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25-88812
CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND
GLENDALE HOUSING AUTHORITY
AGENDA ITEM
Report: FY 2019-2020, 2021-2022, 2023-2024, 2024-2025 Annual Action Plan Substantial Amendment for Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Act (HOME) to reprogram $1,424,758.38.
1. City Council Motion to (1) approve reprogramming $1,328,171 between Pac/Ed Artificial Turf and Pacific Natural Grass Projects and $96,587.38 in Undesignated HUD Fund Balance between Program Years for Glendale Youth Center Project; (2) authorize the City Manager or a designee to execute all agreements, amendments, certifications, and documents necessary to carry out the reprogramming of funds; (3) authorize submission to the U.S. Department of Housing and Urban Development (HUD) of a substantial amendment to the FY FY2019-2020, 2021-2022, 2023-2024, 2024-2025 CDBG, ESG, and HOME Annual Action Plans regarding the reprogramming of funds; and (4) authorize the City Manager, or a designee, to redirect excess, cancelled, or unused program funds under $50,000 among projects with CDBG Advisory Committee approval.
2. Housing Authority Motion to authorize submission to HUD of a substantial amendment to the FY FY2019-2020, 2021-2022, 2023-2024, 2024-2025 CDBG, ESG, and HOME Annual Action Plans regarding the reprogramming of $1,328,171 between Pac/Ed Artificial Turf and Pacific Natural Grass Projects and $96,587.38 in Undesignated HUD Fund Balance between Program Years for Glendale Youth Center Project.
3. Resolution of Appropriation to reprogram CDBG City CIP funds totaling $1,328,171 from the Pacific Natural Grass Project to the Pac/Ed Artificial Turf Project, shift $1,328,171 in General Fund CIP funds from the Pac/Ed Artificial Turf Project to the Pacific Natural Grass Project, and appropriate $96,587.38 from Undesignated HUD Fund Balance to Glendale Youth Center CIP-ACF 19/20, to use Program Year 2019 Undesignated HUD Fund Balance instead of Program Year 2021 funds.
COUNCIL ACTION
Item Type: Action Item
Approved for September 30, 2025 calendar
EXECUTIVE SUMMARY
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To meet federal expenditure requirements and avoid potential loss of funding, staff is requesting City Council authorization to reprogram $1,328,171 in CDBG funds from the Pacific Natural Grass Project in Program Years 2019, 2023, 2024 to the Pac/Ed Artificial Turf Project by swapping it with General Fund CIP funds; and to shift, interchange or “swap” $96,587.38 in Undesignated HUD Fund Balance from Program Year 2019 with CDBG funds from Armenian Cultural Foundation’s Glendale Youth Center Project funds from Program Year 2021. This is in response to the CDBG Timeliness and the 7-Year Period of Performance requirements.
HUD’s determination of timeliness is based on whether a City CDBG entitlement community has more than 1.5 times the current entitlement remaining in the Line of Credit (LOC) balance. In years 2023, 2024 and 2025, the City was untimely with 2.06 times the current entitlement amount in the LOC. In July 2025, the City submitted a CDBG Workout Schedule demonstrating a plan to spend down funds by the April 30, 2026, deadline.
HUD has a policy of reducing future year grant allocations from cities that continue to be untimely, which may impact CIP, social services, and program administration dollars.
To meet that expenditure schedule, staff is proposing to shift funds from Pacific Natural Grass Project, which is in design phase, to a project that is closer to starting construction, and ensure the funds are expended faster. The Pac/Ed Artificial Turf Project is expected to start construction in October 2025, allowing for the Project to draw down funds before the deadline. Moving $1,328,171 to the faster project helps to reduce the LOC balance.
Also, each year, the City receives CDBG entitlement funding which has a 7-year period of performance and must be fully drawn down by September 30th of the respective year.
Any funds left in the City’s LOC beyond this deadline are recaptured by the U.S. Treasury.
