City Council Agenda Report
June 3, 2025
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development Bethani Cardenas, Housing Manager
Rosio Medina, Senior Management Analyst
SUBJECT: RESOLUTION NO. 25-18 – APPROVING THE COMMUNITY DEVELOPMENT
BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP PROGRAM FIVE YEAR 2025-2029 CONSOLIDATED PLAN, FISCAL YEAR 2025-2026 ANNUAL
ACTION PLAN AND AUTHORIZING THE CITY MANAGER TO EXECUTE AND
TRANSMIT ALL REQUIRED DOCUMENTS TO THE UNITED STATES
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Background:
The purpose of the public hearing is to receive further input from the community and City Council regarding the 2025-2029 Consolidated Plan and Fiscal Year (FY) 2025/26 Annual Action Plan (Plans), and to obtain authorization to transmit the Plans with an application to secure Community Development Block Grant (CDBG) and HOME Investment Partnership Programs (HOME) funds from the United States Department of Housing and Urban Development (HUD).
HUD requires CDBG and HOME funding recipients to submit a Consolidated Plan (Con Plan) every five years and an Annual Action Plan (AAP) each subsequent year. The Con Plan outlines the City’s economic development, infrastructure, housing and social service needs and priorities. The FY 2025/26 AAP lists activities that the City will undertake with HUD funding in Year 1 of the Con Plan. These activities are subject to federal rules and regulations, such as funding caps, public-private partnerships, requirements, and compliance with national objectives.
A study session was held on March 4, 2025, to inform and receive input from City Council regarding the Plans. Staff sought to obtain City Council authorization for public review of the Con Plan and approval of the FY 2025/26 recommended activities. At the study session, City Council asked about social services agencies’ performance, services provided by the agencies to
City Council June 3, 2025
Resolution No. 25-18 - 2025 Consolidated Plan and FY
2025/26 Annual Action Plan
Page No. 2
1 3
8 7
Norwalk residents, and the utilization of the Social Service Emergency Assistance program. There were also questions about reprogramming unused funds and the process for tracking expenditures and reallocation.
Consolidated Plan Activities
The Con Plan explains how the City will utilize federal funds to improve community development needs, address affordable housing, and priorities for people experiencing homelessness. The City’s annual entitlement of CDBG and HOME funds is not enough to address all the City’s housing, infrastructure, economic development and social service needs. To be effective, the City must prioritize needs and limit the number of activities to be funded. Based upon the needs assessment, the following priority needs and goals over the next five years were established:
• Provide decent, affordable housing by increasing affordable housing opportunities • Support special needs programs and services by providing vital support services • Construct or upgrade public facilities and infrastructure by enhancing community facilities
• Create public awareness of fair housing through planning and grant administration • Create job-generating businesses and job training by enhancing economic development opportunities
• Create homeless prevention programs and services
• Maintain and promote neighborhood preservation by preserving, rehabilitating and enhancing neighborhoods
Funding and Proposed Activities for the Annual Action Plan The AAP establishes strategies for the next program year and identifies specific projects and activities that will be subsidized with CDBG and HOME funds received from HUD. The City may increase, reduce, or eliminate funding to any of the activities listed below, but new activities may not be added at this time without issuing a new public hearing notice and providing an additional opportunity for public comment.
While HOME funds may only be used for housing related activities, CDBG funds may be used for a variety of community development activities, such as rehabilitation of commercial buildings, infrastructure improvements, and certain services, such as counseling. Funds may be used to directly benefit a household that meets the income limitations, such as home repairs, or used for an area benefit, where the improvement is located in a designated census tract with at least 51% of the households being considered low to moderate income.
HUD published the CDBG and HOME grantee allocations on May 14, 2025. For FY 2025/26 the City will receive $940,871 in CDBG entitlement funds; $30,000 in estimated program income and $480,000 in estimated carryover funds. Program income and carryover funds will be allocated to a Capital Improvement Project, Economic Development Activity, or Demolition Project.
