DEPARTMENT OF HOUSING
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Attachment B
Table of Contents
City of Pasadena - 2026 Annual Action Plan June 2026 i
ANNUAL ACTION PLAN
Executive Summary ............................................................................................. 1 PR-05 Lead and Responsible Agency ................................................................. 6 PR-10 Consultation .............................................................................................. 7 AP-12 Participation .............................................................................................. 13 AP-15 Expected Resources ................................................................................. 17 AP-20 Annual Goals and Objectives .................................................................... 20 AP-35 Projects ..................................................................................................... 22 AP-50 Geographic Distribution ............................................................................ 27 AP-55 Affordable Housing ................................................................................... 29 AP-60 Public Housing .......................................................................................... 30 AP-65 Homeless and Other Specials Needs Activities ........................................ 32 AP-75 Barriers to Affordable Housing .................................................................. 35 AP-85 Other Actions ............................................................................................ 38 AP-90 Program Specific Requirements ............................................................... 43
APPENDICES
Appendix A CDBG Benefit Service Area Map
Appendix B Applications & Certifications*
Appendix C Public Notice
LIST OF TABLES (Data subject to update in final draft)
Table 1: Responsible Agencies ........................................................................... 6 Table 2: Agencies, groups, organizations who participated ................................. 10 Table 3: Other local/regional/federal planning efforts .......................................... 11 Table 4: Overall Community Priority .................................................................... 14 Table 5: Ten Highest Needs in All Categories ..................................................... 15 Table 6: Year Two Anticipated Funding Availability ............................................. 19 Table 7: Year Two Goal Summary ....................................................................... 21 Table 8: Goal Descriptions ................................................................................... 20 Table 9: Year Two Project Information ................................................................. 22 Table 10: One Year Goals for Affordable Housing by Support Requirement ....... 29 Table 11: One Year Goals for Affordable Housing by Support Type ................... 29 Table 12: Program Income Summary .................................................................. 44
LIST OF MAPS
Map 1: Block Groups with >51% of Households Earn <50% AMI ....................... 28
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
1 Background
The City of Pasadena is an entitlement jurisdiction that receives federal funding from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grants (ESG) programs. These funds are used to support activities that benefit low - and moderate -income (LMI) residents and address local housing and community development needs.
The Annual Action Plan (AAP) for Program Year 2026 (PY2026) represents the second year of implementation under the City’s 2025–2029 Consolidated Plan. The AAP outlines the specific actions, activities, and resources that will be used during the program year to address the priority needs and goals identified in the Consolidated Plan. The overarching goals of the City’s federally funded programs are to provide decent housing, a suitable living environment, and expanded economic opportunities for LMI residents . The goals of the HUD federally funded entitlements programs are to provide decent housing, a suitable living environment, and expanded economic opportunities for its low/moderate income (LMI) residents. These goals are further explained as follows:
PROVIDE DECENT HOUSING by:
❖ Assisting homeless persons to obtain appropriate housing; ❖ Assisting persons at-risk of becoming homeless;
❖ Retention of the affordable housing stock;
❖ Increasing the availability of permanent housing in standard condition and affordable cost to LMI families; particularly to members of disadvantaged minorities, without discrimination on the basis of race, color, religion, sex, national origin, familial status, or disability;
❖ Increasing the supply of supportive housing which includes structural features and services needed to enable persons with special needs to live with dignity and independence; and
PROVIDE A SUITABLE LIVING ENVIRONMENT by:
❖ Improving the safety and livability of neighborhoods; ❖ Increasing access to quality public and private facilities and services; Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
2 ❖ Reducing the isolation of income groups within areas through the spatial de- concentration of housing opportunities for lower income persons and the revitalization of deteriorating or deteriorated neighborhoods; ❖ Restoring and preserving properties of special historic, architectural, or aesthetic value; and
❖ Conservation of energy resources.
EXPAND ECONOMIC OPPORTUNITIES through:
❖ Job creation and retention;
❖ Establishment, stabilization and expansion of small businesses (including micro- enterprises);
❖ The provision of public services concerned with employment; ❖ The provision of jobs to LMI persons;
❖ Availability of mortgage financing for low-income persons at reasonable rates using non-discriminatory lending practices;
❖ Access to capital and credit for development activities that promote the long-term economic and social stability to LMI households; and
❖ Empowerment and self-sufficiency for low-income persons to reduce generational poverty in federally assisted housing and public housing.
Summary of the objectives and outcomes identified in the Plan Needs Assessment Overview
The PY2026 Annual Action Plan is guided by the priority needs and strategic goals established in the 2025 –2029 Consolidated Plan. These objectives focus on improving housing stability, expanding economic opportunities, and enhancing community conditions for LMI households. Key objectives include:
Objectives:
❖ Improve the quality of existing housing stock to support community and neighborhood stability.
❖ Expand the number of affordable rental units available to low- and moderate- income households.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
3 ❖ Increase homeownership opportunities for low- and moderate-income households.
❖ Expand homeless prevention and intervention services.
❖ Increase availability of supportive services to special populations (i.e. seniors, disabled persons, at-risk youth, person living with HIV/AIDS, veterans).
❖ Support programs that provide services to low- and moderate-income households.
❖ Support capital improvement and financial assistance activities for small business development.
❖ Increase employment opportunities through business creation, expansion, and technical assistance.
❖ Improve accessibility of programs that provide services to low- and moderate- income households.
❖ Support renovation and rehabilitation of facilities that provide access to community services for low- and moderate-income households.
❖ Improve the infrastructure in low- and moderate-income neighborhoods.
Each funded activity in PY2026 will align with one of HUD’s three national objectives and will achieve one of the following outcomes:
Plan Outcomes
➢ Availability/Accessibility
This outcome category applies to activities that make services, infrastructure, public services, public facilities, housing, or shelter available or accessible to low- and moderate -income (LMI) people, including people with disabilities. In this category, accessibility refers not only to overcoming physical barriers, but also to ensuring that essential services, housing opportunities, and community resources are available and reachable to LMI residents where they live. Activities under this outcome are inte nded to expand access to housing, services, and infrastructure that improves overall quality of life and reduces disparities in underserved areas.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
4 ➢ Affordability
This outcome category applies to activities that provide affordability in a variety of ways to LMI people. It includes the creation, preservation, and maintenance of affordable housing, as well as support for essential services such as transportation, chil dcare, and utilities that reduce the overall cost burden on households. Affordability is an appropriate objective whenever an activity lowers costs, improves quality, or increases access to goods and services for LMI households. These efforts are intended to reduce housing cost burden, increase housing stability, and improve economic security for residents.
➢ Sustainability
This category applies to activities that are aimed at improving communities or neighborhoods, helping to make them livable, viable, and resilient for LMI persons.
This includes efforts to preserve and enhance public infrastructure, eliminate blight, suppor t neighborhood revitalization, and promote long -term community stability. Activities under this outcome may involve multiple coordinated investments that strengthen neighborhoods, improve environmental conditions, and support ongoing economic and social vitality.
Evaluation of past performance
The City of Pasadena has demonstrated strong performance in administering its federal entitlement programs. During the previous program year, the City continued to make progress toward meeting the goals outlined in the Consolidated Plan, particularly in the areas of public services, homeless assistance, and public facility and infrastructure improvements.
Public service programs provided critical support to low- and moderate-income households, including access to food, health services, and social services.
Homelessness prevention and intervention efforts, coordinated through the Pasadena Continuum of Care, assisted individuals and families experiencing or at risk of homelessness.
While the City has made measurable progress in many areas, challenges remain in the development and preservation of affordable housing due to rising construction costs, regulatory constraints, and market conditions. These factors have informed the City’s continued emphasis on housing-related activities and leveraging additional funding sources.
Overall, past performance has guided the prioritization of resources in PY2026, with a continued focus on high-impact programs and activities that address the most critical community needs.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
5 Citizen participation process and consultation process The City of Pasadena follows a Citizen Participation Plan in accordance with 24 CFR
91.105 and 91.200 to ensure that residents, stakeholders, and community organizations have opportunities to participate in the planning and allocation of federal funds.
The City engaged advisory bodies, including the Human Services Commission and the Northwest Commission, to provide recommendations on funding priorities and project selection. These commissions represent a broad cross -section of the community, including LMI residents, service providers, and local stakeholders.
In addition, the City consulted with community -based organizations, City departments, the Pasadena Continuum of Care, and other stakeholders to assess needs and identify funding priorities. Public hearings and notices were conducted to provide opportunitie s for community input on the PY2026 Annual Action Plan.
Public comments
At the time of preparation, no public comments were received.
Comments or views not accepted and the reasons for not accepting them At the time of preparation, no comments were received that were not accepted.
Summary
The PY2026 Annual Action Plan outlines the City of Pasadena’s strategy for utilizing federal entitlement funds to address priority housing and community development needs.
Building upon the goals established in the 2025 –2029 Consolidated Plan, the City wil l continue to invest in programs and projects that expand affordable housing opportunities, support vulnerable populations, improve public infrastructure, and enhance the overall quality of life for low- and moderate-income residents.
Through coordinated planning, community engagement, and strategic investment of resources, the City remains committed to promoting equitable and sustainable community development.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
6 PR-05 LEAD AND RESPONSIBLE AGENCIES
Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Table 1 – Responsible Agencies
Agency Role Name Department/Agency
Lead Agency, CDBG
Administrator City of Pasadena Housing Department
HOME Administrator City of Pasadena Housing Department
ESG Administrator City of Pasadena Housing Department
The City of Pasadena is the lead agency for the CDBG, HOME, and ESG entitlement programs. The City's Housing Department is responsible for the administration and preparation of the Consolidated Plan, Annual Action Plans, and Consolidated Annual Performance Evaluation Reports (CAPER). The mission of the Housing Department is to:
Provide affordable housing and community development and on - the-job training opportunities for low- and moderate-income persons to enhance and strengthen our community.