On September 30, 2026, $421,307.38 unspent funds from Program Year 2019 are at risk of being recaptured. These funds are allocated to the following projects:
•$324,720 currently appropriated in Pacific Natural Grass 23/24 •$96,587.38 in Undesignated HUD Fund Balance (remaining funds returned to the City from completed projects).
The $324,720 is part of the $1,328,171 staff is recommending reprogramming from the Pacific Natural Grass to Pac/Ed Artificial Turf Project, by swapping it with General Fund CIP funds.
The $96,587.38 from Program Year 2019 Undesignated HUD Fund Balance is recommended to interchange with Armenian Cultural Foundation’s Glendale Youth Center Project funds from Program Year 2021.
Approval of these recommendations will safeguard the City’s allocation of CDBG funding by ensuring timely expenditure to prevent the loss of $421,307.38 in Program Year 2019 funds.
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RECOMMENDATION
That the City Council approve:
1. A Motion to (1) reprogram $1,328,171 between Pac/Ed Artificial Turf and Pacific Natural Grass Projects and $96,587.38 in Undesignated HUD Fund Balance between Program Years for Glendale Youth Center Project; (2) authorize the City Manager to execute all agreements, amendments, certifications, and documents necessary to carry out the reprogramming of funds; (3) authorize submission to HUD of a substantial amendment to the FY FY2019-2020, 2021-2022, 2023-2024, 2024-2025 CDBG, ESG, and HOME Annual Action Plans regarding the reprogramming of funds; and (4) authorize the City Manager to redirect excess, cancelled, or unused program funds under $50,000 among projects with CDBG Advisory Committee approval.
2. A Resolution of Appropriation to reprogram CDBG City funds in the amount of $1,328,171 from Program Year 2019, 2023, 2024 Pacific Natural Grass project to Pac/Ed Artificial Turf project, and to appropriate $96,587.38 from Undesignated HUD Fund Balance to Glendale Youth Center CIP-ACF 19/20, to use Program Year 2019 Undesignated HUD fund balance instead of Program Year 2021 funds.
That the Housing Authority approve:
1. A Motion to authorize submission to HUD of a substantial amendment to the FY FY2019-2020, 2021-2022, 2023-2024, 2024-2025 CDBG, ESG, and HOME Annual Action Plans regarding the reprogramming of $1,328,171 between Pac/Ed Artificial Turf and Pacific Natural Grass Projects and $96,587.38 in Undesignated HUD Fund Balance between Program Years for Glendale Youth Center Project.
ANALYSIS
There are two factors leading to the staff recommendation to reprogram CDBG funds:
1. CDBG Timeliness Requirement
2. 7-Year Period of Performance Expenditure Requirement by U.S. Treasury CDBG Timeliness
HUD expects cities to be timely in their expenditure of CDBG program funds. It defines timeliness as maintaining a LOC balance no greater than 1.5 times the annual CDBG grant 60 days prior to the end of the program year. Failure to meet this requirement places future allocations at risk. HUD’s policy allows for reduction of subsequent grant awards if a grantee remains untimely. This means that cities cannot have more than 1.5 times their annual CDBG allocation by the end of the program year. HUD conducts the Timeliness test on April 30 each year. As of May 2, 2025, the City’s balance was 2.06 times its annual allocation, which is significantly above the requirement. {{section.number}}{{item.number}}4
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In fiscal years 2023, 2024 and again in 2025, the City of Glendale has not been able to meet the “Timeliness” requirement; thus, HUD has required the City to submit a CDBG Timeliness Schedule outlining the City’s plan to meet HUD’s requirement to expend CDBG funds in a timely fashion. A HUD-required CDBG Workout Schedule describes a plan of action and a timeline to demonstrate how the City will meet the Timeliness requirement by the following year’s deadline.
The City has been found untimely for three consecutive years (2023-2025) as capital improvement projects are not spending down the funds as quickly as anticipated.
