One of the primary barriers to affordable housing development in Hawthorne is the City’s zoning ordinances and land use designations, which restrict higher-density development to specific areas. Only a small portion of land is zoned for densities of 20 or more units per acre, the minimum typically needed for affordable housing projects to be financially viable.
Multi-family housing is restricted to R-3, R-4, and Mixed-Use (MU) overlay zones, but even in these areas, developers face additional constraints such as parking requirements, open space mandates, and design guidelines, which limit the number of units that can be built and drive-up costs.
The MU overlay zones present another challenge by requiring residential development to be combined with commercial uses. While mixed-use projects can promote walkability and economic activity, they are often costlier and more complex to finance than standalone residential developments. Consequently, these requirements limit opportunities for dedicated affordable housing projects and discourage developers from pursuing such projects in high-opportunity neighborhoods where land values are highest and demand for affordable housing is greatest.
Stringent development standards further complicate affordable housing production.
Minimum lot sizes, height restrictions, open space requirements, and density limitations make it difficult to achieve the economies of scale needed for affordable housing projects.
For example, in R-3 zones, density is capped at 17.4 units per acre, falling short of the levels typically needed to make affordable housing cost-effective.
The Conditional Use Permit (CUP) requirement for multi-family developments in R-3 zones adds yet another layer of complexity. The CUP process introduces uncertainty, extends approval timelines, and increases carrying costs, which disproportionately impacts affordable housing developers who often operate on tighter budgets Excessive parking requirements also present a significant barrier. Many affordable housing projects serve low-income households, seniors, or individuals who rely on public transportation and own fewer vehicles. Yet, developers are forced to dedicate valuable land to parking rather than housing. These requirements reduce the total number of housing units that can be built on a given site, increase construction costs, and ultimately raise housing prices.
City of Hawthorne – 98 – Consolidated Plan
The cost of permits, impact assessments, and utility connections places a heavy financial burden on affordable housing developers. According to the City’s 2021-2029 Housing Element, the estimated fees associated with constructing a 15-unit multi-family project amount to approximately $108,000. When combined with rising land costs and construction expenses, these fees can render affordable housing projects financially infeasible, pushing developers toward market-rate developments with higher returns.
The cumulative effect of these policies has exacerbated the housing crisis, leading to higher costs, reduced affordability, and limited access to housing in high-opportunity neighborhoods. Addressing these barriers requires bold reforms, targeted incentives, and strategic partnerships. By prioritizing these efforts, Hawthorne can create a more inclusive housing market, expand affordable housing opportunities, and ensure that all residents, regardless of income, have access to safe, high-quality housing.
City of Hawthorne – 99 – Consolidated Plan
MA-45 Non-Housing Community Development Assets
Introduction
The economic health of the City of Hawthorne is closely tied to the strength of its workforce, the competitiveness of its businesses, and the adequacy of its infrastructure. As a key hub within the South Bay region, Hawthorne benefits from a diverse economy, strategic location near Los Angeles International Airport (LAX), the Port of Los Angeles, and proximity to major transportation corridors. However, challenges such as mismatches between workforce skills and employer needs, infrastructure limitations, and housing affordability constraints must be addressed to sustain long-term economic growth.
This section evaluates the City’s major employment sectors, workforce characteristics, and infrastructure needs while exploring strategies to expand economic opportunities for lowand moderate-income residents. By aligning investments with local needs, the City can fully unlock its potential and create a more competitive and resilient local economy.
Business Activity by Sector Number of
Workers
Number
of Jobs
Share of
Workers
Share
of Jobs
Jobs less
Workers
Agriculture, Mining, Oil & Gas 87 1 0.2% 0.0% -0.2%
Arts, Entertainment, Accommodations 5,589 1,762 13.3% 6.8% -6.6% Construction 2,000 943 4.8% 3.6% -1.2%
Education and Health Care Services 8,511 5,391 20.3% 20.7% 0.4% Finance, Insurance, and Real Estate 1,984 623 4.7% 2.4% -2.3% Information 1,108 163 2.6% 0.6% -2.0%
Manufacturing 3,203 6,545 7.6% 25.1% 17.4%
Other Services 2,326 1,671 5.5% 6.4% 0.9%
Professional, Scientific, Management 5,570 614 13.3% 2.4% -10.9% Public Administration 1,463 1,675 3.5% 6.4% 2.9%
Retail Trade 4,222 3,863 10.1% 14.8% 4.7%
Transportation and Warehousing 4,803 1,946 11.4% 7.5% -4.0% Wholesale Trade 1,092 905 2.6% 3.5% 0.9%
Total 41,958 26,102 100% 100% 0%
Table 45 – Business Activity
Data Source: 2016-2020 ACS (Workers), 2020 Longitudinal Employer-Household Dynamics (Jobs) City of Hawthorne – 100 – Consolidated Plan
Labor Force Statistics Number
Total Population in the Civilian Labor Force 45,050
Civilian Employed Population 16 years and over 41,958
Unemployment Rate 6.9%
Unemployment Rate for Ages 16-24 17.1%
Unemployment Rate for Ages 25-65 5.8%
Table 46 – Labor Force
Data Source: 2016-2020 ACS
Occupations by Sector Number
Management, business and financial 11,717
Farming, fisheries, and forestry occupations 48
Service 9,915
Sales and office 9,919
Construction, extraction, maintenance, and repair 3,148 Production, transportation, and material moving 7,211
Table 47 – Occupations by Sector
Data Source: 2016-2020 ACS
Travel Time to Work Number Percent
< 30 Minutes 21,380 55%
30-59 Minutes 12,250 31%
60 or More Minutes 5,423 14%
Total 39,053 100%
Table 48 – Travel Time
Data Source: 2016-2020 ACS
City of Hawthorne – 101 – Consolidated Plan
Educational Attainment
In Labor Force Not in Labor
Force Civilian
Employed Unemployed
Less than high school graduate 6,412 695 2,986
High school graduate (includes
equivalency) 8,555 521 2,306
Some college or Associate's degree 11,310 609 2,574
Bachelor's degree or higher 9,785 444 1,378
Table 49 – Educational Attainment by Employment Status
Data Source: 2016-2020 ACS
Educational Attainment by Age
Age in years
18–24 25–34 35–44 45–65 65+
Less than 9th grade 63 438 1,174 3,207 1,581
9th to 12th grade, no diploma 1,062 1,624 1,198 2,452 583 High school graduate, GED, or
alternative 2,310 3,899 2,816 4,667 1,919
Some college, no degree 3,318 3,578 2,774 4,773 1,403
Associate's degree 335 1,240 781 1,347 533
Bachelor's degree 730 3,433 2,036 2,666 817
Graduate or professional degree 34 1295 1014 1,207 462
Table 50 – Educational Attainment by Age
Data Source: 2016-2020 ACS
Educational Attainment Median Earnings in the Past 12 Months Population 25 and over with earnings $34,620
Less than high school graduate $23,699
High school graduate (includes equivalency) $30,450
Some college or Associate's degree $37,684
Bachelor's degree $52,404
Graduate or professional degree $60,194
Table 51 – Median Earnings in the Past 12 Months by Educational Attainment Data Source: 2016-2020 ACS
City of Hawthorne – 102 – Consolidated Plan
Based on the Business Activity table above, what are the major employment sectors within your jurisdiction?
Hawthorne’s economy is anchored by several prominent employment sectors, each with unique contributions and challenges. According to Table 45, the City’s workforce and business activity are concentrated in the following key sectors:
• Education and Health Care Services: This represents the largest sector by employment, accounting for 20 percent of workers and 21 percent of jobs. This sector’s dominance reflects the City’s focus on wellness and the growing needs of an aging population. Workforce training in nursing, medical technology and allied health fields will be essential to meet industry needs and provide residents with pathways into stable high-paying careers.
• Manufacturing: Comprising 8 percent of the workforce but 25 percent of all jobs, this industry is one of the City’s major economic drivers. The large surplus of jobs compared to workers (17 percent) suggests this sector heavily relies on labor from outside of the City. Addressing this gap will require vocational training, investment in advanced manufacturing programs, and apprenticeship opportunities. • Retail Trade: This sector employs 10 percent of Hawthorne’s workforce and makes up 15 percent of local jobs, indicating a stable retail environment. As consumer spending patterns shift toward e-commerce, businesses will need to modernize operations and integrate digital sales channels. Investments in small business support services and workforce training for customer service, logistics, and digital marketing will help sustain the industry’s growth.
• Arts, Entertainment, and Accommodations: Employing 13 percent of workers but only 7 percent of available jobs, many residents must seek employment outside of the City. Hawthorne’s proximity to the LAX and major tourism hubs presents an opportunity to expand local hospitality, entertainment, and dining options to capture more tourism-driven economic benefits.
• Professional, Scientific, and Management Services: Although 13 percent of residents work in these fields, these jobs only account for 2 percent of local employment opportunities, highlighting a significant talent outflow to other cities.
Expanding business incubators, technology hubs, and co-working spaces will be critical to retaining talent locally and grow the City’s knowledge-based economy. • Transportation and Warehousing: Accounting for 11 percent of workers and 8 percent of jobs, this sector remains integral to the regional economy. With rising demand for e-commerce logistics, this industry is expected to see continued growth.
Investments in logistics training programs, infrastructure, and warehouse technology advancements will ensure that local workers can access these jobs.
Disparities between the number of workers and available jobs in these sectors reflect underlying challenges. Sectors with more jobs than workers, such as manufacturing, rely heavily on non-resident labor, while sectors with more workers than jobs push residents to commute to neighboring regions for employment. Aligning workforce skills with local job opportunities will help reduce these imbalances and foster a more robust local economy.
City of Hawthorne – 103 – Consolidated Plan
Describe the workforce and infrastructure needs of the business community The economic vitality of Hawthorne hinges on the alignment of workforce capabilities with the demands of local industries. While the City has a relatively well-distributed labor force, there are notable gaps between the skills possessed by workers and the needs of employers. Industries such as advanced manufacturing, logistics, and healthcare require specialized skills that are currently in short supply. Expanding access to vocational training, adult education, and technical certification programs will ensure residents can compete for higher-wage jobs in emerging industries. Additionally, targeted efforts to improve bilingual education and English language proficiency will enable non-native English speakers to participate fully in the workforce, particularly in customer service and professional fields.
Youth employment opportunities also represent a critical need, as the unemployment rate for residents aged 16-24 stands at 17 percent, which is significantly higher than the citywide unemployment rate of 7 percent (Table 46). Programs aimed at expanding youth apprenticeship programs, career mentoring, and job readiness initiatives will be crucial to connect young workers to long-term career pathways.
Infrastructure improvements are equally critical to supporting economic growth. Table 48 reveals that nearly half (45 percent) of residents commute more than 30 minutes to work, with 14 percent of these workers commuting over an hour. These lengthy commutes, often driven by a jobs-to-housing imbalance, strain the transportation network and impose significant financial burdens on workers. This highlights the need for investment in reliable public transit, efficient road networks, and broadband infrastructure to improve job accessibility. Expanding broadband access will also facilitate remote work, online education, and small business growth.
As revealed during the public meetings, the lack of affordable housing near employment centers is a barrier to economic mobility. Many low- and moderate-income workers are forced to live outside the City, contributing to long commute times. Investing in affordable housing near transit corridors and job centers will improve economic access, reduce transportation burdens, and enhance workforce stability.
Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create.
Hawthorne is poised to experience several economic shifts during the planning period. The City is home to SpaceX and other cutting-edge aerospace firms, presenting opportunities for high-wage job creation in engineering, advanced manufacturing, and logistics.
Strengthening Science, Technology, Engineering, and Mathematics (STEM) education and technical training programs will be crucial to developing local talent pipelines for these industries and ensuring residents can access these high-paying jobs.
As online shopping continues to expand, the demand for warehouse and last-mile delivery jobs will increase. To capitalize on these opportunities the City will need to invest in City of Hawthorne – 104 – Consolidated Plan
workforce training, transportation infrastructure, and modernized industrial spaces to accommodate this sector’s growth.
The planned Civic Center Revitalization project aims to transform Hawthorne’s downtown core into a mixed-use economic hub. This initiative will drive commercial investment, housing development, and public space enhancements, making the area more attractive for businesses, residents, and visitors.
How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction?
Hawthorne’s labor force consists of 45,050 residents, with 41,958 individuals employed and an unemployment rate of 6.9 percent. The workforce is heavily concentrated in service occupations, sales and office roles, and production-related industries. While these sectors provide significant employment opportunities, the concentration in traditional and servicebased industries highlights the need to diversify the local economy by developing highwage industries such as advanced manufacturing, professional management, and healthcare.
Educational attainment remains a critical factor influencing workforce participation and earnings. Approximately 18 percent of the workforce lacks a high school diploma, limiting access to higher-paying jobs and contributing to economic disparities. In contrast, residents with a bachelor’s degree or higher earn significantly more, with median annual earnings of $52,404, compared to $23,699 for those without a high school diploma.
Expanding access to education, technical certifications, and vocational training programs will be vital to bridge this gap and equipping residents with the skills needed to participate in emerging industries that offer greater earning potential and opportunities for upward mobility.
Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan.
The City of Hawthorne is home to a variety of workforce training initiatives that are instrumental in preparing residents for high-demand careers. El Camino Community College’s IT-Flex and Health-Flex programs equip students with essential skills for tech and healthcare careers.
The South Bay Workforce Investment Board (SBWIB) implements several programs including career counseling, job placement, and apprenticeships in industries such as healthcare, advanced manufacturing, and logistics. Expanding these initiatives will be essential in ensuring residents can access jobs in emerging industries.
These initiatives align with the City’s Consolidated Plan by enhancing employment opportunities for low- and moderate-income residents. Strengthening partnerships between local businesses, workforce agencies, and educational institutions will be essential in ensuring that training programs meet the evolving needs of employers.
City of Hawthorne – 105 – Consolidated Plan
Does your jurisdiction participate in a Comprehensive Economic Development Strategy (CEDS)? The City does not currently participate in a Comprehensive Economic Development Strategy (CEDS) at the regional level.
If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth.
Hawthorne adopted a four-year Economic Development Strategic Plan on April 25, 2023.
This plan focuses on revenue generating programs, community service enhancements, and modernization of city operations. These strategies closely align with the objectives of the Consolidated Plan, particularly in expanding economic opportunities in underserved neighborhoods and for low- and moderate-income households.
Discussion
Hawthorne’s location at the hub of the South Bay, adjacent to LAX and near the San Pedro Harbor makes it a highly desirable location for small and large companies to call home. By leveraging strategic investments and partnerships, the City aims to address skill mismatches, improve job accessibility, and provide all industry clusters with the opportunity to grow and improve the region’s competitiveness. HUD funds will play a critical role in supporting these objectives, particularly in enhancing public infrastructure and expanding affordable housing opportunities for low- and moderate-income residents.
City of Hawthorne – 106 – Consolidated Plan
MA-50 Needs and Market Analysis Discussion
Are there areas where households with multiple housing problems are concentrated? (include a definition of “concentration”)
The City of Hawthorne faces significant housing challenges including cost burdens, overcrowding, and substandard housing conditions. To effectively identify areas of greatest need, a “concentration” of housing problems is defined as any census tract where the percentage of households experiencing housing problems exceeds the Citywide average by at least 10 percentage points. This methodology allows for consistent evaluation of disparities and ensures resources are directed to neighborhoods with disproportionate housing needs
Citywide, 58.4 percent of households experience housing problems. Using the 10 percentage point threshold, census tracts with over 68.4 percent of households experiencing these issues are considered high-need areas. Based on this, the following census tracts reflect the highest rates of housing problems:
• 602003: 71.54 percent
• 602510: 74.3 percent
• 601600: 70.52 percent
• 602103: 68.71 percent
• 602511: 71.13 percent
• 601700: 77.7 percent
• 602505: 71.95 percent
• 603706: 83.72 percent
These neighborhoods exhibit the most acute housing challenges and will require targeted intervention through housing development, rehabilitation, and rental assistance programs.
Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated? (include a definition of “concentration”) HUD defines Racially or Ethnically Concentrated Areas of Poverty (R/ECAP) as census tracts with a majority non-White population (greater than 50 percent) and a poverty rate exceeding 40 percent or three times the regional average, whichever is lower. This definition helps pinpoint neighborhoods where racial or ethnic minorities face systemic economic disadvantages.
Based on this, a small portion of Hawthorne north of the 105 Freeway is classified as a R/ECAP. However, this tract primarily covers the unincorporated community of Lennox, with only 28 residential units falling under the City’s jurisdiction. Within this census tract (Tract 6017) the percentage of individuals living below the poverty level is 17.5 percent, suggesting that the broader census tract influences the R/ECAP designation rather than the conditions within the City’s boundaries. Therefore, the factors contributing to this City of Hawthorne – 107 – Consolidated Plan
designation may be more reflective of surrounding jurisdictions rather than an internal issue for Hawthorne.
Although Hawthorne does not have significant R/ECAPs, several census tracts exhibit high concentrations of low-income households and racial and ethnic groups. These neighborhoods often face overlapping challenges related to housing affordability, access to quality education, and economic mobility.
What are the characteristics of the market in these areas/neighborhoods? Neighborhoods with concentrated housing problems, racial or ethnic minorities, and lowincome households often share a range of socioeconomic and structural challenges. These areas are frequently characterized by older, substandard housing stock, overcrowding, and high rates of housing cost burdens. The convergence of these issues directly impacts residents’ health, safety, and quality of life.
Economic opportunities in these areas also tend to be limited. Many residents work in lower-wage industries such as hospitality, retail, or service, where opportunities for upward mobility are constrained. Additionally, residents in these neighborhoods often face barriers to accessing jobs in higher-paying sectors due to educational attainment gaps, language barriers, and inadequate transportation infrastructure.
Schools in these areas are frequently underfunded, contributing to lower educational outcomes and perpetuating cycles of poverty. Access to essential services such as healthcare, childcare, grocery stores, and recreational facilities is often insufficient, further straining residents’ financial and emotional well-being.
Are there any community assets in these areas/neighborhoods? Despite these challenges, neighborhoods with concentrated housing problems and racial or ethnic minorities possess valuable community assets that can serve as building blocks for revitalization. The City of Hawthorne has unique features that can be leveraged to improve quality of life and economic opportunities for residents.
For example, Hawthorne’s manufacturing base provides opportunities for workforce development programs tailored to high-demand skills in advanced manufacturing, technology, and logistics. Similarly, City’s proximity to LAX, the Port of Los Angeles, SpaceX, and other aerospace companies presents opportunities to establish workforce training programs that prepare residents for high-paying in-demand jobs in emerging sectors.
More specifically, access to opportunities improves from east to west in Hawthorne with areas on the west side of the City having better economic, education, and job proximity scores than areas on the east side. Relative to the region, Hawthorne is in an area of City of Hawthorne – 108 – Consolidated Plan
transition with neighboring cities on the east having less access to opportunities and neighboring cities on the west having greater access.
Economic Opportunity
There is a correlation between economic opportunity and residential density in Hawthorne whereby the census tracts dominated by single-family residential neighborhoods show the highest economic scores and as density increases, economic scores appear to decrease.
Single-family neighborhoods tend to have a higher incidence of homeownership, which of course is a wealth generator.
Education
Educational opportunity noticeably improves from east to west in Hawthorne, which is correlated with overall opportunity scores. The pattern is also a function of the types of development currently existing in the City, with residential development more dominant on the west side of Hawthorne and commercial/industrial more dominant on the east side.
This of course has affected the distribution of the population over time, i.e. fewer people, and therefore a smaller cross-section, live in the commercial/industrial dominated census tracts on the east.
Transportation and Employment
Access to transportation, and in turn employment opportunities, improves from east to west in Hawthorne. In part, this is a function of proximity to the employment centers west of the City (e.g., El Segundo, Manhattan Beach).
Are there other strategic opportunities in any of these areas? Addressing the overlapping challenges faced by these communities requires a comprehensive approach that combines investments in housing, infrastructure, and public services. By aligning HUD funding with targeted revitalization efforts, the City can improve housing stability, enhance economic mobility, and foster long-term neighborhood sustainability.
City of Hawthorne – 109 – Consolidated Plan
MA-60 Broadband Needs
Describe the need for broadband wiring and connections for households, including low- and moderateincome households and neighborhoods.
Access to reliable high-speed internet is a critical component of modern life, enabling residents to pursue education, secure employment, access telehealth services, and engage in civic life. In the City of Hawthorne, while most residents have access to broadband through fixed and mobile technologies, significant disparities persist, particularly for lowand moderate-income households and neighborhoods.
According to the Federal Communications Commission (FCC) National Broadband Map, the City is classified as having universal coverage, with speeds meeting or exceeding the FCC’s benchmark of 25 megabits per second (Mbps) download and 3 Mbps upload speeds, or 25/3 Mbps. However, this measure does not capture the variability in service reliability and performance across different neighborhoods. In many low- and moderate-income areas, outdated infrastructure delivers lower speeds and higher latency compared to fiber optic or cable broadband options available in higher-income neighborhoods.
Affordability remains a critical barrier. From 2021 through February of 2024, the FCC’s Affordable Connectivity Program (ACP) provided low-income households with up to $50 per month to offset internet costs. As of December 2023, over 19,727 households in Hawthorne participated in the program, demonstrating significant demand for affordable internet options. The program’s discontinuation leaves a significant gap, emphasizing the need for financial assistance programs to maintain connectivity for vulnerable populations.
The City complies with HUD’s “Narrowing the Digital Divide” rule (81 FR 92626), which requires that broadband infrastructure be incorporated into all new construction and substantial rehabilitation of HUD-financed multi-family housing. This policy ensures that residents of HUD-assisted properties have access to adequate broadband services at the minimum threshold of 25/3 Mbps.
Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction.
The City is serviced by at multiple Internet Service Providers (ISP), including Earthlink Fiber, Viasat, HughesNet, XNET WiFi, and Starlink for fixed broadband, and AT&T, T-Mobile, and Verizon for mobile broadband services.
In areas with few ISPs, residents often face higher prices, slower speeds, and inconsistent service quality. This particularly impacts low-income neighborhoods, where providers are less likely to invest in high quality infrastructure due to perceived lower profitability.
Encouraging entry of additional ISPs and increasing competition is vital to fostering a more comprehensive broadband market, as it drives improvements in service quality and affordability.
City of Hawthorne – 110 – Consolidated Plan
MA-65 Hazard Mitigation
Describe the jurisdiction’s increased natural hazard risks associated with climate change.
The City of Hawthorne is increasingly vulnerable to a range of natural hazards intensified by climate change. The 2019 Local Hazard Mitigation Plan (LHMP) identifies wildfires, droughts and water shortages, earthquakes, and extreme weather events such as heatwaves and flooding as the most significant threats to public safety, infrastructure, and housing stability. These hazards are not only becoming more frequent but are also increasing in severity, emphasizing the need for proactive mitigation strategies.
While Hawthorne is an urbanized community, it remains vulnerable to wildfires, particularly due to its proximity to wildfire-prone areas and the risk of urban fire spread.
Climate change is increasing the frequency and intensity of wildfires across California, fueled by rising temperatures, prolonged droughts, and changes in vegetation patterns.
Fire risk is further exacerbated by aging electrical infrastructure which has been linked to wildfire ignition across the State. For low- and moderate-income households, the recovery process is especially challenging as many lack insurance coverage or the financial resources necessary to rebuild or repair their homes.
Erratic precipitation patterns and reduced snowpack levels in the Sierra Nevada have led to persistent drought conditions, jeopardizing water availability across the City. Reservoir levels are projected to decline further, threatening residential water access and municipal supply systems. The impacts of drought disproportionately affect low-income communities and rural areas, where higher water bills and restricted access to clean water exacerbate existing economic vulnerabilities. Without proactive measures, the risk of desertification and water insecurity will continue to grow.
The frequency and intensity of heatwaves are projected to increase due to climate change.
The City’s urban landscape and high levels of impervious surfaces contribute to the urban heat island effect, where temperatures in developed areas are significantly higher.
Vulnerable populations such as seniors, individuals with disabilities, and low-income households face increased risks of heat-related illnesses due to limited access to air conditioning, inadequate colling infrastructure, and higher energy costs.
Describe the vulnerability of housing occupied by low- and moderate-income households to these risks.
Low- and moderate-income households are disproportionately affected by these hazards due to their limited financial capacity. Many of these households reside in poorly maintained homes that lack essential features such as modern insulation, fire-resistant materials, seismic retrofitting, or flood-proof construction. Moreover, these residents often live in multi-family rental housing which is more likely to be affected by heat stress, water shortages, and seismic risks.
City of Hawthorne – 111 – Consolidated Plan
Strategic Plan
SP-05 Overview
Overview
The Strategic Plan is a guide for the City of Hawthorne to establish its housing and community development priorities, strategies, and objectives for the investment of CDBG and HOME funds over the next five years, beginning July 1, 2025 and ending June 30, 2030.
The priority needs and goals established in this Strategic Plan (Plan) are informed by community input, including the Resident Survey, and an analysis of housing and community development data elements required by HUD in the online Consolidated Plan system (the eCon Planning Suite). Based on this assessment, the City has identified the following seven priority needs:
• Expand public services for low- and moderate-income residents • Improve public facilities and infrastructure
• Address material barriers to accessibility
• Preserve the supply of affordable housing
• Increase the supply of affordable housing
• Ensure equal access to housing opportunities
• Promote economic opportunities
Consistent with HUD’s national goals for the CDBG and HOME programs to provide decent housing opportunities, maintain a suitable living environment, and expand economic opportunities for low- and moderate-income residents, the priority needs listed above will be addressed over the next five years through the implementation of CDBG and HOME funded activities aligned with the following six measurable Strategic Plan goals:
• Public Services
• Public Facilities and Infrastructure Improvements
• Affordable Housing Preservation
• Affordable Housing Development
• Fair Housing Services
• Economic Development Opportunities
• Planning and Administration
City of Hawthorne – 112 – Consolidated Plan
SP-10 Geographic Priorities
Geographic Area
Target Area
1 Citywide
Table 52 - Geographic Priority Areas
General Allocation Priorities
Hawthorne has a diverse population and evolving community needs. As outlined in the Needs Assessment, the median household income in Hawthorne is $57,849. However, HUD’s Community Planning and Development (CPD) mapping system reveals that two Census Tracts within the City have a median household income of $45,610 or less. These lower-income Census Tracts are in the northwestern and east central part of the City. Given these findings, the City has developed an allocation strategy that balances citywide investments with targeted neighborhood restoration initiatives.
During the Consolidated Plan cycle, CDBG and HOME funding will be principally directed toward activities that serve low- and moderate-income residents citywide. While Hawthorne remains committed to ensuring all qualifying residents have access to these resources, it will also consider funding neighborhood-specific projects in areas where at least 51 percent of residents are low- and moderate-income.
Hawthorne’s funding strategy is designed to be both flexible and intentional. While the City recognizes the broad, citywide need for CDBG and HOME investments, it also acknowledges that certain neighborhoods face more severe housing and community development challenges than others. The City’s approach balances citywide resource allocation with targeted revitalization efforts to achieve the greatest possible impact.
Map 4 - Median Household Income
City of Hawthorne – 113 – Consolidated Plan
SP-25 Priority Needs
Priority Needs Summary
1 Priority Need
Name Expand public services for low- and moderate-income residents Priority Level High
Population Income Level: Extremely Low, Low, and Moderate Family Types: Families with Children, Elderly, and Public Housing Residents Non-Homeless Special Needs: Elderly, Frail Elderly, Persons with Disabilities, and Survivors of Domestic Violence
Homeless: Chronic Homelessness, Individuals, Families with Children, Mentally Ill, Chronic Substance Abuse, Veterans, Persons with HIV/AIDS, Survivors of Domestic Violence, and Unaccompanied Youth Geographic
Areas
Affected
Citywide / CDBG Eligible Areas
Associated
Goals Public Services
Description Hawthorne is home to 18,630 low- and moderate-income households, representing 66 percent of all households in the City. Additionally, 16 percent of the City’s population (13,464 residents) live below the federal poverty level, emphasizing the need for high quality public services that enhance quality of life and economic stability. Many vulnerable residents, including seniors, individuals with disabilities, survivors of domestic violence, and those experiencing homelessness, lack the resources and support necessary to maintain stable housing and achieve financial independence.
Basis for
Relative
Priority
Feedback from resident surveys and stakeholder consultations consistently identified expanding public services as a top priority. Addressing these service gaps will provide critical support for low- and moderate-income households, residents living in poverty, and individuals experiencing homelessness. 2 Priority Need
Name Improve public facilities and infrastructure
Priority Level High
Population Non-Housing Community Development
Geographic
Areas
Affected
CDBG Eligible Areas
Associated
Goals Public Facilities and Infrastructure Improvements Description The City’s Capital Improvement Plan (CIP) highlights the need for improved public facilities and infrastructure. Many low-income neighborhoods have deteriorated roads, outdated utilities, and inadequate public spaces.
Investments in community centers, parks, and senior facilities alongside improvements to sidewalks, streets, draining, and utility systems will enhance City of Hawthorne – 114 – Consolidated Plan
walkability, accessibility, and resilience to environmental hazards in underserved areas. Priority will be given to projects that primarily benefit lowand moderate-income residents, address the needs of homeless and special needs populations, or require critical renovations to continue servicing the community effectively.
Basis for
Relative
Priority
The need for public facility and infrastructure improvements is informed by the results of the resident survey, input received during the community meetings, and the City’s ongoing assessment of critical community facilities. 3 Priority Need
Name Address material barriers to accessibility
Priority Level High
Population Non-Homeless Special Needs: Elderly, Frail Elderly, and Persons with Disabilities
Geographic
Areas
Affected
Citywide
Associated
Goals Public Facilities and Infrastructure Improvements Description Many public buildings, sidewalks, and parks lack necessary accessibility features, making it difficult for seniors and people with disabilities to navigate the community. The Needs Assessment highlights that 7,914 individuals in Hawthorne have a disability, and 2,517 elderly households face accessibility challenges. Installing accessibility features such as ramps, widened doorways, and sensory aids will help residents live independently and participate fully in civic life.
Basis for
Relative
Priority
Addressing barriers to accessibility is rated as a high priority need for the City to ensure residents can age in place and access essential services. 4 Priority Need
Name Preserve the supply of affordable housing
Priority Level High
Population Income Level: Extremely Low, Low, and Moderate Geographic
Areas
Affected
Citywide
Associated
Goals Affordable Housing Preservation
Description The age and condition of the City’s housing stock is an important indicator of potential rehabilitation needs. As of 2020, approximately 36 percent of owneroccupied units exhibit at least one housing condition that requires attention, such as lacking complete kitchen or plumbing facilities, overcrowding, or cost burden. Compounding these challenges, over three quarters (78 percent) of the homeowner housing stock was built before 1980, increasing the likelihood of City of Hawthorne – 115 – Consolidated Plan
structural deficiencies, outdated electrical and plumbing systems, and leadbased paint hazards.
Moreover, the Needs Assessment revealed widespread housing cost burdens affecting 12,459 low- and moderate-income households, with the greatest challenge faced by 4,284 households that are severely cost burdened. Many low- and moderate-income households often lack the financial resources to address these deficiencies, leading to declining property conditions and potential displacement. The condition and aging nature of the housing stock emphasizes the critical need for rehabilitation programs that support homeowners in addressing deficiencies.
Basis for
Relative
Priority
The aging condition of Hawthorne’s housing stock presents both a challenge and an opportunity. Rehabilitation of existing housing is a cost-effective way to extend the lifespan of properties that are already affordable to low- and moderate-income homeowners, reduce health hazards, and improve residents’ quality of life. Housing preservation is rated as a high priority based on the demand for service reported by the City’s Housing Department. 5 Priority Need
Name Increase the supply of affordable housing
Priority Level High
Population Income Level: Extremely Low, Low, and Moderate Family Types: Large families, Families with Children, Elderly, and Public Housing Residents
Non-Homeless Special Needs: Elderly and Persons with Disabilities Geographic
Areas
Affected
Citywide
Associated
Goals Affordable Housing Development
Description Hawthorne’s housing market is characterized by limited inventory, rising demand, and increasing construction costs, all of which contribute to affordability challenges. From 2010 to 2020, median home values increased by 49 percent, from $404,900 to $602,100. To afford a home at this price point without experiencing cost burdens, a household would need an annual income of at least $165,000, assuming a 20 percent down payment of $120,420. This income threshold far exceeds what most Hawthorne residents earn, effectively locking them out of homeownership and increasing long-term reliance on rental housing. As home prices continue to rise, the opportunity to build generational wealth through homeownership diminishes, particularly for lowand moderate-income households, young families, and first-time homebuyers.