Consolidation Plan Public Contact Information:
Randy Mabson, Program Coordinator
City of Pasadena Department of Housing
P.O. Box 7115 Pasadena, CA 91109
[email protected]
(626)744-8321
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
7 PR-10 CONSULTATION
Introduction
This Consolidation Plan engaged with multiple community partners in the development of its goals, objectives, and strategies. In an effort to identify areas in need of improved coordination, t he Housing Department consulted with other City d epartments, commissions, the Pasadena Continuum of Care (CoC), program staff, community-based organizations, interested citizens, and an array of community stakeholders.
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
City staff engaged in collaborative efforts to consult with commissions, city departments, and beneficiaries of entitlement programs in order to develop strategic priorities and strategies contained within this 5-year plan. City staff facilitated comprehensive outreach to enhance coordination and discuss new approaches and efficiencies with assisted housing, governmental health, mental health, service agencies, and other stakeholders that utilize funding for eligible activities, projects and programs.
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 Pasadena Continuum of Care (CoC), also known as the Pasadena Partnership to End Homelessness, has over 100 members that represent a broad spectrum of the community including service providers, government agencies, academic institutions, and the private sector. The City is represented on the CoC by staff of the City’s Department of Housing.
The Pasadena CoC maintains several standing committees including the Faith Community Committee, and the Street Outreach Collaborative , in addition to ad hoc committees as needed, such as the Ad Hoc Homelessness Prevention Committee. The purpose of these committees is to develop recommended efforts and solutions to address the needs of homeless persons with a focus on vulnerable populations such as chronically homeless individuals and families, families with minor children, veterans a nd their families, and unaccompanied youth. These committees are comprised of members of the CoC and outside individuals with subjec t matter expertise including housing providers, Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
8 homeless services agencies, healthcare facilities and managed care plans, mental health providers, and faith-based institutions.
Faith Community Committee
The Faith Community Committee aims to facilitate faith-based agencies in their efforts to address homelessness in Pasadena. To this end, the Faith Community Committee researches and supports evidence -based and best practices to prevent and end homelessness in Pasadena and recruit representatives from other faith -based organizations to participate in these efforts.
Street Outreach Collaborative
The Street Outreach Collaborative consists of homeless service providers that regularly conduct street outreach within the City of Pasadena, as well as case managers and housing navigators. This group meets monthly to improve interagency communication and transparency, reduce duplication of engagement efforts, case conference clients with high barriers, and strategize on how to best move clients forward in their housing plan while getting them connected to the services they need.
Ad Hoc Homelessness Prevention Committee
This committee met several times in PY 2025 -2026 to gather input from CoC members, community-based stakeholders, and people with lived experience of housing instability and homelessness to inform the implementation of $1.2 million of County Renter Protection Homelessness Prevention funds.
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
Allocating Funds
The Pasadena CoC is within the geographical boundaries of the City of Pasadena. Both CoC funds and ESG funds come to the City of Pasadena, which acts as the lead agency in the coordination of homeless services for the jurisdiction. The Pasadena Partnership to End Homelessness serves as the principal planning entity for ESG funds and provides guidance to the Housing Department in allocating ESG dollars for City Council approval.
Consultation includes feedback on local need and funding priorities; review and comment on proposed funding allocations prior to funding award; direct input of performance and evaluation measures; and guidance on best practices nationwide for utilizing ESG funds to prevent and end homelessness. Funds are awarded through a Notice of Funding Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
9 Availability (NOFA) process, and proposals are reviewed by non -ESG funded CoC members and representatives administering ESG funds from outside the CoC.
Setting Performance Outcomes
The Pasadena CoC will consult the HUD CoC Program Grant guidelines, ESG guidelines, and with grant recipients to establish performance targets appropriate for population and program type. The CoC will maintain and review Homeless Management Information System (HMIS), annual performance reports, and other documentation as necessary to measure the Continuum of Care progress in meeting HUD CoC Program Grant goals and objectives.
The Continuum of Care Board of Directors may establish additional performance measurement requirements as necessary to report progress on local goals and objectives. Staff will communicate with CoC program recipients throughout the program year to ensure compliance with performance measures required by HUD and the Continuum of Care Board of Directors.
Operating and Administrating Homeless Management Information System (HMIS) In collaboration with the Southern California Regional HMIS , the Pasadena CoC has designed a HMIS database that is in compliance with current HUD HMIS Data Standards.
Through the utilization of this custom database is designed to increase HMIS participation from CoC and ESG recipients and subrecipients. The City has ensured that participating agencies attend basic user training, including training on privacy policies, HUD required data elements , system navigation, and signed required agreements from each participating agency and end users, such as but not limited to HMIS Agency Agreements, HMIS User Agreements, and HMIS Policies and Procedures. To maintain participation and high data quality, the City has designated a HMIS administrator to generate monthly reports to ensure all HUD -required data is complete, accurate, and entered into the system in a timely manner. The City maintains reporting requirements to submit reliable data for the Longitudinal Systems Analysis, Annual Performance Report (APR), Housing Inventory Chart (HIC), and other HUD-mandated reports. The City of Pasadena continues to improve HMIS and update policies and procedures from input and recommendations from HMIS Users.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
10 Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
See table 2 below:
Table 2 – Agencies, groups, organizations who participated Agency/Group/
Organization
Agency/Group/
Organization
Type
What section of
the Plan was
addressed by
Consultation?
How the Agency/
Group/Organization consulted
and what are the anticipated
outcomes of the consultation or
areas for improved coordination?
Southern
California
Association of
Governments
(SCAG)
Regional
organization
Housing Need
Assessment
Communication was made
through electronic transmittal of
reports. The SCAG 6th Cycle
Regional Housing Needs
Assessment (2021–2029) housing
unit targets provided up-to-date
affordable housing production
needs.
City of
Pasadena
Planning &
Community
Development
Department
Other
government -
Local
Housing Need
Assessment
Economic
Development
Anti-Poverty
Strategy
Communication was made in
writing and electronic transmittal
of reports. The 2021-2029
Pasadena Housing Element
provided up-to-date affordable
housing production needs, and
recent efforts addressing barriers
to affordable housing.
Urban Initiatives Regional
organization
Homeless Needs
Homeless Strategy
Anti-Poverty
Strategy
Communication was made
through meetings, and electronic
transmittal of reports. The reports
provided up-to-date homeless
data.
City of
Pasadena
Public Health
Department
Other
government-
Local
Homeless Needs
Homeless Strategy
Anti-Poverty
Strategy
Communication was made in
writing and through meetings. The
status of prioritized encampment
sites and the health needs of
unsheltered individuals informed
planning.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
11 Identify any Agency Types not consulted and provide rationale for not consulting Not applicable.
Other local/regional/state/federal planning efforts considered when preparing the Plan
Table 3 – 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 Pasadena Partnership to
End Homelessness
Some overlap in the area of
homelessness prevention and
housing goals.
Housing Element 2021-
2029
City of Pasadena Planning &
Community Development
Department
Some overlap in the area of
affordable housing production
goals.
Strategic Plan 2023-
2028
Pasadena Public Health
Department
Some overlap in the area of
identifying the health needs of the
community.
Economic Development
Strategy 2024
City of Pasadena Economic
Development
Some overlap in the area of
identifying the economic needs of
the community.
2020 Analysis of
Impediments
City of Pasadena Housing
Department
Some overlap in the area of
identifying the fair housing needs
of the community.
Public Housing Agency
(PHA) Five Year Plan
(2025-2030)
City of Pasadena Housing
Department
Some overlap in the area of
identifying the affordable housing
needs of the community.
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.
The City of Pasadena actively collaborates with state, county, and local public entities to implement the goals of the Consolidated Plan. This coordinated approach is essential to leveraging resources, aligning funding priorities, and ensuring that housing , community development, and supportive services are delivered effectively to low - and moderate - income residents.
At the state level, the City utilizes funding from programs such as the Low -Income Housing Tax Credit (LIHTC) and the California Department of Housing and Community Development (HCD) to support the development and preservation of affordable housing.
The Ci ty also coordinates with the State Office of Historic Preservation to ensure Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
12 compliance when federally or state-funded activities involve properties subject to historic preservation requirements. In addition, the City leverages state resources, including CalHome and the Permanent Local Housing Allocation (PLHA) Program, to implemen t housing initiatives such as accessory dwelling unit (ADU) programs that expand housing opportunities for Housing Choice Voucher holders.
Regionally, the City partners with Los Angeles County agencies, particularly in the areas of health, mental health, and homeless services. County resources are frequently combined with local entitlement funds to support permanent supportive housing, street outreach, and health -related interventions for individuals experiencing homelessness.
The City also collaborates closely with the County in emergency response and recovery efforts, including coordinated actions related to recent disasters such as the Eato n Canyon fire, which involved joint planning, temporary housing strategies, and deployment of recovery resources.
The City and Los Angeles County have also partnered on the development of a mental health facility on North Lake Avenue to address service gaps for individuals experiencing homelessness or housing instability. This collaboration includes County funding and service coordination through its Department of Mental Health, alongside City support through land use planning and potential HUD -funded infrastructure improvements. This effort reflects a shared commitment to addressing the root causes of housing instabil ity and improving long-term community outcomes.
At the local level, the City coordinates across departments —including Planning, Public Health, Public Works, Economic Development, and the Police Department —to align housing, infrastructure, and public service investments with Consolidated Plan goals. For example, the Housing Department works in partnership with the Police Department’s Homeless Outreach –Psychiatric Evaluation (HOPE) Team by funding a dedicated homeless services liaison. The City also supports Public Health Department programs, including motel voucher assistance and medical respite services, to address the needs of vulnerable populations.
In addition, the City participates in regional planning efforts through the Southern California Association of Governments (SCAG), ensuring consistency between the Consolidated Plan and broader regional housing and transportation strategies, including the Regional Housing Needs Assessment (RHNA).
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
13 AP-12 PARTICIPATION
Summary of citizen participation process/e fforts made to broaden citizen participation. Summarize citizen participation process and how it impacted goal setting.
