME activities:
- Increased: Rental Rehabilitation Project (increased by $729,760.88 to $4,170,542)
- Reduced: Affordable Housing Development (decreased by $729,760.88 to $324,949.53)
2024-2025 CDBG PROGRAM
| Public Service Activities | |
| South Bay Workforce Investment Board: Teen Center | $93,217.00 |
| New Star Family Justice Center: Domestic Violence Services | $21,813.00 |
| Family Promise of the South Bay: Housing Stabilization Services | $19,390.00 |
| Catholic Charities of LA: St. Margaret’s Emergency Assistance | $21,915.00 |
| The Richstone Family Center: Behavioral Health Services | $20,359.00 |
| Sub-Total: | $176,694.00 |
| Capital Activities | |
| City of Hawthorne: Section 108 Loan Repayment | $339,773.75 |
| City of Hawthorne: Housing Rehabilitation Program | $430,000.00 |
| City of Hawthorne: Public Housing Modernization | $1,388,256.38 |
| City of Hawthorne: Commercial Rehabilitation Program | $705.651.00 |
| City of Hawthorne: Acquisition of Real Property (cancelled) | $0.00 |
| Sub-Total: | $2,863,681.13 |
| Program Administration Activities | |
| City of Hawthorne: CDBG Program Administration | $205,592.00 |
| Housing Rights Center: Fair Housing Services | $30,000.00 |
| Sub-Total: | $235,592.00 |
| CDBG TOTAL: | $3,275,967.13 |
2024-2025 HOME PROGRAM
| Housing Activities | |
| City of Hawthorne: Rental Rehabilitation | $4,170,542.00 |
| City of Hawthorne: Affordable Housing Development | $324,949.53 |
| CHDO: Set-Aside PY20, 21, 22, 23, & 24 | $453,349.00 |
| Sub-Total: | $4,948,840.53 |
| Program Administration Activities | |
| City of Hawthorne: HOME Program Administration | $50,875.00 |
| Sub-Total: | $50,875.00 |
| HOME TOTAL: | $4,999,715.53 |
| Program Administration Activities | |
| City of Hawthorne: CDBG Program Administration | $205,592.00 |
| Housing Rights Center: Fair Housing Services | $30,000.00 |
| Sub-Total: | $235,592.00 |
| CDBG TOTAL: | $3,275,967.13 |
2024-2025 HOME PROGRAM
| Housing Activities | |
| City of Hawthorne: Rental Rehabilitation | $4,170,542.00 |
| City of Hawthorne: Affordable Housing Development | $324,949.53 |
| CHDO: Set-Aside PY20, 21, 22, 23, & 24 | $453,349.00 |
| Sub-Total: | $4,948,840.53 |
| Program Administration Activities | |
| City of Hawthorne: HOME Program Administration | $50,875.00 |
| Sub-Total: | $50,875.00 |
| HOME TOTAL: | $4,999,715.53 |
Approval of the draft substantial amendment is categorically exempt from environmental review under the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA). HUD requires that all funded activities undergo an appropriate environmental review before any commitment or release of funds.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None
FISCAL IMPACT:
The City’s federal entitlement budget for FY 2024-2025 includes $1,177,964 in CDBG funds and $508,759.41 in HOME funds. Approval of the 2024-2025 Action Plan will have no impact on the General Fund. All associated costs, including staff and legal counsel expenses related to the preparation and review of contractual agreements with funding recipients, will be covered by CDBG and HOME administrative allocations.
NOTICING PROCEDURE:
In compliance with federal regulations, a Notice of Public Hearing was published on January 10, 2025, in the Hawthorne Press-Tribune. The draft substantial amendment to the 2024-2025 Action Plan has been available for public review and comment at City Hall, the Hawthorne Public Library, and on the City’s website from January 10, 2025, through February 11, 2025.