Additionally, the shortage of small, affordable units makes it difficult for singleperson households, small families, and seniors to find suitable homes. At the same time, large families struggle with overcrowding due to a lack of spacious City of Hawthorne – 116 – Consolidated Plan
housing options, and individuals with disabilities face barriers to securing homes with accessibility features. Addressing these challenges requires a comprehensive approach that includes expanding the diversity of housing types, increasing the supply of affordable units, and ensuring that new developments meet the needs of a broad range of residents.
Basis for
Relative
Priority
Feedback from residents and stakeholders consistently identifies the need for more affordable housing options. Developing affordable housing is a high priority to meet the growing demand.
6 Priority Need
Name Ensure equal access to housing opportunities
Priority Level High
Population Income Level: Extremely Low, Low, and Moderate Family Types: Large families, Families with Children, Elderly, and Public Housing Residents
Homeless: Rural, Chronic Homelessness, Individuals, Families with Children, Mentally Ill, Chronic Substance Abuse, Veterans, Persons with HIV/AIDS, Survivors of Domestic Violence, and Unaccompanied Youth Non-Homeless Special Needs: Elderly, Frail Elderly, Persons with Disabilities, Persons with Substance Use Disorders, and Survivors of Domestic Violence Geographic
Areas
Affected
Citywide
Associated
Goals Fair Housing Services
Description The City of Hawthorne is committed to affirmatively furthering fair housing by ensuring equal access to housing opportunities. This includes providing counseling on fair housing rights, monitoring for discriminatory practices, and advocating on behalf of residents seeking reasonable accommodations.
Basis for
Relative
Priority
Ensuring equal access to housing is a federal requirement and a high priority for Hawthorne. The City will certify compliance with HUD’s fair housing requirements in each Annual Action Plan.
7 Priority Need
Name Promote economic opportunities
Priority Level High
Population Income Level: Extremely Low, Low, and Moderate Geographic
Areas
Affected
Citywide; Slum and Blight Target Areas
Associated
Goals Economic Development Opportunities
Description Hawthorne’s commercial corridors include a significant number of aging storefronts and commercial properties that exhibit signs of deterioration, outdated building facades, and deferred maintenance. These conditions can City of Hawthorne – 117 – Consolidated Plan
negatively affect the visual quality and economic vitality of the City’s business districts, discouraging investment and reducing the ability of small businesses to attract customers. At the same time, many of Hawthorne’s commercial corridors serve neighborhoods with a high concentration of low- and moderateincome residents who rely on these businesses for employment opportunities, goods, and services.
To address these challenges, the City intends to utilize CDBG funds to implement programs that support façade and exterior improvements to commercial properties, particularly within areas where conditions of deterioration or blight have been identified. Improvements may include rehabilitation of storefront facades, exterior repairs, accessibility upgrades, and other enhancements that improve the appearance, safety, and functionality of commercial buildings.
These investments are intended to eliminate visible signs of blight, improve the overall attractiveness of commercial corridors, and encourage private reinvestment. By strengthening the physical condition and marketability of existing businesses, the City seeks to support economic activity, enhance neighborhood-serving retail areas, and create an environment that attracts customers and promotes long-term economic opportunities for residents.
Basis for
Relative
Priority
Commercial façade improvements were identified as a high priority based on feedback from the local business community and the City’s interest in strengthening neighborhood commercial districts beyond the downtown core.
By addressing conditions that contribute to blight and enhancing the physical environment of commercial corridors, the City can leverage CDBG resources to support local economic development, improve access to goods and services, and create a more vibrant commercial environment that benefits low- and moderate-income residents.
Table 53 – Priority Needs Summary
City of Hawthorne – 118 – Consolidated Plan
SP-30 Influence of Market Conditions
Influence of Market Conditions
Affordable Housing Type Market Characteristics that will Influence the Use of Funds Available for Housing Type
Tenant-Based Rental
Assistance (TBRA)
The City of Hawthorne will use its HOME funds to focus on housing preservation activities as well as increasing the supply of affordable housing units with long-term affordability covenants. Given the limited funding available, the City does not plan to utilize HOME funds for TBRA. However, homeless prevention rental assistance and emergency subsistence payments shall be provided with CDBG funds.
TBRA for Non-Homeless
Special Needs
Hawthorne will use its HOME funds to focus on increasing the supply of affordable housing units with long-term affordability covenants, as well as for housing preservation activities. To address special needs populations such as seniors, disabled residents, persons with substance use disorders, and survivors of domestic violence, the City will encourage affordable housing developers to examine the feasibility of setting aside units or partnering with service providers to address nonhomeless special needs as a component of affordable housing.
New Unit Production
As home values continue to rise faster than income levels, housing affordability challenges are projected to persist. Due to the high cost of housing, the City plans to invest HOME funds to support the production of new affordable housing to address the increasing shortage of units for low- and moderate-income households. The Needs Assessment and Market Analysis confirm that housing production in Hawthorne has failed to keep pace, creating affordability challenges and driving up prices. To address these concerns, investments will focus on a blend of infill development and new construction aimed at expanding the diversity of housing types, increasing the overall supply of affordable units, and ensuring new developments align with the evolving housing needs of residents.
Rehabilitation
Hawthorne will use HOME funds to rehabilitate existing affordable housing to ensure that aging properties occupied by low- and moderate-income households remain safe and habitable. These needs are particularly acute for low- and moderate-income households who often lack the financial means to repair and improve their homes.
Preservation of the physical and functional integrity of existing housing stock provides a cost-effective way to retain housing units that are already affordable to low- and moderate-income households. Through housing rehabilitation programs, the City can prevent further deterioration, extend the lifespan of properties, and enhance the quality of life for residents.
City of Hawthorne – 119 – Consolidated Plan
Acquisition, including
Preservation
The City will support Community Based Development Organizations (CBDOs) and Community Housing Development Organizations (CHDOs) in acquiring and rehabilitating existing properties to preserve its affordable housing stock. Rising property values and increased investor interest have heightened the risk of affordable units converting to market-rate housing, reducing options for low- and moderate-income residents.
By leveraging CDBG and HOME funds for strategic acquisitions and preservation, the City aims to retain long-term affordability, stabilize vulnerable neighborhoods, prevent displacement of existing residents, and ensure that affordable housing stock remains accessible to lowerincome households.
Table 54 – Influence of Market Conditions
City of Hawthorne – 120 – Consolidated Plan
SP-35 Anticipated Resources
Introduction
During the five-year period of the Consolidated Plan, the City of Hawthorne anticipates investing approximately $10.5 million of CDBG and HOME funds to achieve the goals outlined in this Strategic Plan. It is important to note that the City’s annual allocation of CDBG and HOME funds are subject to change based on federal budget appropriations and shifts in demographic data used in HUD’s funding formulas.
For the 2025-2026 program year, the City anticipates receiving approximately $1,149,498 in CDBG funds and $492,254.25 in HOME funds. When combined with program income and available prior year resources, the 2025-2026 Action Plan will allocate a total of $1,349,498 in CDBG funds and $2,360,062.64 in HOME funds to support the following eligible activities to be implemented from July 1, 2025 through June 30, 2026.
City of Hawthorne – 121 – Consolidated Plan
Anticipated Resources
Source
of Funds Uses of Funds
Expected Amount Available Year 1 Expected
Amount
Available
Remainder of
Con Plan: $
Narrative Description Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
$1,149,498.00 $0.00 $200,000.00 $1,349,498.00 $4,597,992.00 The expected amount
available for the remainder
of the Consolidated Plan
period assumes level
funding in future years.
HOME
Acquisition
Homeowner Rehab
Multifamily Rental Rehab
New Construction for
Ownership
$492,254.25 $0.00 $1,867,808.39 $2,360,062.64 $1,969,017.00 The expected amount
available for the remainder
of the Consolidated Plan
period assumes level
funding in future years.
Section
108 Public Improvements $5,889,000.00 $0.00 $0.00 $5,889,000.00 $0.00 The expected amount
available for the remainder
of the Consolidated Plan
assumes one-time use and
availability.
City of Hawthorne – 122 – Consolidated Plan
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.
As a City with substantial housing and community development needs, Hawthorne understands that it may be advantageous for the City to use CDBG and HOME funds to leverage appropriate federal, state, local, and private resources, including but not limited to those listed below:
Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs Supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• YouthBuild
• Federal Low-Income Housing Tax Credit (LIHTC) Program • HUD Community Project Funding (CPF)
• HUD Section 108 Loan Guarantee
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • Permanent Local Housing Allocation (PLHA)
• CalHome Program
• Multifamily Housing Program (MHP)
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
• Justice Assistance Grant (JAG) Program
• Homeless Emergency Aid Program (HEAP)
• Project Roomkey
Local Resources
• Los Angeles County Development Agency (LACDA)
• Los Angeles Homeless Services Authority (LAHSA)
• Southern California Home Financing Authority (SCHFA)
• General fund
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way
• Private Contributions
City of Hawthorne – 123 – Consolidated Plan
HOME Match Requirements
Under federal HOME regulations, the City of Hawthorne must contribute a 25 percent local match to HOME-funded projects. However, HUD allows match reductions for local jurisdictions that meet one of the distress criteria.
For Fiscal Year 2023, Hawthorne was identified as fiscally distressed and received a 50 percent reduction in match requirements, thereby lowering the required match to 12.5 percent of HOME funds expended. While match reductions are recalculated annually, the City anticipates this match reduction status will continue through the Consolidated Plan period. The City will meet its HOME match requirement with other non-federal resources.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.
As of the preparation of this Consolidated Plan, there is currently no publicly owned land or property that may be used to address the needs identified in this plan. Since Hawthorne is predominantly built out, there is nominal vacant land remaining to accommodate new development. As such, the City will explore opportunities to acquire nonvacant sites with CDBG, HOME, and other funding sources that are suitable for redevelopment that can be appropriately scaled to meet the needs identified.
Discussion
Hawthorne anticipates investing approximately $10.5 million in CDBG and HOME funds during the Consolidated Plan period to enhance public services, expand and preserve the supply of affordable housing, and improve public facilities and infrastructure. These funds will be strategically leveraged with federal, state, local, and private resources to maximize the impact of these initiatives.
City of Hawthorne – 124 – Consolidated Plan
SP-40 Institutional Delivery Structure
Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions.
The City of Hawthorne will carry out its Consolidated Plan through a well-coordinated institutional delivery system that includes public institutions, nonprofit organizations, and private entities. This system is structured to ensure the effective use of HUD funds to address the high priority needs of low- and moderate-income residents.
Responsible Entity Responsible Entity Type Role Geographic Area Served
City of Hawthorne Government
Affordable housing
Homelessness
Non-homeless special
needs
Community development
Planning
Jurisdiction
Los Angeles County
Development
Authority (LACDA)
PHA Public housing
Affordable housing Region
Los Angeles
Homeless Services
Authority (LAHSA)
CoC Homelessness Region
Fair Housing
Foundation Non-profit organization Affordable housing Jurisdiction Catholic Charities of
Los Angeles Non-profit organization Public services Jurisdiction Family Promise of the
South Bay Non-profit organization Homelessness Jurisdiction New Star Family
Center Non-profit organization Non-homeless special needs Jurisdiction South Bay Workforce
Investment Board Non-profit organization Public services Jurisdiction The Richstone Family
Center Non-profit organization Non-homeless special needs Jurisdiction Table 55 – Institutional Delivery Structure
Assess of Strengths and Gaps in the Institutional Delivery System Hawthorne’s institutional delivery system is highly collaborative, well-structured, and equipped with experienced public and private sector partners. One of the key strengths of the system is the diverse network of service providers capable of leveraging CDBG and HOME funds to address affordable housing, public service, and community development needs. The Los Angeles County Development Authority (LACDA) and nonprofit partners ensure that residents have access to rental assistance, homeownership opportunities, and supportive housing programs. The Housing Department coordinates resources to assist City of Hawthorne – 125 – Consolidated Plan
homeless individuals and families, while various City departments work together to implement public facility and infrastructure improvement projects.
Despite these strengths, gaps remain in the delivery system. The most significant challenge is the limited availability of financial resources. Federal funding allocations for CDBG and HOME are insufficient to fully address local housing and community development needs.
Availability of services targeted to homeless persons and persons with HIV and mainstream services.
Homelessness Prevention
Services
Available in the
Community
Targeted to
Homeless
Targeted to People
with HIV
Homelessness Prevention Services
Counseling/Advocacy X X
Legal Assistance X X
Mortgage Assistance X
Rental Assistance X X
Utilities Assistance X X
Street Outreach Services
Law Enforcement X
Mobile Clinics X X
Other Street Outreach
Services X X
Supportive Services
Alcohol & Drug Abuse X X
Child Care X
Education X
Employment and
Employment Training X X
Healthcare X X
HIV/AIDS
Life Skills X
Mental Health Counseling X X
Transportation X
Table 56 – Homeless Prevention Services Summary
City of Hawthorne – 126 – Consolidated Plan
Describe how the service delivery system including, but not limited to, the services listed above meet the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) The City of Hawthorne works closely with local nonprofits and regional service providers to ensure that homeless individuals, families, and persons with HIV/AIDS have access to housing assistance, supportive services, and case management. Homelessness prevention services such as rental assistance are available and target both homeless individuals and those at risk of homelessness.
However, there are gaps in services, particularly in street outreach and emergency housing.
While nonprofits conduct outreach to connect unsheltered individuals with available resources, there is a lack of healthcare services targeted to individuals with HIV/AIDS, and few on-demand emergency shelter options for families and unaccompanied youth.
To improve service delivery, the City will continue working with its partners to expand housing-first programs, increase emergency shelter capacity, and strengthen outreach initiatives to connect individuals with available support services.
Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness
Hawthorne’s institutional delivery system effectively supports homeless individuals, special needs populations, and low-income residents through a network of service providers offering case management, housing assistance, and supportive services. The City prioritizes programs that address the needs of chronically homeless individuals, families with children, veterans, and unaccompanied youth.
Service providers conduct direct outreach to homeless populations to ensure they are connected to housing programs and mainstream benefits. In partnership with the County, the City funds rental assistance programs for those most at risk of homelessness.
One of the most pressing challenges is the lack of emergency and transitional housing options. The existing shelter system does not have enough capacity to serve all individuals in need, particularly families with children and unaccompanied youth. Limited funding for public services also restricts the City's ability to expand supportive housing programs and case management services. To address these gaps, the City is seeking additional funding sources, strengthening partnerships, and exploring innovative housing solutions.
Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs To enhance the effectiveness of the institutional delivery system and address service gaps, the City will pursue strategies to better meet the needs of residents. Through leveraged investments and strategic partnerships, the City aims to enhance housing stability, service accessibility, and overall quality of life for its most vulnerable residents. By continuously evaluating and adapting its strategies, Hawthorne will work toward building a more effective and well-funded system.
City of Hawthorne – 127 – Consolidated Plan
SP-45 Goals Summary
Goals Summary Information
Goal Name Start
Year
End
Year Category Needs Addressed Funding Goal Outcome Indicator 1 Public Services 2025 2030
Non-Housing
Community
Development
Expand public services for LMI
residents CDBG: $862,120.00
Public service activities other than
Low/Mod Income Housing
Benefit:
1,525 Persons Assisted
2 Public Facilities &
Infrastructure
Improvements
2025 2030
Non-Housing
Community
Development
Improve public facilities and
infrastructure
Address material barriers to
accessibility
CDBG: $3,000,000
S 108: $5,889,000.00
Public facility or infrastructure
activities other than Low/Mod
Income Housing Benefit:
125,000 Persons Assisted
Repayment of Section 108 Loan -
Other: 5
3 Affordable Housing
Preservation 2025 2030 Affordable Housing
Preserve the supply of
affordable housing
HOME: $1,800,000.00
Homeowner housing
rehabilitated:
50 Households / Housing Units
4 Affordable Housing
Development 2025 2030
Affordable
Housing
Increase the supply of
affordable housing HOME: $2,282,954.64
Construction or
Acquisition/Rehabilitation of New
Owner-Occupied Units:
2 Households / Housing Units
Construction or Rehabilitation of
Rental Units:
2 Households / Housing Units
5 Fair Housing Services 2025 2030 Affordable
Housing
Ensure equal access to housing
opportunities CDBG: $150,000.00 Other: 1,250 Persons Assisted 6 Planning &
Administration 2025 2030 All All CDBG: $999,495.00 Other: 5 City of Hawthorne – 128 – Consolidated Plan
HOME: $246,125.00 Other: 5
7 Economic Development
Opportunities 2025 2030 Economic Development
Promote economic
opportunities CDBG: $935,875.00 Businesses Assisted: 4
City of Hawthorne – 129 – Consolidated Plan
Goal Descriptions
1 Goal Name Public services
Goal
Description
Provide low- and moderate- income residents with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty. 2 Goal Name Public facilities and infrastructure improvements Goal
Description
Improve public facilities and infrastructure to benefit residents of predominantly low- and moderate-income areas or those presumed under HUD regulations to be low- and moderate-income such as elderly and disabled adults. Where it is possible, improvements will remove material and architectural barriers to accessibility. This also includes repayment of Section 108 Loan.
3 Goal Name Affordable housing preservation
Goal
Description
Preserve the quality of existing owner-occupied housing units through rehabilitation including lead-based paint education, inspection, testing and abatement. Where appropriate, energy efficiency improvements and conservation measures will be implemented to increase sustainability and reduce monthly household utility costs to promote long-term affordability. 4 Goal Name Affordable housing development
Goal
Description
Increase the supply of affordable housing and promote homeownership opportunities for low- and moderate-income individuals, families, residents with special needs, and persons experiencing homelessness. 5 Goal Name Fair housing services
Goal
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services.
6 Goal Name Planning and Administration
Goal
Description
Provide for the timely and compliant administration of the CDBG and HOME programs in accordance with HUD policy and federal regulations. 7 Goal Name Economic Development Opportunities
Goal
Description
Improve the condition of Hawthorne’s commercial corridors by addressing deteriorating storefronts and other visible signs of blight. Through targeted façade improvements and exterior rehabilitation activities, the City will support neighborhood-serving businesses, encourage reinvestment, and enhance economic opportunities for low- and moderate-income residents.
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2) Hawthorne anticipates providing affordable housing to 54 low- and moderate-income households through the following activities:
• Homeowner Housing Rehabilitation Program - $1,800,000.00 in HOME funds (50 households / housing units)
• Affordable Housing Development - $2,282,954.64 in HOME funds (4 households / housing units)
City of Hawthorne – 130 – Consolidated Plan
SP-50 Public Housing Accessibility and Involvement
Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement)
Not applicable.
Activities to Increase Resident Involvements
The Hawthorne Housing Authority (HA) encourages residents involvement and actively seeks input from residents on the management and implementation of HA policies and procedures. Additionally, LACDA supports resident councils to participate in the decision making process via surveys and other forms of engagement.
LACDA currently administers the Family Self-Sufficiency (FSS) program for public housing residents and Housing Choice Voucher (HCV) program participants. The FSS program provides critical tools and supportive services to foster a resident’s transition from financial and housing assistance to economic and housing self-sufficiency, most importantly homeownership. To support this effort, HHA and LACDA utilize marketing materials to outreach and further promote the program’s requirements and benefits to all public housing residents. For families that are eligible to participate, a Contract of Participation (COP) is prepared to govern the terms and conditions of their participation and an Individual Training Service Plan (ITSP) is created that outlines the following: supportive services to be provided, activities to be completed by the participant, and agreed upon completion dates for the services and activities. The COP is valid for five years and may be extended to allow the family to meet their ITSP goals.
Once the COP is established and the family experiences an increase in tenant rent as a result of earned income, an escrow account in their name is established and increased earned income is deposited into this account. Escrow accounts are disbursed to the family once the family has graduated successfully from the program. Families are encouraged to utilize these funds towards educational and homeownership endeavors.
Is the public housing agency designated as troubled under 24 CFR part 902? No.
Plan to remove the ‘troubled’ designation
Not applicable.
City of Hawthorne – 131 – Consolidated Plan
SP-55 Barriers to Affordable Housing
Barriers to Affordable Housing
A barrier to affordable housing is a public policy or regulation that constrains the development and preservation of affordable housing such as tax policy, land use controls, zoning ordinances, building codes, growth limits, environmental protection, and fees.
Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.
Based on resident feedback, the primary barriers to affordable housing in Hawthorne are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply, and insufficient resources are available to increase the supply of affordable housing to meet demand.
For low- and moderate-income households, finding and maintaining decent affordable housing is difficult due to the high cost of housing. Based on the Needs Assessment and Market Analysis, there is a high need for housing units affordable for low- and moderateincome households. Approximately 67 percent of the City’s low- and moderate-income households experience a cost burden, meaning that they pay more than 30 percent of their income for housing. Consistent with available data, responses to the Resident Survey indicate a high need for additional affordable housing in Hawthorne.
Beyond affordability, the 2021-2029 Housing Element’s Assessment of Fair Housing identifies the following challenges that impact access to affordable housing in Hawthorne:
• Land use and zoning laws: Through its approach to accommodating the RHNA, which includes increasing density in the Mixed-Use district of the Downtown Hawthorne Specific Plan, introducing a Housing Overlay, and rezoning an area from M-1 Limited Industrial to R-3 High Density Residential, the City of Hawthorne will also address changes to zoning laws that will affirmatively further fair housing. The changes will allow for new mixed-use development at densities not previously permitted in the Specific Plan area (making affordable housing development more feasible) and allow for residential development where residential development was not previously permitted. These efforts will accommodate new growth at key locations near transportation corridors and activity centers where jobs and housing can be located close together.
• Displacement of residents due to economic pressures: Displacement of residents due to economic pressures is a significant contributing factor to fair housing issues in Los Angeles County, particularly in areas that have historically had concentrations of low-income Hispanic residents. While gentrification has not historically been a problem in Hawthorne, the areas perhaps most vulnerable to gentrification and City of Hawthorne – 132 – Consolidated Plan
displacement in the City are disadvantaged areas located near major transit assets and activity centers.
• Lack of access to opportunity due to high housing costs: Lack of access to opportunity due to high housing costs is a significant contributing factor to fair housing issues in Los Angeles County and in Hawthorne. The City has High Resource areas that are densely developed with single-family dwellings and properties with two detached dwellings, which often makes redevelopment of higher density housing in these areas economically infeasible since land would need to be assembled, existing housing demolished, and residents relocated. In addition, Hawthorne’s non-White residents are particularly impacted by limited access to opportunity. The City plans to accommodate new residential development throughout the community, including in mixed-use areas where jobs, housing, and goods and services can be located close together. Increasing housing affordability will make it easier for low-income households to access the types of services and amenities that further social mobility.
Strategy to Remove or Ameliorate the Barriers to Affordable Housing To address housing affordability and the lack of monetary resources for affordable housing, this Strategic Plan calls for the investment of a significant portion of CDBG and HOME funds to preserve 50 existing housing units and develop 2 new affordable housing units affordable to low- and moderate-income households over the next five years.
Hawthorne is also committed to increasing the supply of affordable housing via other means. In recent years, the City approved a density bonus for the Rosecrans/Kornblum development which is anticipated to result in a total of 100 rental units, eight of which will be restricted for very low-income households, and 15 to be made affordable for moderateincome households. Additionally, the City has entered into a Development and Disposition Agreement (DDA) with Century Housing Corporation for the Cordary project to develop 18 Permanent Supportive Housing (PSH) units to address the needs of veterans.
Strengthening Fair Housing Protections
To address fair housing concerns, particularly regarding discrimination against individuals with disabilities, the City will:
• Increase public awareness of fair housing laws through outreach efforts, including multilingual educational materials, targeted informational campaigns, and updates to the City’s website and community centers.
• Strengthen enforcement efforts by coordinating with the Fair Housing Foundation (FHF) to monitor fair housing violations, particularly in high-risk areas. • Provide resources for landlords to ensure compliance with reasonable accommodation requirements and disability access laws.
City of Hawthorne – 133 – Consolidated Plan
• Additionally, the City will integrate affirmative marketing strategies to promote Housing Choice Vouchers in high-opportunity areas and encourage visit ability in new ADU construction to ensure greater accessibility.
Improving Access to Economic Opportunities
To address disparities in access to economic and educational opportunities, the City will:
• Strengthen regional collaboration for transit-oriented development, improving access to jobs and services near major transit hubs.
• Increase investment in disadvantaged communities, targeting infrastructure, public services, and recreational amenities to improve quality of life in historically underserved areas.
• Encourage workforce development through partnerships with South Bay Workforce Investment Board, local businesses, and economic development organizations to expand job training programs and employment opportunities.
Enhancing Mobility and Housing Choice
To ensure low-income residents have access to a diverse range of housing options, Hawthorne will:
• Promote Housing Choice Vouchers by providing outreach to property owners in moderate- and high-opportunity areas, encouraging them to participate in the program.
• Streamline development approvals for affordable housing projects to expedite construction and reduce regulatory barriers.
• Ensure zoning and land use policies facilitate diverse housing options across the city.
City of Hawthorne – 134 – Consolidated Plan
SP-60 Homeless Strategy
Introduction
Preventing and reducing homelessness is a HUD priority addressed regionally through the coordination of strategies carried out locally by government agencies, community-based organizations, and faith-based groups.
Consistent with this approach, the City continues to support the efforts of the CoC and its member organizations that address homelessness throughout the region. The City will use CDBG, HOME, and other resources to support service providers that conduct street outreach, provide rapid re-housing assistance, prevent homelessness through rental assistance, and to preserve and expand the supply of affordable housing throughout the jurisdiction.
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Street outreach activities implemented by local service providers is a means to identify and bring forward individuals that are generally the least likely to seek out services. Street outreach plays a critical role throughout the City by connecting homeless residents with housing and support services. To more rapidly identify and assess people experiencing homelessness, the CoC adopted the national best-practice coordinated intake and assessment model to more effectively connect individuals and families experiencing homelessness or at-risk of homelessness to appropriate services and housing interventions. Through dynamic prioritization, collaborative coordination, intentional resource utilization, and regional service planning area prioritization, the Coordinated Entry System (CES) facilitates the referral process to ensure residents are directed to the appropriate CoC service provider.
Addressing the emergency and transitional housing needs of homeless persons The CES uses a standardized assessment process to assist in determining homelessness, vulnerability, strengths, barriers, and other criteria related to eligibility for housing programs. The standardized CES assessment process is consistent across all access points including street outreach teams. Through this process, individuals and families are assessed and referred to the most appropriate resource based on the outcome of their assessment. During this Consolidated Plan cycle, the City will explore opportunities to increase capacity at emergency shelters and transitional housing programs to address these needs.
City of Hawthorne – 135 – Consolidated Plan
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.
In support of CoC efforts, this Strategic Plan provides for the use of CDBG funds to support activities implemented by local nonprofit organizations that provide services to help prevent and reduce homelessness, including families at risk of homelessness, veterans, survivors of domestic violence, and emancipated foster youth. The City will also leverage HOME funds to expand the supply of affordable housing, including permanent supportive housing units for chronically homeless individuals and families.
Implementation of CES over the past five years has shortened the period that individuals and families experience homelessness. The City of Hawthorne’s strategic approach is to support regional efforts to prevent and reduce homelessness by focusing on affordable housing development and supporting service providers that fill vital gaps in the continuum of services necessary to keep people stably housed.
Help low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families who are likely to become homeless after being discharged from a publicly funded institution or system of care, or who are receiving assistance from public and private agencies that address housing, health, social services, employment, education or youth needs.
The strategies discussed above will help low-income individuals and families avoid becoming homeless. The CDBG program will fund public service programs aimed at preventing and reducing homelessness.
City of Hawthorne – 136 – Consolidated Plan
SP-65 Lead-based Paint Hazards
Actions to address LBP hazards and increase access to housing without LBP hazards The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. This strategy requires the City to implement programs that protect children living in older housing from lead hazards.
Over two thirds of the City’s housing stock (71 percent) was built before 1980, when the use of lead-based paint was outlaws, meaning that residents of these homes are at risk of lead-based paint hazards. In these units, the best way to have reasonable assurance that lead-based paint hazards are not present is to have the painted surfaces tested.
According to the City’s Housing Rehabilitation Program, a typical lead-based paint screening survey costs approximately $650. To reduce lead-based paint hazards, the City takes the following actions:
• Include lead testing and abatement procedures if necessary in all residential rehabilitation activities for units built prior to January 1, 1978. • Educate residents on the health hazards of lead-based paint through the use of brochures and encourage screening children for elevated blood-lead levels. • Disseminate brochures about lead hazards through the City’s residential rehabilitation activities.
How are the actions listed above related to the extent of lead poisoning and hazards? Over time through testing and abatement, monitoring of public health data, and through public education, the public will have greater awareness of the hazards of lead-based paint to children. This will prompt homeowners, landlords, and parents of young children to proactively address unsafe housing conditions in pre-1978 units where children may potentially be exposed to lead-based paint hazards.
How are the actions listed above integrated into housing policies and procedures? The City’s Housing Rehabilitation Program Guidelines require the dissemination of brochures provided by the U.S. Environmental Protection Agency to all applicants as part of the transmittal of the program application. Any unit receiving assistance through the program that was built prior to January 1, 1978 is tested for lead-based paint. If lead-based paint is present, appropriate abatement procedures are implemented as part of the rehabilitation contract consistent with the requirements of 24 CFR Part 35.
City of Hawthorne – 137 – Consolidated Plan
SP-70 Anti-Poverty Strategy
Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families To meaningfully address this challenge, each of the goals included in the Strategic Plan is aligned to support activities that promote the availability of affordable housing and provide essential services that directly benefit low- and moderate-income residents. In the implementation of the Strategic Plan, the City will prioritize funding for activities that most effectively address these goals over the next five years. This strategy will emphasize using CDBG and HOME funds to help individuals and families rise out of poverty to long-term self-sufficiency.
The implementation of CDBG and HOME activities meeting the goals established in this Strategic Plan will help to reduce the number of poverty-level families by:
• Providing public services designed to address the needs of low- and moderateincome residents to ameliorate the effects of poverty • Improving public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD regulations to be low- and moderateincome such as the elderly and disabled adults • Supporting activities that preserve the existing housing stock and expand the supply of housing that is affordable to low- and moderate-income households How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan?
The goals of this Strategic Plan are aligned to benefit low- and moderate-income residents and to reduce the number of poverty-level families. For example, the affordable housing development goal will include activities that provide additional housing options for extremely low- and low-income households. The affordable housing preservation goal will include activities targeted at families who own their residence but lack the resources to address emergency repairs or maintain the property in compliance with City codes and standards. Addressing substandard or emergency housing conditions allows low- and moderate-income families to maintain housing stability while also guaranteeing that all economic segments of the community live in decent housing. The public services goal will include funding for activities targeted at families in poverty and other low- and moderateincome households with specific service needs. Providing this range of targeted services ensures children, families, seniors, and residents with special needs have the appropriate support and resources to thrive in Hawthorne.
City of Hawthorne – 138 – Consolidated Plan
SP-80 Monitoring
Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements To ensure that CDBG and HOME funds are used efficiently and in compliance with applicable regulations, the City provides technical assistance to all subrecipients at the beginning of each program year and monitors subrecipients throughout the program year.
Technical Assistance
To enhance compliance with federal program regulations, the City provides an annual Notice of Funding Availability (NOFA) workshop to review the Plan goals, program requirements and available resources with potential applicants. Subsequent to the approval of the Annual Action Plan, a mandatory subrecipient workshop is held to review program regulations in detail, to provide useful forms and resources for documenting compliance and to review the City’s compliance procedures and requirements.
Additionally, individualized technical assistance is provided on an as-needed basis throughout a program year.
Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to determine eligibility, conformance with a National Objective and conformance with a Plan goal. This review also examines the proposed use of funds, eligibility of the service area, eligibility of the intended beneficiaries and likelihood of compliance with other federal requirements such as the National Environmental Policy Act, the System for Award Management (SAM) debarment list, prevailing wage, Minority and Women Business Enterprise, Section 3 and federal acquisition and relocation regulations, as applicable.