The City of Pasadena follows HUD’s requirements for citizen participation in accordance with 24 CFR 91.105 and 91.200. As the lead agency for the Consolidated Plan, the City is committed to encouraging meaningful community engagement throughout the planning and implementation of federally funded entitlement programs, including CDBG, HOME, and ESG.
To broaden participation, the City conducts public hearings and provides public notices to ensure residents, stakeholders, and community organizations have opportunities to review and comment on proposed plans and funding allocations. These efforts are designed to promote transparency and ensure that funding priorities reflect community - identified needs.
The City utilizes advisory bodies to support community engagement and inform decision- making. The two primary advisory commissions are the Northwest Commission and the Human Services Commission, both of which provide recommendations to the City Council on the allocation of federal entitlement funds. These commissions represent a broad cross-section of the community, including:
❖ Low/Moderate income residents;
❖ Minority groups;
❖ Elderly;
❖ Handicapped;
❖ the Business community; and
❖ Non-profit service providers
Northwest Commission
The Northwest Commission consists of 10 members appointed by the City Council and focuses on the area of Pasadena with the highest concentration of low - and moderate- income residents and CDBG -eligible census tracts. The Commission advises the City Council on economic development priorities and monitors the allocation of CDBG funds for non -public service activities, including public facilities and infrastructure improvements.
Human Services Commission
The Human Services Commission consists of 12 members, including representatives appointed by the City Council, Pasadena Community College Board of Trustees, and Pasadena Unified School District, as well as members recommended by human service Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
14 providers. The Commission was established to address unmet human service needs and provides recommendations to the City Council regarding public service funding priorities.
Throughout the program year, both commissions receive input from residents, service providers, businesses , and City departments regarding community needs. This input directly informs funding priorities, project selection, and the development of goals included in the Annual Action Plan. As a result, the City’s allocation of resources is guided by a combination of community feedback, stakeholder consultation, and data -driven analysis.
Community Needs Survey
Every five years the Housing Department - Community Development Division conducts an online community survey . City of Pasadena residents are asked to rank over 52 eligible entitlement activities , from 1 to 5, with 1 indicating the lowest community need and 5 indicating the highest community need. The results of the survey are incorporated into the application evaluation criteria found in the Notice of Funding Award (NOFA) process to allocate entitlement funds.
Survey Results
Overall Community Priority
A total of 794 surveys were conducted during a 30-day window period between January 1 – 31, 2025. The creation of affordable housing ranked amongst the highest community priority.
Table 4 – Overall Community Priority
Overall Community Priorities Average
Rating
Create More Affordable Housing Available to Low Income Residents 2.85 Improve City Infrastructure (i.e. sidewalks, lighting, street improvements) 2.61
Improve Facilities Providing Public and Community Services (i.e. parks, libraries, senior centers, youth centers) 2.46
Create More Jobs Available to Low Income Residents 2.08
Community Needs
The second section consisted of 52 housing and community development activity types organized into the following categories: Public Services, Housing, Public Facility Improvements, Infrastructure Improvements, and Economic Development. The top ten include activities from all categories, with the exception of economic development.
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
15 Table 5 – Ten Highest Needs in All Categories
Rank Specific Need Average
Rating Need Category
1 Educational Facilities 3.52 Public Facilities
Improvements
2 Mental Health Services 3.52 Public Services
3 Health Services 3.51 Public Services
4 Parks & Recreational Facilities 3.41 Public Facilities Improvements
5 Fire Stations 3.40 Public Facilities
Improvements
6 Neighborhood Cleanups (trash, weed
abatement) 3.38 Public Services
7 Increase Affordable Rental Housing 3.36 Housing
8 Mental Health Care Facilities 3.34 Public Facilities
Improvements
9 Child Care Centers 3.30 Public Facilities
Improvements
10 Childcare Services 3.26 Public Services
Top Five Needs Identified for Each Category
Public Services Public Facility Improvements
Mental Health Services 3.52 Educational Facilities 3.52 Health Services 3.51 Parks & Recreational Facilities 3.41 Youth Services 3.28 Fire Stations 3.40
Childcare Services 3.26 Mental Healthcare Facilities 3.34 Transportation 3.16 Libraries 3.32
Economic Development Housing
Store Front Improvements 2.51 Neighborhood Cleanup 3.38 Publicly Owned or Privately
Owned Commercial/Industrial
Rehabilitation
2.30 Increase Affordability Rental
Housing 3.36
Commercial/Industrial
Improvements 2.29 Homeownership Assistance 3.24
Micro-Enterprise Assistance 2.14
Energy Efficiency
Improvements (solar, water
saving)
3.23 Technical Assistance 2.07 Permanent Housing for
Homeless 3.16
Executive Summary
City of Pasadena - 2026 Annual Action Plan June 2026
16 Infrastructure Improvements
Tree Planting 3.21
Street Improvements 3.17
Water/Sewer Improvements 3.12
Sidewalk Improvements 3.06
Flood Drainage 3.05
Citizen Plan Outreach
The Annual Action Plan was released April 16, 2026, for a 30-day public review and comment period. The plan was available electronically at:
www.cityofpasadena.net/housing/CDBG.
Housing, Homelessness and Planning Committee
A public meeting is scheduled for the City Council subcommittee at City of Pasadena City Hall located at 100 N. Garfield Ave. Pasadena, CA 91109 on June 3, 2026, at 5:00 p.m.
Public comments can be submitted on the recommendation to City Council for consideration at the public hearing.
Public Hearings
A public hearing is scheduled for the City Council meeting at City of Pasadena City Hall located at 100 N. Garfield Ave. Pasadena, CA 91109 on June 15, 2026, at 6:00 p.m.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 17 AP-15 EXPECTED RESOURCES
Introduction
The City of Pasadena anticipates receiving federal entitlement funds from the U.S.
Department of Housing and Urban Development (HUD) for Program Year 2026 (PY2026) to carry out the goals of the 2025 –2029 Consolidated Plan. These funds include allocations from the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programs.
For PY2026, the City will support a wide range of housing, public facility, and homelessness-related activities. In addition to these federal resources, the City will leverage local housing trust funds, program income, and partnerships with public and nonprofit agencies to maximize the impact of available funding.
Given the uncertainty of future federal funding levels, the City will continue to prioritize cost-effective, outcome-oriented investments that advance equity, preserve affordability, and promote neighborhood stability —particularly in Northwest Pasadena, th e City’s designated geographic priority area.
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
The City of Pasadena will leverage federal entitlement funds with a variety of additional resources, including state, local, and private funding sources, to support the development and implementation of housing and community development activities. These r esources may include state housing programs, tax credit equity, local housing trust funds, and private development contributions. Leveraging these funds allows the City to maximize the impact of federal investments and deliver cost-effective and comprehensive projects.
HOME Match
The City will meet its HOME match requirements through eligible local funding sources, including:
• Inclusionary Housing Trust Funds, generated through the City’s Inclusionary Housing Ordinance; and
• Housing Successor Agency Funds, which are program income funds derived from the repayment of housing loans made by the City’s former redevelopment agency.
These sources provide a reliable and ongoing mechanism to satisfy HOME match requirements while supporting affordable housing development and preservation activities.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 18 ESG Match
The City will meet its ESG match requirements through eligible contributions, including the value of services and resources provided through its Continuum of Care (CoC) system. This includes support for the Homeless Management Information System (HMIS), as well as other eligible cash and in-kind contributions from public and nonprofit partners that support homeless assistance activities.
The City will continue to pursue additional funding opportunities and partnerships to further expand available resources and address identified community needs.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City of Pasadena owns a vacant parcel at 280 Ramona Street, which has been designated for the development of over 100 units of affordable senior housing serving low- and very low -income households. The project is being developed by National Community Renaissance of Southern California (National CORE) and directly addresses high-priority needs identified in the Consolidated Plan, including increasing affordable rental housing and providing supportive housing for seniors.
To support this development, the City:
• Earmarked $2,756,073 in HOME funds through the 2024 Annual Action Plan • Committed $4,750,000 in Local Housing Trust Fund (LHTF) monies to the Ramona Street project
• Approved key business terms of a Development and Lease Agreement with National CORE, including the long-term ground lease of the City-owned site • Final design approval from the City’s Design Commission has been received • Commenced review of the building permit application which is currently in process
The City’s ownership of the land, along with its multi -layered funding and regulatory approvals, positions this project to advance Pasadena’s goals of expanding deeply affordable housing in a centrally located area.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 19 Table 6 - Year Two Anticipated Funding Availability
Program
Source
of
Funds
Uses of Funds
Expected Amount Available Year 2 Expected
Amount
Available
Reminder
of Con
Plan
$
Narrative Description Annual
Allocation:
Program
Income:
Prior Year
Resources: Total:
CDBG Federal
- Admin and
Planning
- Housing
Rehabilitation
- Public Facility
& Infrastructure
Improvements
- Public
Services
- Economic
Development
$2,164,886 $0 $912,114 $3,077,000 $7,513,783
A formula -based program that annually
allocates funds to metropolitan cities,
urban counties, and states for a wide
range of eligible housing and community
development activities.
HOME Federal
- Homeowner
Rehabilitation
- Multifamily
rental new
construction
- TBRA
$662,155.09 $0 $0 $0 $2,705,708
A formula -based program that provides
allocations to states and units of general
local governments, known as participating
jurisdictions. Its purpose is to retain and
expand the supply of affordable housing
principally for low - and extremely low -
income families through housing
rehabilitation, new construction, fir st-time
home buyer financing, and rental
assistance.
