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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 Phase 3 of the Rehabilitation of Hamilton Court, a Transitional Affordable Housing Project.
1. City Council Resolution of Appropriation in the Amount of $809,485;
2. City Council Motion Authorizing Release of Funds;
3. Housing Authority Motion Authorizing Executive Director to Amend New Affordable Housing Agreement and Related Documents.
COUNCIL ACTION
Item Type: Action Item
Approved for June 30, 2026 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.
Verdugo Housing Corporation, a subsidiary of Door of Hope, currently owns Hamilton Court and proposes a rehabilitation and expansion of the existing facility from 14 1- bedroom units to 25 studio apartments. Previously, the Housing Authority approved the appropriation of $3,140,861 in HOME-ARP and HOME funds to assist with Phases 1 and 2 of Hamilton Court’s rehabilitation of ten of the fourteen existing one-bedroom units into seventeen studio units
Phase 3 will rehabilitate the remaining four one-bedroom units into eight studios, bringing the total unit count for the project to 25 studio units. Housing staff recommend supporting the rehabilitation by appropriating $781,000 from the Permanent Local Housing Allocation Program (PLHA) fund. These funds would be secured by a new residual receipts loan. In addition to the project funding, staff is requesting appropriation of $28,485 in PLHA administrative funds to support eligible planning, oversight, staff time, and compliance activities associated with the PLHA program. The total appropriation is $809,485.
RECOMMENDATION
Housing staff recommend that the Glendale City Council and Glendale Housing Authority take the following actions:
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City Council:
1. Approve a Resolution of Appropriation in the amount of $809,485;
2. Authorize release of appropriated funds for the rehabilitation of Hamilton Court.
Housing Authority:
1. Authorize execution of amendments to affordable housing agreement and related documents, including a new residual receipts loan totaling $781,000 in PLHA funds, for Phase 3 rehabilitation of Hamilton Court.
ANALYSIS
The multi-phase Project involves the rehabilitation of an existing 14-unit transitional affordable housing development for women and families affected by domestic violence.
Originally constructed in 1929, the Verdugo Housing Corporation acquired the site in 1996 and executed an Affordable Housing Acquisition Loan Agreement with the Glendale Housing Authority to convert the existing building into a transitional housing facility.
The property is owned by Verdugo Housing Corporation (“VHC”), a subsidiary of Door of Hope. Door of Hope manages the facility and is responsible for all planning, operations, and day-to-day management.
On December 2, 2025, the Housing Authority and City Council approved the appropriation of $3,140,861 in HOME-ARP and HOME CHDO funds for Phases 1 and 2. These actions included:
• Designating Verdugo Housing Corporation as a Community Housing and Development Organization (CHDO).
• Appropriating $3,140,861 in HOME-ARP and HOME CHDO funds. • Authorizing termination of the existing Affordable Housing and Loan Agreement (AHALA) with Verdugo Housing Corporation, which was set to expire in 2029.
• Authorizing the execution of a new agreement and related documents with Verdugo Housing Corporation to preserve the project’s affordability for an additional 30 years, including two new residual receipts loans.
Phases 1 and 2 converted ten of the fourteen existing one-bedroom units into seventeen studio units and upgraded to mechanical, electrical, HVAC, sewer, and plumbing systems. The scope also included the creation of three ADA-compliant units (included in the count of the seventeen studios) and the creation of case management rooms, therapy rooms, a recreation room, a family lounge, and administrative offices.
In the proposed Phase 3 expansion, Door of Hope recently secured a private funding donation of $900,000 that will allow Phase 3 to proceed earlier than anticipated. To close the remaining gap, Housing Staff recommends appropriating $781,000 in PLHA funds for 13 26-89989
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the rehabilitation and $28,485 for city administrative costs. Phase 3 will rehabilitate the remaining four units into eight studio apartments. These additional units will increase the total project count from 21 units to 25 units.
Project Economics
The estimated total budget (Exhibit 2) for all three phases of Hamilton Court’s rehabilitation is $6,481,000. Phases 1 and 2 will be a total of 4.8M ($100,000 greater from the December 2, 2026 staff report but the additional increase will be covered by Door of Hope) and Phase 3 will be a total of $1,681,000.
The Housing Authority has committed a total of $2,783,361 ($163,727 / unit) towards development costs, $350,000 towards administrative costs, and $7,500 towards closing costs for Phases 1 and 2 of Hamilton Court rehabilitation, of which $683,361 would come from the City’s HOME CHDO allocation and $2,457,500 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 $966,639 from Door of Hope reserves (previously was $866,639).
Housing staff propose to fund Phase 3 with the remaining PLHA. The Housing Authority was awarded a total of $5,010,674 in PLHA funds across five funding years, of which 95% ($4,760,140) is available for project activities and 5% ($250,534) is reserved for administrative costs. To date, $3,512,787 has been used for Parkview Glendale and $465,600 for the stabilization of Metro Loma Apartments. Housing staff recommends appropriating the remaining balance of $781,000 ($97,625 / unit) towards the Phase 3 rehabilitation of Hamilton Court.