Entering the fourth year, it is critical to adopt proactive measures to avoid further risk of grant reductions or loss of funds.
Historically, untimely expenditure delays have been partially outside the City’s control.
Pandemic delays, facility closures, permit delays, design/redesign efforts, increases in bid estimates, bid rejections, and other factors have caused a backlog of projects on both the City and community agency sides.
Staff evaluated progress for projects that are currently funded with CDBG funds and recommends shifting funds from projects that may not expend as quickly to a project that is starting construction to help expedite the expenditure. Thus, staff proposes to shift $1,328,171 in CDBG funds from Program Years 2019, 2023, 2024 allocated to the Pacific Natural Grass Project to the Pac/Ed Artificial Turf Project, swapping it with General Fund CIP funds.
CDBG Project Funds Shifting:
Program
Year
Project Shifting FROM Amount
Shifting
Project Shifting TO
2019-2020 Pacific Natural Grass 23/24 $324,720 Pac/Ed Artificial Turf 19/20 2023-2024 Pacific Natural Grass 23/24 $633,451 Pac/Ed Artificial Turf 23/24 2024-2025 Pacific Natural Grass 24/25 $370,000 Pac/Ed Artificial Turf 24/25 Total $1,328,171
The Pac/Ed Artificial Turf Project is currently in the bidding phase and will soon begin construction, allowing the Project to begin drawing down funds, which will help reduce the City’s LOC balance at faster rate. On August 27, 2025, the City received five general contractor bids for the Pac/Ed Artificial Turf Project. City staff has reviewed bid packets and is recommending award of a contract to City Council on October 7, 2025.
Construction is slated to begin in the Fall 2025.
The Pacific Natural Grass Project has completed 60% of the design phase and will not start construction till mid-2026. To backfill the CDBG funds that will be transferred to the Pac/Ed Artificial Turf Project, $1,328,171 in General Fund CIP funds from Pac/Ed Artificial Turf project will be transferred to the Pacific Natural Grass Project. Essentially, staff recommends swapping General Fund CIP funds with CDBG funds between the two projects to allow the City to spend down the CDBG funds first. {{section.number}}{{item.number}}5
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7-Year Expenditure Requirement
Each year, the City receives CDBG entitlement funding in the following categories:
program administration, public social services, and capital improvement. CDBG funds have a 7-year period of performance and must be fully drawn down by September 30th of the respective year. Any funds left in the City’s LOC beyond this deadline are recaptured by the U.S. Treasury.
On September 30, 2026, Program Year 2019 funds in the amount of $421,307.38 will be at risk of being recaptured by the U.S. Treasury. The breakdown is as follows:
•$324,720 currently appropriated in Pacific Natural Grass 23/24 •$96,587.38 in Undesignated HUD Fund Balance
The $324,720 is part of the $1,328,171 staff is recommending be reprogrammed from the Pacific Natural Grass to Pac/Ed Artificial Turf Project by swapping it with General Fund CIP funds.
To avoid losing the Undesignated HUD Fund Balance from Program Year 2019, staff also recommends interchanging $96,587.38 from Armenian Cultural Foundation’s Glendale Youth Center Project from Program Year 2021 with the Undesignated HUD Fund Balance from Program Year 2019. Essentially, staff is requesting to swap $96,587.38 of Program Year 2021 funds with Program Year 2019 Undesignated HUD Fund Balance for the Glendale Youth Center Project. This Project has completed construction and is drawing down funds. If the swap in funding source is approved, there will be an Undesignated HUD Fund Balance of $96,587.38 from Program Year 2021, which will be allocated to future projects as part of the FY 2026-2027 program planning year.
Approval of these recommendations will safeguard the City’s CDBG funding by ensuring timely expenditure and preventing the loss of $421,307.38 in Program Year 2019 funds.