ESG Federal
- Emergency
Shelter
-Homeless
Management
Information
System (HMIS)
$188,739 $0 $760,501 $949,240 $760,296
A formula -based program that allocates
funds to states, metropolitan cities, and
urban counties to support emergency
shelters for homeless individuals and
families. Funding includes the
jurisdiction’s Rapid Unsheltered Survivor
Housing (RUSH) disaster grant.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 20 AP-20 ANNUAL GOALS AND OBJECTIVES
Goals Summary Information
Table 7 – Year Two Goals Summary
Sort
Order Goal Start
Year
End
Year Category Geographi
c Area
Needs
Addressed Funding Goal Outcome Indicator
1 Housing 2026 2027
Affordable Housing
Non-Homeless
Special Needs
City-Wide
Outcome:
Affordability &
Sustainability
HOME:
$300,000
Tenant-Based Rental Assistance:
10 Households
2 Public Services 2026 2027
Non-Housing
Community
Development
City-Wide
Outcome:
Availability/
Accessibility
CDBG:
$132,000
Public service activities other than
low/moderate income housing
benefit:
450 Persons Assisted
3 Homeless
Intervention and
Prevention
2026 2027 Homeless City-Wide
Outcome:
Availability/
Accessibility
ESG:
$479,104
ESG-Rush:
$470,136
Homeless Person Overnight Shelter:
19 Households Assisted
Street Outreach:
35 Persons Assisted
Rapid Rehousing:
14 Households Assisted
4 Infrastructure
Improvements 2026 2027
Non-Housing
Community
Development
CDBG
Eligible
Census
Tracts
Outcome:
Availability/
Accessibility
CDBG:
$1,875,000
Infrastructure Activities other than
Low/Moderate Income Housing
Benefit:
25,000 Persons Assisted
6 Public Facility
Improvements 2026 2027
Non-Housing
Community
Development
City-Wide Outcome:
Sustainability
CDBG:
$170.000
Public Facility Activities other than
Low/Moderate Income Housing
Benefit:
23,000 Persons Assisted
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 21 Goal Descriptions
Table 8 – Goal Descriptions
Goal Name Goal Description
Housing
Activities that create, preserve, or improve residential units (single- or multi- family), including rehabilitation, new construction, and programs that expand or maintain affordable housing opportunities. These activities are intended to increase housing availability, improve housing quality, and promote long-term housing stability for low- and moderate-income households.
Public Services
Activities that provide essential services to individuals and/or households, including but not limited to health services, youth and senior programs, job training, and case management. These services are designed to improve quality of life, increase self-sufficiency, and address the needs of low- and moderate-income populations.
Homeless Intervention and Prevention
Activities that provide services and housing assistance to individuals and families who are homeless or at risk of homelessness. This includes outreach, emergency shelter, rapid rehousing, homelessness prevention, and supportive services aimed at promoting housing stability and reducing homelessness.
Public Facility Improvements
Activities involving the acquisition, construction, or rehabilitation of public facilities that provide services to the community, such as community centers, parks, and service facilities. These improvements are intended to enhance accessibility, safety, and the overall quality of facilities serving low- and moderate-income residents.
Infrastructure Improvements
Public improvements that support existing or future community development, including streets, sidewalks, lighting, and utilities. These activities are designed to improve neighborhood conditions, enhance accessibility, and support the long-term sustainability of low- and moderate-income areas.
Economic Development
Activities designed to support, increase, or stabilize business development, including assistance to small businesses, microenterprises, and commercial revitalization efforts. These activities aim to create and retain jobs, expand access to goods and services, and promote economic opportunities for low- and moderate-income persons.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 22 AP-35 PROJECTS
Introduction
For Program Year 2026 (PY2026), the City of Pasadena will allocate federal entitlement funds through the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programs to support projects that address the highest priority needs identified in the 2025 –2029 Consolidated Plan. These projects reflect the City’s commitment to creating safe, inclusive, and equitable communities, particu larly in low - and moderate -income neighborhoods such as Northwest Pasadena, the City’s designated geographic priority area.
The selected projects support a broad range of eligible activities, including the development and preservation of affordable housing, homelessness prevention and intervention services, public facility and infrastructure improvements, with public services for youth and seniors. These activities are designed to improve housing stability, enhance access to essential services, and expand economic opportunities for low- and moderate- income residents.
The City prioritizes projects that align with its Consolidated Plan goals, demonstrate measurable outcomes, and effectively leverage additional public and private resources.
Each project is structured to address identified community needs while advancing HUD’s national objectives and outcome measures, including availability/accessibility, affordability, and sustainability.
This section outlines the projects proposed for PY2026, including the allocation of resources, the activities to be undertaken, and the populations and geographic areas to be served.
Projects
Table 9 - Year Two Project Information
# Project Name
1 Administration
2 Public Services
3 Affordable Housing
4 Public Improvements
5 Business Economics
6 Section 108
7 ESG 2026
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 23
PROJECT SUMMARY
1 Project Name Administration
Description The project will cover the administration of the CDBG & HOME program.
Goals Supported N/A
Needs Addressed N/A
Funding $460,000
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
N/A
Location Description Citywide
Planned Activities
Housing Department - CDBG Administration
($460,000 CDBG)
Housing Department - HOME Administration
($150,000 HOME)
2 Project Name Public Services
Description The project will cover activities that provide services to individuals and/or households.
Goals Supported Public Service
Needs Addressed Outcome: Availability/ Accessibility
Funding $132,000 - CDBG
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Public service activities other than low/moderate
income housing benefit:
450 Persons Assisted
Location Description Citywide
Planned Activities
Flintridge Center ($75,000)
Families Forward Learning Center ($25,000)
Armenian Relief Society ($32,000)
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 24
3 Project Name Affordable Housing
Description The project will cover activities related to tenant-based rental assistance.
Goals Supported Housing
Needs Addressed Outcome: Affordability & Sustainability Funding $512,155.09 - HOME
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Persons Assisted:
10 Low Income Households
Location Description Citywide
Planned Activities Housing Department - TBRA ($300,000 HOME) 4 Project Name Infrastructure Improvements
Description The project will cover activities related to infrastructure and public facility improvements.
Goals Supported Infrastructure Improvements
Needs Addressed Outcome: Sustainability
Funding $750,000 CDBG
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Infrastructure Activities other than Low/Moderate
Income Housing Benefit:
15,000 Persons Assisted
Location Description CDBG Eligible Census Tracts
Planned Activities
Public Works Department - NW Sidewalk
Improvements ($500,000)
Public Works Department – ADA Pushbuttons
($250,000)
5 Project Name Public Facility Improvements
Description The project will cover activities related to assistance to businesses.
Goals Supported Public Facility Improvements
Needs Addressed Outcome: Sustainability
Funding $1,295,000 CDBG
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Public Facility Activities other than Low/Moderate
Income Housing Benefit:
40,000 Persons Assisted
Location Description CDBG Eligible Census Tracts
Planned Activities
Parks, Recreation and Community Services – Villa
Parke Soccer Field Improvement ($1,125,000)
Department of Information Technology – Fire Station
36 Alerting Equipment Upgrade ($170,000)
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 25
6 Project Name Section 108
Description
The project will cover activities related to repayment of the $6 million Section 108 loan used for Robinson
Recreation Center.
Goals Supported n/a
Needs Addressed n/a
Funding $440,000 CDBG
Target Date 6/30/35
Estimate the number and
type of families that will
benefit from the proposed
activities
n/a
Location Description n/a
Planned Activities Finance Department - Section 108 Repayment ($440,000)
7 Project Name ESG 2026
Description The project will cover activities related to homelessness.
Goals Supported Homeless Intervention and Prevention
Needs Addressed Outcome: Availability/Accessibility
Funding $949,240
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Homeless Person Overnight Shelter:
19 Households Assisted
Street Outreach:
35 Persons Assisted
Rapid Rehousing:
14 Households Assisted
Location Description Citywide
Planned Activities
Emergency Shelter ($203,562)
Street Outreach (197,495)
Rapid Rehousing ($378,770)
Homeless Management Information System ($125,235)
ESG Administration- ($44,088)
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 26 Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City of Pasadena allocates its CDBG, HOME, and ESG funds based on a combination of data-driven analysis, community input, and alignment with the goals and objectives of the 2025–2029 Consolidated Plan. Priority is given to activities that:
• Address critical community needs, including affordable housing, homelessness, and access to services for special populations;
• Support geographically targeted revitalization in Northwest Pasadena and other CDBG-eligible areas;
• Leverage additional funding sources or fill gaps where limited or no alternative resources are available.
These priorities are further informed by findings from the City’s Needs Assessment, Community Health Improvement Plan (CHIP), and the Affirmatively Furthering Fair Housing (AFFH) analysis, which identified racial and economic disparities, housing instability, and unequal access to opportunity. Together, these inputs ensure that funding decisions are responsive to the most pressing needs and promote equitable outcomes across the community.
Obstacles to Addressing Underserved Needs
Despite careful targeting of resources, several challenges continue to limit the City's ability to fully address identified needs:
• Insufficient federal funding relative to the scale of housing and service demands, particularly in light of anticipated funding constrains in future program years; • Rising construction and land costs, which constrain the development and preservation of affordable housing;
• Limited availability of deeply affordable units, especially for extremely low-income and special needs populations;
• Gaps in funding for supportive service, particularly for those serving seniors, youth, and people with disabilities; and
• Community opposition, regulatory constraints, and development barriers that may delay or limit project implementation.
To address these challenges, the City will continue to leverage state and local funding sources, streamline development processes where feasible, strengthen partnerships with nonprofit and service providers, and advocate for additional federal and regional resources. These efforts are intended to maximize the impact of available funding while advancing the City’s goals of equity, housing stability, and community development.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 27 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 For Program Year 2026 (PY2026), the City of Pasadena will direct a significant portion of its CDBG, HOME, and ESG resources toward low - and moderate-income areas, with a primary geographic focus on Northwest Pasadena. This area contains multiple CDBG - eligible census tracts and has historically experienced disinvestment, making it home to many of the City’s most underserved populations.
Northwest Pasadena also overlaps with areas identified in the City’s Affirmatively Furthering Fair Housing (AFFH) analysis as having elevated displacement risk, concentrations of minority populations, and limited access to opportunity. These conditions dis proportionately affect Black and Latino residents, as well as other vulnerable populations.
In addition to this targeted approach, resources will be distributed citywide as needed to address priority housing, homelessness, and community development needs, particularly where specific populations or service gaps have been identified.
