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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE JOINT MEETING: GLENDALE CITY COUNCIL AND
GLENDALE HOUSING AUTHORITY
AGENDA ITEM
Report: Approval to Appropriate Funds to Assist with the Rehabilitation of Hamilton Court, a Transitional Affordable Housing Project, and Public Hearing for Substantial Amendment to the HOME-ARP Allocation Plan.
1. City Council Resolution Approving the Designation of Verdugo Housing Corporation as a Community Housing Development Organization;
2. Housing Authority Motion Authorizing Executive Director to Terminate Affordable Housing Acquisition Loan Agreement and Related Documents;
3. Housing Authority Motion Authorizing Executive Director to Execute New Affordable Housing Agreement and Related Documents;
4. City Council Resolution of Appropriation in the Amount of $3,140,861;
5. City Council Motion Authorizing Release of Funds;
6. City Council Motion Approving the Substantial Amendment to the HOME-ARP Allocation Plan;
7. Housing Authority Motion Approving the Substantial Amendment to the HOME- ARP Allocation Plan.
COUNCIL ACTION
Item Type: Public Hearing
Approved for December 2, 2025 calendar
EXECUTIVE SUMMARY
Hamilton Court (“Project”) is a 14-unit, transitional affordable housing project for women and their families affected by domestic violence. The Project has been in service since 1996. The current operator of Hamilton Court is Door of Hope, a nonprofit group that helps families facing homelessness.
Verdugo Housing Corporation, a subsidiary of Door of Hope, currently owns Hamilton Court and proposes a rehabilitation and expansion of the existing facility, increasing the total units from 14 to 19 permanent supportive micro studio apartments, including three accessible units. In addition to housing expansion, the Project incorporates infrastructure, including mechanical, electrical, and plumbing upgrades and the construction of new common spaces designed to promote long-term housing stability and support. The 2 25-88514
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estimated timeframe for the completion of the rehabilitation of Hamilton Court is 12 months.
Community Development staff recommends supporting the rehabilitation by appropriating a total of $2,790,861 in combined HUD HOME Community Housing Development Organization (HOME CHDO) and HUD HOME Investment Partnerships American Rescue Plan (HOME-ARP) funds. These funds would be secured by two new residual receipts loans.
To appropriate and release the funds, City Council must designate Verdugo Housing Corporation as a Glendale Community Housing Development Organization (“CHDO”).
The Housing Authority must also authorize termination of the existing Affordable Housing Acquisition Loan Agreement and related documents (including reconveyance of a deed of trust and termination and release of affordability covenants) and execute a new Affordable Housing Agreement, along with related documents.
In addition to the project funding, staff is requesting appropriation of $350,000 in HOME- ARP administrative funds to support eligible planning, oversight, staff time, and compliance activities associated with the HOME-ARP program
RECOMMENDATION
Community Development staff recommends that the Glendale City Council and Glendale Housing Authority take the following actions:
City Council:
1. Designate Verdugo Housing Corporation as a Community Housing Development Organization (CHDO);
2. Approve a Resolution of Appropriation in the amount of $3,140,861;
3. Authorize release of appropriated funds; and
4. Approve the Substantial Amendment to the HOME-ARP Allocation Plan.
Housing Authority:
5. Authorize the Executive Director terminate the existing Affordable Housing Acquisition Loan Agreement (AHALA) and related documents, including reconveyance of a deed of trust and termination and release of affordability covenants;
6. Execute a new Affordable Housing Agreement and related documents, including two new residual receipts loans totaling $2,790,861 in HUD HOME CHDO and HOME-ARP funds, for the rehabilitation of Hamilton Court;
7. Approve the Substantial Amendment to the HOME-ARP Allocation Plan.
ANALYSIS
Hamilton Court ("Project") is a 14-unit transitional affordable housing development 3 25-88514
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designed to serve women and their families affected by domestic violence. The facility, originally constructed in 1929, has been operational since 1996, when the Housing Authority entered into an Affordable Housing Acquisition Loan Agreement. Over the years, Hamilton Court has received funding from the Housing Authority, with the most recent rehabilitation occurring in 2009. This minor rehabilitation, funded as a development loan, included renovation of the existing units and repairs throughout the project.
Verdugo Housing Corporation, a subsidiary of Door of Hope, currently owns the property.
Door of Hope acts as the manager of the facility, and is responsible for the planning, development, supervision, operation, and day-to-day management of the premises. Door of Hope’s mission is to provide both temporary and long-term housing solutions to families facing homelessness, with a particular focus on those impacted by domestic violence. As the managing group of Hamilton Court, Door of Hope brings a wealth of experience in supporting vulnerable families and helping them transition to stable, permanent housing.
