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AGENDA ITEM NO. 10.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 04/28/2026 Originating Department: Housing |
City Manager:
Department Head:
SUBJECT:
Public Hearing to Consider Adoption of the Draft 2026-2027 Annual Action Plan and Substantial Amendment to the 2025-2029 Consolidated Plan for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs.
RECOMMENDED MOTION:
The staff advises that the City Council:
1. Conduct a public hearing to receive comments regarding the draft 2026-2027 Annual Action Plan and Substantial Amendment to the 2025-2029 Consolidated Plan.
2. Consider and adopt the 2026-2027 Annual Action Plan and Substantial Amendment to the 2025-2029 Consolidated Plan and authorize the City Manager, or designee, to submit the adopted plans to the U.S. Department of Housing and Urban Development (HUD).
3. Authorize the City Manager, or designee, to execute all necessary grant agreements, certifications, and related documents required by HUD for the administration of the CDBG and HOME programs for the 2026-2027 program year.
4. Authorize the City Manager, or designee, to execute contracts with sub-recipients, contractors, and professional service providers necessary to implement the CDBG and HOME-funded activities identified in the 2026-2027 Annual Action Plan.
5. Authorize the appropriation of the 2026-2027 CDBG and HOME program funds, consistent with the approved Annual Action Plan.
2. Consider and adopt the 2026-2027 Annual Action Plan and Substantial Amendment to the 2025-2029 Consolidated Plan and authorize the City Manager, or designee, to submit the adopted plans to the U.S. Department of Housing and Urban Development (HUD).
3. Authorize the City Manager, or designee, to execute all necessary grant agreements, certifications, and related documents required by HUD for the administration of the CDBG and HOME programs for the 2026-2027 program year.
4. Authorize the City Manager, or designee, to execute contracts with sub-recipients, contractors, and professional service providers necessary to implement the CDBG and HOME-funded activities identified in the 2026-2027 Annual Action Plan.
5. Authorize the appropriation of the 2026-2027 CDBG and HOME program funds, consistent with the approved Annual Action Plan.
DISCUSSION:
As an “Entitlement Grantee,” the City of Hawthorne (City) receives an annual allocation of federal funds from the U.S. Department of Housing and Urban Development (HUD) through its Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs. These programs are designed to principally benefit low- and moderate-income residents by supporting activities that provide decent housing, create suitable living environments, and expand economic opportunities. To continue receiving these funds, HUD requires the City to prepare a series of planning documents, including a Five-Year Consolidated Plan and an Annual Action Plan. Collectively, these documents establish the City’s priorities for the use of CDBG and HOME funds and guide the implementation of eligible activities.
2025-2029 Consolidated Plan
The Consolidated Plan presents a comprehensive analysis of the City’s housing and community development needs and establishes a framework for the use of CDBG and HOME funds over a five-year period from July 1, 2025, through June 30, 2030. Based on community engagement, data analysis, and consultation with stakeholders, the Consolidated Plan identifies seven high-priority needs, which will be addressed through seven strategic goals. These goals are accompanied by quantifiable outcome targets for the five-year period, as shown in the table below.
Amendment to Consolidated Plan
The City intends to utilize a portion of its CDBG allocation during the 2026-2027 program year to fund a Commercial Façade Improvement program in an effort to revitalize the City’s business community. As such, this amendment proposes to add an Economic Development Opportunities goal to the 2025-2029 Consolidated Plan to address this high priority need and facilitate said program.
2026-2027 Annual Action Plan
The Action Plan identifies the specific projects and activities that will be implemented during the upcoming program year with CDBG and HOME funds to address the priority needs and goals established in the Consolidated Plan. For the 2026-2027 program year, the City anticipates receiving approximately $1,167,217 in CDBG funds and $492,431.60 in HOME funds. When combined with program income and available prior year resources, the 2026-2027 Action Plan will allocate a total of $1,712,392 in CDBG funds and $1,835,463.99 in HOME funds to support the following eligible activities to be implemented from July 1, 2026 through June 30, 2027.
Approval of these plans does not trigger environmental clearance under the National Environmental Policy Act (NEPA) or the California Environmental Quality Act (CEQA). However, prior to the commitment or release of funds for each of the proposed projects, the City will complete any required environmental reviews in accordance with applicable regulations.