Rationale for the priorities for allocating investments geographically.
Northwest Pasadena has been designated as a geographic priority area under the 2025– 2029 Consolidated Plan due to its high concentrations of poverty, racial and ethnic minorities, and housing cost burden, as well as aging housing stock and infrastructure needs. These conditions indicate a greater level of need compared to other areas of the City.
The City prioritizes investment in low- and moderate-income (LMI) census block groups, particularly those where more than 51 percent of households earn less than 50 percent of Area Median Income (AMI). These areas experience higher rates of housing instability, cost burden, and limited access to resources and services. By targeting investments in these neighborhoods, the City aims to address disparities, improve living conditions, and expand access to housing, services, and economic opportunities. This place -based strategy supports equitable community development and al igns with HUD’s goals of affirmatively furthering fair housing and investing in underserved communities.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 28
Map 1 – Block Groups with >51% of Households Earn <50% AMI
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 29 AP-55 AFFORDABLE HOUSING
Introduction
During Program Year 2026, the City of Pasadena will prioritize the use of HOME and HOME-ARP funds to expand and preserve affordable housing options for low - and moderate-income residents. These efforts focus on increasing the supply of affordable rental ho using and supporting housing stability for vulnerable populations, including individuals experiencing or at risk of homelessness, seniors, and persons with disabilities.
The tables below reflect HOME -funded activities, including Tenant -Based Rental Assistance (TBRA), which will target households at high risk of homelessness and earning below 60% AMI.
In addition, the City will support three HOME -funded housing projects totaling 20 units.
This includes the rehabilitation of two smaller multifamily properties under the HOPE program (9 units) and the Door of Hope project (11 units), which will renovate and expand an existing property to serve persons experiencing homelessness. All projects are expected to be completed during Program Year 2026.
Table 10 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households to be Supported Homeless 11
Non-Homeless 10
Special-Needs 9
Total 30
Table 11 - One Year Goals for Affordable Housing by Support Type One Year Goals for the Number of Households Supported Through:
Rental Assistance 10
The Production of New Units 11
Rehab of Existing Units 9
Acquisition of Existing Units 0
Total 30
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 30 AP-60 PUBLIC HOUSING
All Pasadena residents have an equal right to live in decent, safe and affordable housing in a suitable living environment for the long -term well-being and stability of themselves, their families, their neighborhoods and their community. The housing vision for Pasadena is to maintain a socially and economically diverse community of homeowners and renters who are afforded this right.
Actions planned during the next year to address the needs to public housing • Provide annual rental assistance for extremely low and low-income households.
• Utilize 100% of Section 8 funding to serve as many voucher holders as possible by utilizing an appropriate payment standard that enables families to rent units throughout the city.
• Promote and maintain continued participation by property owners in rental assistance programs.
• Promote fair housing and equal opportunity by ensuring awareness of state and local laws that impact access to housing.
• Continue to administer the rental assistance programs in a manner that reflects the City’s commitment to building better lives and better neighborhoods while maintaining program integrity and compliance with all applicable Federal, State and local housing regulations.
• Continue to earn SEMAP High Performer scores.
• Continue to provide information regarding housing opportunities through our printed available housing listing, by utilizing the Pasadena Housing Search website at www.pasadenahousingsearch.com, an d at community outreach events. The briefing packet for the Section 8 participants is updated monthly, to include the most up to date federal, state and local information on fair housing and equal opportunity.
• Support a Housing Mediation Program that provides the opportunity for local residents (tenants, owners, and managers) to resolve rental issues in an objective and constructive manner. These services are provided by the City through a contract with the Hous ing Rights Center (HRC). Free mediation services are Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 31 available to foster early solutions to problems along with free phone consultations regarding Fair Housing issues.
• Continued participation by the Resident Advisory Board (RAB) to allow program participants to be actively involved in the planning, programming and implementation of Pasadena rental housing activities. The RAB ensures that appropriate actions are taken by the Pasadena to address the needs of program participants in their efforts to lease properties in the City.
• Utilizing the Project Based Voucher (PBV) program to induce property owners to participate and make rental housing available to low-income families (Section 8 Housing Choice Voucher Program participants). Through PBV, Pasadena shall encourage the creation of new affordable housing units , especially permanent supportive housing, and maintain the continued affordability of existing units.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
The City of Pasadena Housing Department has developed a Resident Advisory Board (RAB), which consist of all the Housing Choice Voucher (HCV) recipients. At least once a year, RAB meetings are conducted to allow program participants the opportunity to be actively involved in the planning, programming, and implementation of Pasadena's rental assistance program activities.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
The PHA is designated as a high performer by HUD.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 32 AP-65 HOMELESS AND OTHER SPECIAL NEEDS ACTIVITIES
Introduction
As the Collaborative Applicant (i.e., lead agency) for the Pasadena Continuum of Care, the City of Pasadena coordinates and funds housing and services for individuals, families, and youth experiencing homelessness. The CoC approved its update Homelessness Plan in 2024 which established quantitative goals including a 50% reduction in annual homelessness, reducing inflows into homelessness by 15%, and increasing emergency shelter bed inventory so that 80% of people experiencing homelessness can access a bed on any given night.
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 Pasadena works in collaboration with the Glendale CoC, the Long Beach CoC, and the Los Angeles CoC to provide comprehensive Coordinated Entry System (CES) coverage for Los Angeles County. The Pasadena CoC participates in the Los Angeles CES and uses the CES to prioritize and match people to available housing resources.
The Pasadena Street Outreach Collaborative brings together all Pasadena outreach workers once a month for resource sharing, ongoing training, and case conferencing.
Over ten street outreach teams serve the CoC’s geography including mental health- and substance use -focused multidisciplinary teams (MDT), a youth specialist team, and a team that covers the light rail trains and platforms. The Pasadena Outreach Response Team (PORT), a partnership between the Pasadena Fire and Public Health Departments, includes a firefighter paramedic and a public health nurse. The Pasadena Police Department’s Homeless Outreach Psychiatric Evaluation Team pairs law enforcement officers with mental health clinicians to respond to emergency mental health crises and proactively engage people prior to potentially volatile situations. Non-emergency calls to police are directed to the PORT team, and community members can request street outreach via an online portal. Early morning, nighttime, and weekend outreach is conducted by local MDT and county street outreach teams for schedule flexibility to meet client needs.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 33 Addressing the emergency shelter and transitional housing needs of homeless persons
Currently, the City has a site -based shelter for homeless individuals and another for homeless families. Additionally, the City funds a weather -activated seasonal shelter, the Bad Weather Shelter, which operates in winter months and has up to 75 beds for individuals. The Bad Weather Shelter is activated when any of the following conditions are met for overnight hours: 40 degrees or colder wind chill temperatures, at least a 40% chance of rain with at least a 0.25 inch precipitation accumulation in a 24-hour period, 40 miles per hour or greater wind gusts, a flood watch or warning, or other conditions that present a critical need for shelter activation to protect health and safety of unsheltered individuals. The City also funds motel-based shelter (i.e., motel vouchers) for individuals, families, and unaccompanied youth. There are three transitional housing sites for families, including one for victims of domestic violence and another for pregnant and parenting women. The City also has several bridge housing facilities for longer term interim housing, including recovery bridge housing for people recovering from substance use disorder.
The City will use $113,243 for emergency shelter services in program year 2026 -2027.
The City will conduct a competitive selection process to select a non -profit agency to administer the funds.
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 peri od 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
Rapid rehousing provides short -term or medium -term rental assistance and housing relocation and stabilization services which may include mediation, credit counseling, security or utility deposits, utility payments, moving cost assistance, and case management.
To facilitate rapid lease ups, housing identification services are offered that helps households find appropriate housing, contacting and recruiting landlords to provide housing opportunities for individuals and families experiencing homelessness, addressing potential barriers to landlord participation such as concern about short -term nature of rental assistance and tenant qualifications.
To support housing retention, participants are provided with supportive services such as employment counseling, health care, mental health care, and access to various mainstream resources. If it is determined that a participant needs a higher level of Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 34 services or a longer -term rental subsidy, they may be transferred to a permanent supportive housing program or long-term rental assistance program such as the Housing Choice Voucher program.
In Program Year 2026 -2027, the City will sustain and expand existing rapid rehousing programming with federal (ESG RUSH, CoC), state (Homeless Housing, Assistance, and Prevention grant), and county (Measure A) funding. Funded programs include two CoC - funded programs targeted to households with histories of domestic violence.
Helping low-income individuals and families avoid becoming homeless, especially extremely low -income 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
Prevention initiatives are a necessary component of an effective homeless services system to ensure people can remain in their homes and avoid a destabilizing housing crisis. By strategically targeting assistance to those who are most at -risk of homelessness, programs can maximize the limited available resources for prevention.
The City will continue to provide and bolster investments in homeless prevention assistance to households at risk of homelessness, as well as implement discharge planning policies as described earlier in this document.
In program year 2026-2027, the City will utilize approximately $1.2 million of County of Los Angeles Renter Protection Homelessness Prevention funds to support homelessness prevention programming which will include legal services and emergency rental and flexible financial assistance.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 35 AP-75 BARRIERS TO AFFORDABLE HOUSING
Introduction
The City of Pasadena continues to play an active role in addressing the housing needs of its community through policies and programs that support the development and preservation of affordable housing. Pasadena has a long history of implementing forward- thinking housing strategies, including new construction, rehabilitation, and homeowner and renter assistance programs.
Despite these efforts, significant barriers to affordable housing remain. The City’s 2019 Analysis of Impediments (AI) and subsequent planning efforts, including the Affirmatively Furthering Fair Housing (AFFH) analysis, identified a range of factors that limit housing access and affordability. These include high housing costs, limited land availability, regulatory constraints, and disparities in access to opportunity. The City is no longer required to perform AI’s, however the 2019 study is still used by the City as guide.
The City continues to evaluate and address these barriers through policy adjustments, program design, and strategic investment of resources, with the goal of expanding equitable housing opportunities and reducing disparities for low - and moderate-income residents.