Subrecipients are required to submit an audit and other documentation to establish their capacity, and any findings noted in the audit are reviewed with the applicant. Eligible applications are then considered for funding. Once funded, desk monitoring includes ongoing review of required quarterly performance reports. For CDBG public service activities, an on-site monitoring is conducted once every two (2) years, or more frequently as needed to ensure compliance. These reviews include both a fiscal and programmatic review of the subrecipient’s activities. The reviews determine if the subrecipient is complying with the program regulations and City contract. Areas routinely reviewed include overall administration, financial systems, appropriateness of program expenditures, program delivery, client eligibility determination and documentation, reporting systems, and achievement toward achieving contractual goals. Following the monitoring visit, a written report is provided delineating the results of the review and any findings of non-compliance and the required corrective action. Subrecipients normally City of Hawthorne – 139 – Consolidated Plan
have 30 days to provide the City with corrective actions taken to address any noted findings.
Individualized technical assistance is provided, as noted above, as soon as compliance concerns are identified. For CDBG capital projects, monitoring also includes compliance with regulatory agreement requirements. For HOME funded activities, annual monitoring is undertaken to ensure that for renter occupied units, household income, rents and utility allowances are in compliance with applicable limits pursuant to the affordability covenant.
For ownership units, annual monitoring of occupancy is conducted throughout the affordability period.
City of Hawthorne – 140 – Consolidated Plan
Action Plan
AP-15 Expected Resources
Introduction
The projects and activities included in the 2025-2026 Action Plan are based on resources that are reasonably anticipated to be available to the City from July 1, 2025, through June 30, 2026. The actual resources available to support activities during the implementation of the remainder of the 2025-2029 Consolidated Plan may vary significantly due to factors outside of the City's control. For example, HUD formula grant allocations are subject to change each year based on several factors such as the amount of the national appropriation, changes in ACS population data applied to the CPD grant formulas, statutory changes to the grant programs, the addition or removal of entitlements receiving a particular grant, and the availability of reallocated funds.
For the 2025-2026 program year, the City anticipates receiving approximately $1,149,498 in CDBG funds and $492,254.25 in HOME funds. When combined with program income and available prior year resources, the 2025-2026 Action Plan will allocate a total of $1,349,498 in CDBG funds and $2,360,062.64 in HOME funds to support the following eligible activities to be implemented from July 1, 2025 through June 30, 2026.
City of Hawthorne – 141 – Consolidated Plan
Anticipated Resources
Program Source
of Funds Uses of Funds
Expected Amount Available Year 1 Expected
Amount
Available
Remainder of
ConPlan:
$
Narrative Description Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG Public –
federal
Admin and Planning
Housing
Public Improvements
Public Services
$1,149,498.00 $0.00 $200,000.00 $1,349,498.00 $4,597,992.00 The expected amount
available for the remainder
of the Consolidated Plan
period assumes level
funding in future years.
HOME Public –
federal
Acquisition
Homeowner Rehab
New Construction for
Ownership
$492,254.25 $0.00 $1,867,808.39 $2,360,062.64 $1,969,017.00 The expected amount
available for the remainder
of the Consolidated Plan
period assumes level
funding in future years.
Section 108 Public –
federal Public Improvements $5,889,000.00 $0.00 $0.00 $5,889,000.00 $0.00 The expected amount
available for the remainder
of the Consolidated Plan
assumes one-time use and
availability.
Table 57 - Expected Resources – Priority Table
City of Hawthorne – 142 – Consolidated Plan
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied As a jurisdiction with substantial housing and community development needs, Hawthorne needs to leverage its CDBG and HOME entitlement grants with a variety of funding resources in order to maximize the effectiveness of available funds.
Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs Supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• YouthBuild
• Federal Low-Income Housing Tax Credit (LIHTC) Program • HUD Community Project Funding (CPF) Program
• HUD Section 108 Loan Guarantee
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • Permanent Local Housing Allocation (PLHA)
• CalHome Program
• Multifamily Housing Program (MHP)
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
• Justice Assistance Grant (JAG) Program
• Homeless Emergency Aid Program (HEAP)
• Project Roomkey
Local Resources
• Los Angeles County Development Agency (LACDA)
• Los Angeles Homeless Services Authority (LAHSA)
• Southern California Home Financing Authority (SCHFA)
• General fund
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way
• Private Contributions
City of Hawthorne – 143 – Consolidated Plan
HOME Match Requirements
Under federal HOME regulations, the City of Hawthorne must contribute a 25 percent local match to HOME-funded projects. However, HUD allows match reductions for local jurisdictions that meet one of the distress criteria.
For Fiscal Year 2023, Hawthorne was identified as fiscally distressed and received a 50 percent reduction in match requirements, thereby lowering the required match to 12.5 percent of HOME funds expended. While match reductions are recalculated annually, the City anticipates this match reduction status will continue through the Consolidated Plan period. The City will meet its HOME match requirement with other non-federal resources.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
As of the preparation of this Consolidated Plan, there is currently no publicly owned land or property that may be used to address the needs identified in this plan. Since Hawthorne is predominantly built out, there is nominal vacant land remaining to accommodate new development. As such, the City will explore opportunities to acquire nonvacant sites with CDBG, HOME, and other funding sources that are suitable for redevelopment that can be appropriately scaled to meet the needs identified.
Discussion
During the 2025-2026 Program Year, the City anticipates that these funds will be leveraged with other public and private funding. Along with leveraged dollars, the City expects to invest approximately $1,349,498 of CDBG and $2,360,062.64 of HOME funds during the program year on public services, housing preservation and development, as well as public facility and infrastructure improvement activities that promote suitable living environments and decent housing.
City of Hawthorne – 144 – Consolidated Plan
AP-20 Annual Goals and Objectives
Goals Summary Information
Goal Name Start
Year
End
Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Public Services 2025 2026
Non-Housing
Community
Development
Citywide &
CDBG Eligible
Areas
Expand public services for
LMI residents CDBG: $172,424.00
Public service activities other than
Low/Mod Income Housing Benefit:
305 Persons Assisted
2 Public Facilities &
Infrastructure
Improvements
2025 2026
Non-Housing
Community
Development
Citywide &
CDBG Eligible
Areas
Improve public facilities
and infrastructure
Address material barriers to
accessibility
CDBG: $947,175.00
Public facility or infrastructure
activities other than Low/Mod Income
Housing Benefit:
9,930 Persons Assisted
Repayment of Section 108 Loan
Guarantee: 1
S108: $5,889,000.00
Public facility or infrastructure
activities other than Low/Mod Income
Housing Benefit:
80,685 Persons Assisted
3 Affordable Housing
Preservation 2025 2026 Affordable Housing Citywide Preserve the supply of affordable housing HOME: $1,000,000.00 Homeowner housing rehabilitated: 10 Households / Housing Units 4 Affordable Housing
Development 2025 2026 Affordable Housing Citywide Increase the supply of affordable housing HOME: $1,310,837.64 Rental housing rehabilitated:
1 Households / Housing Units
Homeowner housing added:
1 Households / Housing Units
5 Fair Housing
Services 2025 2026 Affordable Housing Citywide Ensure equal access to housing opportunities CDBG: $30,000.00 Other: 250 Persons Assisted 6 Program
Administration 2025 2026 All Citywide All
CDBG: $199,899.00 Other: 1
HOME: $49,225.00 Other: 1
Table 58 – Goals Summary
City of Hawthorne – 145 – Consolidated Plan
Goal Descriptions
1 Goal Name Public Services
Goal
Description
Provide low- and moderate- income residents with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty. 2 Goal Name Public Facilities and Infrastructure Improvements Goal
Description
Improve public facilities and infrastructure to benefit residents of predominantly low- and moderate-income areas or those presumed under HUD regulations to be low- and moderate-income such as elderly and disabled adults. Where it is possible, improvements will remove material and architectural barriers to accessibility. This also includes repayment of Section 108 Loan.
3 Goal Name Affordable Housing Preservation
Goal
Description
Preserve the quality of existing owner-occupied housing units through rehabilitation including lead-based paint education, inspection, testing and abatement. Where appropriate, energy efficiency improvements and conservation measures will be implemented to increase sustainability and reduce monthly household utility costs to promote long-term affordability. 4 Goal Name Affordable Housing Development
Goal
Description
Increase the supply of affordable housing and promote homeownership opportunities for low-income individuals, families, residents with special needs, and persons experiencing homelessness.
5 Goal Name Fair Housing Services
Goal
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services.
6 Goal Name Planning and Administration
Goal
Description
Provide for the timely and compliant administration of the CDBG and HOME programs in accordance with HUD policy and federal regulations.
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b).
The City of Hawthorne anticipates providing affordable housing to low- and moderateincome households through the following activities:
• Homeowner Housing Rehabilitation Program - $1,000,000 in HOME funds (10 households / housing units)
• Affordable Housing Development - $1,310,837.64 in HOME funds (2 households / housing units)
City of Hawthorne – 146 – Consolidated Plan
AP-35 Projects
Introduction
To address the high priority needs identified in the Strategic Plan to the 2025-2029 Consolidated Plan, the City of Hawthorne will invest CDBG and HOME funds in projects that provide public services to low- and moderate-income residents, preserve and develop affordable housing, and improve the City’s public facilities and infrastructure. Together, these projects will address the housing, community and economic development needs of Hawthorne residents.
Projects
# Project Name
1 Public Services
2 Public Facilities and Infrastructure Improvements
3 Affordable Housing Preservation
4 Affordable Housing Development
5 Fair Housing Services
6 Program Administration
Table 59 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its CDBG and HOME funds (excluding program administration) for program year 2025-2026 toward projects and activities that benefit low- and moderate-income people. Due to the nature of certain activities to be undertaken, investments in public service activities as well as public facilities and infrastructure improvements may be limited to the CDBG designated low- and moderate-income areas while other activities benefit low- and moderate-income clientele and are available citywide.
The primary obstacles to meeting the underserved needs of low- and moderate-income residents include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low-income households, and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2025-2026 Action Plan in projects that develop and preserve affordable housing, provide public services to low- and moderate-income residents, and improve public facilities and infrastructure.
City of Hawthorne – 147 – Consolidated Plan
AP-38 Project Summary
Project Summary Information
1 Project Name Public Services
Target Area Citywide / CDBG Eligible Areas
Goals Supported Public Services
Needs Addressed Expand public services for low- and moderate-income residents Funding CDBG: $172,424
Description
Provide low- and moderate- income residents with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty.
Target Date 6/30/26
Estimate the number
and type of families
that will benefit from
the proposed
activities
305 persons assisted
Location Description Citywide / CDBG Eligible Areas
Planned Activities
CCLA: St. Margaret’s Emergency Assistance (140 Persons) – $20,346 FPOSB: Shelter and Supportive Services (25 Persons) – $20, 346 NSFC: Domestic Violence Services (25 Persons) – $20, 346 SBWIB: Teen Center (90 Persons) – $91,040
TRFC: Behavioral Health Services (25 Persons) – $20, 346 2 Project Name Public Facilities and Infrastructure Improvements Target Area CDBG Eligible Areas
Goals Supported Public Facilities and Infrastructure Improvements Needs Addressed Improve public facilities and infrastructure & Address material barriers to accessibility
Funding CDBG: $947,175
Section 108 Loan: $5,889,000
Description
Improve public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD
regulations to be low- and moderate-income such as elderly and disabled adults. Includes Section 108 Loan Repayment.
Target Date 6/30/26
Estimate the number
and type of families
that will benefit from
the proposed
activities
90,615 persons assisted
Location Description CDBG Eligible Areas
Planned Activities
COH: Alley Reconstruction (9,930 Persons) – $402,000
COH: Section 108 Loan Repayment (1 Other) – $545,175
City of Hawthorne – 148 – Consolidated Plan
COH: Senior Center Improvements (6,335 persons) – $3,449,000 COH: Ramona Park Improvements (16,920 persons) – $700,000 COH: Jim Thorpe Park Improvements (33,320 persons) – $500,000 COH: Eucalyptus Park Improvements (24,110 persons) – $1,240,000 3 Project Name Affordable Housing Preservation
Target Area Citywide
Goals Supported Affordable Housing Preservation
Needs Addressed Preserve the supply of affordable housing Funding HOME: $1,000,000
Description
Hawthorne has an existing Housing Rehabilitation Program geared towards the preservation of the quality of existing affordable housing stock occupied by low- and moderate-income homeowners.
Target Date 6/30/26
Estimate the number
and type of families
that will benefit from
the proposed
activities
10 Homeowner Households / Housing Units Rehabilitated
Location Description Citywide
Planned Activities COH: Housing Rehabilitation Program (10 Households / Housing Units) – $1,000,000
4 Project Name Affordable Housing Development
Target Area Citywide
Goals Supported Affordable Housing Development
Needs Addressed Increase the supply of affordable housing Funding HOME: $1,310,837.64
Description
Increase the supply of affordable housing through acquisition, rehabilitation, and resale, or new construction of affordable owneroccupied or rental housing units to be made available to low-income individuals, families, residents with special needs, and persons experiencing homelessness.
Target Date 6/30/26
Estimate the number
and type of families
that will benefit from
the proposed
activities
1 Homeowner Households / Housing Units Added
1 Rental Households / Housing Units Rehabilitated
Location Description Citywide
Planned Activities
CHDO: TBD – $437,833
COH: Affordable Housing Development (1 Households / Housing Units) – $873,004.64
City of Hawthorne – 149 – Consolidated Plan
5 Project Name Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $30,000
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlordtenant mediation services.
Target Date 6/30/26
Estimate the number
and type of families
that will benefit from
the proposed
activities
250 persons assisted
Location Description Citywide
Planned Activities FHF: Fair Housing Services (250 Persons) – $30,000 6 Project Name Program Administration
Target Area Citywide
Goals Supported All
Needs Addressed All
Funding CDBG: $199,899
HOME: $49,225
Description
Overall administration of the CDBG and HOME program which includes preparation and submission of the Annual Action Plan and CAPER, IDIS data input, provision of technical assistance, monitoring of all projects, and fiscal management.
Target Date 6/30/26
Estimate the number
and type of families
that will benefit from
the proposed
activities
N/A
Location Description Citywide
Planned Activities COH: CDBG Administration – $199,899
COH: HOME Administration – $49,225
City of Hawthorne – 150 – Consolidated Plan
AP-50 Geographic Distribution
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
Assistance will be primarily directed to activities that serve low- and moderate-income residents citywide. During the 2025-2026 program year, one infrastructure improvement project and one public service activity rely on the established low- and moderate-income area. Those are the CDBG-eligible portions of the alley reconstruction project and Hawthorne Teen Center.
The low- and moderate-income census tract/block groups are shown on the map included in Appendix B of this Consolidated Plan.
Geographic Distribution
Target Area Percentage of Funds
Citywide 87%
CDBG Eligible LMA 13%
Table 60 - Geographic Distribution
Rationale for the priorities for allocating investments geographically For the 2025-2026 program year, the City will invest $1,349,498 of CDBG and $2,360,062.64 of HOME funds that will benefit low- and moderate-income residents throughout the City.
Of this amount, $493,040 or 13 percent, of all resources will be invested in capital improvement projects and public service activities that exclusively benefit neighborhoods where at least 51 percent of residents are low- and moderate-income. Due to the nature of the activities to be undertaken, investments in activities such as the alley reconstruction project and the Hawthorne Teen Center are limited to eligible areas, while other activities serve low- and moderate-income clientele are available citywide.
Additionally, the City applied for a Section 108 Loan that will result in an investment of $5,889,000 towards four public facility and infrastructure improvement projects. Of this amount, $2,440,000, or 41 percent, of all Section 108 resources will be invested in three public facility projects that exclusively benefit residents within predominantly low- and moderate-income census tract block groups. Due to the nature of these projects, investments in activities such as the Ramona Park, Jim Thorpe Park, and Eucalyptus Park are generally limited to the eligible low- and moderate-income areas, while other projects such as the Senior Center are available to elderly residents citywide.
Discussion
Hawthorne is allocating 100 percent of its non-administrative CDBG and HOME funds for program year 2025-2026 to activities that benefit low- and moderate-income residents.
City of Hawthorne – 151 – Consolidated Plan
AP-55 Affordable Housing
Introduction
Two high priority affordable housing needs are identified in the 2025-2029 Consolidated Plan and two Strategic Plan goals are established to provide the framework necessary to invest CDBG and HOME funds to address the affordable housing needs of the City. During the 2025-2026 program year, the City will implement the following affordable housing activities:
• CCLA: St. Margaret’s Emergency Assistance – $20,346 in CDBG funds (140 persons) • FPOSB: Shelter and Supportive Services – $20,346 in CDBG funds (25 persons) • Homeowner Housing Rehabilitation Program – $1,000,000 in HOME funds (10 households / housing units)
• Affordable Housing Development – $1,310,837.64 in HOME funds (2 households / housing units)
One Year Goals for the Number of Households to be Supported Homeless 25
Non-Homeless 152
Special Needs 0
Total 177
Table 61 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through Rental Assistance 165
The Production of New Units 1
Rehab of Existing Units 11
Acquisition of Existing Units 0
Total 177
Table 62 - One Year Goals for Affordable Housing by Support Type Discussion
During the 2025-2026 program year, the City will allocate $1,000,000 of HOME funds to provide financial assistance to low- and moderate-income homeowners to help preserve their homes in need of critical home improvements. As it relates to expanding the supply of affordable housing, Hawthorne intends to partner with a Community Development Housing Organization (CHDO), or private developer, and invest $1,310,837.64 in HOME funds toward developing affordable housing. Lastly, the City also plans to allocate $40,692 of CDBG funds to provide emergency assistance to income-eligible households.
City of Hawthorne – 152 – Consolidated Plan
AP-60 Public Housing
Introduction
The Hawthorne Housing Authority (HA) is responsible for the administration and oversight of the City’s public and assisted housing programs. The HA plays a vital role in helping lowincome families access safe and affordable housing through the Housing Choice Voucher (HCV) program.
Currently, the HA does not own or manage any HUD public housing developments.
However, the City is within the service area of LACDA. LACDA currently manages a portfolio of nearly 3,000 public housing units and more than 21,000 vouchers. This structure highlights the collaborative nature of public and assisted housing. The HA and LACDA’s primary goal is to provide safe, decent, and sanitary housing.
Actions planned during the next year to address the needs of public housing residents During the 2025-2026 program year, HA intends to partner with a qualified Community Housing Development Organization (CHDO) to identify additional opportunities to address the needs of extremely low- and low-income households.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The Hawthorne Housing Authority (HA) encourages residents involvement and actively seeks input from residents on the management and implementation of HA policies and procedures. Additionally, LACDA supports resident councils to participate in the decision making process via surveys and other forms of engagement.
LACDA currently administers the Family Self-Sufficiency (FSS) program for public housing residents and Housing Choice Voucher (HCV) program participants. The FSS program provides critical tools and supportive services to foster a resident’s transition from financial and housing assistance to economic and housing self-sufficiency, most importantly homeownership. To support this effort, HHA and LACDA utilize marketing materials to outreach and further promote the program’s requirements and benefits to all public housing residents. For families that are eligible to participate, a Contract of Participation (COP) is prepared to govern the terms and conditions of their participation and an Individual Training Service Plan (ITSP) is created that outlines the following: supportive services to be provided, activities to be completed by the participant, and agreed upon completion dates for the services and activities. The COP is valid for five years and may be extended to allow the family to meet their ITSP goals.
City of Hawthorne – 153 – Consolidated Plan
Once the COP is established and the family experiences an increase in tenant rent as a result of earned income, an escrow account in their name is established and increased earned income is deposited into this account. Escrow accounts are disbursed to the family once the family has graduated successfully from the program. Families are encouraged to utilize these funds towards educational and homeownership endeavors.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable, HA is designated as a High Performing PHA.
Discussion
The City of Hathorne continues to support LACDA in effective administration of its limited affordable housing resources. The City also continues to work with the agency to include the residents with Housing Choice Vouchers in the federally funded programs administered by LACDA. Moving forward, prioritizing resident-focused improvements and securing additional resources will ensure that public housing continues to be a cornerstone of the City’s affordable housing strategy.
City of Hawthorne – 154 – Consolidated Plan
AP-65 Homeless and Other Special Needs Activities
Introduction
Preventing and reducing homelessness is a top priority for HUD that is addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City continues to support the efforts of the CoC and its member organizations that address homelessness throughout the region. The City will use CDBG, HOME, and other resources to support service providers to prevent homelessness through rental assistance and expand the supply of affordable housing throughout the jurisdiction.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City of Hawthorne works closely with local nonprofits and regional service providers to ensure that homeless individuals have access to housing assistance, supportive services, and case management. The City will continue working with its partners to expand housingfirst programs, increase emergency shelter capacity, and strengthen outreach initiatives to connect individuals with available support services.
During the 2025-2026 program year, the City will invest $81,384 of CDBG funds to the following activities that prevent and reduce homelessness:
• CCLA: St. Margaret’s Emergency Assistance (140 persons assisted) – $20,346 • FPOSB: Shelter and Supportive Services (25 persons assisted) – $20,346 • NSFC: Domestic Violence Services (25 persons assisted) – $20,346 • TRFC: Behavioral Health Services (25 persons assisted) – $20,346 Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, one of the most pressing challenges is the lack of emergency and transitional housing options. The existing shelter system does not have enough capacity to serve all individuals in need, particularly families with children and unaccompanied youth. Limited funding for public services also restricts the City's ability to expand supportive housing programs and case management services. To address these gaps, the City is seeking additional funding sources, strengthening partnerships with the private sector, and exploring innovative housing solutions.
Additionally, to address the needs of homeless persons in the near-term, the City support Family Promise of the South Bay which provides transitional shelter and case management services with the goal of helping 25 people to enter their own permanent housing.
City of Hawthorne – 155 – Consolidated Plan
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
To address the needs of homeless families, families with children, veterans and their families, the City will continue to support Family Promise of the South Bay which provides transitional housing and case management services with the goal of helping families enter their own permanent housing. Furthermore, the City intends to continue its support of Catholic Charities of Los Angeles’ emergency assistance program that helps families that are at-risk of homelessness achieve stability by connecting them to the appropriate housing and utility resources based on their needs.
Helping low-income individuals and families avoid becoming homeless, especially extremely lowincome individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs To help low-income individuals and families avoid becoming homeless, the City will continue its partnership with Catholic Charities of Los Angeles to connect residents at risk of becoming homeless to existing short-term housing and utility assistance programs based on their eligibility and need. In addition, the City intends to support New Star Family Center and the Richstone Family Center which provide a range of services to survivors of domestic violence who are at-risk of homelessness.
The City coordinated with the CoC and other subrecipients receiving CDBG funds to ensure that its HUD-funded programs are targeted, to the greatest extent feasible, to address the discharge of persons from publicly funded institutions or systems of care so that these individuals and families have access to public services and affordable housing opportunities necessary to prevent homelessness.
Discussion
The City will use CDBG, HOME, and other funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Hawthorne for extremely low- and low-income residents.
City of Hawthorne – 156 – Consolidated Plan
AP-75 Barriers to affordable housing
Introduction:
A barrier to affordable housing is a public policy or regulation that constrains the development and preservation of affordable housing such as tax policy, land use controls, zoning ordinances, building codes, growth limits, environmental protection, and fees.
Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.
Based on information gathered and resident feedback, the primary barriers to affordable housing in Hawthorne are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply, and insufficient resources are available to increase the supply of affordable housing to meet demand.
For low- and moderate-income households, finding and maintaining decent affordable housing is difficult due to the high cost of housing. Based on the Needs Assessment and Market Analysis, there is a high need for housing units affordable for low- and moderateincome households. Approximately 67 percent of the City’s low- and moderate-income households experience a cost burden, meaning that they pay more than 30 percent of their income for housing. Consistent with available data, responses to the Resident Survey indicate a high need for additional affordable housing in Hawthorne.
Beyond affordability, the 2021-2029 Housing Element’s Assessment of Fair Housing identifies the following challenges that impact access to affordable housing in Hawthorne:
• Land use and zoning laws: Through its approach to accommodating the RHNA, which includes increasing density in the Mixed-Use district of the Downtown Hawthorne Specific Plan, introducing a Housing Overlay, and rezoning an area from M-1 Limited Industrial to R-3 High Density Residential, the City of Hawthorne will also address changes to zoning laws that will affirmatively further fair housing. The changes will allow for new mixed-use development at densities not previously permitted in the Specific Plan area (making affordable housing development more feasible) and allow for residential development where residential development was not previously permitted. These efforts will accommodate new growth at key locations near transportation corridors and activity centers where jobs and housing can be located close together.
• Displacement of residents due to economic pressures: Displacement of residents due to economic pressures is a significant contributing factor to fair housing issues in Los Angeles County, particularly in areas that have historically had concentrations of low-income Hispanic residents. While gentrification has not historically been a problem in Hawthorne, the areas perhaps most vulnerable to gentrification and City of Hawthorne – 157 – Consolidated Plan
displacement in the City are disadvantaged areas located near major transit assets and activity centers.
• Lack of access to opportunity due to high housing costs: Lack of access to opportunity due to high housing costs is a significant contributing factor to fair housing issues in Los Angeles County and in Hawthorne. The City has High Resource areas that are densely developed with single-family dwellings and properties with two detached dwellings, which often makes redevelopment of higher density housing in these areas economically infeasible since land would need to be assembled, existing housing demolished, and residents relocated. In addition, Hawthorne’s non-White residents are particularly impacted by limited access to opportunity. The City plans to accommodate new residential development throughout the community, including in mixed-use areas where jobs, housing, and goods and services can be located close together. Increasing housing affordability will make it easier for low-income households to access the types of services and amenities that further social mobility.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment To address housing affordability and the lack of monetary resources for affordable housing, the 2025-2026 Action Plan calls for the investment of a significant portion of CDBG and HOME funds to preserve 10 existing housing units and develop one new affordable housing unit affordable to low- and moderate-income households.
Hawthorne is also committed to increasing the supply of affordable housing via other means. In recent years, the City approved a density bonus for the Rosecrans/Kornblum development which is anticipated to result in a total of 100 rental units, eight of which will be restricted for very low-income households, and 15 to be made affordable for moderateincome households. Additionally, the City has entered into a Development and Disposition Agreement (DDA) with Century Housing Corporation for the Cordary project to develop 18 Permanent Supportive Housing (PSH) units to address the needs of veterans and their families. Lastly, the City has continually updated its Zoning Code to align with state law and better facilitate the production of Accessory Dwelling Units (ADUs), which has resulted in 563 ADUs since 2020.
Strengthening Fair Housing Protections
To address fair housing concerns, particularly regarding discrimination against individuals with disabilities, the City will:
• Increase public awareness of fair housing laws through outreach efforts, including multilingual educational materials, targeted informational campaigns, and updates to the City’s website and community centers.
City of Hawthorne – 158 – Consolidated Plan
• Strengthen enforcement efforts by coordinating with the Fair Housing Foundation (FHF) to monitor fair housing violations, particularly in high-risk areas. • Provide resources for landlords to ensure compliance with reasonable accommodation requirements and disability access laws.
• Additionally, the City will integrate affirmative marketing strategies to promote Housing Choice Vouchers in high-opportunity areas and encourage visit ability in new ADU construction to ensure greater accessibility.
Improving Access to Economic Opportunities
To address disparities in access to economic and educational opportunities, the City will:
• Strengthen regional collaboration for transit-oriented development, improving access to jobs and services near major transit hubs.
• Increase investment in disadvantaged communities, targeting infrastructure, public services, and recreational amenities to improve quality of life in historically underserved areas.
• Encourage workforce development through partnerships with South Bay Workforce Investment Board, local businesses, and economic development organizations to expand job training programs and employment opportunities.
Enhancing Mobility and Housing Choice
To ensure low-income residents have access to a diverse range of housing options, Hawthorne will:
• Promote Housing Choice Vouchers by providing outreach to property owners in moderate- and high-opportunity areas, encouraging them to participate in the program.
• Streamline development approvals for affordable housing projects to expedite construction and reduce regulatory barriers.
• Ensure zoning and land use policies facilitate diverse housing options across the city.
Discussion:
To address housing affordability and the lack of monetary resources for affordable housing, the City will continue to leverage its CDBG and HOME funds to attract private and other available resources to incentivize the development of new affordable housing units and the preservation of existing affordable housing.
City of Hawthorne – 159 – Consolidated Plan
AP-85 Other Actions
Introduction
In the implementation of the 2025-2026 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance coordination between public and private housing and social service agencies.
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low-income households, and the lack of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2025-2026 Action Plan in activities that provide public services to low- and moderate-income residents and those that are homeless. Additionally, the City will support a variety of financial assistance programs that will enable eligible homeowners to preserve their residence as well as support tenants receive rental support. Lastly, the City will finance the development of new housing units that are affordable to low- and moderate-income residents.
Actions planned to foster and maintain affordable housing During the 2025-2026 program year, the City will invest HOME funds to preserve and maintain affordable housing through the City’s Housing Rehabilitation Program that will provide financial assistance to low- and moderate-income homeowners. In addition, Hawthorne will allocate HOME funds to develop housing units that are affordable to lowand moderate-income households.
Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the City will conduct lead-based paint testing and risk assessments for each property assisted under that was built prior to January 1, 1978 and will incorporate safe work practices or abatement into the scope of work as required to reduce lead-based paint hazards in accordance with 24 CFR Part 35.
Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities meeting the goals established in this Consolidated Plan will help to reduce the number of poverty-level families by:
• Providing public services designed to address the needs of low- and moderateincome residents to ameliorate the effects of poverty City of Hawthorne – 160 – Consolidated Plan
• Improving public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD regulations to be low- and moderateincome such as the elderly and disabled adults • Supporting activities that preserve the existing housing stock and expand the supply of housing that is affordable to low- and moderate-income households In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally, in California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provide individuals and families with employment assistance, subsidies for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation.
Actions planned to develop institutional structure
Hawthorne’s institutional delivery system is highly collaborative, well-structured, and equipped with experienced public and private sector partners. One of the key strengths of the system is the diverse network of service providers capable of leveraging CDBG and HOME funds to address affordable housing, public services, and community development needs. To enhance the effectiveness of the institutional delivery system and address service gaps, the City will collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2025-2026 Action Plan to ensure that the needs of low- and moderate-income residents are met as envisioned within the 2025-2029 Consolidated Plan.
Actions planned to enhance coordination between public and private housing and social service agencies
To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate-income residents in Hawthorne. With improvements in technology, the City will expand its outreach efforts to enhance coordination with public and private housing and social service agencies through social media platforms such Facebook, Twitter, Instagram, NextDoor, etc.
Discussion:
In the implementation of the 2025-2026 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level City of Hawthorne – 161 – Consolidated Plan
families, develop institutional structure, and enhance coordination between public and private housing and social service agencies.
City of Hawthorne – 162 – Consolidated Plan
AP-90 Program Specific Requirements
Introduction:
Throughout the implementation of activities under the 2025-2026 Annual Action Plan, the City of Hawthorne will follow all HUD regulations concerning the use of program income, forms of investment, overall low- and moderate-income benefit for the CDBG program, and recapture requirements for the HOME program.
The City of Hawthorne agrees that its compliance in all respects with applicable Federal anti-discrimination laws is material to the U.S. Government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code.
The City of Hawthorne will not operate any programs that violate any applicable Federal anti-discrimination laws, including Title VI of the Civil Rights Act of 1964.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan.
$0
3. The amount of surplus funds from urban renewal settlements $0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan $0
5. The amount of income from float-funded activities $0 Total Program Income: $0
Other CDBG Requirements
1. The amount of urgent need activities 0
City of Hawthorne – 163 – Consolidated Plan
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. The City will meet this requirement over the 2024-2025, 2025-2026, and 2026-2027 program years.
100.00%
City of Hawthorne – 164 – Consolidated Plan
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
The City will not use any other forms of investment beyond those identified in Section
92.205.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
During the 2025-2026 program year, the City of Hawthorne may implement HOMEassisted homebuyer activities. If the City were to implement its homeowner development activity, it will incorporate recapture provisions into written agreements and long-term affordability covenants as required by 24 CFR 92.254.
The recapture provision ensures that all or a portion of the City’s HOME assistance to homebuyers or homeowners is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability.
In establishing this provision, the City is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investments due, the City can only recapture a portion of the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than HOME funds), capital improvements, and any closing costs.
In the event of a mortgage default, the City has the right of first refusal before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability. However, notwithstanding a foreclosure situation, the City intends to recapture all or some of its HOME funds invested during or at the end of the established affordability period, if practicable. Recaptured HOME funds consist of loan payments (including interest) and/or a loan payoff, upon sale, if the assisted owner is no longer residing in the assisted residence, or for any other breaches of the agreement with the City. Recaptured funds may be used for any HOME eligible activity.