2025-2029 Consolidated Plan
The Consolidated Plan presents a comprehensive analysis of the City’s housing and community development needs and establishes a framework for the use of CDBG and HOME funds over a five-year period from July 1, 2025, through June 30, 2030. Based on community engagement, data analysis, and consultation with stakeholders, the Consolidated Plan identifies seven high-priority needs, which will be addressed through seven strategic goals. These goals are accompanied by quantifiable outcome targets for the five-year period, as shown in the table below.
| Goal Name | Need(s) Addressed | Five Year Goal Outcome Indicator |
| Public Services | Expand public services for LMI residents | Public service activities other than Low/Mod Income Housing Benefit: 1,525 Persons Assisted |
| Public Facilities & Infrastructure Improvements | Improve public facilities and infrastructure Address material barriers to accessibility |
Public facility or infrastructure activities other than Low/Mod Income Housing Benefit: 125,000 Persons Assisted Other: 5 |
| Affordable Housing Preservation | Preserve the supply of affordable housing | Homeowner housing rehabilitated: 50 Households / Housing Units |
| Affordable Housing Development | Increase the supply of affordable housing | Homeowner housing added: 2 Households / Housing Units Rental housing rehabilitated: 2 Households / Housing Units |
| Fair Housing Services | Ensure equal access to housing opportunities | Public service activities other than Low/Mod Income Housing Benefit: 1,250 Persons Assisted |
| Economic Development Opportunities | Promote economic opportunities | Businesses assisted: 4 businesses |
| Planning & Administration | All | Other: 5 |
Amendment to Consolidated Plan
The City intends to utilize a portion of its CDBG allocation during the 2026-2027 program year to fund a Commercial Façade Improvement program in an effort to revitalize the City’s business community. As such, this amendment proposes to add an Economic Development Opportunities goal to the 2025-2029 Consolidated Plan to address this high priority need and facilitate said program.
2026-2027 Annual Action Plan
The Action Plan identifies the specific projects and activities that will be implemented during the upcoming program year with CDBG and HOME funds to address the priority needs and goals established in the Consolidated Plan. For the 2026-2027 program year, the City anticipates receiving approximately $1,167,217 in CDBG funds and $492,431.60 in HOME funds. When combined with program income and available prior year resources, the 2026-2027 Action Plan will allocate a total of $1,712,392 in CDBG funds and $1,835,463.99 in HOME funds to support the following eligible activities to be implemented from July 1, 2026 through June 30, 2027.
2026-2027 CDBG Activities
| Public Service Activities | |
| Catholic Charities of Los Angeles: St. Margaret’s Emergency Assistance | $21,000.00 |
| Family Promise of the South Bay: Shelter and Supportive Services | $21,000.00 |
| New Star Family Center: Domestic Violence Services | $21,000.00 |
| South Bay Workforce Investment Board: Teen Center | $91,082.00 |
| The Richstone Family Center: Behavioral Health Services | $21,000.00 |
| Sub-Total: | $175,082.00 |
| Economic Development Activities | |
| City of Hawthorne: Commercial Rehabilitation Program | $501,692.00 |
| Sub-Total: | $501,692.00 |
| Capital Improvement Activities | |
| City of Hawthorne: Alley Reconstruction | $247,175.00 |
| City of Hawthorne: Section 108 Loan Repayment | $555,000.00 |
| Sub-Total: | $802,175.00 |
| Program Administration Activities | |
| City of Hawthorne: CDBG Administration | $203,443.00 |
| Fair Housing Foundation: Fair Housing Services | $30,000.00 |
| Sub-Total: | $233,443.00 |
| CDBG TOTAL: | $1,712,392.00 |
2026-2027 HOME Activities
| Housing Activities | |
| City of Hawthorne: Housing Rehabilitation Program | $1,000,000.00 |
| City of Hawthorne: Affordable Housing Development | $638,516.99 |
| Sub-Total: | $1,638,516.99 |
| Community Housing Development Organization (CHDO) Activities | |
| TBD: CHDO Set-Aside (includes PY25-26 and 26-27) | $147,704.00 |
| Sub-Total: | $147,704.00 |
| Program Administration Activities | |
| City of Hawthorne: HOME Administration | $49,243.00 |
| Sub-Total: | $49,243.00 |
| HOME TOTAL: | $1,835,463.99 |
Approval of these plans does not trigger environmental clearance under the National Environmental Policy Act (NEPA) or the California Environmental Quality Act (CEQA). However, prior to the commitment or release of funds for each of the proposed projects, the City will complete any required environmental reviews in accordance with applicable regulations.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
None.
FISCAL IMPACT:
There is no impact to the City’s General Fund, as all administrative costs associated with the preparation, oversight, and implementation of CDBG and HOME-funded activities will be covered through the respective administrative allocations. Approval of the 2026-2027 Annual Action Plan authorizes the appropriation of $1,167,217 in CDBG and $492,431.60 in HOME funds. When combined with program income and available prior year resources, the 2026-2027 Action Plan will allocate a total of $1,712,392 in CDBG funds and $1,835,463.99 in HOME funds.
NOTICING PROCEDURE:
In compliance with Federal Regulations, a Notice of Public Hearing was published in the Hawthorne Press-Tribune on March 26, 2026, announcing the availability of the draft 2026-2027 Annual Action Plan and Substantial Amendment to the 2025-2029 Consolidated Plan. These documents have been available for public review at City Hall, the Hawthorne Public Library, and on the City’s website from March 27, 2026, through and including April 28, 2026.