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:
The City of Pasadena is actively implementing policies and programs to mitigate barriers to affordable housing and promote equitable housing opportunities. These actions focus on reducing regulatory constraints, streamlining development processes, expandin g financial resources, and addressing environmental and displacement-related challenges.
Zoning and Land Use Reforms
To address restrictive zoning and land use controls, Pasadena has undertaken significant amendments to its zoning code:
Specific Plan Update Process: The City is implementing the General Plan Land Use Element through eight different specific plan updates that cover the majority of the City. To date, six specific plans have been adopted (Lincoln Avenue, South Fair Oaks, East Colorado, Central District, Lamanda Park and North Lake). The adopted specific plans have increased housing capacity significantly by introducing new and increased housing opportunities near public transit and high Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 36 resource areas, permitting housing as an allowed use throughout the plan areas, and establishing objective development and design standards that streamline the development process while also maintaining community design character and quality. The Fair Oaks Orange Grove Specific Plan is expected to be adopted by Fall 2026, followed by the East Pasadena Specific Plan in 2027.
Accessory Dwelling Units (ADUs): The City continues to promote ADU development as a strategy to expand affordable housing options. Pasadena is evaluating and implementing fee reductions, including up to a 50 percent reduction in plan check and permit fees for small ADUs, to improve feasibility and accessibility for homeowners.
Streamlining Development Processes
The City is committed to simplifying and expediting development processes to reduce delays and costs associated with affordable housing production:
• Permit Process Improvements : The City adopted Zoning Code Amendments, implementing the Housing Element, that simplify and streamline the development review process for housing projects. Projects that designate 50% or more of the units as affordable automatically qualify for Consolidated Design Review, reducing the Design Review steps from three to two. For all housing pro jects, the Preliminary Plan Review process, an application for consultation and informational purposes, is now optional; allowing housing projects to proceed directly to Design Review.
• Next Day Inspections : The City offers next business day inspections for sites proposing a new housing unit.
Financial Incentives and Support
The City leverages a variety of financial tools and programs to support affordable housing development and homeownership opportunities:
• Pasadena ADU Loan Program : The City offers construction loans of up to $225,000 to eligible homeowners to build or legalize ADUs, with deferred payments and low interest rates. Participants are required to rent units to income- qualified households (e.g., Housing Choice Voucher holders) for a specified term.
The program provides comprehensive support from pre -development through construction.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 37 • Local Housing Trust Fund: Pasadena previously committed $4.75 million Local Housing Trust fund award to the affordable senior housing at 280 Ramona Street.
The project developer is seeking tax credits and other funding sources, with construction closing anticipated to occur in Program Year 2026. • CalHome: The City will provide up to $2.5 million in State Calhome funding to low- income first -time homebuyers purchasing affordable homeown ership units in Program Year 2026. Additional Calhome funding for low-income homebuyers will be available through the Burbank-Glendale-Pasadena Regional Housing Trust on a rolling basis.
• Inclusionary Housing Ordinance: The City is studying updates to the inclusionary housing ordinance, including lowering the current 10-unit threshold to be subject to the inclusionary requirements to a lower number. This would result in a greater number of small residential projects bein g required to include affordable units or paying an in -lieu fee. The study also includes increasing the deed restriction from 45 years to in -perpetuity for ‘for -sale’ housing projects, establishing incentives for projects tha t provide more than the minimum 20% inclusionary requirement, and other compliance options with the goal of producing more affordable units.
Addressing Environmental and Rebuilding Challenges
In the aftermath of the Eaton Fire, which disproportionately affected communities in Altadena and Pasadena, the City is taking steps to prevent displacement and support rebuilding efforts:
• Anti-Displacement Measures : The City is collaborating with state and local partners to implement policies that prevent displacement, including protections against speculative property acquisitions and support for affected residents.
• Eaton Fire - Recovery and Rebuilding : The City established a recovery and rebuild program in response to the 185 residences that were lost in the Eaton Fire, with the goal of implementing innovative strategies to rebuild residences as quickly as possible. Highlights of the program include: dedicated staff assigned to provide direct support to impacted residents; the waving of building permit fees (for owner- occupied single -family properties that were destroyed in the fire) ; adopting a rebuild ordinance that includes additional flexibility beyond the Executive Orders issued by the Governor; establishing expedited building permit and p lan check review time frames, deploying building inspectors for next business day inspections; and expanding the use of technology to keep impacted residents informed.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 38 In June 2026, the program will be awarded an Award of Excellence in the Resilience and Sustainability Award category by the Los Angeles Section of the American Planning Association.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 39 AP-85 OTHER ACTIONS
Actions planned to address obstacles to meeting underserved needs Despite ongoing efforts, the City of Pasadena continues to face challenges in addressing the needs of underserved populations, including limited funding, rising housing costs, displacement risks, and service gaps for special populations. To address these challenges, the City will implement the following actions during Program Year 2026:
1. Prioritize Investments in High-Need Areas
The City will continue to prioritize Northwest Pasadena for housing, public facility, and infrastructure investments based on data indicating high levels of poverty, housing cost burden, and limited access to services. This targeted, place-based approach supports coordinated investments that address multiple community needs and reduce geographic disparities.
2. Leverage and Layer Resources
To address funding constraints, the City will continue to leverage federal, state, local, and private funding sources, including the Local Housing Trust Fund, HOME-ARP, and other housing and infrastructure programs. This approach maximizes the impact of limited entitlement funds and supports larger, more comprehensive projects.
3. Support Nonprofit Capacity and Partnerships
Recognizing that many critical services—particularly in fair housing, mental health, youth programs, and services for persons with disabilities—are delivered by nonprofit organizations, the City will continue to support capacity building through technical assistance, flexible funding, and coordinated partnerships across public systems.
4. Expand Affordable Housing Tools
The City will continue to utilize and expand housing tools such as Tenant-Based Rental Assistance (TBRA), the ADU Loan Program, and strategic use of public land to increase the supply of affordable housing. These efforts are intended to expand access to housing for seniors, persons with disabilities, and extremely low-income households, while improving overall housing stability.
5. Community Engagement and Equity-Focused Planning
The City will continue to enhance inclusive outreach and planning efforts, particularly in underserved communities, to ensure that programs and investments are responsive to community needs. This includes improving Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 40 language access, reducing technology barriers, and increasing participation among historically underrepresented populations.
Actions planned to foster and maintain affordable housing In Program Year 2026, the City of Pasadena will take proactive steps to preserve existing affordable housing units that may be lost due to expiring affordability covenants, deferred maintenance, or increased market pressures. These actions are critical to maintaining housing stability for low-income households and ensuring long-term affordability in a high- cost market.
Key Actions Include:
1. Monitor and Intervene in At-Risk Properties
The City will continue to monitor affordable housing developments with expiring affordability covenants, particularly older HUD-assisted and HOME-funded properties. Pasadena will provide technical and financial assistance to extend affordability periods through acquisition, rehabilitation, or refinancing agreements.
2. Support Financial Restructuring of Older HUD Properties The City will work with owners of older HUD rental properties to support financial restructuring, helping extend their affordability while addressing needed capital improvements and modernizing building systems.
3. Leverage Local, County, and State Funding
Pasadena will pursue and secure additional funding through State and County programs, to support the preservation and rehabilitation of affordable housing.
These funds will complement HOME and CDBG resources and allow deeper investments in high-need projects.
4. Use HOME and Other Dollars for Preservation and Acquisition The City will continue to deploy HOME and any other available funding to rehabilitate aging affordable housing stock and support acquisition and preservation of naturally occurring affordable housing (NOAH) at risk of market- rate conversion.
5. Inclusionary Housing Program In-Lieu Fee Analysis
Pasadena will complete a comprehensive in-lieu fee analysis of its Inclusionary Housing Ordinance to assess whether current fees support long-term affordable Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 41 housing production and preservation goals. Recommendations for policy changes or adjustments will be brought forward for Council consideration.
6. Public Forums and Community Engagement
To build awareness and foster public support, the City will refer constituents to affordable housing workshops and forums to educate the public, share data, and discuss preservation priorities with community members, developers, and advocacy groups.
7. Legislative and Policy Advocacy
Pasadena will collaborate with state and federal lobbyists to advocate for legislation and budget actions that enhance funding, preservation tools, and tenant protections that align with the City’s affordable housing goals.
8. Tenant Education and Anti-Displacement Support
The City will coordinate with fair housing partners to monitor tenant risk in expiring properties, provide residents with relocation or legal assistance, and ensure that low-income tenants are aware of their rights and available protections.
Actions planned to reduce lead-based paint hazards
In Program Year 202 6, the City of Pasadena will continue to implement a coordinated strategy to identify, mitigate, and reduce lead -based paint (LBP) hazards, particularly in homes occupied by low - and moderate -income households and families with young children. These actions include:
1. Lead Risk Assessments in Rehabilitation Projects
All federally funded rehabilitation activities involving structures built before 1978 will include lead hazard evaluation and clearance testing. Identified hazards will be addressed through abatement or interim controls in compliance with HUD’s Lead Safe Housing Rule (24 CFR Part 35).
2. Public Education and Outreach
Pasadena will work with local partners to conduct community education and outreach campaigns about LBP risks, prevention methods, and tenant rights related to lead safety.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 42 Actions planned to reduce the number of poverty-level families The City of Pasadena will pursue a multi-faceted strategy to reduce the number of families living in poverty by promoting housing stability, expanding economic opportunities, and supporting workforce development. These efforts go beyond the provision of basic services and are designed to help low-income households increase income, build assets, and achieve long-term self-sufficiency.
Key Actions in Program Year 2026 Include:
1. Affordable Housing and Rental Assistance
The City will expand access to affordable housing and rental assistance programs, including Tenant-Based Rental Assistance (TBRA), to help low- income households stabilize housing costs. By reducing housing cost burden, these programs allow families to redirect resources toward education, job training, healthcare, and savings, supporting improved economic outcomes.