These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
Periods of affordability. The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described in the table below:
City of Hawthorne – 165 – Consolidated Plan
Amount of HOME Assistance Minimum Period of Affordability Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
Recapture
During the affordability period, if there is a property sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the City will provide for the recapture of HOME funds in accordance with the following:
A. Upon the occurrence of a sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the entire amount of the HOME Assistance provided by the City will be due to the City.
B. Notwithstanding the preceding, in the event that the Net Proceeds resulting from a sale are not sufficient to provide for the full return of the borrower’s investment inclusive of the original down payment and capital improvements performed on the acquired property (subject to City verification and approval), then the borrower shall be entitled to recover their original down payment amount and City-approved capital improvement amounts before the City recapture of the HOME investment amount (the City HOME Assistance). For the purposes of this calculation, net proceeds shall mean the sales price minus the repayment of the Primary Loan undertaken to acquire the Property (other than HOME funds) and any closing costs. Capital improvements means those improvements legally made by Homeowner to the Property after the closing of Homeowner’s purchase of the Property, with a minimum cost of Two Thousand Five Hundred Dollars ($2,500) per item, and a useful remaining economic life of not less than five (5) years, as approved by the City and documented by invoices and receipts which the Homeowner certifies to be true and correct. In the event the net proceeds are not sufficient to repay the full amount of the HOME assistance plus enable the Qualified Homebuyer to recover their initial investment in the home and documented costs of any Capital Improvements, the Qualified Homebuyer shall share the Net Proceeds with the City. For the purpose of this provision, the “initial investment in the home” shall mean the Qualified Homebuyer’s down payment. Share of Net Proceeds shall be calculated as set forth in the following mathematical formulas: 24 CFR
92.254(a)(5)(ii)(A)(3)
City of Hawthorne – 166 – Consolidated Plan
The affordability period will be evidenced by a promissory note, secured by a deed of trust or mortgage, which provides the affordability period and details the formula under which the HOME funds will be recaptured by the City.
The affordability period and recapture requirements will be evidenced by a deed restriction or covenant indicating the affordability period and restricting future sales.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds under the 2025-2026 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
APPENDIX A
Citizen Participation
APPENDIX B
Grantee Unique Appendices
APPENDIX C
SF-424, SF-424B, & Certifications
2026-2027
Annual Action Plan
Adopted by City Council
April 28, 2026
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City of Hawthorne – i – 26-27 Action Plan
Table of Contents
Table of Contents...................................................................................................................... i Executive Summary................................................................................................................. 1 ES-05 Executive Summary................................................................................................... 1 The Process .............................................................................................................................. 7 PR-05 Lead & Responsible Agencies................................................................................... 7 PR-10 Consultation ............................................................................................................... 8 PR-15 Citizen Participation ..................................................................................................22 Needs Assessment.....................................................................Error! Bookmark not defined.
NA-05 Overview..................................................................... Error! Bookmark not defined.
NA-10 Housing Needs Assessment...................................... Error! Bookmark not defined.
NA-15 Disproportionately Greater Need: Housing ProblemsError! Bookmark not defined.
NA-20 Disproportionately Greater Need: Severe Housing ProblemsError! Bookmark not defined.
NA-25 Disproportionately Greater Need: Housing Cost BurdensError! Bookmark not defined.
NA-30 Disproportionately Greater Need: Discussion.......... Error! Bookmark not defined.
NA-35 Public Housing ........................................................... Error! Bookmark not defined.
NA-40 Homeless Needs Assessment ................................... Error! Bookmark not defined.
NA-45 Non-Homeless Special Needs Assessment.............. Error! Bookmark not defined.
NA-50 Non-Housing Community Development Needs....... Error! Bookmark not defined.
Housing Market Analysis...........................................................Error! Bookmark not defined.
MA-05 Overview .................................................................... Error! Bookmark not defined.
MA-10 Number of Housing Units ......................................... Error! Bookmark not defined.
MA-15 Housing Market Analysis: Cost of Housing.............. Error! Bookmark not defined.
MA-20 Housing Market Analysis: Condition of Housing – 91.210(a)Error! Bookmark not defined.
MA-25 Public and Assisted Housing..................................... Error! Bookmark not defined.
MA-30 Homeless Facilities and Services.............................. Error! Bookmark not defined.
MA-35 Special Needs Facilities and Services ...................... Error! Bookmark not defined.
MA-40 Barriers to Affordable Housing................................. Error! Bookmark not defined.
MA-45 Non-Housing Community Development Assets...... Error! Bookmark not defined.
MA-50 Needs and Market Analysis Discussion ................... Error! Bookmark not defined.
MA-60 Broadband Needs ...................................................... Error! Bookmark not defined.
MA-65 Hazard Mitigation ...................................................... Error! Bookmark not defined.
Strategic Plan.............................................................................Error! Bookmark not defined.
SP-05 Overview ..................................................................... Error! Bookmark not defined.
SP-10 Geographic Priorities .................................................. Error! Bookmark not defined.
SP-25 Priority Needs.............................................................. Error! Bookmark not defined.
SP-30 Influence of Market Conditions .................................. Error! Bookmark not defined.
SP-35 Anticipated Resources ................................................ Error! Bookmark not defined.
SP-40 Institutional Delivery Structure .................................. Error! Bookmark not defined.
SP-45 Goals Summary .......................................................... Error! Bookmark not defined.
SP-50 Public Housing Accessibility and Involvement ......... Error! Bookmark not defined.
City of Hawthorne – ii – 26-27 Action Plan
SP-55 Barriers to Affordable Housing .................................. Error! Bookmark not defined.
SP-60 Homeless Strategy...................................................... Error! Bookmark not defined.
SP-65 Lead-based Paint Hazards .......................................... Error! Bookmark not defined.
SP-70 Anti-Poverty Strategy ................................................. Error! Bookmark not defined.
SP-80 Monitoring................................................................... Error! Bookmark not defined.
Action Plan ..............................................................................................................................26 AP-15 Expected Resources..................................................................................................26 AP-20 Annual Goals and Objectives...................................................................................31 AP-35 Projects......................................................................................................................33 AP-38 Project Summary ......................................................................................................35 AP-50 Geographic Distribution ...........................................................................................38 AP-55 Affordable Housing...................................................................................................39 AP-60 Public Housing..........................................................................................................41 AP-65 Homeless and Other Special Needs Activities ........................................................43 AP-75 Barriers to affordable housing .................................................................................45 AP-85 Other Actions ............................................................................................................48 AP-90 Program Specific Requirements ..............................................................................51 List of Tables
Table 1 - Strategic Plan Summary ............................................................................................................. 4 Table 2 – Responsible Agencies ................................................................................................................ 7 Table 3 - Agencies, groups, and organizations who participated.........................................................20 Table 4 - Other local / regional / federal planning efforts......................................................................21 Table 5 - Citizen Participation Outreach..................................................................................................23 Table 6 – Housing Needs Assessment Demographics ........................... Error! Bookmark not defined.
Table 7 – Total Households ....................................................................... Error! Bookmark not defined.
Table 8 – Housing Problems 1 .................................................................. Error! Bookmark not defined.
Table 9 – Housing Problems 2 .................................................................. Error! Bookmark not defined.
Table 10 – Cost Burden > 30%................................................................... Error! Bookmark not defined.
Table 11 – Cost Burden > 50%................................................................... Error! Bookmark not defined.
Table 12 – Crowding Information – 1/2 .................................................... Error! Bookmark not defined.
Table 13 - Households with children under the age of 6........................ Error! Bookmark not defined.
Table 14 – Disproportionally Greater Need 0 - 30% AMI........................ Error! Bookmark not defined.
Table 15 – Disproportionally Greater Need 30 - 50% AMI...................... Error! Bookmark not defined.
Table 16 – Disproportionally Greater Need 50 - 80% AMI...................... Error! Bookmark not defined.
Table 17 – Disproportionally Greater Need 80 - 100% AMI.................... Error! Bookmark not defined.
Table 18 – Severe Housing Problems 0 - 30% AMI ................................. Error! Bookmark not defined.
Table 19 – Severe Housing Problems 30 - 50% AMI ............................... Error! Bookmark not defined.
Table 20 – Severe Housing Problems 50 - 80% AMI ............................... Error! Bookmark not defined.
Table 21 – Severe Housing Problems 80 - 100% AMI ............................. Error! Bookmark not defined.
Table 22 – Greater Need: Housing Cost Burdens AMI............................ Error! Bookmark not defined.
Table 23 – Public Housing by Program Type........................................... Error! Bookmark not defined.
Table 24 – Characteristics of Public Housing Residents by Program TypeError! Bookmark not defined.
Table 25 – Race of Public Housing Residents by Program Type ........... Error! Bookmark not defined.
Table 26 – Ethnicity of Public Housing Residents by Program Type..... Error! Bookmark not defined.
Table 27 – Homeless Needs Assessment................................................. Error! Bookmark not defined.
Table 28 – Nature and Extent of Homelessness...................................... Error! Bookmark not defined.
Table 29 – Residential Properties by Unit Number................................. Error! Bookmark not defined.
Table 30 – Unit Size by Tenure ................................................................. Error! Bookmark not defined.
City of Hawthorne – iii – 26-27 Action Plan
Table 31 – Affordable Housing Covenants............................................... Error! Bookmark not defined.
Table 32 – Cost of Housing........................................................................ Error! Bookmark not defined.
Table 33 – Rent Paid................................................................................... Error! Bookmark not defined.
Table 34 -– Housing Affordability ............................................................. Error! Bookmark not defined.
Table 35 – Monthly Rent............................................................................ Error! Bookmark not defined.
Table 36 – Rental Housing Costs .............................................................. Error! Bookmark not defined.
Table 37 – Condition of Units.................................................................... Error! Bookmark not defined.
Table 38 – Year Unit Built .......................................................................... Error! Bookmark not defined.
Table 39 – Risk of Lead-Based Paint......................................................... Error! Bookmark not defined.
Table 40 – Vacant Units ............................................................................. Error! Bookmark not defined.
Table 41 – Total Number of Units by Program Type .............................. Error! Bookmark not defined.
Table 42 - Public Housing Condition ........................................................ Error! Bookmark not defined.
Table 43 – Facilities and Housing Targeted to Homeless Households . Error! Bookmark not defined.
Table 44 – Homeless Service Providers for Hawthorne ......................... Error! Bookmark not defined.
Table 45 – Business Activity...................................................................... Error! Bookmark not defined.
Table 46 – Labor Force............................................................................... Error! Bookmark not defined.
Table 47 – Occupations by Sector ............................................................ Error! Bookmark not defined.
Table 48 – Travel Time............................................................................... Error! Bookmark not defined.
Table 49 – Educational Attainment by Employment Status................... Error! Bookmark not defined.
Table 50 – Educational Attainment by Age.............................................. Error! Bookmark not defined.
Table 51 – Median Earnings in the Past 12 Months by Educational AttainmentError! Bookmark not defined.
Table 52 - Geographic Priority Areas ....................................................... Error! Bookmark not defined.
Table 53 – Priority Needs Summary......................................................... Error! Bookmark not defined.
Table 54 – Influence of Market Conditions............................................... Error! Bookmark not defined.
Table 56 – Institutional Delivery Structure............................................... Error! Bookmark not defined.
Table 57 – Homeless Prevention Services Summary ............................. Error! Bookmark not defined.
Table 58 - Expected Resources – Priority Table......................................................................................27 Table 59 – Goals Summary ......................................................................................................................31 Table 60 – Project Information .................................................................................................................33 Table 61 - Geographic Distribution..........................................................................................................38 Table 62 - One Year Goals for Affordable Housing by Support Requirement ....................................39 Table 63 - One Year Goals for Affordable Housing by Support Type ..................................................39 List of Figures
Figure 1 – Housing Problems by Race/Ethnicity (0-30% AMI)................ Error! Bookmark not defined.
Figure 2 – Housing Problems by Race/Ethnicity (30-50% AMI).............. Error! Bookmark not defined.
Figure 3 – Housing Problems by Race/Ethnicity (50-80% AMI).............. Error! Bookmark not defined.
Figure 4 – Housing Problems by Race/Ethnicity (80-100% AMI)............ Error! Bookmark not defined.
Figure 5 – Severe Housing Problems by Race/Ethnicity (0-30% AMI)... Error! Bookmark not defined.
Figure 6 – Severe Housing Problems by Race/Ethnicity (30-50% AMI). Error! Bookmark not defined.
Figure 7 – Severe Housing Problems by Race/Ethnicity (50-80% AMI). Error! Bookmark not defined.
Figure 8 – Severe Housing Problems by Race/Ethnicity (80-100% AMI)Error! Bookmark not defined.
Figure 9 – Housing Cost Burdens by Race/Ethnicity ............................... Error! Bookmark not defined.
Figure 10 – Severe Housing Cost Burdens by Race/Ethnicity ................ Error! Bookmark not defined.
City of Hawthorne – 1 – 26-27 Action Plan
Executive Summary
AP-05 Executive Summary
Introduction
On April 22, 2025, the City of Hawthorne adopted the 2025-2029 Consolidated Plan which established the framework for investing Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds received from the U.S. Department of Housing and Urban Development (HUD). The 2026-2027 Action Plan represents the second of five annual plans and outlines the specific projects, activities, funding allocations, and performance goals for the program year spanning July 1, 2026 to June 30, 2027.
Each year, the City receives CDBG and HOME funds through a formula-based allocation from HUD. These funds are awarded to non-profit organizations, for-profit entities, and public agencies to support a variety of activities that align with the City’s Consolidated Plan goals and address the high priority needs of low- and moderate-income residents.
Community Development Block Grant (CDBG)
The CDBG program, established under the Housing and Community Development Act of 1974, is a flexible federal funding source designed to address a wide range of housing and community development needs. HUD evaluates the City’s Consolidated Plan and program performance based on three primary objectives: providing decent housing, creating suitable living environments, and expanding economic opportunities for low- and moderate-income households. To qualify for CDBG funding, each activity must meet one of the following national objectives:
• Benefit low- and moderate-income persons
• Prevent or eliminate slums and blight
• Address an urgent community development need (usually the result of a natural disaster or public health emergency)
HOME Investment Partnerships (HOME)
The HOME program, established under the Cranston-Gonzalez National Affordable Housing Act of 1990, is the largest federal program dedicated to affordable housing development. Designed to increase the supply of safe and affordable housing for low- and moderate-income households, the HOME program is often implemented in collaboration with non-profit housing developers, public agencies, and private entities. Eligible activities supported by HOME funds include new construction, acquisition, and rehabilitation of affordable housing, homebuyer assistance programs, and tenant-based rental assistance.
City of Hawthorne – 2 – 26-27 Action Plan
2026-2027 Program Year
For the 2026-2027 program year, the City anticipates receiving approximately $1,149,4981,167,217 in CDBG funds and $492,254.25492,431.60 in HOME funds. When combined with program income and available prior year resources, the 2026-2027 Action Plan will allocate a total of $1,794,6731,712,392 in CDBG funds and $1,835,286.641,835,463.99 in HOME funds to support the following eligible activities to be implemented from July 1, 2026 through June 30, 2027.
2026-2027 CDBG Activities
Public Service Activities
Catholic Charities of Los Angeles: St. Margaret’s Emergency Assistance $20,34621,000.00
Family Promise of the South Bay: Shelter and Supportive Services $20,34621,000.00 New Star Family Center: Domestic Violence Services $20,34621,000.00 South Bay Workforce Investment Board: Teen Center $91,04091,082.00 The Richstone Family Center: Behavioral Health Services $20,34621,000.00 Sub-Total: $172,424175,082.00
Economic Development Activities
City of Hawthorne: Commercial Rehabilitation Program $590,175501,692.00 Sub-Total: $590,175501,692.00
Capital Improvement Activities
City of Hawthorne: Alley Reconstruction $247,175.00
City of Hawthorne: Section 108 Loan Repayment $555,000.00 Sub-Total: $802,175.00
Program Administration Activities
City of Hawthorne: CDBG Administration $199,899203,443.00 Fair Housing Foundation: Fair Housing Services $30,000.00 Sub-Total: $229,899233,443.00
CDBG TOTAL: $1,794,6731,712,392.00
2026-2027 HOME Activities
Housing Activities
City of Hawthorne: Housing Rehabilitation Program $1,000,000.00 City of Hawthorne: Affordable Housing Development $638,383.64638,516.99 Sub-Total: $1,638,383.64638,516.99
Community Housing Development Organization (CHDO) Activities TBD: CHDO Set-Aside (includes PY25-26 and 26-27) $147,678147,704.00 Sub-Total: $147,678147,704.00
Program Administration Activities
City of Hawthorne: HOME Administration $49,22549,243.00 Sub-Total: $49,22549,243.00
HOME TOTAL: $1,835,286.641,835,463.99
City of Hawthorne – 3 – 26-27 Action Plan
As of the date of the preparation of this draft document, HUD has not yet released the 2026- 2027 Annual Allocations. For this reason, HUD has advised the City to prepare this draft document utilizing the current year annual allocation and include “contingency provision” language detailing how the City will adjust its proposed Plan once the actual allocation amounts become known. As such, the following methodology shall be employed if the City’s 2026-2027 annual allocation changes.
Should the CDBG allocation be greater than $1,149,498:
• The CDBG Administration budget will be increased to fully utilize the 20% cap for administrative activities.
• All public service activities will receive an equitable increase to fully utilize the 15% cap for public service activities.
• Balance of funds will be added to the City’s Alley Reconstruction project.
Should the CDBG allocation be less than $1,149,498:
• The CDBG Administration budget will be reduced to be compliant with the 20% cap for administrative activities.
• All public service activities will receive an equitable reduction to remain compliant with the 15% cap for public service activities.
• Balance of funds will be deducted from the City’s Commercial Rehabilitation Program.
Should the HOME allocation be greater than $492,254.25:
• The HOME Administration budget will be increased to fully utilize the 10% cap for administrative activities.
• The CHDO activity budget will be increased to be compliant with the 15% set-aside requirement.
• Balance of funds will be added to the City’s Housing Rehabilitation Program.
Should the HOME allocation be less than $492,254.25:
• The HOME Administration budget will be reduced to be compliant with the 10% cap for administrative activities.
• The CHDO activity budget will be increased to be compliant with the 15% set-aside requirement.
• Balance of funds will be deducted from the City’s Affordable Housing Development project.
City of Hawthorne – 4 – 26-27 Action Plan
Summary of the objectives and outcomes identified in the Plan needs assessment Overview The 2025-2029 Consolidated Plan is grounded in a comprehensive, data-driven needs assessment and market analysis, combined with insights gathered from residents, community organizations, and other local stakeholders. This approach ensures that CDBG and HOME funds are directed toward high priority needs that align with the City’s goals.
Based on this, the City has identified six high priority needs, which will be addressed through six goals over the five-year period. These goals establish a clear framework for the allocation of CDBG and HOME funds which ensures that federal investments produce measurable and sustainable outcomes. Each goal is tied to specific outcome indicators which allow the City to track progress, assess performance, and evaluate the impact of HUD-funded activities. The following table summarizes the goals, priority needs, and expected five-year outcomes.
Table 1 - Strategic Plan Summary
Goal Name Need(s) Addressed Goal Outcome Indicator
Public Services Expand public services for
LMI residents
Public service activities other
than Low/Mod Income Housing
Benefit: 1,525 Persons Assisted
Public Facilities &
Infrastructure Improvements
Improve public facilities and
infrastructure
Address material barriers to
accessibility
Public facility or infrastructure
activities other than Low/Mod
Income Housing Benefit:
125,000 Persons Assisted
Other: 5
Affordable Housing
Preservation
Preserve the supply of
affordable housing
Homeowner housing
rehabilitated: 50 Households /
Housing Units
Affordable Housing
Development
Increase the supply of
affordable housing
Homeowner housing added:
2 Households / Housing Units
Rental housing rehabilitated:
2 Households / Housing Units
Fair Housing Services Ensure equal access to
housing opportunities
Public service activities other
than Low/Mod Income Housing
Benefit: 1,250 Persons Assisted
Economic Development
Opportunities
Promote economic
opportunities
Businesses assisted: 4
Businesses
Planning & Administration All Other: 5
City of Hawthorne – 5 – 26-27 Action Plan
Evaluation of past performance
Over the 2020-2024 program years, the City successfully utilized CDBG and HOME funds to implement impactful housing and community development programs. All projects and activities included in the 2025-2026 Action Plan are underway and the final accomplishments will be reported as part of the City’s Consolidated Annual Performance and Evaluation Report (CAPER). From 2020-2024, the investment of HUD funds, in combination with state and local resources, enabled the City and its partners to achieve the following:
• Public Services: Various non-profit organizations provided a range of services which assisted 1,585 Hawthorne residents.
• Public Facilities & Infrastructure Improvements: The City completed its alley reconstruction project which benefited 14,960 residents by providing them access to suitable alleyways that are used to access their properties and critical services such as the DMV.
• Affordable Housing Preservation: The City of Hawthorne’s Housing Rehabilitation Program completed 20 projects to address deficient housing conditions and preserve the existing housing stock that is affordable to low- and moderate-income homeowners. In addition, the City renovated 23 rental units that are affordable to and occupied by low-income tenants.
• Fair Housing: The Fair Housing Foundation provided 1,029 residents with fair housing and landlord-tenant mediation services.
These efforts resulted in meaningful impacts for Hawthorne residents, particularly low- and moderate-income households. The successes and lessons learned from these programs serve as the foundation for the strategies outlined in the 2025-2029 Consolidated Plan.
Summary of citizen participation process and consultation process The Consolidated Plan regulations at 24 CFR Part 91 provide the citizen participation and consultation requirements for the development of the Consolidated Plan. Chief among those requirements is the need to consult with the Continuum of Care (CoC) to address homelessness, Public Housing Authorities (PHA), businesses, civic leaders, and public or private agencies that address housing, health, social service, victim services, employment, or education needs of low-income individuals and families, homeless individuals and families, youth and/or other persons with special needs. Information supplied by these community stakeholders, together with the data supplied by HUD resulted in a wellinformed planning document that reflects the housing, community, and economic development needs and priorities for the City of Hawthorne over the next five years.
In accordance with the City's Citizen Participation Plan (CPP), residents and stakeholders were able to participate in the development of the 2025-2029 Consolidated Plan through surveys, community meetings, and public hearings. Efforts were made to encourage City of Hawthorne – 6 – 26-27 Action Plan
participation by low- and moderate-income persons, particularly those living in areas where HUD funds are proposed to be used, and by residents of predominantly low- and moderate-income neighborhoods. Efforts were made to encourage the participation of minorities and non-English speaking persons, as well as persons with disabilities. The consultation process included representatives of the CoC, PHA, and other specified groups who completed surveys, provided local data, and assisted the City to ensure practical coordination of strategies to maximize impact and to avoid duplication of effort.
Summary of public comments
As required by HUD regulations, all public comments received during the development of the 2026-2027 Action Plan are summarized in section PR-15 and Appendix A of this Plan.
Summary of comments or views not accepted and the reasons for not accepting them The City considered and incorporated all feedback received throughout the planning process. No public comments were disregarded.
Summary
2025-2029 Consolidated Plan establishes a clear framework for the strategic use of CDBG and HOME funds to address high-priority community needs. All applications for funding through the City’s Notice of Funding Availability (NOFA) process must align with at least one of the six Strategic Plan goals and their corresponding measurable objectives.
The 2026-2027 Action Plan advances the Strategic Plan Goals by allocating a total of $1,794,6731,712,392 in CDBG and $1,835,286.641,835,463.99 in HOME toward eligible activities designed to provide suitable affordable housing and improve the quality of life of its low- and moderate-income residents.
City of Hawthorne – 7 – 26-27 Action Plan
The Process
PR-05 Lead & Responsible Agencies
Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Table 2 – Responsible Agencies
Agency Role Name Department/Agency
CDBG Administrator City of Hawthorne Department of Housing HOME Administrator City of Hawthorne Department of Housing Narrative
The City of Hawthorne Department of Housing serves as the lead agency responsible for the administration and oversight of the CDBG and HOME programs.
The Department of Housing ensures that CDBG and HOME investments align with community priorities, comply with HUD regulations, and are effectively managed to maximize impact. This includes planning, implementation, financial oversight, performance monitoring, and reporting. The department works closely with non-profit organizations, for-profit entities, and public agencies to administer funds in accordance with the City’s Consolidated Plan and Annual Action Plans.
To ensure strong governance and transparency, the City actively monitors funded activities, provides technical assistance to subrecipients, and conducts community engagement efforts to inform future funding priorities. This ongoing oversight ensures that CDBG and HOME funds are used to achieve measurable improvements in housing, infrastructure, and public services throughout Hawthorne.
Consolidated Plan Public Contact Information
City of Hawthorne
Department of Housing
Kimberly Mack, Director of Housing
4455 W. 126th Street
Hawthorne, CA 90250
(310) 349-1603
City of Hawthorne – 8 – 26-27 Action Plan
AP-10 Consultation
Introduction
The City of Hawthorne conducted a comprehensive consultation process to ensure that the 2025-2029 Consolidated Plan reflects the needs and priorities of residents, service providers, and community stakeholders. In compliance with 24 CFR Part 91, the City engaged a wide range of public and private agencies, regional planning entities, and service providers that support low- and moderate-income residents, special needs populations, and individuals experiencing homelessness. The goal of this process was to enhance coordination among local government agencies, non-profits, housing developers, businesses, and service organizations to create a cohesive strategy for improving housing affordability, public services, public facilities, and infrastructure. To facilitate the consultation process, the City solicited feedback through the following methods:
• Community Survey (web‐based and paper)
• Community meetings
• Stakeholder consultations
• Public hearings
• Receipt of written and oral comments
To gather the greatest breadth and depth of information, the City consulted with a wide variety of agencies, groups, and organizations concerning the housing, community, and economic development needs of the community.
Each of the agencies, groups, or organizations invited to consult and participate in the planning process is represented in Table 3. The input received from these consultations helped establish and inform the objectives and goals described in the Strategic Plan.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)).
The City recognizes the importance of careful coordination and alignment among various service providers to maximize the effectiveness of the CDBG and HOME programs. As a result, during the development of the Consolidated Plan, the City consulted with organizations that provide assisted housing, health services and other community-focused programs. Outreach efforts included surveys, invitations to community meetings, and follow-up interviews where appropriate.
The City further recognizes the importance of continued coordination and alignment during the upcoming five-year planning period with these organizations and agencies. The City will reinforce these partnerships through the implementation of the Notice of Funding Availability (NOFA) process for CDBG and HOME funds each year and through technical assistance provided to subrecipients.
City of Hawthorne – 9 – 26-27 Action Plan
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness The Los Angeles County Continuum of Care (CoC) is comprised of a network of public, private, faith-based, for-profit, and non-profit service providers who utilize several federal, state and local resources to provide services for homeless people. The region’s municipalities, including the City of Hawthorne, also provide resources for services that assist the homeless and those at risk of becoming homeless. The non-profit and faithbased community plays a key role in the current CoC system. Hundreds of agencies throughout the County provide programs ranging from feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women. The non-profit and faithbased community also serves special needs populations, such as victims of domestic violence, veterans, the disabled and youth.
The CoC guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. The City regularly consults with the CoC to identify needs in the jurisdiction and its objectives to address the needs of different homeless populations, including chronically homeless families and individuals, families with children, veterans, unaccompanied youth, and persons at risk of homelessness. The City continues to coordinate with the CoC to clarify existing needs and objectives and identify opportunities for collaboration during the five-year planning process.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS Although not a direct Emergency Solutions Grant (ESG) entitlement community, the City consulted with a number of housing, social services, governmental, and other entities involved in housing and community development in the City. Through these consultations, the City identified the holistic needs of the community, including those for extremely lowincome households and homeless persons and how the City can continue to effectively coordinate with regional homeless service providers to best meet the needs of these populations. The CoC was consulted to discuss performance standards, outcome evaluation methodologies, and policies and procedures for the use of HMIS.
City of Hawthorne – 10 – 26-27 Action Plan
Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities 1 Agency/Group/Organization Los Angeles Homeless Services Authority (LAHSA)
Agency/Group/Organization Type Continuum of Care; Services – Homeless; Regional Organization
What section of the Plan was
addressed by Consultation?
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
Anti-poverty
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
2 Agency/Group/Organization Los Angeles County Department of Child Protective Services
Agency/Group/Organization Type Child Welfare Agency; Services – Children; Services – Victims of Domestic Violence
What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs; NonHousing Community Development Strategy How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
3 Agency/Group/Organization Los Angeles County Development Authority (LACDA)
Agency/Group/Organization Type PHA; Public Land Agency; Assisted Housing
What section of the Plan was
addressed by Consultation? Housing Needs Assessment
City of Hawthorne – 11 – 26-27 Action Plan
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
4 Agency/Group/Organization Children's Dental Health Clinic Agency/Group/Organization Type Services – Children; Services – Health What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs; NonHousing Community Development How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
5 Agency/Group/Organization The Children's Clinic
Agency/Group/Organization Type Services – Children; Services – Health What section of the Plan was
addressed by Consultation? Non-Housing Community Development How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
6 Agency/Group/Organization Hawthorne Veteran Affairs Commission Agency/Group/Organization Type Services – Homeless Veterans What section of the Plan was
addressed by Consultation?
Homelessness Strategy; Homelessness
Strategy- Veterans; Non-Homeless Special
Needs; Anti-Poverty
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
7 Agency/Group/Organization Steelworkers Oldtimers Foundation Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
City of Hawthorne – 12 – 26-27 Action Plan
What section of the Plan was
addressed by Consultation? Non-Homeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
8 Agency/Group/Organization Harbor Regional Center
Agency/Group/Organization Type Services – Persons with Disabilities What section of the Plan was
addressed by Consultation? Non-Homeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
9 Agency/Group/Organization Watts Health Center
Agency/Group/Organization Type Services – Persons with HIV/AIDS; Services – Health
What section of the Plan was
addressed by Consultation? Non-Housing Community Development How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
10 Agency/Group/Organization County Public Health Department Agency/Group/Organization Type Health Agency; Publicly Funded Institution; Services – Health; Lead-Based Paint
What section of the Plan was
addressed by Consultation? Non-Housing Community Development How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
11 Agency/Group/Organization Volunteers of America
Agency/Group/Organization Type Services – Homeless
City of Hawthorne – 13 – 26-27 Action Plan
What section of the Plan was
addressed by Consultation? Homelessness Strategy; Anti-Poverty How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
12 Agency/Group/Organization South Bay Workforce Investment Board Agency/Group/Organization Type
Services – Employment; Regional
Organization; Planning Organization;
Services – Children
What section of the Plan was
addressed by Consultation?
Economic Development; Non-Housing
Community Development
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
13 Agency/Group/Organization C-H #4 Residential Facility Agency/Group/Organization Type Services – Elderly Persons; Services – Persons with Disability; Assisted Housing
What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs; NonHousing Community Development; Housing Need Assessment
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
14 Agency/Group/Organization Champions of Caring
Agency/Group/Organization Type Services – Education; Services – Children What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs;
Homelessness Strategy; Anti-Poverty;
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
City of Hawthorne – 14 – 26-27 Action Plan
15 Agency/Group/Organization El Nido Family Centers
Agency/Group/Organization Type Services – Employment
What section of the Plan was
addressed by Consultation? Economic Development
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
16 Agency/Group/Organization Advantage
Agency/Group/Organization Type Services – Elderly Persons What section of the Plan was
addressed by Consultation? Non-Homeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
17 Agency/Group/Organization Ashley's Place Adult Residential II Agency/Group/Organization Type Services – Elderly Persons; Assisted Housing
What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs; Housing
Needs Assessment
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
18 Agency/Group/Organization EPI Center
Agency/Group/Organization Type Services – Elderly Persons What section of the Plan was
addressed by Consultation? Non-Homeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
City of Hawthorne – 15 – 26-27 Action Plan
19 Agency/Group/Organization Piety and Emenogu-Work Skill Center Agency/Group/Organization Type Services – Elderly Persons What section of the Plan was
addressed by Consultation? Non-Homeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
20 Agency/Group/Organization Rosecrans Villa Residential Care Agency/Group/Organization Type Services – Elderly Persons; Assisted Housing
What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs; Housing
Needs Assessment
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
21 Agency/Group/Organization Moneta Gardens Improvements Agency/Group/Organization Type Services – Education; Services – Children What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs;
Homelessness Strategy; Anti-Poverty
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
22 Agency/Group/Organization Woodyear Home
Agency/Group/Organization Type Services – Elderly Persons; Services – Persons with Disability
What section of the Plan was
addressed by Consultation? Non-Homeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
City of Hawthorne – 16 – 26-27 Action Plan
23 Agency/Group/Organization Los Angeles County Fire Department Agency/Group/Organization Type County Government; Emergency Management Agency
What section of the Plan was
addressed by Consultation?