To disburse the CHDO funds for the rehabilitation, Housing staff is recommending the City Council approve the designation of Verdugo Housing Corporation as a CHDO. When HUD allocates HOME funding annually, CHDO funds represent 15% of the City of Glendale’s annual HOME allocation. The City of Glendale, as a Participating Jurisdiction, must ensure these funds are expended, or the unused funds will be returned to HUD. To date, the City has not had a CHDO-sponsored project, and no other potential CHDO developers have approached Housing staff with complete plans for the use of these funds. Earlier this year, Door of Hope submitted a comprehensive plan and budget proposal, including detailed development plans for Housing staff and formally submitted their plans to the Development Services office (formerly the Planning Department).
Additionally, a required CHDO checklist was completed and submitted to Housing staff (Exhibit 2). Housing staff has reviewed these submissions and confirms Verdugo Housing Corporation does qualify as a Glendale CHDO. It is also notable that a portion of these CHDO funds, approximately $211,000, would be re-captured by HUD if not allocated and drawn down before September 30, 2026.
The proposed rehabilitation of Hamilton Court aims to expand and significantly upgrade the facilities. The scope of work includes converting most of the existing facility into 19 permanent supportive micro-studio apartments and upgrading infrastructure, including mechanical, electrical, and plumbing systems. Additionally, the plan calls for the creation of three ADA-compliant units, as well as new common areas such as case management and designated therapy rooms, a recreation room for children, a family lounge and classroom, and updated administrative offices. The rehabilitation also includes necessary upgrades to the electrical system (including switchgear), HVAC systems, sewer, and plumbing infrastructure, as well as the installation of a new security gate and fence. The projected timeline for the rehabilitation of Hamilton Court is approximately 12 months.
Project Economics
The estimated total budget (Exhibit 3) for Hamilton Court’s rehabilitation is $4,700,000.
Housing staff recommends the Housing Authority contribute $2,783,361 ($146,493 / unit), 4 25-88514
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of which $683,361 would come from the City’s HOME CHDO allocation and $2,100,000 coming from the City’s remaining HOME-ARP allocation. The remaining $1,916,639 will be financed through a combination of funding sources, including $850,000 in Community Project Funds from Congressman Adam Schiff’s Office (HUD), $200,000 from Supervisor Kathryn Barger’s Office, and the remaining $866,639 from Door of Hope reserves.
Source Funds
City of Glendale - CHDO Funds $683,361
City of Glendale - HOME ARP Funds $2,100,000
Senator Adam Schiff’s Office $850,000
LA County Supervisor Kathryn Barger’s Office $200,000
Available DOH Reserves $866,639
Total: $4,700,000
Housing staff also recommends allocating an additional $7,500 in HOME-ARP funds to cover closing costs, bringing the total HOME-ARP allocation to $2,107,500.
In addition to the project funding, staff is requesting appropriation of $350,000 in HOME- ARP administrative funds to support eligible planning, oversight, staff time, and compliance activities associated with the HOME-ARP program. HUD permits Participating Jurisdictions to use up to fifteen percent (15%) of their total HOME-ARP allocation for administrative and planning costs (24 CFR Part 92.206 and HOME-ARP Notice CPD-21-10). The remaining balance of HOME-ARP program administrative funds will be retained to support ongoing program management.
Lastly, the Housing Authority and Verdugo Housing Corporation currently have an Affordable Housing Acquisition Loan Agreement (“AHALA”) in place, which is set to expire in 2029. No additional HOME dollars may be invested in the Project until the AHALA affordability term has been satisfied. To address this, Housing staff recommends terminating the existing AHALA and related documents, including reconveyance of an existing deed of trust and terminating and releasing affordability covenants. This will allow the Executive Director to execute a new Affordable Housing Agreement (“AHA”) which will effectively “reset” the affordability covenants and will ensure affordability for a new 20-year term. In addition, two new loans will also be executed: one for the HOME CHDO funds in the amount of $683,361, and one for the HOME-ARP funds totaling $2,100,000.
Housing staff recommends both loans be structured as residual receipts loans with a simple interest rate of 3% and a 30-year term.
With the approval of the CHDO designation for Verdugo Housing Corporation, the Resolution of Appropriation in the amount of $2,790,861 in HUD HOME CHDO and 5 25-88514
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HOME-ARP funds, the termination of the existing AHALA and related existing documents, and execution of a new AHA and related documents, which includes two new residual receipts loans, Housing staff believe this action is needed by the City Council and Housing Authority to initiate the rehabilitation of Hamilton Court. These actions will enable Verdugo Housing Corporation to move forward with construction and ensure Hamilton Court is preserved and can continue to provide shelter for those vulnerable and victimized of domestic violence for another 20 years. Housing staff anticipate the project can commence construction by January 2026.