City Council June 3, 2025
Resolution No. 25-18 - 2025 Consolidated Plan and FY
2025/26 Annual Action Plan
Page No. 3
1 3
8 7
The City will receive $242,049.35 in HOME Program entitlement funds, $30,000 in estimated program income and $560,488.98 in carryover funds. Program income and carryover funds from prior years will be allocated to an Affordable Housing Project.
The following tables list the proposed activities and expenditures for FY 2025/26:
PROJECTS / ACTIVITIES FUNDED BY CDBG Recommended Funding Program Administration – CDBG (20% cap) $175,174
Fair Housing – CDBG (20% cap) $13,000
Emergency Services – Social Service Center (15% cap) $75,000 Community Family Guidance Center (– 15% cap) $20,000
Community Legal Aid So Cal (15% cap) $20,000
Los Angeles Centers for Alcohol and Drug Abuse (15% cap) $20,000 Economic Development Project/Activity (TBD) $100,000
Upwards Inc. – Economic Development $10,000
Capital Improvement Project (TBD) $537,697
Demolition Project (TBD) $480,000
Total $1,450,871
PROJECTS / ACTIVITIES FUNDED BY HOME Recommended Funding CHDO Set-Aside – HOME (15% cap of HOME funds) $36,307.40 Program Administration – HOME (10% cap of HOME funds) $24,204.94 TBRA – Security Deposit Assistance $30,000
Affordable Housing Project $742,025.99
Total $832,538.33
Staff requests City Council allocate funding from economic development activities from FY24/25 and prior years allocation to the Demolition project for FY25/26 for a total of $480,000. The proposed demolition project is for the removal of the building located at 13900 San Antonio Blvd.
Timeline
The City Council conducted a public meeting concerning the Plans on March 18, 2025, for public comments of the proposed activities for CDBG and HOME. The draft Consolidated Plan and Annual Action Plan were prepared and made available for public review and comment, starting March 25, 2025, through April 25, 2025
Fiscal Impact:
The CDBG and HOME programs are funded solely by the United States Department of Housing and Urban Development. There is no impact to the general fund.
City Council June 3, 2025
Resolution No. 25-18 - 2025 Consolidated Plan and FY
2025/26 Annual Action Plan
Page No. 4
1 3
8 7
Citizens Advised:
Notice of the Public Hearing and the availability of the draft Con Plan and AA P was published in The Norwalk Patriot and La Opinion on February 28, 2025, and posted at City Hall and on the City’s website.
The Con Plan and AAP were made available at City Hall (Community Development Department), City’s Social Services Center, and the Norwalk Regional Library from March 25, 2025, through April 25, 2025, for citizens to review and make comments before the public hearing.
Notice of the Public Hearing for the Plans was published in The Norwalk Patriot and La Opinion and posted at City Hall and the City’s website on May 16, 2025. Any public comments received will be noted in the final Plans.
Strategic Plan 2023 Implementation:
The recommended actions will further the City’s Strategic Plan Goal 2: Objective 1 Re-invest in existing and aging infrastructure and Objective 3: Improve living conditions for residents in greatest need; Goal 3: Objective 1 Create dynamic neighborhoods, Objective 2 Diversify and grow the economy, and Objective 3 build great public destinations.
Recommended Action:
Staff recommend City Council:
a. adopt Resolution No. 25-18, A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NORWALK APPROVING THE COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIPS PROGRAM FIVE YEAR 2025-2029 CONSOLIDATED PLAN, FISCAL YEAR 2025-2026 ANNUAL ACTION PLAN, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AND TRANSMIT ALL REQUIRED
DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; and
b. authorize the Director of Community Development to execute Memorandum of Understanding with City Departments and sub-recipient agreements with public service agencies for the provision of services funded under the Annual Action Plan.
Attachments:
1. Resolution No. 25-18
2. https://cms3.revize.com/revize/norwalkca/Documents/Departments%20&%20Services/Commu nity%20Development/Housing/Draft%202025%20Consolidated%20Plan%20&%20FY%2025- 26%20Annual%20Action%20Plan.pdf