Non-Housing Community Development;
Hazard Mitigation Plan
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
24 Agency/Group/Organization New Star Family Center
Agency/Group/Organization Type Services – Survivors of Domestic Violence What section of the Plan was
addressed by Consultation?
Homeless Strategy; Non-Homeless Special
Needs; Non-Housing Community
Development
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
25 Agency/Group/Organization Family Promise of the South Bay Agency/Group/Organization Type Services – Housing; Services – Homeless What section of the Plan was
addressed by Consultation?
Housing Needs Assessment; Homelessness
Strategy; Non-Homeless Special Needs;
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
26 Agency/Group/Organization Catholic Charities of Los Angeles Agency/Group/Organization Type Services – Housing; Services – Homeless What section of the Plan was
addressed by Consultation?
Homelessness Strategy; Homelessness
Strategy-Unaccompanied Youth; AntiPoverty
City of Hawthorne – 17 – 26-27 Action Plan
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
27 Agency/Group/Organization The Richstone Family Center Agency/Group/Organization Type Services – Survivors of Domestic Violence; Services - Health
What section of the Plan was
addressed by Consultation? Non-Housing Community Development How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
28 Agency/Group/Organization WeeCare
Agency/Group/Organization Type Services – Education
What section of the Plan was
addressed by Consultation? Economic Development
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
29 Agency/Group/Organization Fair Housing Foundation
Agency/Group/Organization Type Services – Fair Housing; Civic Leader What section of the Plan was
addressed by Consultation?
Housing Needs Assessment; Market
Analysis; Fair Housing Strategy
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
30 Agency/Group/Organization Federal Emergency Management Agency (FEMA)
Agency/Group/Organization Type Agency – Managing Flood Prone Areas Agency – Emergency Management
City of Hawthorne – 18 – 26-27 Action Plan
What section of the Plan was
addressed by Consultation? Hazard Mitigation
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
31 Agency/Group/Organization FCC
Agency/Group/Organization Type Agency – Narrowing the Digital Divide What section of the Plan was
addressed by Consultation? Broadband
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
32 Agency/Group/Organization Hawthorne School District
Agency/Group/Organization Type Publicly Funded Institution; Services – Education; Services – Children
What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs;
Homelessness Strategy; Anti-Poverty;
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
33 Agency/Group/Organization Habitat for Humanity
Agency/Group/Organization Type Services – Housing
What section of the Plan was
addressed by Consultation? Housing Needs assessment
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
34 Agency/Group/Organization Home Ownership for Personal Empowerment, Inc.
City of Hawthorne – 19 – 26-27 Action Plan
Agency/Group/Organization Type Assisted Housing; Services – Housing; Services – Persons with Disabilities
What section of the Plan was
addressed by Consultation? Housing Needs assessment
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
35 Agency/Group/Organization County of Los Angeles Commission on HIV Agency/Group/Organization Type Health Agency; Local Government; Services – Persons with HIV/AIDS
What section of the Plan was
addressed by Consultation?
Housing Needs Assessment; NonHomeless Special Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
36 Agency/Group/Organization Los Angeles County Regional Broadband Consortium
Agency/Group/Organization Type Narrowing the Digital Divide What section of the Plan was
addressed by Consultation? Broadband
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
37 Agency/Group/Organization CA Department of Housing and Urban Development
Agency/Group/Organization Type State Government; Planning Organization; Regional Organization
What section of the Plan was
addressed by Consultation?
Housing Need Assessment; Homelessness
Strategy; Non-Housing Community
Development Needs
City of Hawthorne – 20 – 26-27 Action Plan
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
38 Agency/Group/Organization Hawthorne Office of Emergency Management
Agency/Group/Organization Type Emergency Management; Floodplain Management; Local Government
What section of the Plan was
addressed by Consultation?
Housing Need Assessment; Homelessness
Strategy; Non-Housing Community
Development Needs
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
39 Agency/Group/Organization Hawthorne Chamber of Commerce Agency/Group/Organization Type Business Leader
What section of the Plan was
addressed by Consultation? Economic Development
How was the
Agency/Group/Organization
consulted and what are the
anticipated outcomes of the
consultation or areas for improved
coordination?
To obtain a comprehensive assessment of
the needs and priorities within the
community, the Consolidated Plan process
included consultation and engagement
with City residents, service providers, and
other stakeholders through surveys,
meetings, and email.
Table 3 - Agencies, groups, and organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a list of agencies, organizations and other stakeholders that have expressed an interest in the City's CDBG and HOME programs and invited representatives from each entity to participate at multiple points in the planning process. All agencies were strongly encouraged to attend community meetings and participate in surveys.
Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Department of Housing at (310) 349-1603.
City of Hawthorne – 21 – 26-27 Action Plan
Other local/regional/state/federal planning efforts considered when preparing the Plan Table 4 - Other local / regional / federal planning efforts Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care Los Angeles Homeless
Services Authority (LAHSA)
Consultation with the CoC indicates that
the City’s Consolidated Plan goals are
consistent with the CoC’s strategies.
City of Hawthorne 2021-
2029 Housing Element City of Hawthorne
The goals included in the Consolidated
Plan are consistent with the Housing
Element policies and objectives.
Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) To enhance coordination among the CoC, public, and assisted housing providers and private and governmental health, mental health and service agencies, the City invited each of these entities to provide input on the needs of the community in the development of this Consolidated Plan.
The Housing Department works with subrecipients of CDBG and HOME funds to ensure a coordinated effort among service agencies in the region to address the needs of Hawthorne residents, including but not limited to chronically homeless individuals and families, families with children, veterans and their families, unaccompanied youth, and persons who were recently homeless but now live in permanent housing. To promote economic opportunities for low-income residents, the City coordinates with subrecipients, social service agencies, businesses, and housing developers to ensure that where there are job opportunities for low-income individuals in connection with HUD-assisted projects, information is disseminated through appropriate channels consistent with the objectives of Section 3 of the Housing and Community Development Act of 1968.
City of Hawthorne – 22 – 26-27 Action Plan
AP-12 Citizen Participation
Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting The City of Hawthorne conducted a comprehensive citizen participation process to ensure that the 2025-2029 Consolidated Plan accurately reflects community needs and priorities.
The public engagement process was designed in accordance with the City’s Citizen Participation Plan (CPP) and HUD regulations (24 CFR 91.105), ensuring that residents, local organizations, and community stakeholders had meaningful opportunities to participate in shaping the City's housing and community development strategies.
The Department of Housing led outreach efforts, emphasizing broad public engagement, particularly among low- and moderate-income residents, individuals with disabilities, racial and ethnic minorities, non-English-speaking populations, and public housing residents.
The City also actively consulted with local and regional institutions, businesses, developers, non-profit and faith-based organizations, the Continuum of Care (CoC), and philanthropic entities to ensure a coordinated and holistic approach to addressing housing and community development needs.
To identify and prioritize community needs, the City developed and distributed a survey to gather input on housing, community, and economic development needs. The survey was available in English and Spanish, accessible online and in paper format, and posted at various public facilities to maximize accessibility.
The City hosted three community meetings on September 26, 2024, September 27, 2024, and November 19, 2024 where residents and stakeholders participated in interactive discussions and provided feedback on local housing and community development needs.
In compliance with 24 CFR 91.105(e)(1)(ii), the City conducted two public hearings at different stages of the planning process. The first public hearing was convened on September 23, 2025 and focused on reviewing program performance. A draft of the 2024- 2025 Consolidated Annual Performance and Evaluation Report (CAPER) was made available for public review from September 8, 2025 to September 23, 2025, but no public comments were received.
Subsequently, the City made the draft 2026-2027 Action Plan available for public review and comment from March 27, 2026, to April 28, 2026. Residents were invited to review the draft documents and to attend the Public Hearing on April 28, 2026, or submit written comments concerning the housing and community development needs, proposed projects and activities, as well as proposed strategies and actions for affirmatively furthering fair housing.
City of Hawthorne – 23 – 26-27 Action Plan
Citizen Participation
Table 5 - Citizen Participation Outreach
Mode of Outreach Target of Outreach Summary of
Response/attendance
Summary of Comments
received
Summary of comments
not accepted and
reasons
URL
(If applicable)
1 Internet Outreach Non-targeted/broad
community
The Community Survey was
available online and in paper
format at various City facilities
from September 16, 2024, to
January 15, 2025. The City
advised residents and
stakeholders of the availability
of the survey via email,
posting on social media
channels, and announcements
at City Council meetings.
The purpose of the survey
was to allow all residents
and stakeholders the
opportunity to provide
their assessment of the
level of need in Hawthorne
for a variety of housing,
community and economic
development activities.
In total, 43 residents and
29 stakeholders completed
the survey.
All survey responses
were accepted and
incorporated into the
survey results.
N/A
2 Public Meeting Minorities
Persons with
disabilities
Non-targeted/broad
community
Community Meeting on
September 26, 2024, at 6:00
pm via Microsoft Teams.
Stakeholders and
residents in attendance
participated in interactive
discussions on priority
housing and community
development needs.
All comments were
accepted.
N/A
3 Public Meeting Minorities
Persons with
disabilities
Non-targeted/broad
community
Community Meeting on
September 27, 2024, at 10:00
am at City Hall.
Stakeholders and
residents in attendance
participated in interactive
discussions on priority
housing and community
development needs.
All comments were
accepted.
N/A
City of Hawthorne – 24 – 26-27 Action Plan
4 Newspaper Ad Non-targeted/broad
community
Notice of the 15-day public
review and comment period
for the draft 2024-2025
Consolidated Annual
Performance and Evaluation
Report (CAPER). The Public
Notice was published on
September 4, 2025, and
invited interested parties to
review the draft document.
Residents and stakeholders
were also invited to a public
hearing to provide oral
comments.
No comments were
received.
No comments were
received.
N/A
5 Public Hearing Minorities
Persons with
disabilities
Non-targeted/broad
community
Residents of Public
and Assisted
Housing
Public hearing on September
23, 2025, to receive comments
on the draft 2024-2025
Consolidated Annual
Performance and Evaluation
Report (CAPER) prior to
adoption and submission to
HUD.
No comments were
received.
No comments were
received.
N/A
6 Newspaper Ad Non-targeted/broad
community
Notice of the 30-day public
review and comment period
for the draft 2026-2027 Action
Plan. The Public Notice was
published on March 26, 2026,
and invited interested parties
to review the draft document.
No comments were
received.TBD
No comments were
received.TBD
N/A
City of Hawthorne – 25 – 26-27 Action Plan
Residents and stakeholders
were also invited to a public
hearing to provide oral
comments.
7 Public Hearing Minorities
Persons with
disabilities
Non-targeted/broad
community
Residents of Public
and Assisted
Housing
Public hearing on April 28,
2026, to receive comments on
the draft 2026-2027 Action
Plan prior to adoption and
submission to HUD.
No comments were
received.TBD
No comments were
received.TBD
N/A
City of Hawthorne – 26 – 26-27 Action Plan
Action Plan
AP-15 Expected Resources
Introduction
The projects and activities included in the 2026-2027 Action Plan are based on resources that are reasonably anticipated to be available to the City from July 1, 2026, through June 30, 2027. The actual resources available to support activities during the implementation of the remainder of the 2025-2029 Consolidated Plan may vary significantly due to factors outside of the City's control. For example, HUD formula grant allocations are subject to change each year based on several factors such as the amount of the national appropriation, changes in ACS population data applied to the CPD grant formulas, statutory changes to the grant programs, the addition or removal of entitlements receiving a particular grant, and the availability of reallocated funds.
For the 2026-2027 program year, the City anticipates receiving approximately $1,149,4981,167,217 in CDBG funds and $492,254.25492,431.60 in HOME funds. When combined with program income and available prior year resources, the 2026-2027 Action Plan will allocate a total of $1,794,6731,712,392 in CDBG funds and $1,835,286.641,835,463.99 in HOME funds to support the following eligible activities to be implemented from July 1, 2026 through June 30, 2027.
City of Hawthorne – 27 – 26-27 Action Plan
Anticipated Resources
Table 6 - Expected Resources – Priority Table
Source
of
Funds
Uses of Funds
Expected Amount Available Year 1 Expected Amount
Available Remainder of
Con Plan: $
Narrative
Annual Allocation: Description
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public
Services
$1,149,4981,167,217.00 $0.00 $645,175545,175.00 $1,794,6731,712,392.00 $3,448,4943,501,651.00 The
expected
amount
available for
the
remainder of
the
Consolidated
Plan period
assumes
level funding
in future
years.
HOME
Acquisition
Homeowner
Rehab
New
Construction
for Ownership
$492,254.25492,431.60 $32,194.75 $1,310,837.64 $1,835,286.641,835,463.99 $1,476,762.751,477,294.80 The
expected
amount
available for
the
remainder of
the
Consolidated
Plan period
assumes
level funding
City of Hawthorne – 28 – 26-27 Action Plan
in future
years.
City of Hawthorne – 29 – 26-27 Action Plan
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied As a jurisdiction with substantial housing and community development needs, Hawthorne needs to leverage its CDBG and HOME entitlement grants with a variety of funding resources in order to maximize the effectiveness of available funds.
Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs Supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• YouthBuild
• Federal Low-Income Housing Tax Credit (LIHTC) Program • HUD Community Project Funding (CPF) Program
• HUD Section 108 Loan Guarantee
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • Permanent Local Housing Allocation (PLHA)
• CalHome Program
• Multifamily Housing Program (MHP)
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
• Justice Assistance Grant (JAG) Program
• Homeless Emergency Aid Program (HEAP)
• Project Roomkey
Local Resources
• Los Angeles County Development Agency (LACDA)
• Los Angeles Homeless Services Authority (LAHSA)
• Southern California Home Financing Authority (SCHFA)
• General fund
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way
• Private Contributions
City of Hawthorne – 30 – 26-27 Action Plan
HOME Match Requirements
Under federal HOME regulations, the City of Hawthorne must contribute a 25 percent local match to HOME-funded projects. However, HUD allows match reductions for local jurisdictions that meet one of the distress criteria.
Since Fiscal Year 2023, Hawthorne was identified as fiscally distressed and received a 50 percent reduction in match requirements, thereby lowering the required match to 12.5 percent of HOME funds expended. While match reductions are recalculated annually, the City anticipates this match reduction status will continue through the Consolidated Plan period. The City will meet its HOME match requirement with other non-federal resources.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
As of the preparation of this Consolidated Plan, there is currently no publicly owned land or property that may be used to address the needs identified in this plan. Since Hawthorne is predominantly built out, there is nominal vacant land remaining to accommodate new development. As such, the City will explore opportunities to acquire nonvacant sites with CDBG, HOME, and other funding sources that are suitable for redevelopment that can be appropriately scaled to meet the needs identified.
Discussion
During the 2026-2027 Program Year, the City anticipates that these funds will be leveraged with other public and private funding. Along with leveraged dollars, the City expects to invest approximately $1,794,6731,712,392 of CDBG and $1,835,286.641,835,463.99 of HOME funds during the program year on public services, housing preservation and development, as well as public facility and infrastructure improvement activities that promote suitable living environments and decent housing.
City of Hawthorne – 31 – 26-27 Action Plan
AP-20 Annual Goals and Objectives
Goals Summary Information
Table 7 – Goals Summary
Goal Name Start
Year
End
Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Public Services 2026 2027
Non-Housing
Community
Development
Citywide Expand public services
for LMI residents
CDBG:
$172,424175,082.00
Public service activities other
than Low/Mod Income Housing
Benefit: 376 Persons Assisted
2 Public Facilities &
Infrastructure
Improvements
2026 2027
Non-Housing
Community
Development
Citywide
Improve public facilities
and infrastructure
Address material
barriers to accessibility
CDBG: $802,175.00
Public facility or infrastructure
activities other than Low/Mod
Income Housing Benefit:
4,550 Persons Assisted
Repayment of Section 108 Loan
Guarantee: 1
3 Affordable Housing
Preservation 2026 2027 Affordable Housing Citywide Preserve the supply of affordable housing HOME: $1,000,000.00 Homeowner housing
rehabilitated: 10 Households /
Housing Units
4 Affordable Housing
Development 2026 2027 Affordable Housing Citywide Increase the supply of affordable housing HOME:
$786,061.64786,220.99
Rental units rehabilitated:
1 Household / Housing Units
5 Economic
Development
Economic
Development S/B Target Areas Promote economic opportunities CDBG:
$590,175501,692.00
Businesses assisted: 2
businesses assisted
6 Fair Housing
Services 2026 2027 Affordable Housing Citywide Ensure equal access to housing opportunities CDBG: $30,000.00 Public service activities other
than Low/Mod Income Housing
Benefit: 240 Persons Assisted
7 Program
Administration 2026 2027 All Citywide All
CDBG:
$199,899203,443.00 Other: 1
HOME:
$49,22549,243.00 Other: 1
City of Hawthorne – 32 – 26-27 Action Plan
Goal Descriptions
1 Goal Name Public Services
Goal
Description
Provide low- and moderate- income residents with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty. 2 Goal Name Public Facilities and Infrastructure Improvements Goal
Description
Improve public facilities and infrastructure to benefit residents of predominantly lowand moderate-income areas or those presumed under HUD regulations to be low- and moderate-income such as elderly and disabled adults. Where it is possible, improvements will remove material and architectural barriers to accessibility. This also includes repayment of Section 108 Loan.
3 Goal Name Affordable Housing Preservation
Goal
Description
Preserve the quality of existing owner-occupied housing units through rehabilitation including lead-based paint education, inspection, testing and abatement. Where appropriate, energy efficiency improvements and conservation measures will be implemented to increase sustainability and reduce monthly household utility costs to promote long-term affordability.
4 Goal Name Affordable Housing Development
Goal
Description
Increase the supply of affordable housing and promote homeownership opportunities for low-income individuals, families, residents with special needs, and persons experiencing homelessness.
5 Goal Name Economic Development
Goal
Description
Improve and revitalize commercial corridors through rehabilitation and façade improvements to existing businesses, particularly in designated slum and blight areas.
6 Goal Name Fair Housing Services
Goal
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services. 7 Goal Name Planning and Administration
Goal
Description
Provide for the timely and compliant administration of the CDBG and HOME programs in accordance with HUD policy and federal regulations. Activities include overall program oversight, planning, performance evaluation, reporting, and coordination to ensure resources are aligned with community needs and priorities.
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b).
The City of Hawthorne anticipates providing affordable housing to low- and moderateincome households through the following activities:
• Homeowner Housing Rehabilitation Program - $1,000,000 in HOME funds (10 households / housing units)
• Affordable Housing Development - $1,310,837.64 in HOME funds (2 households / housing units)
City of Hawthorne – 33 – 26-27 Action Plan
AP-35 Projects
Introduction
To address the high priority needs identified in the Strategic Plan to the 2025-2029 Consolidated Plan, the City of Hawthorne will invest CDBG and HOME funds in projects that provide public services to low- and moderate-income residents, preserve and develop affordable housing, support economic development, and improve the City’s public facilities and infrastructure. Together, these projects will address the housing, community and economic development needs of Hawthorne residents.
Projects
Table 8 – Project Information
Project Name
1 Public Services
2 Public Facilities and Infrastructure Improvements
3 Affordable Housing Preservation
4 Affordable Housing Development
5 Economic Development
6 Fair Housing Services
7 Program Administration
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its CDBG and HOME funds (excluding program administration) for program year 2026-2027 toward projects and activities that benefit low- and moderate-income people. Due to the nature of certain activities to be undertaken, investments in public service activities as well as public facilities and infrastructure improvements may be limited to the CDBG designated low- and moderate-income areas while other activities benefit low- and moderate-income clientele and are available citywide.
In addition, the City will allocate $590,175501,692 of its CDBG funds to support a Commercial Rehabilitation Program (CRP). This program will provide façade and exterior improvements to commercial properties located in designated slum and blight areas, with the goal of addressing deteriorating conditions, improving the appearance and functionality of commercial corridors, and supporting local economic activity that benefits the community.
City of Hawthorne – 34 – 26-27 Action Plan
The primary obstacles to meeting the underserved needs of low- and moderate-income residents include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low-income households, and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2026-2027 Action Plan in projects that develop and preserve affordable housing, provide public services to low- and moderate-income residents, and improve public facilities and infrastructure.
City of Hawthorne – 35 – 26-27 Action Plan
AP-38 Project Summary
Project Summary Information
1 Project Name Public Services
Target Area Citywide / CDBG Eligible Areas
Goals Supported Public Services
Needs Addressed Expand public services for low- and moderate-income residents Funding CDBG: $172,424175,082
Description
Provide low- and moderate- income residents with a range of public services necessary to prevent homelessness and ameliorate the effects of poverty.
Target Date 6/30/27
Estimate the number
and type of families
that will benefit from
the proposed activities
376 persons assisted
Location Description Citywide / CDBG Eligible Areas
Planned Activities
CCLA: St. Margaret’s Emergency Assistance (190 Persons) – $20,34621,000 FPOLA: Shelter and Supportive Services (30 Persons) – $20,34621,000 NSFC: Domestic Violence Services (35 Persons) – $20,34621,000 SBWIB: Teen Center (81 Persons) – $91,04091,082
TRFC: Behavioral Health Services (40 Persons) – $20,34621,000 2 Project Name Public Facilities and Infrastructure Improvements Target Area Citywide / CDBG Eligible Areas
Goals Supported Public Facilities and Infrastructure Improvements Needs Addressed Improve public facilities and infrastructure & Address material barriers to accessibility
Funding CDBG: $802,175
Description
Improve public facilities and infrastructure to benefit low- and moderateincome residents or those presumed under HUD regulations to be low- and moderate-income such as elderly and disabled adults. Includes Section 108 Loan Repayment.
Target Date 6/30/27
Estimate the number
and type of families
that will benefit from
the proposed activities
4,550 persons assisted
1 other (section 108 loan repayment)
Location Description Citywide / CDBG Eligible Areas
Planned Activities COH: Alley Reconstruction (4,550 Persons) – $247,175 COH: Section 108 Loan Repayment (1 Other) – $555,000
3 Project Name Affordable Housing Preservation
Target Area Citywide
Goals Supported Affordable Housing Preservation
Needs Addressed Preserve the supply of affordable housing City of Hawthorne – 36 – 26-27 Action Plan
Funding HOME: $1,000,000
Description
Hawthorne has an existing Housing Rehabilitation Program geared towards the preservation of the quality of existing affordable housing stock occupied by low- and moderate-income homeowners.
Target Date 6/30/27
Estimate the number
and type of families
that will benefit from
the proposed activities
10 Homeowner Households / Housing Units Rehabilitated
Location Description Citywide
Planned Activities COH: Housing Rehabilitation Program (10 Households / Housing Units) – $1,000,000
4 Project Name Affordable Housing Development
Target Area Citywide
Goals Supported Affordable Housing Development
Needs Addressed Increase the supply of affordable housing Funding HOME: $786,061.64786,220.99
Description
Increase the supply of affordable housing through acquisition, rehabilitation, and resale, or new construction of affordable owneroccupied or rental housing units to be made available to low-income individuals, families, residents with special needs, and persons experiencing homelessness.
Target Date 6/30/27
Estimate the number
and type of families
that will benefit from
the proposed activities
1 Rental Households / Housing Units Rehabilitated
Location Description Citywide
Planned Activities
CHDO: TBD – $147,678147,704
COH: Affordable Housing Development (1 Households / Housing Units) – $638,383.64638,516.99
5 Project Name Economic Development
Target Area Slum and Blight Target Area
Goals Supported Economic Development
Needs Addressed Promote economic opportunities
Funding CDBG: $590,175501,692
Description
Improve and revitalize commercial corridors through rehabilitation and façade improvements to existing businesses, particularly in areas serving low- and moderate-income residents or designated slum and blight areas.
These investments will address deteriorating conditions, enhance the appearance and functionality of commercial properties, and support local economic activity by creating more attractive and viable spaces for businesses and customers.
Target Date 6/30/27
City of Hawthorne – 37 – 26-27 Action Plan
Estimate the number
and type of families
that will benefit from
the proposed activities
2 businesses assisted
Location Description Slum and Blight Target Area
Planned Activities COH: Commercial Rehabilitation Program (2 businesses) - $590,175501,692 6 Project Name Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $30,000
Description
Affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services.
Target Date 6/30/27
Estimate the number
and type of families
that will benefit from
the proposed activities
240 persons assisted
Location Description Citywide
Planned Activities FHF: Fair Housing Services (240 Persons) – $30,000 7 Project Name Program Administration
Target Area Citywide
Goals Supported All
Needs Addressed All
Funding CDBG: $199,899203,443
HOME: $49,22549,243
Description
Overall administration of the CDBG and HOME program which includes preparation and submission of the Annual Action Plan and CAPER, IDIS data input, provision of technical assistance, monitoring of all projects, and fiscal management.
Target Date 6/30/27
Estimate the number
and type of families
that will benefit from
the proposed activities
N/A
Location Description Citywide
Planned Activities COH: CDBG Administration – $199,899203,443 COH: HOME Administration – $49,22549,243
City of Hawthorne – 38 – 26-27 Action Plan
AP-50 Geographic Distribution
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed
Assistance will be primarily directed to activities that serve low- and moderate-income residents citywide. During the 2026-2027 program year, one infrastructure improvement project and one public service activity rely on the established low- and moderate-income area benefit criteria. Those are the CDBG-eligible portions of the alley reconstruction project and Hawthorne Teen Center.
In addition, the City will invest CDBG funds through a Commercial Rehabilitation Program that will target businesses located within designated slum and blight areas. These investments will address deteriorating conditions along commercial corridors and support broader neighborhood revitalization efforts.
The low- and moderate-income census tract/block groups and slum and blight target areas are shown on the maps included in Appendix B of this Plan.
Geographic Distribution
Table 9 - Geographic Distribution
Target Area Percentage of CDBG Funds Percentage of HOME Funds 1 Citywide 6771% 100%
2 Slum & Blight 3329% 0%
Rationale for the priorities for allocating investments geographically For the 2026-2027 program year, the City will invest $1,794,6731,712,392 in CDBG and $1,835,286.641,835,463.99 in HOME funds to benefit low- and moderate-income residents throughout the City. Of this amount, $590,175501,692, or 33 29 percent, of all resources will be invested in a Commercial Rehabilitation Program targeted to businesses located within designated slum and blight areas. These investments are intended to address deteriorating commercial conditions, improve the appearance and functionality of commercial corridors, and support economic vitality in areas that serve surrounding residential neighborhoods.
Discussion
Hawthorne is allocating its CDBG and HOME funds for program year 2026-2027 to activities that support a combination of public services, infrastructure improvements, housing activities, and economic development initiatives that benefit low- and moderate-income residents. These activities are either available to eligible residents citywide or targeted to designated areas.
City of Hawthorne – 39 – 26-27 Action Plan
AP-55 Affordable Housing
Introduction
Two high priority affordable housing needs are identified in the 2025-2029 Consolidated Plan and two Strategic Plan goals are established to provide the framework necessary to invest CDBG and HOME funds to address the affordable housing needs of the City. During the 2026-2027 program year, the City will implement the following:
• CCLA: St. Margaret’s Emergency Assistance – $20,34621,000 in CDBG funds (190 persons)
• Homeowner Housing Rehabilitation Program – $1,000,000 in HOME funds (10 households / housing units)
• Affordable Housing Development – $786,061.64786,220.99 in HOME funds (2 households / housing units)
Table 10 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 202
Special Needs 0
Total 202
Table 11 - One Year Goals for Affordable Housing by Support Type One Year Goals for the Number of Households to be Supported Rental Assistance 190
The Production of New Units 2
Rehab of Existing Units 10
Acquisition of Existing Units 0
Total 202
Discussion
During the 2026-2027 program year, the City will allocate $1,000,000 of HOME funds to provide financial assistance to low- and moderate-income homeowners to help preserve their homes in need of critical home improvements. The City also plans to allocate City of Hawthorne – 40 – 26-27 Action Plan
$20,34621,000 of CDBG funds to provide emergency assistance to income-eligible households.
City of Hawthorne – 41 – 26-27 Action Plan
AP-60 Public Housing
Introduction
The Hawthorne Housing Authority (HA) is responsible for the administration and oversight of the City’s public and assisted housing programs. The HA plays a vital role in helping lowincome families access safe and affordable housing through the Housing Choice Voucher (HCV) program.
Currently, the HA does not own or manage any HUD public housing developments.
However, the City is within the service area of LACDA. LACDA currently manages a portfolio of nearly 3,000 public housing units and more than 21,000 vouchers. This structure highlights the collaborative nature of public and assisted housing. The HA and LACDA’s primary goal is to provide safe, decent, and sanitary housing.
Actions planned during the next year to address the needs of public housing residents During the 2026-2027 program year, HA intends to partner with a qualified Community Housing Development Organization (CHDO) to identify additional opportunities to address the needs of extremely low- and low-income households.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The Hawthorne Housing Authority (HA) encourages residents involvement and actively seeks input from residents on the management and implementation of HA policies and procedures. Additionally, LACDA supports resident councils to participate in the decision making process via surveys and other forms of engagement.
LACDA currently administers the Family Self-Sufficiency (FSS) program for public housing residents and Housing Choice Voucher (HCV) program participants. The FSS program provides critical tools and supportive services to foster a resident’s transition from financial and housing assistance to economic and housing self-sufficiency, most importantly homeownership. To support this effort, HHA and LACDA utilize marketing materials to outreach and further promote the program’s requirements and benefits to all public housing residents. For families that are eligible to participate, a Contract of Participation (COP) is prepared to govern the terms and conditions of their participation and an Individual Training Service Plan (ITSP) is created that outlines the following: supportive services to be provided, activities to be completed by the participant, and agreed upon completion dates for the services and activities. The COP is valid for five years and may be extended to allow the family to meet their ITSP goals.
City of Hawthorne – 42 – 26-27 Action Plan
Once the COP is established and the family experiences an increase in tenant rent as a result of earned income, an escrow account in their name is established and increased earned income is deposited into this account. Escrow accounts are disbursed to the family once the family has graduated successfully from the program. Families are encouraged to utilize these funds towards educational and homeownership endeavors.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable, HA is designated as a High Performing PHA.
Discussion
The City of Hathorne continues to support LACDA in effective administration of its limited affordable housing resources. The City also continues to work with the agency to include the residents with Housing Choice Vouchers in the federally funded programs administered by LACDA. Moving forward, prioritizing resident-focused improvements and securing additional resources will ensure that public housing continues to be a cornerstone of the City’s affordable housing strategy.
City of Hawthorne – 43 – 26-27 Action Plan
AP-65 Homeless and Other Special Needs Activities
Introduction
Preventing and reducing homelessness is a top priority for HUD that is addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City continues to support the efforts of the CoC and its member organizations that address homelessness throughout the region. The City will use CDBG, HOME, and other resources to support service providers to prevent homelessness through rental assistance and expand the supply of affordable housing throughout the jurisdiction.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City of Hawthorne works closely with local nonprofits and regional service providers to ensure that homeless individuals have access to housing assistance, supportive services, and case management. The City will continue working with its partners to expand housingfirst programs, increase emergency shelter capacity, and strengthen outreach initiatives to connect individuals with available support services.
During the 2026-2027 program year, the City will invest $81,384 of CDBG funds to the following activities that prevent and reduce homelessness:
• CCLA: St. Margaret’s Emergency Assistance (190 persons assisted) – $20,34621,000 • FPOLA: Shelter and Supportive Services (30 persons assisted) – $20,34621,000 • NSFC: Domestic Violence Services (35 persons assisted) – $20,34621,000 • TRFC: Behavioral Health Services (40 persons assisted) – $20,34621,000 Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, one of the most pressing challenges is the lack of emergency and transitional housing options. The existing shelter system does not have enough capacity to serve all individuals in need, particularly families with children and unaccompanied youth. Limited funding for public services also restricts the City's ability to expand supportive housing programs and case management services. To address these gaps, the City is seeking additional funding sources, strengthening partnerships with the private sector, and exploring innovative housing solutions.
Additionally, to address the needs of homeless persons in the near-term, the City support Family Promise of Los Angeles which provides transitional shelter and case management services with the goal of helping 30 people to enter their own permanent housing.