Budget for Phase 3 Construction:
Source Funds
City of Glendale - PLHA
Funds $781,000
Door of Hope Capital Gift $900,000
Total: $1,681,000
In addition, Housing staff is recommending the appropriation of $28,485 towards city administrative costs to support eligible planning, oversight, staff time, and compliance activities associated with the PLHA program. The PLHA program allows awarded jurisdictions to use up to 5% for administrative and planning costs. This represents the remaining undrawn administrative balance from the 2023 PLHA award year.
Lastly, as stated above, on December 2, 2025, the Housing Authority approved termination of the existing Affordable Housing Acquisition Loan Agreement (“AHALA”) and related documents in place with VHC, which were set to expire in 2029. Additionally, the Housing Authority also approved a new Affordable Housing Agreement (“AHA”) with 14 26-89989
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VHC, which will update the affordability covenants and will ensure affordability for a new 20-year term. With concurrent approval of the AHA, two new residual receipts loans were also approved: one for each of the HOME CHDO and HOME-ARP funds.
Housing staff recommends amending the 2025 AHA by adding one additional loan of $781,000 in PLHA funds (Exhibit 3) for Phase 3. Staff recommends structuring this loan similarly to the two previously approved loans, as a residual receipts loan with a simple interest rate of 3% and a 30-year term. Because PLHA funds require affordability covenants to remain in place for a minimum of 55 years, the covenants for four units in the Phase 3 rehabilitation will be designated as PLHA units for 55 years. Eight HOME- ARP and four CHDO designated units from Phases 1 and 2 will continue to carry 20-year affordability covenants, while all remaining units will have affordable covenants for 55 years. Upon expiration of the initial 20-year period, both the HOME-ARP and CHDO units will convert to affordable covenants for the remaining 35 years, ensuring they terminate at the same time as the 55-year PLHA covenants.
With the approval of the appropriation of PLHA funds to assist with Phase 3 of Hamilton Court rehabilitation and the approval to add a new loan to the new AHA, these actions will enable Verdugo Housing Corporation to move forward with construction of Phase 3 and enable Hamilton Court to provide shelter for those at-risk or victims of domestic violence for a minimum of 55 years. The project is currently in the final stages of Plan Check, and Housing staff anticipates the project commencing construction as early as July 2026.
STAKEHOLDERS/OUTREACH
Consistent with the Citizen Participation Plan, the City published a Notice of Public Comment Period in the Glendale Independent on April 27, 2026, regarding a proposed Substantial Amendment to the FY 2025-2026 Annual Action Plan to add the rehabilitation of Hamilton Court using prior-year HOME Investment Partnerships Program (HOME) funds.
Although staff originally issued a notice for a public hearing regarding this amendment for June 2, 2026, the hearing was subsequently cancelled. It was determined that the amendment to the FY 2025-2026 plan was no longer necessary, as the project’s HOME CHDO funds were instead allocated from the FY 2026-2027 Annual Action Plan, which was approved on June 9, 2026. Despite the fact that a substantial amendment is no longer one of the actions requested here, in the interest of transparency, public comments received regarding the substantial amendment during the initial 30-day comment period, along with formal staff responses, are attached as Exhibit 4.
FISCAL IMPACT
Phase 3 of the rehabilitation of Hamilton Court would cost $809,485 in Permanent Local Housing Allocation (PLHA) funds, which are not included in the FY 2026-27 budget. Of this amount, $781,000 is for the rehabilitation loan and $28,485 is for administrative costs.
The appropriation request is outlined below:
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Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$28,485 32610-2280-CDD-
0020-P0000-
PL: CDD01624AG
41100-2280-CDD-
0020-P0000
PL: CDD01624AG
Permanent Local
Housing Allocation
Fund
$781,000 32610-2280-CDD-
0020-P0000-
PL: CDD01625AG
43112-2280-CDD-
0020-P0000
PL: CDD01625AG
Permanent Local
Housing Allocation
Fund
Department Cost Center Program
Community
Development
Projects
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 the activity may have a significant effect on the environment per CEQA Guidelines Section 15061(b)(3).
CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit 1, in accordance with the City Campaign Finance Ordinance No. 5744.
ALTERNATIVES TO STAFF RECOMMENDATION
1. Reject the appropriation of funding and amendment to the Affordable Housing Agreement, terminating the Housing Authority’s participation in Phase 3 of the project.
2. The City Council and Housing Authority may consider any other alternative not proposed by staff.
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ADMINISTRATIVE ACTION
Submitted by:
Jack Wong, Interim Community Development Director
Prepared by:
Michael Fortney, Acting Assistant Director of Community Development/Housing Aaron Brownell, Senior Housing Project Manager
Pamela Jackson, Housing Coordinator
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Campaign Disclosures
Exhibit 2: Budget
Exhibit 3: Draft Amended Affordable Housing Agreement and Attachments Exhibit 4: Public Comments