2. Section 3 Enforcement
The City will continue to enforce Section 3 requirements to ensure that low- income residents benefit from employment, training, and contracting opportunities generated by HUD-funded projects. These efforts support workforce participation and help connect residents to income-generating opportunities.
These actions work together to reduce barriers to economic mobility by stabilizing housing, increasing access to employment opportunities, and connecting residents to pathways for income growth. Collectively, they support long -term poverty reduction and improved economic stability for low- and moderate-income households in Pasadena.
Actions planned to develop institutional structure
To effectively carry out the goals of the Consolidated Plan and ensure coordinated delivery of housing, community development, and public services, the City of Pasadena will continue to strengthen its institutional structure in Program Year 202 6. These efforts focus on enhancing collaboration, improving capacity, and ensuring efficient administration of federal resources.
Key Actions Include:
1. Strengthen Partnerships with Public and Nonprofit Agencies The City will continue to work closely with nonprofit housing developers, social service providers, the Pasadena Public Health Department, and the Los Angeles Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 43 Homeless Services Authority (LAHSA) to deliver comprehensive services and leverage non-City funding. This includes convening regular coordination meetings and technical assistance workshops.
2. Improve Interdepartmental Coordination
The City will enhance collaboration across departments—including Planning, Housing, Public Health, Economic Development, Public Works, and Rent Stabilization—to align housing, infrastructure, and service delivery goals, particularly in targeted investment areas like Northwest Pasadena.
3. Support Subrecipient and Developer Capacity
The City will provide technical assistance, compliance guidance, and training to subrecipients and affordable housing developers to ensure effective project delivery and HUD regulatory compliance. This includes assistance with program reporting, procurement, and labor standards.
4. Leverage State and Regional Partnerships
The City will continue engaging with regional bodies and state agencies—such as SCAG, and the California Department of Housing and Community Development—to align local plans with broader initiatives and secure additional funding for affordable housing and homelessness programs.
Actions planned to enhance coordination between public and private housing and social service agencies
The Pasadena Continuum of Care regularly brings together partners from multiple systems to collaborate and coordinate around achieving mutual goals such as those laid out in the Consolidated Plan. Stakeholders include housing and service providers, people with lived experience of homelessness, healthcare and mental healthcare providers, the Public Health Department, local government officials, law enforcement, mainstream systems, faith-based and educational organizations, and community members. Input from these multidisciplinary partners is incorporated into the actions taken by the CoC to prevent and end homelessness, including informing system -level priorities, policy recommendations, and resource allocation decisions.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 44 AP-90 PROGRAM SPECIFIC REQUIREMENTS
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.
Table 12: Program Income Summary
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
$200,000
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 $200,000
Other CDBG Requirements
1. The amount of urgent need activities $0
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:
• Inclusionary Housing Trust Funds. These are generated under the City’s Inclusionary housing ordinance when a developer opts to pay a fee in lieu of providing affordable housing within their market rate housing development. • Burbank-Glendale-Pasadena Regional Housing Trust funds. Since its inception in 2023, the Trust has allocated approximately $7 million to affordable housing projects in the City.
• Program income from the repayment of former redevelopment agency housing loans is available to support affordable housing activities. • The City owns the “Ramona” site which will be used for the development of a proposed 100 -unit affordable housing development (including permanent Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 45 supportive housing) for seniors.
• CalHome funds. The City has successfully received two awards of Cal Home funding in the past three years , available for down payment assistance and ADU financing for low-income households.
• SR-710 Sales Program. The City has generated $18.4 million in proceeds from its sale of vacant single -family properties along the SR -710 corridor for the construction or acquisition of affordable housing units. • Permanent Local Housing Allocation funds. The City is an entitlement jurisdiction for Permanent Local Housing Allocation (“PLHA”) funding, which is awarded by the State on a rolling five -year basis. PLHA funding can be used for a variety of affordable housing activities, including homelessness prevention, affordable housing production, ADU development, and homebuyer down payment assistance.
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:
RESALE AND RECAPTURE POLICIES
(5/18/20)
Participating Jurisdictions (PJs) undertaking HOME -assisted homebuyer activities, including any projects funded with HOME Program Income (PI), must establish written resale and/or recapture provisions that comply with HOME statutory and regulatory requirements. These provisions must also be set forth in the PJ’s Consolidated Plan.
The written resale and/or recapture provisions that a PJ submits in its annual Action Plan must clearly describe the terms of the resale and/or recapture provisions, the specific circumstances under which these provisions will be used (if more than one set of provisions is described), and how the PJ will enforce the provisions for HOME- funded ownership projects. HUD reviews and approves the provisions as part of the annual Action Plan process.
The purpose of this section is to provide the “resale” and “recapture” policies of the City of Pasadena (the “City”). As stated above, HOME requires that PJs utilize resale and/or recapture provisions to ensure continued affordability for low -income homeowners and as a benefit to the public through the wise stewardship of federal funds.
The City may utilize HOME funds to assist homeowners or homebuyers in the following ways:
1. Acquisition and development assistance for developers of new homeownership housing;
2. Down payment assistance for new homebuyers; and;
3. Single-family rehabilitation assistance for existing homeowners.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 46 City of Pasadena Resale Policy
This option ensures that the HOME -assisted units remain affordable over the entire affordability period. The Resale method is used in cases where HOME funding is provided directly to a developer for site acquisition and/or construction for homeownership housing projects.
Specific examples where the City of Pasadena would use the resale method include:
1. Providing funds for the developer to acquire property and/or to develop new homeownership housing projects;
2. Providing funds for the developer (or the City itself using such funds) to acquire existing dwelling units to be utilized for affordable homeownership housing; and
3. City use of funds for acquisition and preparation of a site (including demolition) for development of new homeownership housing.
Notification to Prospective Buyers. The resale policy is explained to the prospective homebuyer(s) prior to signing a contract to purchase the HOME -assisted unit. The prospective homebuyer(s) sign a “Borrower Disclosure Statement” document acknowledging that they understand the terms and conditions applicable to the resale policy as they have been explained.
Enforcement of Resale Provisions. The resale policy is enforced through the use of the City’s regulatory agreement Notice of Restrictions Affecting Real Property (the “Notice of Restrictions”) signed by the homebuyer at closing. The Notice of Restrictions will specify:
1. The length of the affordability period which will typically be 45 or 55 years;
2. That the home remain the Buyer’s principal residence throughout the affordability period; and
3. The conditions and obligations of the Owner should the Owner wish to sell before the end of the affordability period, including;
a. the Owner must formally notify the City in writing if intending to sell the home (“Notice of Intent to Sell”) prior to the end of the affordability period; b. the subsequent purchaser must be low -income as defined by HOME, and occupy the home as his/her new purchaser’s primary residence for the remaining years of the affordability period. (However, if the new purchaser receives direct assistance through a HOME -funded program, the affordability period will be re -set according to the amount of assistance provided);
c. the sale price to the subsequent purchaser shall be such that the total housing cost for the new buyer (principal, interest, taxes, insurance, utilities, HOA) does not exceed 35 percent of the new Buyer’s annual income (the “Affordable Housing Cost”, as calculated by the City); and d. Upon City’s receipt of the Notice of Intent to Sell, City shall have the right of Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 47 first refusal to acquire the home at an Affordable Sale Price.
Fair Return on Investment. The City will administer its resale provisions by ensuring that the Owner receives a fair return on his/her investment and that the home will continue to be affordable to a specific range of incomes. Fair Return on Investment means the Owner’s investment which is the sum of the down payment, capital improvements, and an Equity Share as described below:
1. The amount of the Owner’s original down payment;
2. The cost of any capital improvements documented with receipts provided by the homeowner. All capital improvements shall be approved in advance by the City.
3. An “Equity Share” amount which, as described in detail in the City’s homebuyer documents, increases proportionately with the number of years of Owner residency in the home during the affordability period.
Affordability to a Range of Buyers. The City will ensure continued affordability to a range of buyers, particularly those whose total household incomes range from 65 percent to no greater than 80 percent of the Los Angeles Area Median Income.
Sales prices shall be such that the total housing cost (principal, interest, taxes, insurance, utilities, HOA) does not exceed the product of 30 percent times 80 percent of the Los Angeles County Area Median Income adjusted for family size appropriate for the unit (the “Affordable Housing Cost”), as calculated by the City. In a high housing cost area such as Pasadena, this would most likely require the City to provide additional financing assistance to the new homebuyer.
Example: The Owner originally purchased a home seven (7) years ago at the original purchase price of $400,000 with City homebuyer assistance in the amount of $150,000. The Owner now wishes to resell his home which has a fair market value of $490,000, representing an appreciation in value of $90,000. The Owner’s mortgage at the time of original purchase was in the principal amount of $242,000.
Calculating Fair Return on Investment.
Down payment: The original homeowner was required to put down $8,000 earnest money at the signing of the sales contract.
Cost of Capital Improvements : The Owner had handicapped -accessibility improvements made to the home four years ago at the cost of $3,000. The work was Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 48 pre-approved by the City and Owner has receipts to document the improvement.
Equity Share: Of the $90,000 appreciation in the value of the home, Owner receives $59,625.
Calculating the Fair Return to the Original Owner:
Down payment: $ 8,000
Capital Improvements: $ 3,000
Equity Share: $59,625
Fair Return on Investment: $70,625
In order for the sales transaction to realize the Fair Return on Investment to the Owner, it may be necessary for the City to provide additional financing assistance to the new homebuyer.
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:
These resale provisions apply to homeownership projects that are subsidized by the City with a HOME-funded below-market rate development or construction loan. The HOME funds are not used to lower the homebuyer’s purchase price from fair market value to an affordable price.
Pursuant to HOME resale requirements, the City is required to ensure that, when an owner in a HOME -assisted for -sale housing development sells his or her property (“Property”), either voluntarily or involuntarily, during the affordability period:
(a) The Property is sold to another low -income homebuyer who will use the property as his or her principal residence;
(b) The owner receives a fair return on investment (i.e., the original down payment plus capital improvements made to the property); and
(c) The Property is sold at a price that is “affordable to a reasonable range of low - income buyers”.