The CDBG Advisory Committee approved the recommendation to reprogram $1,328,171 in CDBG funds from City CIP Pacific Natural Grass Project in Program Years 2019, 2023, 2024 to Pac/Ed Artificial Turf Project by swapping it with General Fund CIP funds; and to interchange or “swap” $96,587.38 in Undesignated HUD Fund Balance from Program Year 2019 with CDBG funds from Glendale Youth Center CIP-ACF 21/22 Project at the September 8, 2025, meeting.
Staff requests that the City Council/Housing Authority approve the proposed substantial amendment for CDBG, ESG, and HOME Annual Action Plans for program years FY2019- 2020, 2021-2022, 2023-2024, 2024-2025, which includes reprogramming funds as proposed above and recommended by the CDBG Advisory Committee, for submission to HUD for final approval.
These efforts are being made to ensure that the City meets its timeliness requirement, so HUD does not reduce future CDBG entitlement amounts in future years and avoids the recapture of funds by U.S. Treasury.
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STAKEHOLDERS/OUTREACH
A Public Notice will be published in the newspaper informing the public of the Substantial Amendment to the CDBG, ESG, and HOME Action Plans for FY2019-2020, 2021-2022, 2023-2024, 2024-2025 for a 30-day comment period before submitting the final approved Substantial Amendment Action Plans to HUD.
FISCAL IMPACT
Staff recommends reprogramming $1,328,171 in CDBG funds from the Pacific Natural Grass Project to the Pac/Ed Artificial Turf Project. To backfill the shifted CDBG funds, an equal amount of General Fund CIP funds from the Pac/Ed Artificial Turf Project will be shifted to the Pacific Natural Grass Project. This swap ensures CDBG funds are utilized first while maintaining consistent funding levels for both projects.
Additionally, staff will administratively reduce the appropriation of Glendale Youth Center CIP-ACF 21/22 Project by $96,587.38, and is requesting that the Council appropriate $96,587.38 from Undesignated HUD Fund Balance to Glendale Youth Center CIP-ACF 19/20 Project, enabling use of the Program Year 2019 Undesignated HUD Fund Balance instead of Program Year 2021 funds.
These adjustments were not included in the FY 2025-26 budget. Therefore, staff is requesting a resolution of appropriation to authorize the shifting of funds between projects and to appropriate funds from the Program Year 2019 Undesignated HUD Fund Balance. The appropriation request is outlined below:
Requesting Appropriation
Amount From (Account String) To (Account String) Funding Source
$324,720 52100-2010-CSP-0020-
P0000
PL: CSP00950CG
52100-2010-CSP-0020-
P0000
PL: CSP01072DG
CDBG Fund
$633,451 52100-2010-CSP-0020-
P0000
PL: CSP00950CG
52100-2010-CSP-0020-
P0000
PL: CSP01072EG
CDBG Fund
$370,000 52100-2010-CSP-0020-
P0000
PL: PWD00950EG
52100-2010-CSP-0020-
P0000
PL:CSP01072CG
CDBG Fund
$1,328,171 51200-4010-CSP-0020-
P0000
PL: CSP01072BN
51200-4010-CSP-0020-
P0000
PL:PWD00950DN
General
Fund Capital
Improvement
Fund
$96,587.38 31240-2010-CSP-0020-
P0000
PL: CSP00706BG
52100-2010-CSP-0020-
P0000
PL: CSP00706BG
CDBG Fund
Department Cost Center Program
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CSP Projects
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The activity under consideration is an implementation action relating to a project that is categorically exempt under the Class 2 Exemption of the California Environmental Quality Act, CEQA Guidelines Section 15302, and involves no change in the project’s scope.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1. The City Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Onnig Bulanikian, Director of Community Services & Parks Bradley Calvert, Director of Community Development
Prepared by:
Maggie Kavarian, Community Services Manager
Tereza Aleksanian, Assistant Director of Community Services & Parks Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
None.