Substantial Amendment to the HOME-ARP Allocation Plan
HUD HOME regulations require a Participating Jurisdiction to comply with its Citizen Participation Plan (“CPP”) before allocating HOME funds to a project. The CPP seeks to involve the participation of citizens of Glendale and social service agencies in the development and adoption of its Consolidated Plan (“CP”) and Annual Action Plan (“AAP”). The CP and AAP detail the City’s plan for addressing its affordable housing needs. The AAP provides details on specific affordable housing projects the Housing Authority intends to develop within a given year.
The original Allocation Plan designated nearly all of the HOME-ARP funding to the development of affordable housing at 426 Piedmont Avenue (“Parkview Glendale”), with a preference for seniors experiencing or at risk of homelessness. Because Parkview Glendale required less funding than originally anticipated, Housing staff proposes to reallocate $2,100,000 of HOME-ARP funds to support the rehabilitation and expansion of a transitional housing facility in Glendale.
For this project, Housing staff requested a substantial amendment to its HOME-ARP Allocation Plan from HUD. Under HUD regulations, this amendment qualifies as a substantial amendment because it adds a new activity and beneficiary group not previously described in the plan.
Consistent with HUD regulations and the City’s Citizen Participation Plan, this item is being heard at a public hearing to allow members of the public and interested organizations to comment on the proposed Substantial Amendment.
Finally, HUD identified an administrative calculation correction in the City’s original HOME-ARP award. As a result, HUD increased Glendale’s total HOME-ARP allocation from $5,109,346 to $5,116,976. This Substantial Amendment also updates the HOME- ARP Plan to reflect the corrected allocation amount in addition to reallocating funds to the Hamilton Court Project.
STAKEHOLDERS/OUTREACH
From November 17 through December 1, 2025, Housing staff published a Notice of Public Comment Period regarding the proposed Substantial Amendments to the HOME-ARP Allocation Plan. The notice was published in the Glendale Independent and provided a 6 25-88514
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description of the proposed project, along with details of an adjustment to the HOME- ARP allocation received by the Housing Authority.
FISCAL IMPACT
The total fiscal impact associated with providing residual receipts loans to Verdugo Housing Corporation for the rehabilitation of Hamilton Court is $2,790,861. Of this amount, $683,361 is in HUD HOME Community Housing Development Organization (CHDO) funds and $2,107,500 in HUD HOME Investment Partnerships American Rescue Plan (HOME-ARP) funds, which includes $7,500 for closing costs.
Appropriation of $350,000 in HOME ARP administrative funds to be used for administrative purposes is also outlined below.
The appropriation request is outlined below.
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$683,361 31240-2030-CDD-
0020-P0000-
PL: CDD01494AG
43112-2030-CDD-
0020-P0000-
PL: CDD01494AG
HOME Fund
$2,107,500 31240-2030-CDD-
0020-P0000-
PL: CDD01495AG
43112-2030-CDD-
0020-P0000-
PL: CDD01495AG
HOME Fund
$350,000 31240-2030-CDD-
0020-P0000-
PL: CDD01496AG
41100-2030-CDD-
0020-P0000-
PL: CDD01496AG
HOME Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The actions described in this report to facilitate the rehabilitation of Hamilton Court (an already- existing Project) is exempt from further environmental review under the California Environmental Quality Act ("CEQA") pursuant to Title 14 of the California Code of Regulations ("CEQA Guidelines") for all of the following reasons: 1) the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment under CEQA Guidelines Section 15060(c)(2) because the Project is already built, the funding will go to minor rehabilitation (not subject to discretionary review, so not a project under CEQA) and/or will undergo independent CEQA review at the time when such rehabilitation work is applied for; 2) the activity is not a project under CEQA Guidelines Section 15060(c)(3) and 15378(b)(4) because it constitutes the creation of government funding mechanisms or other governmental fiscal activity that does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment; and 3) the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and here, it can be seen with certainty that there is no possibility that 7 25-88514
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the activity may have a significant effect on the environment per CEQA Guidelines Section 15061(b)(3).
CAMPAIGN DISCLOSURE
Campaign disclosure is attached as Exhibit 1.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Reject the appropriation of funding, terminating the Housing Authority’s participation in the project.
2. Reject the CHDO designation, terminating the ability to allocate CHDO funds to Verdugo Housing Corporation.
3. Reject the approval of the Substantial Amendment to the HOME-ARP Allocation Plan, terminating the ability to allocate HOME-ARP funds to Verdugo Housing Corporation.
4. The City Council and Housing Authority may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Bradley Calvert, Director of Community Development
Prepared by:
Peter Zovak, Assistant Director of Community Development Michael Fortney, Deputy Director of Community Development/Housing Aaron Brownell, Senior Housing Project Manager
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Campaign Disclosure
Exhibit 2: CHDO Checklist
Exhibit 3: Budget
Exhibit 4: Affordable Housing Agreement with Attachments