City of Hawthorne – 44 – 26-27 Action Plan
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
To address the needs of homeless families, families with children, veterans and their families, the City will continue to support Family Promise of Los Angeles which provides transitional housing and case management services with the goal of helping families enter their own permanent housing. Furthermore, the City intends to continue its support of Catholic Charities of Los Angeles’ emergency assistance program that helps families that are at-risk of homelessness achieve stability by connecting them to the appropriate housing and utility resources based on their needs.
Helping low-income individuals and families avoid becoming homeless, especially extremely lowincome individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs To help low-income individuals and families avoid becoming homeless, the City will continue its partnership with Catholic Charities of Los Angeles to connect residents at risk of becoming homeless to existing short-term housing and utility assistance programs based on their eligibility and need. In addition, the City intends to support New Star Family Center and the Richstone Family Center which provide a range of services to survivors of domestic violence who are at-risk of homelessness.
The City coordinated with the CoC and other subrecipients receiving CDBG funds to ensure that its HUD-funded programs are targeted, to the greatest extent feasible, to address the discharge of persons from publicly funded institutions or systems of care so that these individuals and families have access to public services and affordable housing opportunities necessary to prevent homelessness.
Discussion
The City will use CDBG, HOME, and other funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Hawthorne for extremely low- and low-income residents.
City of Hawthorne – 45 – 26-27 Action Plan
AP-75 Barriers to affordable housing
Introduction:
A barrier to affordable housing is a public policy or regulation that constrains the development and preservation of affordable housing such as tax policy, land use controls, zoning ordinances, building codes, growth limits, environmental protection, and fees.
Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.
Based on information gathered and resident feedback, the primary barriers to affordable housing in Hawthorne are housing affordability and the lack of monetary resources necessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply, and insufficient resources are available to increase the supply of affordable housing to meet demand.
For low- and moderate-income households, finding and maintaining decent affordable housing is difficult due to the high cost of housing. Based on the Needs Assessment and Market Analysis, there is a high need for housing units affordable for low- and moderateincome households. Approximately 67 percent of the City’s low- and moderate-income households experience a cost burden, meaning that they pay more than 30 percent of their income for housing. Consistent with available data, responses to the Resident Survey indicate a high need for additional affordable housing in Hawthorne.
Beyond affordability, the 2021-2029 Housing Element’s Assessment of Fair Housing identifies the following challenges that impact access to affordable housing in Hawthorne:
• Land use and zoning laws: Through its approach to accommodating the RHNA, which includes increasing density in the Mixed-Use district of the Downtown Hawthorne Specific Plan, introducing a Housing Overlay, and rezoning an area from M-1 Limited Industrial to R-3 High Density Residential, the City of Hawthorne will also address changes to zoning laws that will affirmatively further fair housing. The changes will allow for new mixed-use development at densities not previously permitted in the Specific Plan area (making affordable housing development more feasible) and allow for residential development where residential development was not previously permitted. These efforts will accommodate new growth at key locations near transportation corridors and activity centers where jobs and housing can be located close together.
• Displacement of residents due to economic pressures: Displacement of residents due to economic pressures is a significant contributing factor to fair housing issues in Los Angeles County, particularly in areas that have historically had concentrations of low-income Hispanic residents. While gentrification has not historically been a problem in Hawthorne, the areas perhaps most vulnerable to gentrification and City of Hawthorne – 46 – 26-27 Action Plan
displacement in the City are disadvantaged areas located near major transit assets and activity centers.
• Lack of access to opportunity due to high housing costs: Lack of access to opportunity due to high housing costs is a significant contributing factor to fair housing issues in Los Angeles County and in Hawthorne. The City has High Resource areas that are densely developed with single-family dwellings and properties with two detached dwellings, which often makes redevelopment of higher density housing in these areas economically infeasible since land would need to be assembled, existing housing demolished, and residents relocated. In addition, Hawthorne’s non-White residents are particularly impacted by limited access to opportunity. The City plans to accommodate new residential development throughout the community, including in mixed-use areas where jobs, housing, and goods and services can be located close together. Increasing housing affordability will make it easier for low-income households to access the types of services and amenities that further social mobility.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment To address housing affordability and the lack of monetary resources for affordable housing, the 2026-2027 Action Plan calls for the investment of a significant portion of CDBG and HOME funds to preserve 10 existing housing units and develop one new affordable housing unit affordable to low- and moderate-income households.
Hawthorne is also committed to increasing the supply of affordable housing via other means. In recent years, the City approved a density bonus for the Rosecrans/Kornblum development which is anticipated to result in a total of 100 rental units, eight of which will be restricted for very low-income households, and 15 to be made affordable for moderateincome households. Additionally, the City has entered into a Development and Disposition Agreement (DDA) with Century Housing Corporation for the Cordary project to develop 18 Permanent Supportive Housing (PSH) units to address the needs of veterans and their families. Lastly, the City has continually updated its Zoning Code to align with state law and better facilitate the production of Accessory Dwelling Units (ADUs), which has resulted in 563 ADUs since 2020.
Strengthening Fair Housing Protections
To address fair housing concerns, particularly regarding discrimination against individuals with disabilities, the City will:
• Increase public awareness of fair housing laws through outreach efforts, including multilingual educational materials, targeted informational campaigns, and updates to the City’s website and community centers.
City of Hawthorne – 47 – 26-27 Action Plan
• Strengthen enforcement efforts by coordinating with the Fair Housing Foundation (FHF) to monitor fair housing violations, particularly in high-risk areas. • Provide resources for landlords to ensure compliance with reasonable accommodation requirements and disability access laws.
• Additionally, the City will integrate affirmative marketing strategies to promote Housing Choice Vouchers in high-opportunity areas and encourage visit ability in new ADU construction to ensure greater accessibility.
Improving Access to Economic Opportunities
To address disparities in access to economic and educational opportunities, the City will:
• Strengthen regional collaboration for transit-oriented development, improving access to jobs and services near major transit hubs.
• Increase investment in disadvantaged communities, targeting infrastructure, public services, and recreational amenities to improve quality of life in historically underserved areas.
• Encourage workforce development through partnerships with South Bay Workforce Investment Board, local businesses, and economic development organizations to expand job training programs and employment opportunities.
Enhancing Mobility and Housing Choice
To ensure low-income residents have access to a diverse range of housing options, Hawthorne will:
• Promote Housing Choice Vouchers by providing outreach to property owners in moderate- and high-opportunity areas, encouraging them to participate in the program.
• Streamline development approvals for affordable housing projects to expedite construction and reduce regulatory barriers.
• Ensure zoning and land use policies facilitate diverse housing options across the city.
Discussion:
To address housing affordability and the lack of monetary resources for affordable housing, the City will continue to leverage its CDBG and HOME funds to attract private and other available resources to incentivize the development of new affordable housing units and the preservation of existing affordable housing.
City of Hawthorne – 48 – 26-27 Action Plan
AP-85 Other Actions
Introduction
In the implementation of the 2026-2027 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level families, develop institutional structure, and enhance coordination between public and private housing and social service agencies.
Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low-income households, and the lack of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2026-2027 Action Plan in activities that provide public services to low- and moderate-income residents and those that are homeless. Additionally, the City will support a variety of financial assistance programs that will enable eligible homeowners to preserve their residence as well as support tenants receive rental support. Lastly, the City will finance the development of new housing units that are affordable to low- and moderate-income residents.
Actions planned to foster and maintain affordable housing During the 2026-2027 program year, the City will invest HOME funds to preserve and maintain affordable housing through the City’s Housing Rehabilitation Program that will provide financial assistance to low- and moderate-income homeowners. In addition, Hawthorne will allocate HOME funds to develop housing units that are affordable to lowand moderate-income households.
Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. To reduce lead-based paint hazards, the City will conduct lead-based paint testing and risk assessments for each property assisted under that was built prior to January 1, 1978 and will incorporate safe work practices or abatement into the scope of work as required to reduce lead-based paint hazards in accordance with 24 CFR Part 35.
Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities meeting the goals established in this Consolidated Plan will help to reduce the number of poverty-level families by:
• Providing public services designed to address the needs of low- and moderateincome residents to ameliorate the effects of poverty City of Hawthorne – 49 – 26-27 Action Plan
• Improving public facilities and infrastructure to benefit low- and moderate-income residents or those presumed under HUD regulations to be low- and moderateincome such as the elderly and disabled adults • Supporting activities that preserve the existing housing stock and expand the supply of housing that is affordable to low- and moderate-income households In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally, in California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provide individuals and families with employment assistance, subsidies for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition and transportation.
Actions planned to develop institutional structure
Hawthorne’s institutional delivery system is highly collaborative, well-structured, and equipped with experienced public and private sector partners. One of the key strengths of the system is the diverse network of service providers capable of leveraging CDBG and HOME funds to address affordable housing, public services, and community development needs. To enhance the effectiveness of the institutional delivery system and address service gaps, the City will collaborate with affordable housing developers and nonprofit agencies receiving CDBG and HOME funds through the 2026-2027 Action Plan to ensure that the needs of low- and moderate-income residents are met as envisioned within the 2025-2029 Consolidated Plan.
Actions planned to enhance coordination between public and private housing and social service agencies
To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate-income residents in Hawthorne. With improvements in technology, the City will expand its outreach efforts to enhance coordination with public and private housing and social service agencies through social media platforms such Facebook, Twitter, Instagram, NextDoor, etc.
Discussion:
In the implementation of the 2026-2027 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty-level City of Hawthorne – 50 – 26-27 Action Plan
families, develop institutional structure, and enhance coordination between public and private housing and social service agencies.
City of Hawthorne – 51 – 26-27 Action Plan
AP-90 Program Specific Requirements
Introduction:
Throughout the implementation of activities under the 2026-2027 Annual Action Plan, the City of Hawthorne will follow all HUD regulations concerning the use of program income, forms of investment, overall low- and moderate-income benefit for the CDBG program, and recapture requirements for the HOME program.
The City of Hawthorne agrees that its compliance in all respects with applicable Federal anti-discrimination laws is material to the U.S. Government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code.
The City of Hawthorne will not operate any programs that violate any applicable Federal anti-discrimination laws, including Title VI of the Civil Rights Act of 1964.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan.
$0
3. The amount of surplus funds from urban renewal settlements $0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan $0
5. The amount of income from float-funded activities $0 Total Program Income: $0
City of Hawthorne – 52 – 26-27 Action Plan
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. The City will meet this requirement over the 2024-2025, 2025-2026, and 2026-2027 program years.
100.00%
City of Hawthorne – 53 – 26-27 Action Plan
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
The City will not use any other forms of investment beyond those identified in Section
92.205.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
During the 2026-2027 program year, the City of Hawthorne will not implement HOMEassisted homebuyer activities. However, if the City were to implement ahomebuyer activity, it will incorporate recapture provisions into written agreements and long-term affordability covenants as required by 24 CFR 92.254.
The recapture provision ensures that all or a portion of the City’s HOME assistance to homebuyers or homeowners is recaptured if the housing does not continue to be the principal residence of the family for the duration of the applicable period of affordability.
In establishing this provision, the City is subject to the limitation that when the recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the HOME investments due, the City can only recapture a portion of the net proceeds, if any. The net proceeds are the sales price minus superior loan repayment (other than HOME funds), capital improvements, and any closing costs.
In the event of a mortgage default, the City has the right of first refusal before foreclosure and may use additional HOME funds to acquire the housing in order to preserve the housing’s affordability. However, notwithstanding a foreclosure situation, the City intends to recapture all or some of its HOME funds invested during or at the end of the established affordability period, if practicable. Recaptured HOME funds consist of loan payments (including interest) and/or a loan payoff, upon sale, if the assisted owner is no longer residing in the assisted residence, or for any other breaches of the agreement with the City. Recaptured funds may be used for any HOME eligible activity.
These recaptured funds are identified in the City’s accounting system by a unique recaptured revenue object number. Any recaptured funds will be used by the City before any additional HOME funds.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
Periods of affordability. The HOME-assisted housing must meet the affordability requirements for not less than the applicable period specified in the following table, beginning after project completion. The per unit amount of HOME funds and the affordability period that they trigger are described in the table below:
City of Hawthorne – 54 – 26-27 Action Plan
Amount of HOME Assistance Minimum Period of Affordability Under $15,000 5 years
$15,000 to $40,000 10 years
Over $40,000 15 years
Recapture
During the affordability period, if there is a property sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the City will provide for the recapture of HOME funds in accordance with the following:
A. Upon the occurrence of a sale, transfer, or program default of the conditions of the promissory note or the Affordable Housing Restriction, the entire amount of the HOME Assistance provided by the City will be due to the City.
B. Notwithstanding the preceding, in the event that the Net Proceeds resulting from a sale are not sufficient to provide for the full return of the borrower’s investment inclusive of the original down payment and capital improvements performed on the acquired property (subject to City verification and approval), then the borrower shall be entitled to recover their original down payment amount and City-approved capital improvement amounts before the City recapture of the HOME investment amount (the City HOME Assistance). For the purposes of this calculation, net proceeds shall mean the sales price minus the repayment of the Primary Loan undertaken to acquire the Property (other than HOME funds) and any closing costs. Capital improvements means those improvements legally made by Homeowner to the Property after the closing of Homeowner’s purchase of the Property, with a minimum cost of Two Thousand Five Hundred Dollars ($2,500) per item, and a useful remaining economic life of not less than five (5) years, as approved by the City and documented by invoices and receipts which the Homeowner certifies to be true and correct. In the event the net proceeds are not sufficient to repay the full amount of the HOME assistance plus enable the Qualified Homebuyer to recover their initial investment in the home and documented costs of any Capital Improvements, the Qualified Homebuyer shall share the Net Proceeds with the City. For the purpose of this provision, the “initial investment in the home” shall mean the Qualified Homebuyer’s down payment. Share of Net Proceeds shall be calculated as set forth in the following mathematical formulas: 24 CFR
92.254(a)(5)(ii)(A)(3)
City of Hawthorne – 55 – 26-27 Action Plan
The affordability period will be evidenced by a promissory note, secured by a deed of trust or mortgage, which provides the affordability period and details the formula under which the HOME funds will be recaptured by the City.
The affordability period and recapture requirements will be evidenced by a deed restriction or covenant indicating the affordability period and restricting future sales.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds under the 2026-2027 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
APPENDIX A
Citizen Participation
APPENDIX B
Grantee Unique Appendices
APPENDIX C
SF-424, SF-424B, & Certifications
AGENDA ITEM NO. 11.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 04/28/2026
Originating Department: Planning
City Manager: Department Head:
SUBJECT:
Amendment to Professional Services Agreement with Kosmont Companies.
RECOMMENDED MOTION:
Approve First Amendment to the Agreement.
DISCUSSION:
In May 2025, the City entered into an agreement with Kosmont Companies to provide economic development consulting services for $35,000, and that agreement is still in effect. In November 2025, the City asked Kosmont to prepare a proposal to analyze the highest and best uses for a City property on Rosecrans Avenue. The study was proposed to not exceed $50,000. A third proposal from Kosmont was requested in March 2026, to assist the City in setting up an Enhanced Infrastructure Financing District (EIFD), This will provide the City an opportunity to collect a higher portion of property tax revenues when properties within the district are reassessed. This proposal came in two phases; the first is to study the feasibility for $30,500, and the second was to prepare the fiscal analysis and then manage the actual implementation of the district for $62,500 to 76,500.
The fiscal analysis is not started yet, but the potential for the City to see property tax increment far exceeds the cost establishing the EIFD.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Goal 5: Develop a strategy for major developments. (second proposal) Objective 1.8: Explore and evaluate the creation of an Enhaced Infrastructure Financing District (EIFD). (third proposal)
FISCAL IMPACT:
Not to exceed $192,000.00.
NOTICING PROCEDURE:
72 Hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
First Amendment
May 2025 Professional Service Agreement
First Proposal
Second Proposal
Third Proposal
1 FIRST AMENDMENT TO
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF
HAWTHORNE AND KOSMONT & ASSOCIATES, INC. (dba KOSMONT
COMPANIES)
This FIRST AMENDMENT TO THE AGREEMENT, for professional services (“First Amendment”) is made and entered into this 28th day of April, 2026, by and between the City of Hawthorne, a California municipal corporation and general law city (“CITY”) and Kosmont & Associates, Inc. (dba Kosmont Companies), a California Corporation (“CONSULTANT”).
RECITALS
A. Reference is hereby made to the Contract dated March 3, 2025, (“Agreement”) whereby Consultant agreed to provide the City with services listed in Exhibit “A” of the Agreement entitles “Scope of Services”.
B. The Agreement provided for Consultant’s services as stated in Exhibit “A” for a fee not to exceed $35,000.
C. Since the approval of the Agreement, the City wishes the Consultant to provide professional consulting services as described in two separate proposed attached hereto as Exhibits “B” and “C”.
D. This First Amendment amends Section 3(a) of the Agreement pertaining to “Compensation” to increase the maximum fee for the contract by $157,000.00 to a total of $192,000.00
E. Except as otherwise specifically amended herein in the First Amendment, all other terms and conditions contained in the original Agreement shall remain in full force and effect.
F. A copy of the Agreement is attached hereto and incorporated as Exhibit “A”.
NOW, THEREFORE, in consideration of the foregoing Recitals, the agreement of the parties as set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
Subsection (a) of Section 3 “COMPENSATION, METHOD OF PAYMENT, AND ADDITIONAL SERVICES” in the Agreement and amended in the First Amendment is hereby deleted and replaced by new subsection (a) of Section 3 which shall read as follows:
3. COMPENSATION, METHOD OF PAYMENT, AND ADDITIONAL SERVICES (a) CITY shall pay CONSULTANT no more than ($192,00.00). 2 IN WITNESS WHEREOF, this Professional Services Agreement has been executed by their duly authorized representatives.
CITY OF HAWTHORNE KOSMONT COMPANIES
By: By:
Vontray Norris Ken K Hira
City Manager President
APPROVED AS TO FORM: ATTEST:
By: By:
David Caceres Dayna Williams-Hunter
City Attorney CityClerk
3 EXHIBIT A
Professional Services Agreement of March 3, 2025
4 EXHIBITB
Second Proposal of November 24, 2025
Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245 November 24, 2025
Mr. Gregg McClain
Planning Director
City of Hawthorne
4455 W 126th Street
Hawthorne, CA 90250
Re: Work Plan for Ongoing Economic Development Advisory Services - Highest and Best Use Analysis and Business Outreach Support
Dear Mr. McClain:
Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal for a highest and best use analysis and business outreach support, as part of ongoing economic development advisory services to the City of Hawthorne (“Client” or “City”).
This Work Plan serves as an Amendment to the original Professional Services Agreement approved by City Council on May 13, 2025 and fully executed by Client and Consultant.
I. BACKGROUND AND OBJECTIVE
Kosmont was retained to assist the City for economic development advisory services and recently completed a Market and Economic Development Analysis. The City is seeking assistance with ongoing economic development advisory services and strategies, including a highest-and-best use analysis (“Analysis”) for recently purchased properties (“Properties”) by the City near Rosecrans Avenue and Chadron Avenue (“Focus Area”). Properties APNs are 4071-013-025 and 4071-102-(001-005). City envisions a mixed-use project that includes some number of affordable for-lease and for-sale units, commercial / multi-purpose uses and possibly park space. Based on City ownership, Properties may be subject to Surplus Land Act (SLA).
SLA compliance would require preparation of the Surplus Land declaration and/or exemption by the City, followed by issuance of a Notice of Availability (“NOA”) as appropriate and potential good faith negotiations with affordable housing developer(s). If desired, an affiliate of Kosmont Companies, Kosmont Real Estate Services dba Kosmont Realty (KR) can assist the Client through the SLA compliance process via a separate proposal.
City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 2 | P a g e
(424) 297-1070
www.kosmont.com
II. SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.
Task 1: Project Kickoff & Meeting Coordination
Kosmont will participate in a virtual kick-off meeting with City staff to establish goals for the Analysis and request relevant materials/documents related to the Properties. Additionally, Kosmont will conduct an in-person site tour of the Properties to better understand existing conditions.
Task 2: High-Level Market Snapshot
Using Kosmont’s prior market analysis as a framework, Kosmont will review property-specific market data/trends affecting the portion of the City where the Properties are located, including reviewing recent sales comparable data, nearby redevelopment projects, proposed projects in planning/under construction, and general market conditions within the Focus Area. This data will help understand what specific uses could be supported within the limitations of the City, as well as initially assess potential demand drivers for different types of housing, retail/commercial, open space, community space, and other potential uses, subject to SLA.
Task 3: Highest-and-Best Use Analysis
To assess Analysis of development opportunities within the Focus Area, Kosmont will analyze the development potential of Properties, which may take into account zoning/land use, parcel conditions/constraints, and/or preliminary financial feasibility. Kosmont will also perform a highlevel land use evaluation, which is intended to provide an understanding of potential uses that align with market conditions, the neighborhood context and historical trends in and around the Properties and City vision for a mixed-use project.
Kosmont’s assessment of land use characteristics will include an understanding of the Focus Area site(s) visibility, size, shape, adjacencies, traffic patterns, and existing zoning constraints and opportunities. Kosmont’s analysis will provide an understanding of potential new zoning City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 3 | P a g e
(424) 297-1070
www.kosmont.com
opportunities that may closely align with current zoning preferences and overall market conditions, existing property ownership, and other relevant factors.
Task 4: Analysis Summary
Kosmont will provide City an Analysis Summary in PowerPoint format of the Properties in the Focus Area.
Task 5: Business Outreach
Kosmont will perform Business Expansion, Attraction, & Retention (“BEAR”) outreach focused on properties and businesses located along Hawthorne Blvd. between Rosecrans Avenue and El Segundo Blvd. The outreach effort will be used to garner insight from business owners and property owners to identify their challenges including vacancies on Hawthorne Blvd. within the City and determine what opportunities for growth or redevelopment may exist in accordance with the City’s General Plan initiatives. The outreach effort will be summarized in PowerPoint format highlighting preliminary strategies for business expansion/growth, attraction, and retention.
Task 6: As-needed Advisory Services
Additionally, subject to availability of budget (and potential future allocation of additional budget) and mutual agreement between Kosmont and Client, Kosmont can provide as needed advisory services including but not limited to evaluation of potential infrastructure funding and financing tools, with emphasis on Tax Increment Financing (“TIF”) alternatives, such as an Enhanced Infrastructure Financing District (“EIFD”) or a Climate Resilience District (“CRD”), as appropriate.
III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Amendment. Client will provide Consultant with relevant existing project data including studies or data related to Properties. Consultant will provide draft Analysis Summary to Client in 6-8 weeks and then finalize with comments from Client.
IV. COMPENSATION
Compensation for Tasks 1 through 6 is estimated at $50,000 for professional services (hourly) fees at Consultant’s billing rates as shown on Attachment A of the Agreement. Future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time.
[SIGNATURE ON FOLLOWING PAGE]
City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 4 | P a g e
(424) 297-1070
www.kosmont.com
V. ACCEPTANCE AND AUTHORIZATION
Read, understood, and agreed to this
____ Day of _______________ 2025
City of Hawthorne
By: _________________________
(Signature)
Name:
(Print Name)
Its:
(Title)
City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 5 | P a g e
(424) 297-1070
www.kosmont.com
ATTACHMENT A
Kosmont Companies
2025 Public Agency Fee Schedule
Professional Services
President $425.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $395.00/hour Vice President/Project Advisor $295.00/hour
Senior Project Analyst $205.00/hour
Project Analyst/Project Research $195.00/hour
Assistant Project Analyst/Assistant Project Manager $165.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 80.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
• Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of
1.5 times scheduled rates, with a 4-hour minimum.
Rates Effective until December 31, 2025. For and during the term of the subject Agreement, the above referenced rates in each category will be increased, effective January 1, 2026, and annually thereafter, to reflect the adjustment in the CPI (U.S. Dept. of Labor, Bureau of Labor Statistics) All Cities Average Consumer Price Index for the prior year. As an example, the US City Average Consumer Price Index (CPI-U) for January 2025 was 317.671, representing a change of
3.0 percent over the index for January 2024.
5 EXHIBIT C
Third Proposal of March 19, 2026
Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245 March 19, 2026
Vontray Norris
City Manager
City of Hawthorne
4455 W. 126th Street
Hawthorne, CA 90250
Re: Proposal for Financing District Advisory Services
Dear Mr. Norris:
Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal to the City of Hawthorne (“City” or “Client”) for financing district advisory services. This proposal serves as an Agreement when executed and returned by Client to Kosmont.
I. BACKGROUND AND OBJECTIVE
Kosmont understands that the City is considering potential implementation of a special purpose Tax Increment Financing (“TIF”) district, such as an Enhanced Infrastructure Financing District (“EIFD”), to help fund critical public infrastructure, while also facilitating economic development.
Kosmont has facilitated 22 of the approximately 37 EIFDs formed so far in California. Our team is currently assisting over 50 other cities and counties with evaluation or in-progress formation activities, and affiliate Kosmont Financial Services has successfully structured TIF-related debt issuances, with more issuance activity underway.
Kosmont proposes the following Scope of Services to assist the City in a phase manner, where work would not continue into a subsequent phase without City approval in advance.
II. SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 2 | Page
(424) 297-1070
www.kosmont.com
PHASE ONE: FEASIBILITY ANALYSIS
Task 1: Kickoff and Evaluation of Boundary Alternatives Kosmont will convene an introductory briefing with City staff to discuss and confirm City objectives. Kosmont will be prepared to discuss requirements and guidelines for the EIFD statute, including precedent in other jurisdictions. Kosmont will identify and evaluate potential boundary alternatives for one or more TIF districts, such as an EIFD, within the City. Kosmont will analyze key strategic implementation considerations, including:
a) Property ownership
b) Planned / proposed future development
c) Infrastructure needs and estimated costs
d) Potential public and private sector partners (e.g., County of Los Angeles, other affected taxing entities, developers / property owners)
e) Overlap with former Redevelopment Agency Project Area boundaries and status of redevelopment dissolution.
Task 2: Revenue and Bonding Capacity Analysis
Kosmont will prepare a tax increment revenue analysis, reflecting potential future development and potential public and private sector partners. The analysis will identify:
a) Potential assessed value increase from future development in the district b) Property tax increment funding capacity at select annual benchmarks and cumulatively over the estimated district lifetime(s)
c) Different levels of tax increment revenue allocation by taxing entity (e.g., 25%, 50%) d) Initial estimates of potential bonding capacity (to be prepared by Kosmont Financial Services, registered Municipal Advisor
e) Complementary economic development tools and funding resources (e.g., community facilities district [CFD] financing, grants, leverage of City-owned real estate assets, outstanding debt refinancing strategies, zoning incentive programs) f) As related to potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.
Task 3: Governance and Implementation Roadmap
Based on the preferred financing district tool(s) identified by the City based on previous Task findings, Kosmont will evaluate and summarize feasible governance and implementation alternatives, including district governing board composition, voting / approval procedures, district formation milestones, debt issuance procedures, and estimated timing, in order to provide potential public and private sector stakeholders with an illustrative “roadmap” for implementation.
Task 4: City Meeting / Workshop
Kosmont will coordinate a virtual meeting with City staff, City Council, and/or other key community stakeholders, such as residents, property owners, and/or local developers. Kosmont will prepare and present a summary of feasibility analysis findings. The purpose of the workshop will be to facilitate education of key stakeholders, to vet and confirm potential priority projects to be funded by preferred tool(s), to confirm the objectives related to potential implementation, and to confirm whether to proceed into an implementation phase, or not.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 3 | Page
(424) 297-1070
www.kosmont.com
Kosmont will not proceed to Phase Two work until Client provides such direction.
FUTURE PHASE TWO: FISCAL IMPACT ANALYSIS & POTENTIAL TAXING ENTITY
PARTNERSHIP
Task 5: Fiscal Impact and Economic Benefit Analysis
As a means of demonstrating benefits to relevant public agencies (e.g., City, County, special districts) for potential participation in a financing district, Kosmont will estimate the primary fiscal revenues (e.g., property tax, direct and indirect sales tax, hotel transient occupancy tax), primary fiscal expenditures (e.g., public safety service costs, community services), and resulting net fiscal impact (fiscal revenues net of fiscal expenditures) to be generated for participating taxing entities from district implementation.
Consultant will additionally apply an IMPLAN-based analysis to estimate the employment (job creation), labor income (wages), and economic output (value of goods and services produced) benefits to be derived from both construction and ongoing operation within the financing district.
Direct, indirect, and indirect (multiplier) impacts will be reflected.
Task 6: Stakeholder Outreach and Direction on Partnership Kosmont will assist the Client with outreach to potential public and private sector entity stakeholders, including but not limited to special district staff and elected officials, and/or major private sector landowners and/or developers. Kosmont will accordingly assist with preparation and presentation of financing district analysis materials as appropriate for such outreach. Based on continued stakeholder feedback, Kosmont will refine previous tax increment projections and related analysis.
The goal of this Task is to receive direction/confirmation on whether the City should proceed with financing district formation initially with or without partnership from other taxing entities (recognizing that other taxing entities may join in a subsequent year).
Kosmont will not proceed to Phase Three work until Client provides such direction.
FUTURE PHASE THREE: IMPLEMENTATION
Task 7: Resolution of Intention and Establishment of the Public Financing Authority (PFA) Board
Kosmont will assist City staff and City Attorney’s office with the preparation of requisite documentation for the Resolution of Intention (“ROI”) to form the financing district, including appropriate designation of the governing Public Financing Authority (“PFA”) board members.
Kosmont will assist with coordination and presentation at the required meeting(s) of the City Council (and potentially County Board of Supervisors) to adopt the ROI and will assist with required noticing of the ROI following the legislative body action(s).
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 4 | Page
(424) 297-1070
www.kosmont.com
Task 8: Infrastructure Financing Plan Preparation
Kosmont will collaborate with City staff and appropriate third-party consultants (e.g., special counsel, engineering / surveying consultants) on the preparation of the required Infrastructure Financing Plan (“IFP”) and related appendices. The IFP must include a legal description of district boundaries, public improvements to be implemented, location, timing, and costs of development and financial assistance, finalized tax increment projections, intention to incur debt (e.g., bonds), district termination date, taxing entity fiscal impact analysis, and replacement housing obligations.
Kosmont will assist City staff (e.g., Clerk’s office) in the required distribution of the IFP to property owners within the financing district and to affected taxing entities.
Task 9: IFP Approval and Financing District Formation Hearings Kosmont will assist in coordination, preparation, and presentation of required materials at the required City Council (and potentially County Board of Supervisors) meeting(s) and PFA meetings and hearings to approve the IFP and form the financing district. While Kosmont is not an attorney, we will provide draft content for required resolutions for review by City Attorney and/or special counsel. Kosmont will additionally assist in drafting and coordinating the required noticing (e.g., website, mailing, newspaper notices) of the PFA meeting and hearings.
Kosmont anticipates up to two PFA public meetings, two PFA public hearings, and two City Council meetings as part of this task (in-person or virtual as deemed mutually appropriate by the City and Kosmont).
Once the financing district is successfully formed, Kosmont will assist City staff in completing the required filings for Change of Jurisdictional Boundaries with the State Board of Equalization.
Potential Future Services (Not a Part of Current Scope of Work) • Annual report preparation, related presentation(s) at PFA public hearing(s) in future years • Continuing Disclosure as related to EIFD debt transactions.
TIF-Related Municipal Advisory Services
City and Kosmont agree that evaluation or implementation of any EIFD-related public financings (e.g., tax increment allocation bonds, and/or City lease revenue financing to be repaid or guaranteed/committed in whole or in part with EIFD tax increment and other revenues, and/or financing utilizing engagement of the PFA) will involve Kosmont Financial Services as the City’s Municipal Advisor or co-Municipal Advisor on a to-be-determined compensated basis.
III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Agreement and project data outlined below. A summary PowerPoint presentation is anticipated to be delivered within three (3) months from assignment authorization.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 5 | Page
(424) 297-1070
www.kosmont.com
Client will provide Consultant with existing project data, including relevant planning documentation (e.g., specific plans, General Plan), current project proposals and/or site plans, and information on potential infrastructure projects with estimated range of costs, as available.
IV. COMPENSATION
The compensation for Tasks 1 through 4 is outlined below for professional services (hourly) fees at Consultant’s billing rates as reflected in Attachment A.
