TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER
SUBJECT: PUBLIC HEARING – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, AUTHORIZING THE ALLOCATION FOR THE 51st YEAR OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR FISCAL YEAR 2025-2026 MEETING DATE: January 14, 2025
RECOMMENDATION:
Conduct public hearing
Adopt the resolution authorizing the allocation for the 51st year of Community Development Block Grant (CDBG) funds for Fiscal Year 2025-2026.
Authorize the City Manager or designee to prepare, execute, and submit the Planning Summary, Agreements, and all required documents for the 2025-2026 CDBG Program.
BACKGROUND:
The City of Commerce is a participant city in the County of Los Angeles Small Cities Block Grant Program that distributes Federal Community Development Block Grant (CDBG) funds. Each year, the City receives an allocation of funding administered by the Los Angeles County Development Authority (LACDA) for programs and projects that benefit low to moderate-income persons. The allocation for fiscal year 2025-2026 is estimated to be $130,552. The allocation amount is derived from a formula based upon poverty and population estimates drawn from census data for each participating jurisdiction to use within their communities to address identified community development needs.
It is proposed that the new Fiscal Year 2025-2026 allocation of $130,552, as well as, $35,106 of unallocated prior year funds for a total of $165,658 be utilized to continue funding for the Home Preservation Grant Program, which has historically been funded with CDBG funds. Should there be any change(s) to the allocations, adjustments to the budget will be made in compliance with regulatory requirements. The City Council will use a resolution authorizing the allocation of the CDBG funds to demonstrate City approval and adoption, which will be forwarded to the LACDA.
ANALYSIS:
The City has provided funding for a variety of programs and projects over the years, including the Home Preservation Grant Program. The City recommends continuing funding the Home Preservation Grant Program through Fiscal Year 2025-2026. The Program provides the following assistance:
Home Preservation Grant Program
CDBG funds provide grants to income-qualified households throughout the City with up to $25,000 to conduct code compliant home improvement repairs, such as painting, roofing and window replacement.
The table below shows the funds allocated for the above-mentioned program for the proposed Fiscal Year 2025-2026.
PROGRAM/PROJECT
FY 2025-2026
CDBG Budget
CDBG Project
Account Nos.
Home Preservation Grant Program:
Construction and Direct Program Administration
$165,658
29-2910-71715-10337
Total CDBG Funding:
$165,658
FISCAL IMPACT:
CDBG funds are Federal funds allocated to the City through the Los Angeles County Development Authority. They provide an additional source of revenue to fund needed programs and reduce the impact to the General Fund.
RELATIONSHIP TO STRATEGIC GOALS:
The issue before the Council is consistent with the Community Quality of Life Guiding Principle 5 of the City’s Strategic Action Plan: “Foster environmentally conscious initiatives and continue to identify and develop city codes that support a clean, well-maintained, sustainable community”. An Action Item titled “Pursue quality of life initiatives through the operating budget and CIP plan” was also developed to provide a pathway for the vision of the Guiding Principle to be realized.
ALTERNATIVES:
Approve Staff’s recommendation.
Provide Staff with alternative direction.
ATTACHMENTS:
Resolution
Prepared by: Adriana Robledo, Program Consultant
Reviewed by: Louis Morales, Director Economic Development & Planning Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Ernie Hernandez, City Manager
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CITY OF COMMERCE
AGENDA REPORT
Item No.