Long-Term Affordability
The Property must be acquired by an eligible low -income family, and it must be the principal residence of the family. If the Property is transferred, voluntarily or involuntarily, it must be made available for subsequent purchase only to a buyer whose family qualifies as low-income, and will use the Property as its principal residence. The HOME resale Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 49 provisions shall be in effect for the duration of the period of affordability, based on the amount of the City’s HOME investment in the development of the project.
Fair Return on Investment
If the Property is sold during the period of affordability, the price at resale shall provide the owner a “fair return on investment” (including the owner’s initial investment and any subsequent capital improvements). “Fair return on investment” shall be measured by the percentage change in the Consumer Price Index over the period of ownership. Details on the calculation of fair return, definitions of initial investment and eligible capital improvements, and how such capital improvements will be valued by the City, shall be contained within the City’s homebuyer loan documents.
Continued Affordability
The resale requirements must also ensure that the Property will remain “affordable to a reasonable range of low -income homebuyers”. The City defines “affordable to a reasonable range of low-income homebuyers” as:
(a) Target Population: A family with a gross household income that is greater than 50% of Area Median Income (“AMI”), but not exceeding 80% of AMI, adjusted for family size; and
(b) Housing Affordability: Housing costs (mortgage, property taxes, insurance, HOA, utility allowance) do not exceed 40% of the family’s gross household income.
The City must set a resale price that provides a fair return to the owner while ensuring that the Property is affordable to its target population. In such instances, the City may provide additional direct funding assistance to the subsequent homebuyer to ensure that the original owner receives a fair return and the Property is affordable to the defined low- income population.
Homebuyer Loan Documents
Typically, when the City provides a HOME loan to assist the development of a homeownership housing project, the development loan is recast as individual homebuyer loans after the project is completed and the housing is sold to qualified buyers. These homebuyer loans are originated under the City’s Homeownership Opportunities Program (“HOP”). The HOP loan is typically structured in two ways: a) fully deferred for the term of the loan; of b) deferred for the first five (5) years with amortized monthly paym ents required for the balance of the loan term.
HOP loan documentation consists of the following:
(a) A Promissory Note and a Deed of Trust which is recorded against the property.
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 50 (b) A Request for Notice of Default and Resale which is recorded against the property to ensure that all parties to a resale transaction are aware that the City’s participation is required.
(c) To secure compliance with HOME resale and other requirements applicable to the homeowner, a regulatory agreement Notice of Restrictions Affecting Real Property Including HOME Recapture Provisions (the “Regulatory Agreement”) is recorded against the property.
(d) Other key homebuyer loan documents include a Loan Agreement and a Borrower Disclosure Statement.
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 has no plans to use HOME funds to refinance existing debt on multifamily housing projects that have been rehabilitated with HOME funds.
5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).
The HOME TBRA preference for enrollment includes disabled, seniors, on the Section 8 waiting list, experiencing a services housing cost burden, reside in City of Pasadena, census tract where over 50% of residents are below 50% AMI.
6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)).
Disabled seniors are considered at risk of homelessness as they represent the greatest number of homeless in Pasadena. This is due to raising housing costs and the fact that seniors are mostly on a fixed income. By providing this preference, the City is helping to curb the influx of homeless persons in the city.
7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR 92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 51 any basis prohibited by the laws listed under 24 CFR 5.105(a).
Pasadena’s affordable housing projects have a HUD approved local preference.
Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)
1. Include written standards for providing ESG assistance
Allocating Funds
The Pasadena CoC is contained within the geographical boundaries of the City of Pasadena. Both CoC funds and ESG funds come to the City of Pasadena, which acts as the lead agency in the coordination of homeless services for the jurisdiction. The Pasadena Partnership to End Homelessness serves as the principal planning entity for ESG funds and provides guidance to the Housing Department in allocating ESG dollars.
Consultation includes feedback on local need and funding priorities; review and comment on proposed funding allocations prior to funding award; direct input in performance and evaluation measures; and guidance on best practices nationwide for utilizing ESG funds to prevent and end homelessness. Funds are awarded through an RFP process, and proposals are reviewed by non -ESG funded CoC members and representatives administering ESG funds from outside the CoC.
Setting Performance Outcomes
The Pasadena CoC will consult the HUD CoC Systems Performance Measures, ESG guidelines, as well as grant recipients to establish performance targets appropriate for population and program type. The CoC will maintain and review HMIS, Annual Performance Reports, and other documentation as necessary to measure progress in meeting HUD CoC Program Grant goals and objectives.
Operating and Administrating Homeless Management Information System (HMIS) The City of Pasadena, as a member of the Southern California Regional HMIS Collaborative administers an HMIS that is in compliance with current HUD HMIS Data Standards and has successfully executed an implementation plan that has increased HMIS participation from CoC and ESG recipients and sub-recipients. The City maintains records of all participating agencies that have attended basic user training, including training on privacy policies, HUD-required data elements, system navigation, and signed required a greements from each participating agency and end users, such as but not limited to HMIS agency Agreements, HMIS User Agreements, and HMIS Policies and Procedures. To maintain participation and high data quality, the City has designated a Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 52 HMIS administrator to generate monthly reports to ensure all HUD -required data is complete, accurate, and entered into system in a timely manner. The City has also met reporting requirements and submitted reliable data for System Performance Measures, Longitudinal Systems Analysis, Annual Performance Reports, and other HUD-mandated reports. The HMIS Administrator and the CoC’s HMIS database are funded by a CoC HMIS grant. The City of Pasadena continues to improve HMIS and update policies and procedures from input and recommendations from HMIS Users.
2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.
The CoC participates in the Los Angeles Coordinated Entry System, which is co - administered by the Glendale and Los Angeles Continuums of Care. The shared CES provides an initial, comprehensive assessment of the needs of individuals and families for housing and services.
Key elements of the CES include the following:
Standardized Evaluation
The CES establishes standard policies and procedures for evaluating individuals’ and families’ eligibility for assistance under CoC and ESG programs.
Prioritization of Clients to Receive Assistance
The CES also establishes policies and procedures for determining and prioritizing which eligible individuals and families will permanent supportive housing assistance.
3. Identify the process for making sub -awards and describe how the ESG allocation is available to private nonprofit organizations (including community and faith-based organizations).
The City awards ESG funds to sub -recipients through a Request for Proposals process.
This process is publicized through the City’s online Open Gov procurement system, announcements at the CoC’s Pasadena Partnership to End Homelessness meetings, and email list mailings. Proposals are reviewed by a committee made up of non-ESG funded CoC members, and awards are approved by Pasadena’s City Council.
4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.
The City meets the homeless participation requirement as outlined in 24 CFR 576.405(a).
Annual Action Plan
City of Pasadena - 2026 Annual Action Plan June 2026 53 The CoC Board includes at least one member who is a formerly homeless person.
5. Describe performance standards for evaluating ESG.
ESG projects are evaluated through annual monitoring and with data pulled from HMIS.
Programs performance standards are set in consultation with the CoC based on HUD System Performance Measures and overall goals for ending homelessness. Individual programmatic goals are developed through the RFP process. Programs that do not meet established goals are subject to reduction or non-renewal of funding.
APPENDIX
A
CDBG Benefit
Service Area
Map
APPENDIX
B
Applications &
Certifications
(included in final)
APPENDIX
C
Public Notice
PUBLIC NOTICE BY THE CITY OF PASADENA
OF A SCHEDULED PUBLIC HEARING BY THE CITY COUNCIL
RELATING THE APPROVAL OF THE ANNUAL ACTION PLAN (2026)
The City of Pasadena announces th at the Annual Action Plan ( 2026) as required by the Department of Housing and Urban Development (HUD) will be available on or about April 16, 2026, for public review and comment. This action if approved is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines per Section 15061(b)(3).
The Annual Action Plan (2026) functions as an annual application for federal funds under HUD formula grant programs, specifically, the Community Development Block Grant ( CDBG), Emergency Solutions Grant (ESG), and Home Investment Partnership Act ( HOME) and any other HUD entitlement programs potentially available to the City of Pasadena. The Annual Action Plan describes the strategy to carry out federal programs, indicates the general priorities for allocating funds and describes the basis for assigning the funding to each priority. The document includes a description of the proposed activities, funded with the HUD Community Development formula grant funds during the upc oming program year (July 1, 202 6 – June 30, 2027) to address priorities.
The Pasadena City Council and Housing Department are vitally interested in improving and increasing communication with Pasadena citizens in the areas of housing, community development, and economic development. The Annual Action Plan has been available for a public comment since April 16, 2026, on the Housing Department website at: https://www.cityofpasadena.net/housing/. Citizens wishing to submit written comments during the public review and comment period may mail them, postmarked no later than June 12, 2026, to the following:
City of Pasadena
Housing Department
Attention: Randy Mabson, Program Coordinator
199 S. Los Robles Ave. #450
Pasadena, CA 91101
Public comments can also be made at the Housing, Homelessness and Planning Committee meeting to be held at the following location and time:
City Council - Housing, Homelessness and Planning Committee Thursday, June 3, 2026, at 5:00 p.m.
Pasadena City Hall – City Council Chambers
100 N. Garfield Avenue
Pasadena, CA 91109
The public hearing will be held at the following location and time:
City Council - Public Hearing
Monday, June 15, 2026, at 6:00 p.m.
Pasadena City Hall – City Council Chambers
100 N. Garfield Avenue
Pasadena, CA 91109
During the meeting and prior to the close of the public hearing, members of the public may provide public comment. Please refer to the agenda when posted as to whether the hearing will be held electronically or in person, and how to provide public comment. If you challenge the matter in Court, you may be limited to raising those issues you or someone else raised at the public hearing, or in written correspondence sent to the City Clerk at, or prior to, the public hearing.
MATTHEW E. HAWKESWORTH, Acting City Manager
P.O. Box 7115
Pasadena, CA 91109