PHASE ONE TASKS ESTIMATED BUDGET
1) Kickoff and Evaluation of Boundary Alternatives $9,500 2) Revenue and Bonding Capacity Analysis $12,500
3) Governance and Implementation Roadmap $4,000
4) City Meeting / Workshop $4,500
Estimated Total Professional Services (Hourly) Fees – Phase 1 $30,500 For budget planning purposes, typical compensation for potential follow-on Phase Two and Phase Three is shown below.
POTENTIAL FUTURE PHASE TWO AND THREE TASKS ESTIMATED BUDGET Phase Two – Fiscal Impact Analysis and Taxing Entity Partnership $22,500 to $29,500 Phase Three – Implementation $40,000 to $47,000
Estimated Total Professional Services (Hourly) Fees – Phase 2/3 $62,500 to $76,500 Budget may be increased by Client request at any point in time. Task budgets may be allocated between Tasks as deemed appropriate by Consultant to provide adequate services to the Client.
Consultant anticipates a single consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly basis.
Consultant’s attendance or participation at any publicly noticed meeting outside of those identified within the Scope of Services, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in addition to compensation outlined above and will be billed at the professional services (hourly) fees as shown on Attachment A.
Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for outof-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 6 | Page
(424) 297-1070
www.kosmont.com
Consultant will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone and postage costs equal to four percent (4.0%) of Consultant’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.
For the convenience of Kosmont’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:
1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or
2. Call Kosmont Companies’ accounting desk (424) 297-1072 to make a credit card payment Consultant is prepared to commence work upon receipt of executed Agreement.
DISCLOSURE: Compensation for possible future transaction-based services or brokerage services.
The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.
When assignments involve real estate/property brokerage services, such transaction-based services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty (“KR”) is licensed by the State of California Department of Real Estate (License# 02058445).
Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value (“BOV”) services on a fixed fee basis.
When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.
SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.
V. OTHER PROVISIONS
A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.
B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 7 | Page
(424) 297-1070
www.kosmont.com
subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge.
The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.
C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.
D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement.
E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.
F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.
G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
H. Entire Agreement; Amendments and Waivers. This Agreement contains the final, complete and exclusive agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.
I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 8 | Page
(424) 297-1070
www.kosmont.com
J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.
K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein.
L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.
M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.
N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.
O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.
Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Consultant.
Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 9 | Page
(424) 297-1070
www.kosmont.com
P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client.
Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.
R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.
S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion. Client should seek independent legal counsel on matters for which Client is seeking legal advice.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 10 | Page
(424) 297-1070
www.kosmont.com
VI. ACCEPTANCE AND AUTHORIZATION
If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Companies. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement.
Read, understood, and agreed to this
____ Day of _______________ 2026
City of Hawthorne Kosmont & Associates, Inc.
doing business as “Kosmont Companies”
By: _________________________ By: _________________________ (Signature) (Signature)
Name: Name: Ken K. Hira
(Print Name)
Its: Its: President
(Title)
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 11 | Page
(424) 297-1070
www.kosmont.com
ATTACHMENT A
Kosmont Companies
2026 Public Agency Fee Schedule
Professional Services
Chairman & CEO $540.00/hour
President $435.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $405.00/hour Vice President/Project Advisor $295.00/hour
Senior Project Analyst $210.00/hour
Project Analyst/Project Research $195.00/hour
Assistant Project Analyst/Assistant Project Manager $170.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Administrative Support $ 90.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
• Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of
1.5 times scheduled rates, with a 4-hour minimum.
Rates Effective until December 31, 2026. For and during the term of the subject Agreement, the above referenced rates in each category will be increased, effective January 1, 2027, and annually thereafter, to reflect the adjustment in the CPI (U.S. Dept. of Labor, Bureau of Labor Statistics) All Cities Average Consumer Price Index for the prior year. As an example, the US City Average Consumer Price Index (CPI-U) for December 2025 was 0.3, representing a change of 2.7 percent over the index of the previous 12 months.
Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245 March 3, 2025
Mr. Vontray (Von) Norris
City Manager
City of Hawthorne
4455 W. 126th Street
Hawthorne, CA 90250
Re: Proposal for Economic Development Advisory Services Dear Mr. Norris:
Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal to the City of Hawthorne (“Client” or “City”) for economic development advisory services.
This proposal serves as an Agreement when executed and returned by Client to Kosmont.
I. BACKGROUND AND OBJECTIVE
The City is seeking Kosmont’s expertise with evaluating commercial market demand and identifying ways to address tenant vacancies in key commercial corridors in the City, as well as economic development incentives to promote business attraction/retention, redevelopment, and sustainable growth. Kosmont proposes to assist the City in analyzing these opportunities, offering strategic approaches, and identify actionable solutions to ensure the City can position itself with desirable use(s) and projects for public benefit(s).
II. SCOPE OF SERVICES
Approach to Scope of Services: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature.
Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act as an elected official, appointed official, or as staff, nor as serving in a "designated" position.
City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 2 | P a g e
(424) 297-1070
www.kosmont.com
Task 1: Kickoff Meeting and Existing Conditions
Kosmont will participate in a virtual kick-off meeting with City to establish objectives and obtain information on existing challenges with commercial properties in the City and explore potential site opportunities for future redevelopment. Kosmont will also work with the City to determine appropriate economic development initiatives/incentives that could support the City’s goals for revitalization and growth of commercial corridors. Kosmont will tour the trade area and relevant sites in the City pertinent to this scope of work.
Task 2: Analysis and Strategies
• High-level real estate market demand assessments of retail, hotel, residential or other commercial uses, as appropriate;
• Demographic analysis illustrating social and economic characteristics including but not limited to population, household incomes, race/ethnicity, housing preferences, educational attainment, resident/employee concentrations, and tourist population; • Potential tenanting strategies for vacant properties and opportunity sites based on market and demographic research;
• Assess the development/redevelopment potential of up to three (3) opportunity sites within the City;
• Evaluation of economic development tools and/or incentive programs to be considered (e.g., value capture zoning strategies, hotel incentive programs, special purpose financing districts, site-specific tax revenue pledges, as well as state and federal grants); • Tenant and business attraction strategies for existing vacancies; and • Other economic development advisory services, as needed.
Task 3: Initial Implementation
• Kosmont can prepare a high-level illustrative pro forma to demonstrate the supportable investment value for a potential redevelopment project(s); and • Kosmont can perform recruitment and targeted business/developer attraction activities including attendance at ICSC conferences (i.e., preparation of marketing flyers, meeting coordination).
Task 4: Council Presentation
In collaboration with City staff, Kosmont can present findings and progress from Tasks 1 through Task 3 to City Council to gain feedback and further direction.
III. SCHEDULE AND REQUIRED DATA
Kosmont is prepared to commence work upon receipt of executed Agreement. Client will provide Consultant with relevant and available sales tax data, market data, and/or other relevant data deemed appropriate by Kosmont.
IV. COMPENSATION
City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 3 | P a g e
(424) 297-1070
www.kosmont.com
Total budget for Task 1 through Task 4 is estimated at $35,000 for professional services (hourly) fees at Consultant’s billing rates as shown on Attachment A.
Any future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time. Consultant anticipates one (1) consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly fee basis.
Consultant’s attendance or participation at any publicly noticed meeting other than as provided for in Task 1, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in addition to compensation for Task 1 through Task 4 and will be billed on a T&M basis at the professional services (hourly) fees as shown on Attachment A.
Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for outof-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodation.
Consultant will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone, and postage costs equal to four percent (4.0%) of Consultant’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.
For the convenience of Kosmont’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:
1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or
2. Call Kosmont Companies’ accounting desk at (424) 297-1072) to make a credit card payment.
Consultant is prepared to commence work upon receipt of executed Agreement.
DISCLOSURE: Compensation for possible transaction-based services The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.
When assignments involve real estate/property brokerage services, such transaction-based services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty (“KR”) is licensed by the State of California Department of Real Estate (License# 02058445).
City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 4 | P a g e
(424) 297-1070
www.kosmont.com
Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value (“BOV”) services on a fixed fee basis.
When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.
SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.
V. OTHER PROVISIONS
A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.
B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding, shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge.
The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.
C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.
D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement.
E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.
F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.
City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 5 | P a g e
(424) 297-1070
www.kosmont.com
G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
H. Entire Agreement; Amendments and Waivers. This Agreement contains the entire agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto, are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.
I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.
J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other, in accordance with the provisions of this paragraph.
K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein.
L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.
M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.
N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.
City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 6 | P a g e
(424) 297-1070
www.kosmont.com
O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.
Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications between the Client and Consultant.
Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.
P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client.
Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.
R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.
S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion. Client should seek independent legal counsel on matters for which Client is seeking legal advice.
VI. ACCEPTANCE AND AUTHORIZATION
If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Companies. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement.
Read, understood, and agreed to this ____ Day of _______________ 2025 City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 7 | P a g e
(424) 297-1070
www.kosmont.com
City of Hawthorne Kosmont & Associates, Inc.
doing business as “Kosmont Companies”
By: _________________________ By: _________________________ (Signature) (Signature)
Name: _______________________ Name: Ken K. Hira
(Print Name)
Its: Its: President
(Title)
City of Hawthorne
Proposal for Economic Development Advisory Services
March 3, 2025
Kosmont Companies 8 | P a g e
(424) 297-1070
www.kosmont.com
ATTACHMENT A
Kosmont Companies
2025 Public Agency Fee Schedule
Professional Services
Chairman & CEO $525.00/hour
President $425.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $395.00/hour Vice President/Project Advisor $295.00/hour
Senior Project Analyst $205.00/hour
Project Analyst/Project Research $195.00/hour
Assistant Project Analyst/Assistant Project Manager $165.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 80.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
• Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum.
Rates shall remain in effect until December 31, 2025.
Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245 November 24, 2025
Mr. Gregg McClain
Planning Director
City of Hawthorne
4455 W 126th Street
Hawthorne, CA 90250
Re: Work Plan for Ongoing Economic Development Advisory Services - Highest and Best Use Analysis and Business Outreach Support
Dear Mr. McClain:
Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal for a highest and best use analysis and business outreach support, as part of ongoing economic development advisory services to the City of Hawthorne (“Client” or “City”).
This Work Plan serves as an Amendment to the original Professional Services Agreement approved by City Council on May 13, 2025 and fully executed by Client and Consultant.
I. BACKGROUND AND OBJECTIVE
Kosmont was retained to assist the City for economic development advisory services and recently completed a Market and Economic Development Analysis. The City is seeking assistance with ongoing economic development advisory services and strategies, including a highest-and-best use analysis (“Analysis”) for recently purchased properties (“Properties”) by the City near Rosecrans Avenue and Chadron Avenue (“Focus Area”). Properties APNs are 4071-013-025 and 4071-102-(001-005). City envisions a mixed-use project that includes some number of affordable for-lease and for-sale units, commercial / multi-purpose uses and possibly park space. Based on City ownership, Properties may be subject to Surplus Land Act (SLA).
SLA compliance would require preparation of the Surplus Land declaration and/or exemption by the City, followed by issuance of a Notice of Availability (“NOA”) as appropriate and potential good faith negotiations with affordable housing developer(s). If desired, an affiliate of Kosmont Companies, Kosmont Real Estate Services dba Kosmont Realty (KR) can assist the Client through the SLA compliance process via a separate proposal.
City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 2 | P a g e
(424) 297-1070
www.kosmont.com
II. SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.
Task 1: Project Kickoff & Meeting Coordination
Kosmont will participate in a virtual kick-off meeting with City staff to establish goals for the Analysis and request relevant materials/documents related to the Properties. Additionally, Kosmont will conduct an in-person site tour of the Properties to better understand existing conditions.
Task 2: High-Level Market Snapshot
Using Kosmont’s prior market analysis as a framework, Kosmont will review property-specific market data/trends affecting the portion of the City where the Properties are located, including reviewing recent sales comparable data, nearby redevelopment projects, proposed projects in planning/under construction, and general market conditions within the Focus Area. This data will help understand what specific uses could be supported within the limitations of the City, as well as initially assess potential demand drivers for different types of housing, retail/commercial, open space, community space, and other potential uses, subject to SLA.
Task 3: Highest-and-Best Use Analysis
To assess Analysis of development opportunities within the Focus Area, Kosmont will analyze the development potential of Properties, which may take into account zoning/land use, parcel conditions/constraints, and/or preliminary financial feasibility. Kosmont will also perform a highlevel land use evaluation, which is intended to provide an understanding of potential uses that align with market conditions, the neighborhood context and historical trends in and around the Properties and City vision for a mixed-use project.
Kosmont’s assessment of land use characteristics will include an understanding of the Focus Area site(s) visibility, size, shape, adjacencies, traffic patterns, and existing zoning constraints and opportunities. Kosmont’s analysis will provide an understanding of potential new zoning City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 3 | P a g e
(424) 297-1070
www.kosmont.com
opportunities that may closely align with current zoning preferences and overall market conditions, existing property ownership, and other relevant factors.
Task 4: Analysis Summary
Kosmont will provide City an Analysis Summary in PowerPoint format of the Properties in the Focus Area.
Task 5: Business Outreach
Kosmont will perform Business Expansion, Attraction, & Retention (“BEAR”) outreach focused on properties and businesses located along Hawthorne Blvd. between Rosecrans Avenue and El Segundo Blvd. The outreach effort will be used to garner insight from business owners and property owners to identify their challenges including vacancies on Hawthorne Blvd. within the City and determine what opportunities for growth or redevelopment may exist in accordance with the City’s General Plan initiatives. The outreach effort will be summarized in PowerPoint format highlighting preliminary strategies for business expansion/growth, attraction, and retention.
Task 6: As-needed Advisory Services
Additionally, subject to availability of budget (and potential future allocation of additional budget) and mutual agreement between Kosmont and Client, Kosmont can provide as needed advisory services including but not limited to evaluation of potential infrastructure funding and financing tools, with emphasis on Tax Increment Financing (“TIF”) alternatives, such as an Enhanced Infrastructure Financing District (“EIFD”) or a Climate Resilience District (“CRD”), as appropriate.
III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Amendment. Client will provide Consultant with relevant existing project data including studies or data related to Properties. Consultant will provide draft Analysis Summary to Client in 6-8 weeks and then finalize with comments from Client.
IV. COMPENSATION
Compensation for Tasks 1 through 6 is estimated at $50,000 for professional services (hourly) fees at Consultant’s billing rates as shown on Attachment A of the Agreement. Future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time.
[SIGNATURE ON FOLLOWING PAGE]
City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 4 | P a g e
(424) 297-1070
www.kosmont.com
V. ACCEPTANCE AND AUTHORIZATION
Read, understood, and agreed to this
____ Day of _______________ 2025
City of Hawthorne
By: _________________________
(Signature)
Name:
(Print Name)
Its:
(Title)
City of Hawthorne
Work Plan for Ongoing Econ Dev Advisory Services
November 24, 2025
Kosmont Companies 5 | P a g e
(424) 297-1070
www.kosmont.com
ATTACHMENT A
Kosmont Companies
2025 Public Agency Fee Schedule
Professional Services
President $425.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $395.00/hour Vice President/Project Advisor $295.00/hour
Senior Project Analyst $205.00/hour
Project Analyst/Project Research $195.00/hour
Assistant Project Analyst/Assistant Project Manager $165.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Clerical Support $ 80.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
• Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of
1.5 times scheduled rates, with a 4-hour minimum.
Rates Effective until December 31, 2025. For and during the term of the subject Agreement, the above referenced rates in each category will be increased, effective January 1, 2026, and annually thereafter, to reflect the adjustment in the CPI (U.S. Dept. of Labor, Bureau of Labor Statistics) All Cities Average Consumer Price Index for the prior year. As an example, the US City Average Consumer Price Index (CPI-U) for January 2025 was 317.671, representing a change of
3.0 percent over the index for January 2024.
Kosmont Companies
Mailing Address: 1601 N. Sepulveda Blvd., #382 (424) 297-1070 Physical Address: 2301 Rosecrans Ave, Ste. 4140 Manhattan Beach, CA 90266 www.kosmont.com El Segundo, CA 90245 March 19, 2026
Vontray Norris
City Manager
City of Hawthorne
4455 W. 126th Street
Hawthorne, CA 90250
Re: Proposal for Financing District Advisory Services
Dear Mr. Norris:
Kosmont & Associates, Inc. doing business as Kosmont Companies (“Consultant” or “Kosmont”) is pleased to present this proposal to the City of Hawthorne (“City” or “Client”) for financing district advisory services. This proposal serves as an Agreement when executed and returned by Client to Kosmont.
I. BACKGROUND AND OBJECTIVE
Kosmont understands that the City is considering potential implementation of a special purpose Tax Increment Financing (“TIF”) district, such as an Enhanced Infrastructure Financing District (“EIFD”), to help fund critical public infrastructure, while also facilitating economic development.
Kosmont has facilitated 22 of the approximately 37 EIFDs formed so far in California. Our team is currently assisting over 50 other cities and counties with evaluation or in-progress formation activities, and affiliate Kosmont Financial Services has successfully structured TIF-related debt issuances, with more issuance activity underway.
Kosmont proposes the following Scope of Services to assist the City in a phase manner, where work would not continue into a subsequent phase without City approval in advance.
II. SCOPE OF SERVICES
Approach to Tasks: The prospective assignment and consulting services that Kosmont will provide will be of a relatively limited scope and duration, and advisory in nature. Kosmont will be making recommendations only, which advise the Client and jurisdictions, including their elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 2 | Page
(424) 297-1070
www.kosmont.com
PHASE ONE: FEASIBILITY ANALYSIS
Task 1: Kickoff and Evaluation of Boundary Alternatives Kosmont will convene an introductory briefing with City staff to discuss and confirm City objectives. Kosmont will be prepared to discuss requirements and guidelines for the EIFD statute, including precedent in other jurisdictions. Kosmont will identify and evaluate potential boundary alternatives for one or more TIF districts, such as an EIFD, within the City. Kosmont will analyze key strategic implementation considerations, including:
a) Property ownership
b) Planned / proposed future development
c) Infrastructure needs and estimated costs
d) Potential public and private sector partners (e.g., County of Los Angeles, other affected taxing entities, developers / property owners)
e) Overlap with former Redevelopment Agency Project Area boundaries and status of redevelopment dissolution.
Task 2: Revenue and Bonding Capacity Analysis
Kosmont will prepare a tax increment revenue analysis, reflecting potential future development and potential public and private sector partners. The analysis will identify:
a) Potential assessed value increase from future development in the district b) Property tax increment funding capacity at select annual benchmarks and cumulatively over the estimated district lifetime(s)
c) Different levels of tax increment revenue allocation by taxing entity (e.g., 25%, 50%) d) Initial estimates of potential bonding capacity (to be prepared by Kosmont Financial Services, registered Municipal Advisor
e) Complementary economic development tools and funding resources (e.g., community facilities district [CFD] financing, grants, leverage of City-owned real estate assets, outstanding debt refinancing strategies, zoning incentive programs) f) As related to potential overlap of proposed district boundaries with former redevelopment agency project areas, analysis of corresponding relevant outstanding enforceable obligations and implications on available revenues.
Task 3: Governance and Implementation Roadmap
Based on the preferred financing district tool(s) identified by the City based on previous Task findings, Kosmont will evaluate and summarize feasible governance and implementation alternatives, including district governing board composition, voting / approval procedures, district formation milestones, debt issuance procedures, and estimated timing, in order to provide potential public and private sector stakeholders with an illustrative “roadmap” for implementation.
Task 4: City Meeting / Workshop
Kosmont will coordinate a virtual meeting with City staff, City Council, and/or other key community stakeholders, such as residents, property owners, and/or local developers. Kosmont will prepare and present a summary of feasibility analysis findings. The purpose of the workshop will be to facilitate education of key stakeholders, to vet and confirm potential priority projects to be funded by preferred tool(s), to confirm the objectives related to potential implementation, and to confirm whether to proceed into an implementation phase, or not.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 3 | Page
(424) 297-1070
www.kosmont.com
Kosmont will not proceed to Phase Two work until Client provides such direction.
FUTURE PHASE TWO: FISCAL IMPACT ANALYSIS & POTENTIAL TAXING ENTITY
PARTNERSHIP
Task 5: Fiscal Impact and Economic Benefit Analysis
As a means of demonstrating benefits to relevant public agencies (e.g., City, County, special districts) for potential participation in a financing district, Kosmont will estimate the primary fiscal revenues (e.g., property tax, direct and indirect sales tax, hotel transient occupancy tax), primary fiscal expenditures (e.g., public safety service costs, community services), and resulting net fiscal impact (fiscal revenues net of fiscal expenditures) to be generated for participating taxing entities from district implementation.
Consultant will additionally apply an IMPLAN-based analysis to estimate the employment (job creation), labor income (wages), and economic output (value of goods and services produced) benefits to be derived from both construction and ongoing operation within the financing district.
Direct, indirect, and indirect (multiplier) impacts will be reflected.
Task 6: Stakeholder Outreach and Direction on Partnership Kosmont will assist the Client with outreach to potential public and private sector entity stakeholders, including but not limited to special district staff and elected officials, and/or major private sector landowners and/or developers. Kosmont will accordingly assist with preparation and presentation of financing district analysis materials as appropriate for such outreach. Based on continued stakeholder feedback, Kosmont will refine previous tax increment projections and related analysis.
The goal of this Task is to receive direction/confirmation on whether the City should proceed with financing district formation initially with or without partnership from other taxing entities (recognizing that other taxing entities may join in a subsequent year).
Kosmont will not proceed to Phase Three work until Client provides such direction.
FUTURE PHASE THREE: IMPLEMENTATION
Task 7: Resolution of Intention and Establishment of the Public Financing Authority (PFA) Board
Kosmont will assist City staff and City Attorney’s office with the preparation of requisite documentation for the Resolution of Intention (“ROI”) to form the financing district, including appropriate designation of the governing Public Financing Authority (“PFA”) board members.
Kosmont will assist with coordination and presentation at the required meeting(s) of the City Council (and potentially County Board of Supervisors) to adopt the ROI and will assist with required noticing of the ROI following the legislative body action(s).
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 4 | Page
(424) 297-1070
www.kosmont.com
Task 8: Infrastructure Financing Plan Preparation
Kosmont will collaborate with City staff and appropriate third-party consultants (e.g., special counsel, engineering / surveying consultants) on the preparation of the required Infrastructure Financing Plan (“IFP”) and related appendices. The IFP must include a legal description of district boundaries, public improvements to be implemented, location, timing, and costs of development and financial assistance, finalized tax increment projections, intention to incur debt (e.g., bonds), district termination date, taxing entity fiscal impact analysis, and replacement housing obligations.
Kosmont will assist City staff (e.g., Clerk’s office) in the required distribution of the IFP to property owners within the financing district and to affected taxing entities.
Task 9: IFP Approval and Financing District Formation Hearings Kosmont will assist in coordination, preparation, and presentation of required materials at the required City Council (and potentially County Board of Supervisors) meeting(s) and PFA meetings and hearings to approve the IFP and form the financing district. While Kosmont is not an attorney, we will provide draft content for required resolutions for review by City Attorney and/or special counsel. Kosmont will additionally assist in drafting and coordinating the required noticing (e.g., website, mailing, newspaper notices) of the PFA meeting and hearings.
Kosmont anticipates up to two PFA public meetings, two PFA public hearings, and two City Council meetings as part of this task (in-person or virtual as deemed mutually appropriate by the City and Kosmont).
Once the financing district is successfully formed, Kosmont will assist City staff in completing the required filings for Change of Jurisdictional Boundaries with the State Board of Equalization.
Potential Future Services (Not a Part of Current Scope of Work) • Annual report preparation, related presentation(s) at PFA public hearing(s) in future years • Continuing Disclosure as related to EIFD debt transactions.
TIF-Related Municipal Advisory Services
City and Kosmont agree that evaluation or implementation of any EIFD-related public financings (e.g., tax increment allocation bonds, and/or City lease revenue financing to be repaid or guaranteed/committed in whole or in part with EIFD tax increment and other revenues, and/or financing utilizing engagement of the PFA) will involve Kosmont Financial Services as the City’s Municipal Advisor or co-Municipal Advisor on a to-be-determined compensated basis.
III. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Agreement and project data outlined below. A summary PowerPoint presentation is anticipated to be delivered within three (3) months from assignment authorization.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 5 | Page
(424) 297-1070
www.kosmont.com
Client will provide Consultant with existing project data, including relevant planning documentation (e.g., specific plans, General Plan), current project proposals and/or site plans, and information on potential infrastructure projects with estimated range of costs, as available.
IV. COMPENSATION
The compensation for Tasks 1 through 4 is outlined below for professional services (hourly) fees at Consultant’s billing rates as reflected in Attachment A.
PHASE ONE TASKS ESTIMATED BUDGET
1) Kickoff and Evaluation of Boundary Alternatives $9,500 2) Revenue and Bonding Capacity Analysis $12,500
3) Governance and Implementation Roadmap $4,000
4) City Meeting / Workshop $4,500
Estimated Total Professional Services (Hourly) Fees – Phase 1 $30,500 For budget planning purposes, typical compensation for potential follow-on Phase Two and Phase Three is shown below.
POTENTIAL FUTURE PHASE TWO AND THREE TASKS ESTIMATED BUDGET Phase Two – Fiscal Impact Analysis and Taxing Entity Partnership $22,500 to $29,500 Phase Three – Implementation $40,000 to $47,000
Estimated Total Professional Services (Hourly) Fees – Phase 2/3 $62,500 to $76,500 Budget may be increased by Client request at any point in time. Task budgets may be allocated between Tasks as deemed appropriate by Consultant to provide adequate services to the Client.
Consultant anticipates a single consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly basis.
Consultant’s attendance or participation at any publicly noticed meeting outside of those identified within the Scope of Services, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in addition to compensation outlined above and will be billed at the professional services (hourly) fees as shown on Attachment A.
Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for outof-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 6 | Page
(424) 297-1070
www.kosmont.com
Consultant will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone and postage costs equal to four percent (4.0%) of Consultant’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.
For the convenience of Kosmont’s clients, we offer a secure credit card payment service. The credit card payment link is: https://kosmont.paidyet.com and there are two ways to make a secure credit card payment:
1. Fill in the “Make a Payment” form when you go to the link (https://kosmont.paidyet.com), or
2. Call Kosmont Companies’ accounting desk (424) 297-1072 to make a credit card payment Consultant is prepared to commence work upon receipt of executed Agreement.
DISCLOSURE: Compensation for possible future transaction-based services or brokerage services.
The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.
When assignments involve real estate/property brokerage services, such transaction-based services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty (“KR”) is licensed by the State of California Department of Real Estate (License# 02058445).
Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value (“BOV”) services on a fixed fee basis.
When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.
SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.
V. OTHER PROVISIONS
A. Termination. Client or Consultant shall have the right to terminate this Agreement at any time upon written notification to the other party. Payment for fees accrued through the date of termination shall be remitted in full.
B. Arbitration. Any controversy or claim arising out of or in relation to this Agreement, or the making, performance, interpretation or breach thereof, shall be settled by arbitration at JAMS in Los Angeles, California. Each of the parties to such arbitration proceeding shall be entitled to take up to five depositions with document requests. The provisions of Section 1283.05 (except City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 7 | Page
(424) 297-1070
www.kosmont.com
subdivision (e) thereof) of the California Code of Civil Procedure are incorporated by reference herein, except to the extent they conflict with this Agreement, in which case this Agreement is controlling. If the matter is heard by only one arbitrator, such arbitrator shall be a member of the State Bar of California or a retired judge. If the matter is heard by an arbitration panel, at least one member of such panel shall be a member of the State Bar of California or a retired judge.
The arbitrator or arbitrators shall decide all questions of law, and all mixed questions of law and fact, in accordance with the substantive law of the State of California to the end that all rights and defenses which either party may have asserted in a court of competent jurisdiction shall be fully available to such party in the arbitration proceeding contemplated hereby. The arbitrator and arbitrators shall set forth and deliver their findings of fact and conclusions of law with the delivery of the arbitration award. Judgment upon the award rendered shall be final and non-appealable and may be entered in any court having jurisdiction.
C. Attorneys' Fees. In the event of any legal action, arbitration, or proceeding arising out of an alleged breach of this Agreement, the party prevailing in such legal action, arbitration, or proceeding shall be entitled to recover reasonable attorneys' fees, expenses and costs, as well as all actual attorneys' fees, expenses and cost incurred in enforcing any judgment entered.
D. Authority. Each of the parties executing this Agreement warrants that persons duly authorized to bind each such party to its terms execute this Agreement.
E. Further Actions. The parties agree to execute such additional documents and take such further actions as may be necessary to carry out the provisions and intent of this Agreement.
F. Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party without the prior written consent of the other party.
G. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
H. Entire Agreement; Amendments and Waivers. This Agreement contains the final, complete and exclusive agreement between the parties relating to the transactions contemplated hereby and any and all prior discussions, negotiations, commitments and understanding, whether written or oral, related hereto are superseded hereby. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing signed by both parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver of such provisions unless otherwise expressly provided. Each party to this Agreement has participated in its drafting and, therefore, ambiguities in this Agreement will not be construed against any party to this Agreement.
I. Severability. If any term or provision of this Agreement shall be deemed invalid or unenforceable, the remainder of this Agreement shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and in force to the fullest extent permitted by law.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 8 | Page
(424) 297-1070
www.kosmont.com
J. Notices. All notices, requests, demands and other communications which may be required under this Agreement shall be in writing and shall be deemed to have been received when transmitted; if personally delivered, if transmitted by telecopier, electronic or digital transmission method, upon transmission; if sent by next day delivery to a domestic address by a recognized overnight delivery service (e.g., Federal Express), the day after it is sent; and if sent by certified or registered mail, return receipt requested, upon receipt. In each case, notice shall be sent to the principal place of business of the respective party. Either party may change its address by giving written notice thereof to the other in accordance with the provisions of this paragraph.
K. Titles and Captions. Titles and captions contained in this Agreement are inserted only as a matter of convenience and for reference and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision herein.
L. Governing Law. The statutory, administrative and judicial law of the State of California (without reference to choice of law provisions of California law) shall govern the execution and performance of this Agreement.
M. Confidentiality. Each of the parties agrees not to disclose this Agreement or any information concerning this Agreement to any persons or entities, other than to their attorneys and accountants, or as otherwise may be required by law.
N. Counterparts. This Agreement may be executed in one or more counterparts, each of which constitutes an original, and all of which together constitute one and the same instrument. The signature of any person on a telecopy of this Agreement, or any notice, action or consent taken pursuant to this Agreement shall have the same full force and effect as such person's original signature.
O. Disclaimer. Consultant’s financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. Client’s reliance on Consultant’s analysis must consider the foregoing.
Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by Client and affiliates, are deemed to be based on Client’s understanding and by execution of this Agreement, acknowledgement that Consultant’s services are advisory only and as such, cannot be relied on as to the results, performance and conclusions of any investment or project that Client may or may not undertake as related to the services provided including any verbal or written communications by and between the Client and Consultant.
Client acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 9 | Page
(424) 297-1070
www.kosmont.com
P. Limitation of Damages. In the event Consultant is found liable for any violation of duty, whether in tort or in contract, damages shall be limited to the amount Consultant has received from Client.
Q. Force Majeure. Consultant shall not be liable for failure or delay in performance of its obligations under this Agreement arising out of or caused, directly or indirectly, by significant circumstances beyond its reasonable control, including, without limitation: epidemic; acts of God; earthquakes; fires; floods; wars; civil or military disturbances; acts of terrorism; sabotage; strikes; riots; wide-spread power failures and wide-spread internet failure. Contractual performance and deadline(s) shall be extended for a period equal to the time lost by reason of the delay.
R. Expiration of Proposal for Services. If this Agreement is not fully executed by the parties within thirty (30) days from the date of this letter, this proposal shall expire.
S. Not an agreement for Legal Services or Legal Advice. This Agreement does not constitute an agreement for the performance of legal services or the provision of legal advice, or legal opinion. Client should seek independent legal counsel on matters for which Client is seeking legal advice.
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 10 | Page
(424) 297-1070
www.kosmont.com
VI. ACCEPTANCE AND AUTHORIZATION
If this Agreement is acceptable to Client, please execute two copies of the Agreement and return both originals to Kosmont Companies. Upon receipt of both signed contracts, we will return one fully executed original for your files. Kosmont will commence work upon receipt of executed Agreement.
