That the City Council:
A.  Receive public comments; 

B. Consider and approve the Fiscal Year 2026-2027 Annual Action Plan for the City of La Habra Community Development Block Grant Program; and,

C. Approve and authorize the City Manager to execute the City of La Habra’s annual application and certifications and submit the Annual Action Plan to the U.S. Department of Housing and Urban Development for its Community Development Block Grant Funding Approval/Agreement in the amount of $549,702 and $161,197 in estimated carryover funds.

As an “Entitlement Grantee,” the City of La Habra (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) Entitlement Program. Entitlement Grantees use CDBG funds to develop local programs geared towards low and moderate-income households in such areas as affordable housing, anti-poverty, and infrastructure development. Traditionally, the City uses its CDBG entitlement funding to assist local non-profits, housing programs, infrastructure, and to help fund City activities that comply with HUD’s national objectives to provide adequate housing, safe living environments, and the expansion of economic opportunities for low and moderate-income individuals.

In order to receive this funding, HUD requires the City to submit a five-year Consolidated Plan (currently 2025-2029) that outlines La Habra’s overall housing and community development needs and provides a strategy to address those needs within each five-year period. In addition, each year, HUD requires the City to submit an Annual Action Plan that outlines proposed activities for the annual allocation of CDBG grant funding. These funding priorities must be consistent with the five-year priority needs that are identified in the Consolidated Plan. HUD requires the approval of the Annual Action Plan be reviewed by the City Council at a public hearing so that the Council may receive public comments on the proposed Annual Action Plan.

The City’s proposed Fiscal Year 2026-2027 Annual Action Plan includes a grant allocation of $549,702, plus $161,197 of prior year carryover funds, for a total amount of $710,899. It should be noted that, due to changes in Federal spending priorities and funding allocations, the amount of CDBG funding received by the City has steadily declined over the years. In Fiscal Year 2025-2026, the City’s grant allocation was $556,264; however, in Fiscal Year 2026-2027, the City’s allocation will be reduced to $549,702.

Carryover funds are CDBG proceeds that were previously allocated to approved projects, but were not spent because those projects were completed below their estimated cost. HUD allows carryover funds to be reallocated from one year to the next for other eligible and approved projects. 

The Public Facility Improvement Project proposed in the draft Action Plan includes the development of a Senior Citizens Center as part of the La Habra Community Center Expansion. The proposed CDBG funding for this project is $268,504. The funds will help transform the Community Center building's annex into a place for La Habra senior citizens to socialize and engage in activities before and after the Senior Meals Program. The Center will also include a workout room with new exercise equipment funded by a grant from St. Jude Medical Center. The Center will be a place for La Habra seniors to play games, watch movies, socialize and will add to the existing exercise, meals, and other programs that the Community Services Department already offers.

The draft Action Plan also includes proposed improvements to Alley Area 10 in the amount of $250,000. Alley Area 10 will comprise four adjacent alleys situated parallel to La Habra Boulevard, between Beach Boulevard and the west city limits. Each alley will need a complete grind and overlay, along with localized reconstruction, including sidewalk replacement, driveway repairs, ADA ramps, utility relocation, and adjustments to utility holes.

One of the proposed Public Services projects will be the La Habra Veterans Drop-In Resource Center.  The Community Services (CS) Department will oversee the Veterans Resource Center and provide information and referrals to any veterans in need. CS staff will coordinate with the following agencies: Hillcrest Health and Wellness Center for food and other essentials, Employment Resource Program for employment assistance, La Habra American Legion for peer information, intake, and referrals, County of Orange, and other resource programs for veterans. The intent is to provide veterans with access to food, shelter, employment, and other resources to help gain and maintain self-sufficiency. The project will strive to provide veterans with tools to help themselves once initial services are provided.  It will also provide other veterans with the opportunity to serve the community and help their fellow veterans.

The preparation of the proposed Annual Action Plan includes a participatory process that gives the public an opportunity to provide input on funding priorities. In accordance with La Habra’s Citizen Participation Plan, this public input process is completed through the La Habra Community Services Commission ("Commission").  The Commission has conducted two public meetings for this purpose.  On January 14, 2026, the Commission considered presentations from public service providers and City departments that submitted requests for CDBG funding.  On February 11, 2026, the Commission made their final recommendations for funding levels for projects within the "Public Services" category. In addition to the public meetings before the Community Services Commission and this public hearing before the City Council, the draft Fiscal Year 2026-2027 Annual Action Plan was also made available for public review and comment for a 30-day period on March 20, 2026.  At the time of the preparation of this report, staff had not received any public comments. 

The table below lists the funding recommendations for CDBG entitlement funding for FY 2026-2027:  

The City of La Habra’s anticipated CDBG entitlement funding amount for FY 2026-2027 is a total of $549,702 plus $161,197 of carryover funds for a total amount of $710,899. The approval of the Annual Action Plan will have no adverse impact on the City's General Fund.