Read, understood, and agreed to this
____ Day of _______________ 2026
City of Hawthorne Kosmont & Associates, Inc.
doing business as “Kosmont Companies”
By: _________________________ By: _________________________ (Signature) (Signature)
Name: Name: Ken K. Hira
(Print Name)
Its: Its: President
(Title)
City of Hawthorne
Kosmont Proposal for Financing District Advisory
March 19, 2026
Kosmont Companies 11 | Page
(424) 297-1070
www.kosmont.com
ATTACHMENT A
Kosmont Companies
2026 Public Agency Fee Schedule
Professional Services
Chairman & CEO $540.00/hour
President $435.00/hour
Sr. Vice President/Sr. Advisor/Sr. Managing Director $405.00/hour Vice President/Project Advisor $295.00/hour
Senior Project Analyst $210.00/hour
Project Analyst/Project Research $195.00/hour
Assistant Project Analyst/Assistant Project Manager $170.00/hour Project Promotion/Graphics/GIS Mapping Services $ 95.00/hour Administrative Support $ 90.00/hour
Additional Expenses
In addition to professional services (labor fees):
1) An administrative fee for in-house copy, fax, phone, postage costs, digital/technological support and related administrative expenses will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus
2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) Project/Market data sources for support of evaluation and analysis e.g., ESRI, Placer.ai, CoStar/STR, IMPLAN, ParcelQuest and other based on quoted project cost. 4) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 5) Consultant’s attendance or participation at any public meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other) requested by Client and are beyond those specifically identified in the Scope of Work will be billed at the professional services (hourly) fees as shown on this Attachment A.
• Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of
1.5 times scheduled rates, with a 4-hour minimum.
Rates Effective until December 31, 2026. For and during the term of the subject Agreement, the above referenced rates in each category will be increased, effective January 1, 2027, and annually thereafter, to reflect the adjustment in the CPI (U.S. Dept. of Labor, Bureau of Labor Statistics) All Cities Average Consumer Price Index for the prior year. As an example, the US City Average Consumer Price Index (CPI-U) for December 2025 was 0.3, representing a change of 2.7 percent over the index of the previous 12 months.
AGENDA ITEM NO. 12.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 04/28/2026
Originating Department: Finance
City Manager: Department Head:
SUBJECT:
Agreement between the City of Hawthorne and Government Consulting Partners, Inc. to provide comprehensive SB 90 claim services.
RECOMMENDED MOTION:
Staff recommends that the City Council approve the agreement between the City of Hawthorne and Government Consulting Partners, Inc. to provide comprehensive SB 90 claim services for five fiscal years beginning July 1, 2026.
DISCUSSION:
The California constitution requires the State to reimburse local agencies for the cost of mandated programs. These programs currently cover Police related activity reporting. In the past, this has also included Public Records Request tracking. SB 90 is a tool for local governments to request that the State appropriate funds for legislation that contains mandated costs. If the State Legislature imposes a mandate containing an appropriation, the State Controller is required to process and pay local agencies' reimbursement claims. In the event a mandate is passed with no appropriation, local agencies may pursue their reimbursement rights through the Commission on State Mandates. GCP will prepare and file all applicable annual claims and will include any new or first time claims for State Controller claiming instructions that are issued during the contract period. They will complete all aspects of the annual claims, and new or initial claims released by the State Controller for 5 Fiscal Years for a total not to exceed $38,575.
In 24-25 the City received $228,478, and in 23-24 revenue was over $316,000. The reimbursements received represent unrestricted General Fund revenue.
GCP's experience also extends well beyond routine annual claims. The firm supports agencies during desk reviews and field audits, advises on incorrect reduction claims and test claims when needed, and actively monitors Commission on State Mandates activity so clients can begin tracking eligible costs before formal claiming instructions are released.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Establish partnerships with entities that can work toward City goals and objectives.
FISCAL IMPACT:
The amount of $7,200 for SB90 claim services to be performed has been appropriated in the FY 2026-27 annual budget in the General Fund.
NOTICING PROCEDURE:
72 Hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
Agreement between City & GCP for SB90 Claim Services
Proposal
AGREEMENT BETWEEN THE CITY OF HAWTHORNE AND GOVERNMENT CONSULTING PARTNERS FOR STATE MANDATED COST CLAIMING SERVICES.
THIS AGREEMENT is made and effective as of July 1, 2026, between the City of Hawthorne ("City") and Government Consulting Partners (GCP) (“Consultant”) In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
1. TERM
This Agreement shall commence on July 1, 2026, for various State Mandated Claiming Services.
This agreement shall remain and continue in effect until tasks described herein are completed, but in no event later than June 30, 2031, unless sooner terminated pursuant to the provisions of this Agreement.
2. SERVICES
Consultant shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full.
3. PERFORMANCE
Consultant shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all tasks described herein. Consultant shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement.
4. CITY MANAGEMENT
The City Manager or the Finance Director shall represent CITY in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Consultant, but not including the authority to enlarge the Tasks to Be Performed or change the compensation due to Consultant. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents, which enlarge the Tasks to Be Performed or change Consultant's compensation.
5. COMPENSATION
(a) The City agrees to pay Consultant in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full, based upon a time and materials. This amount shall not exceed $38,575 for the contract period. (b) Consultant shall not be compensated for any services rendered in connection with its performance of this Agreement, which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing, by the City Manager. Consultant shall be compensated for any additional services in the amounts and in the manner as agreed to by City Manager and Consultant at the time City's written authorization is given to Consultant for the performance of said services.
(c) Consultant will submit invoices for actual services performed. Payment shall be made within fortyfive (45) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of Consultant's fees it shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice.
6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement.
(b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City. (c) Consultant may terminate this Agreement for cause if the City fails to cure a material default in performance within a period of 30 days, or such longer period as Consultant may allow, after receipt from Consultant of a written termination notice specifying the default in performance.
In the event of termination for cause by Consultant, the City will pay Consultant for all services performed up to and including the effective date of termination.
7. DEFAULT OF CONSULTANT
(a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's reasonable control, and without fault or negligence of the Consultant, it shall not be considered a default. (b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance.
In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
8. OWNERSHIP OF DOCUMENTS
(a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, and provided that consultant has been paid in full for services rendered hereunder, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. Any reuse without written verification or adaptation by Consultant for the specific purpose intended will be at City's sole risk and without liability or legal exposure to Consultant.
9. INDEMNIFICATION
When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, and hold harmless City and any and all of its officials, employees ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including reasonable attorney's fees and costs to the extent same are caused by any negligent act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement. With respect to the design of public improvements, the Consultant shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in Exhibit A without the written consent of the Consultant.
To the extent that the Consultant's services are subject to California Civil Code 2782.8, the above indemnity, including the cost to defense, shall be limited to the extent required by Civil Code Section 2782.8.
10. INSURANCE
(a) Consultant shall maintain in-force: Commercial General Liability and Professional Liability Insurance. During the term of this Agreement, Consultant shall maintain in full force and effect a policy of public liability insurance with minimum coverage of $2,000,000 in accordance with the requirements provided by City to Consultant. Consultant shall also maintain in-force; Professional Liability Insurance (and/or Errors & Omissions Insurance) with minimum limits of liability of $2,000,000 per claim against an injury, death, loss or damages because of wrongful or negligent acts or omissions by the named insured.
(b) Contractor shall maintain in-force Workers' Compensation and Employer's Liability Insurance as required by the California Labor Code. Evidence of coverage shall take the form of a Certificate of Insurance or a California Certificate to Self-Insure. Acceptable minimum limits for this coverage are: Workers' Compensation; Statutory in California; Employer's Liability:
$1,000,000.
(c) Certificates of Insurance. Contractor shall furnish to City evidence of any insurance required by this Agreement. A Certificate of Insurance from an insurer admitted or authorized to do business in the State of California will be provided, indicating that the respective policy(s) meets the following requirements: (1) The City, its officers, employees, and agents shall be named as additional insured on the General Liability Insurance; (2) Insurance shall not be canceled or terminated without 30 days written notice to City or 10 day notice for non-payment of the premium; (3) General Liability shall be primary and any insurance held by City for its own protection shall be excess and shall be effective only upon exhaustion of Contractor's insurance; (4) Insurance shall be maintained for the duration of the Agreement, including any period extended beyond the expiration date of this Agreement required to complete performance as stipulated in this Agreement and all amendments thereto. (d) To the extent permitted by law, Consultant's total aggregate liability arising out of or relating to this Agreement shall not exceed $2,000,000 or the total compensation received by Consultant under this Agreement, whichever is greater.
11. INDEPENDENT CONSULTANT
(a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. (b) No employee benefits shall be available to Consultant in connection with the performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder.
12. LEGAL RESPONSIBILITIES
The Consultant shall keep itself informed of applicable State and Federal laws and regulations, which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Consultant shall at all times observe and comply with all such laws and regulations pursuant to sound professional practices. The City, and its officers and employees, shall not be liable at law or in equity occasioned by negligent failure of the Consultant to comply with this Section.
13. UNDUE INFLUENCE
Consultant declares that no undue influence or pressure is used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Hawthorne will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.
14. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub- agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this Agreement.
15. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization.
Consultant, its officers, employees, agents, or sub-consultants, shall not without written authorization from the City Manager or unless requested by the City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. (b) Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant.
However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
16. NOTICES
The Parties shall submit in writing all notices and correspondence that this Agreement requires or permits, and shall deliver the notices and correspondence to the places set forth below. The parties may give notice by: (a) personal delivery; (b) U.S. mail, first class postage prepaid; (c) "Certified" U.S. mail, postage prepaid, return receipt requested; (d) facsimile or (e) email.
CITY: Vontray Norris, City Manager
City of Hawthorne
4455 West 126th Street
Hawthorne, CA 90250
CONSULTANT: Government Consulting Partners, Inc.
Brad Burgess, Vice President
5016 Brower Court
Granite Bay, CA 95746
17. ASSIGNMENT
The Consultant shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City. Because of the personal nature of the services to be rendered pursuant to this Agreement, only Consultant staff shall perform the services described in this Agreement.
18. LICENSES
At all times during the term of this Agreement, Consultant shall have in full force and effect, all licenses required of it by law for the performance of the services described in this Agreement.
19. GOVERNING LAW
The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court with jurisdiction over the City of Hawthorne.
20. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.
21. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.
CITY OF HAWTHORNE CONSULTANT
Vontray Norris, City Manager Brad Burgess, Vice President City of Hawthorne Government Consulting Partners, Inc.
EXHIBIT A
VENDOR Proposal
April 7, 2026
P R O F E S S I O N A L S E R V I C E S P R O P O S A L City of Hawthorne
State-Mandated SB 90 Claiming Services
Five-Year Agreement · April 2026
S U B M I T T E D T O
Felice Lopez, Director of Finance
City of Hawthorne — Finance Department
4455 West 126th Street, Hawthorne, CA 90250
P R E P A R E D B Y
J. Bradley Burgess, Vice President
Government Consulting Partners, Inc.
Granite Bay, CA
April 7, 2026
Government Consulting Partners, Inc.
Municipal Financial & Public Policy Consulting • Granite Bay, California
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 2 Table of Contents
Transmittal Letter 3
0.0 Executive Summary 4
1.0 Company Information 5
2.0 Company History, Experience, and Qualifications 5
3.0 Scope of Work and Approach 7
4.0 The SB 90 Claiming Lifecycle 10
5.0 Pricing and Rate Proposal 11
6.0 References 12
7.0 Conclusion & Next Steps
Appendix: CSM Test Claims (pending vs. approved)
13 14
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 3 April 7, 2026
Felice Lopez
Director of Finance
City of Hawthorne — Finance Department
4455 West 126th Street
Hawthorne, CA 90250
Subject: Proposal for State-Mandated SB 90 Claiming Services Dear Felice,
Thank you for the opportunity to submit this SB 90 proposal and to continue building on our decade-long partnership with the City of Hawthorne. The agreement project manager, Ruben Rivas, has personally prepared and filed the City’s SB 90 claims for close to ten years, providing a level of continuity that is both rare and valuable. This experience means we understand how the City’s claims have historically been structured, how departments track eligible activities, and where reimbursement opportunities are typically maximized.
Government Consulting Partners (GCP) is pleased to present this proposal to provide comprehensive SB 90 claiming services for a five-year term.
Our approach is guided by a simple objective: identify every eligible dollar, document it thoroughly, and defend it when necessary. We do not treat SB 90 as a once-a-year filing exercise. Instead, we approach it as an ongoing reimbursement program that performs best when documentation, staff training, and strategic oversight are maintained throughout the year. This proactive model not only strengthens claims but also positions the City for more consistent and defensible recoveries over time.
We value our long-standing relationship with the City of Hawthorne and would welcome the opportunity to continue supporting your team.
Sincerely,
J. Bradley Burgess
Vice President
Government Consulting Partners, Inc.
[email protected] | 916.595.2646
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 4
0.0 Executive Summary
GCP Advantages to Hawthorne
Government Consulting Partners (GCP) provides a
comprehensive SB 90 program designed to maximize
reimbursement while minimizing audit exposure. Our approach combines technical accuracy, strategic decision-making, and year-round engagement to ensure the City captures all eligible costs and withstands State Controller scrutiny.
Key Outcomes
GCP's work for Hawthorne will center on four outcomes:
complete annual and new-claim preparation, maximizing indirect cost recovery through smart ICRP decision-making, strong audit defense, and early capture of emerging mandate opportunities before deadlines create pressure on City staff.
Value to Hawthorne
The value to Hawthorne is straightforward: predictable five-year fixed fees, a low-burden claiming process for departments, proactive support during audits and desk reviews, and a consultant who already understands the City's history. This combination of continuity, strategy, and technical depth is what turns SB 90 from a filing obligation into a durable reimbursement program.
What Hawthorne Gains
✓ Maximized, defensible recovery
✓ Audit protection and support
✓ Low-burden process for staff
✓ Predictable all-in pricing
Why This Timing Matters
✓ AB 1638 tracking should start now
✓ New Elections claim expected in 2026
✓ Two recently approved test claims
pending
Continuity
✓ Ruben has filed the City’s claims for a
decade
✓ Immediate value — no learning curve
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 5
1.0 Company Information
Legal Name Government Consulting Partners, Inc. (GCP)
Address 5016 Brower Court, Granite Bay, CA 95746
Phone (916) 990-1256
Website www.governmentconsultingpartners.com
Organization Type S Corporation
FEIN 99-1737026
Authorized Contact J. Bradley Burgess, Vice President
Primary Email [email protected]
Proposed Term Three-year agreement (FY 2026–27 through FY 2028–29)
2.0 Company History, Experience, & Qualifications
Government Consulting Partners (GCP) is a specialized municipal finance consulting firm focused on cost recovery, reimbursement claiming, cost allocation, and related financial strategy for California public agencies.
The firm was founded on a core premise: local governments are better served when senior professionals remain directly involved in the work rather than delegating core technical tasks to layers of junior staff or sending client data offshore for processing.
GCP's principals average more than 30 years of professional experience. The firm's leadership has worked with all 58 California counties and hundreds of cities, preparing claims, developing indirect cost methodologies, defending audits, and advising agencies on emerging reimbursement opportunities. SB 90 is not a side service for GCP — it is one of the firm's core practices.
For Hawthorne, GCP's qualifications are strengthened by direct historical experience. Ruben Rivas previously filed the City's SB 90 claims. This means GCP is not approaching the City as a first-time consultant. We understand the program's history, the basic claiming rhythm, and the need to keep the process practical for City departments.
GCP's experience also extends well beyond routine annual claims. The firm supports agencies during desk reviews and field audits, advises on incorrect reduction claims and test claims when needed, and actively monitors Commission on State Mandates activity so clients can begin tracking eligible costs before formal claiming instructions are released. This broader perspective allows GCP to protect current reimbursement while positioning agencies for new recovery opportunities.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 6 Key Staff
Name / Role Background and Role in This Engagement
Ruben Rivas
Director
Project Manager
Mr. Rivas will serve as Project Manager and the City’s primary point of contact, bringing more than 13 years of experience in government consulting across California, including a decade supporting the City of Hawthorne. He has extensive expertise in all aspects of SB 90, including the preparation of annual claims, test claims, statewide cost estimates, and incorrect reduction claims. Having previously prepared the City’s SB 90 claims, he offers direct knowledge of its historical practices, documentation methods, and key reimbursement opportunities, allowing him to minimize ramp-up time and maximize recovery from the outset.
J. Bradley Burgess
Vice President
Project Executive
Mr. Burgess provides executive oversight, quality control, and continuity of service. He has more than 36 years of government consulting experience in California and is widely recognized as one of the state’s leading SB 90 practitioners. His role is to support strategy, provide senior review, and ensure the City receives consistent service and timely responses to technical questions. Most importantly, he brings direct historical knowledge of the City’s SB 90 program, having previously prepared its claims and worked on similar engagements across the state.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 7
3.0 Scope of Work and Approach
Hawthorne's SB 90 program requires more than annual claim preparation — it requires a structured, year-round system that captures eligible costs, maintains defensible documentation, and adapts to evolving mandates.
GCP's approach reflects how successful reimbursement programs operate in practice. We work alongside City staff throughout the year to identify eligible activities early, improve documentation processes, and ensure each claim reflects the full cost of compliance with State mandates.
The result is a program that is easier for departments to manage, more defensible under audit, and better positioned to capture both recurring and emerging reimbursement opportunities.
Workplan and Schedule
Each year begins with the development of a tailored SB 90 workplan specific to Hawthorne. That workplan establishes the calendar for department outreach, data collection, draft review, and final submission. This workplan gives the City a practical roadmap so departments know what will be requested, when it will be requested, and how much lead time they will have.
As part of this initial planning phase, GCP reviews prior-year claims to identify missed costs, unusual variances, and any opportunities for late or amended claims. We also revisit the City's current documentation approach to confirm that time tracking, supporting schedules, and related records remain aligned with current claiming expectations. This front-end work materially reduces the pressure on deadlines later in the process.
Compiling Claiming Data
GCP works directly with affected departments to compile the three core components of every SB 90 claim:
direct costs, indirect costs, and supporting documentation. We conduct structured interviews, review available departmental records, validate cost inputs, and reconcile claiming assumptions so the final claim is both complete and defensible.
Our process is designed to be practical for City staff. We do not simply send a list of broad requests and expect departments to sort them out. We guide departments through what is needed, explain the reason for the request, and help distinguish between general background information and the records that support reimbursement. This keeps the workload manageable and improves the quality of the final claim package.
Indirect Cost Rate Proposals (ICRPs)
One of the most important strategic decisions each year is whether to use the 15% default de minimis rate or prepare a full Indirect Cost Rate Proposal (ICRP). GCP evaluates both options annually and recommends the approach that produces the highest defensible recovery based on the City's facts.
When an ICRP is advantageous, GCP prepares it using 2 CFR Part 200 methodologies and the supporting information available from the City. When the 15% de minimis rate is the better practical choice, we will say so.
The goal is not complexity for its own sake — the goal is the best defensible recovery for Hawthorne.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 8 Preparation and Filing of Claims
GCP establishes a structured process to complete all annual claims and any eligible new claims by the applicable filing deadlines. This includes department interviews, cost compilation, claim form preparation, internal quality review, City review and approval, and final electronic submission to the State Controller's Office.
Our internal goal is to have claims completed before the final day so that City staff are not forced to review them at the last minute. This gives the City time to ask questions, resolve any lingering items, and sign with confidence — and provides a modest buffer should technical issues arise with the SCO portal on a deadline day.
Staff Training and Legislative Updates
GCP provides ongoing support throughout the year, not just at filing time. This includes staff training on eligible activities and documentation requirements, assistance with improving tracking practices, and updates on legislative or regulatory developments that may affect reimbursement.
That year-round support is especially important in a program like SB 90, where new claims, revised claiming instructions, and evolving audit expectations can quickly change the practical claiming landscape. By staying in contact with the City's coordinator and affected departments, GCP helps ensure that Hawthorne is prepared rather than surprised.
New Claims and Emerging Opportunities
New mandates often represent the largest reimbursement opportunity because local agencies have not yet had time to build standard tracking practices around them. GCP actively monitors the Commission on State Mandates and prepares Hawthorne in advance by identifying affected departments, suggesting tracking approaches, and explaining the documentation likely to matter once claiming instructions are released.
For this engagement, the most important near-term opportunities include the AB 1638 test claim, a new Elections-related claim expected in 2026, and two additional test claims that have recently been approved but may move on uncertain timelines. GCP's role is to help Hawthorne begin tracking early enough so that the City does not lose reimbursable costs simply because the opportunity was recognized too late.
Included in the Appendix starting on Page 14 of this proposal is a current list of pending and approved SB 90 test claims applicable to cities and counties.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 9 Quality Assurance and Audit Defense
Four-Step QA Process
1. Measurement / Data
Collection
2. Oversight / Eligibility Review
3. Verification / Accuracy &
Documentation
4. Client Acceptance
All claims prepared by GCP undergo a four-step quality
assurance review before submission. That review is intended to do more than catch math errors. It is designed to test whether the claim tells a coherent story, whether the
documentation supports the claimed costs, whether the
assumptions are reasonable, and whether the overall package is prepared in a way that will hold up under scrutiny.
GCP also assists Hawthorne with SCO desk reviews and field audits. That support includes helping organize requested materials, clarifying prior-claiming assumptions, participating in discussions as needed, and advising the City on how to respond to questions clearly and well-supported. The
objective is simple: maximize reimbursement while minimizing disallowances and staff disruption.
Our audit posture is practical rather than reactive. We do not assume every claim will be audited, but we prepare claims as if they may be reviewed later. That discipline improves both the quality of reimbursement and the City's comfort level when filing claims.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 10
4.0 The SB 90 Claiming Lifecycle
The following graphic summarizes GCP's end-to-end approach to developing, filing, and defending SB 90 claims.
It reflects how Hawthorne's annual process, new-claim preparation, indirect-cost strategy, and ongoing support fit together as one integrated reimbursement program rather than as a series of disconnected tasks.
GCP's approach is designed to move from early planning and data development through claim filing, audit defense, and ongoing support without creating unnecessary burden for City staff. Each phase of the lifecycle reinforces the next. We have found that structured documentation during planning becomes the foundation for defensible claims at filing, which in turn forms the basis for confident audit responses if the State Controller reviews the work.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 11
5.0 Pricing and Terms
GCP proposes a fixed-fee, all-inclusive structure for the five-year term. The proposed fees include annual claims, any new claims due during the contract period, routine staff support, and reasonable ongoing consultation related to the City's SB 90 program. There are no separate travel charges or expense reimbursements. The fee modestly increases by an assumed 3.5 % CPI in each year.
A fixed-fee structure is particularly useful for SB 90 services because it provides the City with cost certainty while also encouraging regular communication throughout the year. City staff can ask questions, discuss new developments, and coordinate on documentation needs without concern that each contact will generate a separate billing event.
Filing Year Services Covered Proposed Fee Payment Terms FY 2026–27
Annual claims for FY 2025–26 costs
New or first-time claims issued this year
$7,200
Quarterly Payments:
September, December, March,
June
FY 2027–28
Annual claims for FY 2026–27 costs
New or first-time claims issued this year
$7,450
Quarterly Payments:
September, December, March,
June
FY 2028–29
Annual claims for FY 2027–28 costs
New or first-time claims issued this year
$7,700
Quarterly Payments:
September, December, March,
June
FY 2029-30 Annual claims for FY 2028–29 costs
New or first-time claims issued this year $7,975
Quarterly Payments:
September, December, March,
June
FY 2030-31 Annual claims for FY 2029–30 costs
New or first-time claims issued this year $8,250
Quarterly Payments:
September, December, March,
June
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 12
6.0 References
GCP's long-term relationships with California public agencies demonstrate sustained performance and client trust. The references below represent a cross-section of current SB 90, CAP, ISF, and user-fee clients in California. Contact information is available upon request.
Agency Services Provided Duration
City of Sacramento SB 90 Reimbursement Claiming, Field Audit Defense, IT ISF study Multi-year
City of Inglewood SB 90 Reimbursement Claiming, Cost
Allocation Plan, User Fees Multi-year
City of Mission Viejo SB 90 Reimbursement Claiming Multi-year City of Bakersfield SB 90 Reimbursement Claiming Multi-year City of Fresno Fire User Fee Study Multi-year
City of Camarillo Internal Service Funds (ISFs), Cost Allocation Plan 2025-2026
Napa County SB 90 Reimbursement Claiming Multi-year
Riverside County SB 90 Reimbursement Claiming, Incorrect Reduction Claiming (IRC) Multi-year
Sonoma County SB 90 Reimbursement Claiming, Test Claim
Preparation Multi-year
Santa Barbara County SB 90 Reimbursement Claiming, User Fee Study, Management Consulting Partnership Multi-year
Marin County Cost Allocation Plan Diagnostics, Internal Service Funds (ISFs) Multi-year
Yuba County Internal Service Funds (ISF) 2025-2026
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 13
7.0 Conclusion & Next Steps
We deeply value our relationship with you, Felice, and the City of Hawthorne. Government Consulting Partners would like to resume supporting the City of Hawthorne with its SB 90 program. We bring direct historical experience with the City, statewide leadership in mandate claiming, and a practical methodology that maximizes reimbursement while protecting against audit risk.
We are confident that GCP will help Hawthorne maintain a low-burden annual process, prepare effectively for new claiming opportunities, and strengthen the overall defensibility of its reimbursement program. The combination of continuity, senior-level involvement, and year-round engagement is what distinguishes a strong SB 90 program from a routine filing service.
Next Steps
• Execute a five-year Professional Services Agreement with a July 1, 2026, start date. • Schedule a kickoff meeting early in FY 2026-27 to confirm the workplan, identify near-term department coordination needs, and review prior-year claims.
We look forward to working with you again.
J. Bradley Burgess
Vice President
Government Consulting Partners, Inc.
[email protected] | 916.595.2646
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 14 Appendix: Commission on State Mandates (CSM)
Test Claims Reference – Pending and Recently Approved
Current as of April 2026 | Source: CSM Pending Caseload and Commission Decisions | Prepared by Government Consulting Partners, Inc.
A test claim is the first claim filed with the CSM alleging that a statute or executive order imposes costs mandated by the State under Article XIII B, §6 of the California Constitution. Approved claims trigger the reimbursement process; pending claims are awaiting the Commission's decision. This reference covers active test claims most relevant to California cities and counties.
A. PENDING TEST CLAIMS
Claim No. Program Name Status Description
24-TC-02
Criminal Procedure:
Discrimination (Racial
Justice Act)
Pending
Requires local agencies to compile, analyze, and produce statistical evidence on charging decisions by race/ethnicity in criminal proceedings under the Racial Justice Act (AB 256, Penal Code §745). Hearing held September 26, 2025; decision pending.
24-TC-03 Stops: Notification by
Peace Officers Pending
Requires peace officers to verbally state the reason for a traffic or pedestrian stop before questioning, and to document that reason on any resulting citation or police report (Vehicle Code §2806.5, eff. January 1, 2024). The commission approved the claim in October 2025; the parameters and Guidelines are pending. 24-TC-05 Child Physical Abuse and
Neglect Exams Pending
Requires local agencies to provide or arrange forensic medical examinations for children who are victims of suspected physical abuse or neglect, as mandated by statute. Parameters and Guidelines are currently pending following approval of the underlying test claim.
24-TC-06 Emergency Shelters:
Persons with Pets Pending
Requires cities and counties that designate emergency cooling or warming centers to designate at least one shelter that can accommodate persons with pets, to the extent practicable (Government Code §8593.10). Filed 2024; hearing and decision pending.
24-TC-07 Race-Blind Charging Pending
Requires local prosecuting agencies to remove and redact race- and ethnicityidentifying information from law enforcement reports before making initial charging decisions (Penal Code §741, AB 2778). Filed June 2025; decision pending. 25-TC-01 Local Public Employees:
Vacant Positions Pending
Requires local public agencies to hold a public hearing and report on vacancy status and recruitment/retention efforts at least once per fiscal year, with additional reporting and planning obligations when vacancies in a bargaining unit reach 20% of authorized positions (AB 2561, Gov. Code §3502.3, ch. 2024).
Recently filed; no hearing scheduled.
Various
(17-TC-07
through
17-TC-28)
MS4 Trash Orders –
Santa Ana Region
(Multiple Cities/County)
Pending
A series of individual test claims filed by Southern California municipalities and the County of Orange challenging the Regional Water Quality Control Board Phase I MS4 Trash Orders (effective June 2, 2017) as state-mandated programs requiring reimbursement. Cases have been pending since 2017; no hearing dates are set. 14-TC-03 /
15-TC-02 /
16-TC-05 /
17-TC-05
MS4 Stormwater Orders
– San Diego Region
(Multiple Orders)
Pending
Test claims challenging successive San Diego Regional Water Quality Control Board municipal stormwater permit orders (R9 series) as imposing reimbursable mandates on San Diego-area municipalities and counties. Long-standing cases with no decision dates set.
22-TC-01 MS4 Order – Los Angeles
Region (R4-2021-0105) Pending
Test claim challenging the Los Angeles Regional Water Quality Control Board’s 2021 municipal stormwater permit order as imposing a new or higher level of service requiring state reimbursement. Pending.
22-TC-07
MS4 Order – San
Francisco Bay Region
(R2-2022-0018)
Pending
Test claim challenging the San Francisco Bay Regional Water Quality Control Board’s 2022 municipal stormwater permit order as a reimbursable state mandate. Pending.
SB 90 Claiming Services Proposal | City of Hawthorne
Government Consulting Partners, Inc. Confidential Page 15 B. RECENTLY APPROVED TEST CLAIMS
Claim No. Program Name Status Description
24-TC-01 Elections: Ballot Label Approved
Requires local elections officials to print supporter and opponent lists in the ballot label for statewide ballot measures (Elections Code amendment).
Commission approved December 5, 2025, with a reimbursement period beginning July 1, 2023.
24-TC-04
Internet Websites and
Email Addresses (.gov
Migration)
Approved
Requires cities and counties to migrate their public websites and email addresses to “.gov” or “ca.gov” domain names by January 1, 2029 (Government Code §50034, AB 1637, ch. 2023). Commission approved December 2025; Parameters and Guidelines to follow.
Notes: Stormwater (MS4) claims are grouped for brevity; individual filings cover named cities and the County of Orange in the Santa Ana region. SB 90 mandate reimbursement claims are processed separately through the State Controller’s Office under approved parameters and guidelines and are not listed here. For GCP client advisory purposes only. Not for distribution.
AGENDA ITEM NO. 13.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 04/28/2026
Originating Department: Public Works
City Manager: Department Head:
SUBJECT:
Blanket Purchase Order for Fineline Auto Body.
RECOMMENDED MOTION:
Staff recommends that the City Council approve an increase to the original Blanket Purchase Order for Fineline Auto Body from $175,000 to $275,000.
DISCUSSION:
Staff is requesting an increase to the existing Purchase Order with Fineline Auto Body to accommodate a higher than anticipated volume of fleet repair and bodywork services. Over the past several months, the City has experienced an uptick in maintenance needs across various vehicles, including unplanned repairs that require timely attention to ensure continued safe and reliable operations.
This increase reflects the necessity to maintain the City's fleet in a state of readiness, particularly as service levels and response requirements continue to expand. Fineline Auto Body has consistently provided responsive and reliable service, and maintaining this partnership will help avoid delays in repairs that could impact departmental operations.
The requested adjustment will ensure sufficient funding is available to address ongoing and emerging repair needs through the remainder of the fiscal year while supporting uninterrupted fleet availability.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Maintaining a reliable and fully operational City fleet ensures that essential public services such as street maintenance, infrastructure repairs, police and code enforcement are delivered efficiently, which supports a safe and well maintained environment for businesses and residents.
FISCAL IMPACT:
None. The funds are available in the adopted Fiscal Year 2025-26 and will be paid for with approved and allocated funds for Equipment funds.
NOTICING PROCEDURE:
72 Hours posted notice pursuant to the Ralph M. Brown Act.
ATTACHMENTS
Agreement
BPO
PUBLIC WORKS DEPARTMENT
Vendor Name Agreement 25-26 Amounts Account Number Description Fineline Auto Body Yes $100,000 600-3103-000-0-0-42004 City Fleet Autobody repairs.
Total: $100,000
AGENDA ITEM NO. 14.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 04/28/2026
Originating Department: City Attorney
SUBJECT:
SB 799 (Letter in Support) - A. Monteiro/K. Manning
AGENDA ITEM NO. 15.
CITY OF HAWTHORNE
City Council
AGENDA BILL
For the meeting of 04/28/2026
Originating Department: City Attorney
SUBJECT:
Proposition 36 (Letter in Support) - F. Johnson