City Council
Report
City Council Meeting: June 24, 2025
Agenda Item: 12.A
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To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department Subject: Approval of the Proposed 2025-29 Five-Year Consolidated Plan and the 2025-26 Annual Action Plan Allocating Federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Act Program (HOME) Funds
Recommended Action
Staff recommends that the City Council:
1. Hold a public hearing to receive input on the Proposed 2025-29 Consolidated Plan and the Proposed 2025-26 Annual Action Plan for Community Development Block Grant (CDBG) and Home Investment Partnerships Act (HOME) funds (Attachment A).
2. Approve the Proposed 2025-29 Consolidated Plan and the Proposed 2025-26 Annual Action Plan.
3. Authorize the City Manager to submit all necessary documents required to receive the City’s annual allocation of CDBG and HOME entitlement funds to the U.S. Department of Housing and Urban Development (HUD).
4. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines.
Executive Summary
Santa Monica is a longtime recipient of CDBG and HOME entitlement funds. To receive these funds, the City must submit a Council-approved five-year Consolidated Plan and Annual Action Plan to HUD.
The Proposed 2025-29 Consolidated Plan establishes priorities and goals for Santa Monica’s low- and moderate-income residents over a five-year period. In turn, the Proposed 2025-26 Annual Action Plan identifies the CDBG and HOME-funded activities that will advance Consolidated Plan priorities and goals in the first year of the new five-year period. 2 of 7
The Proposed Action Plan allocates $1,164,932 million in CDBG and $542,428 in HOME funds to eligible activities that align with the priority needs identified in the Consolidated Plan and the Council priorities of Affordable, Livable and Secure Housing for All; Clean Streets and Safe Neighborhoods; and Economic Opportunity and Growth. Funds would support capital improvement projects in the Pico Neighborhood; continued funding for the City’s Small Business Assistance and Tenant Improvement program; tenant-based rental assistance to qualifying households; and substance abuse and outreach services for people experiencing homelessness. Staff recommends that Council approve the proposed plans and authorize their submittal to HUD prior to the July 12, 2025 deadline.
Discussion
The CDBG program began in 1974 and is designed to benefit the residents of eligible low-and moderate-income neighborhoods. The HOME Program was enacted in 1990 and is the largest Federal block grant to state and local governments designed exclusively to support affordable housing for low-income households. Activities eligible for funding include community facilities and improvements, preservation of affordable housing, public services, economic development, and program administration.
Proposed 2025-29 Consolidated Plan
The Proposed 2025-29 Consolidated Plan identifies high priority community needs, establishes associated housing and community development strategies, and institutes a set of objectives to guide CDBG and HOME funding decisions over the next five program years. Priority needs were identified through the Consolidated Plan’s Needs Assessment and Market Analysis, which incorporate data from the Census and the American Community Survey; local information from City documents such as the Housing Element, Homelessness Strategic Plan, and Assessment of Fair Housing Plan; and input from the public, City commissions, City staff, partner organizations, online survey responses, and interviews with key stakeholders and subject matter experts.
The following priority needs identified in the Proposed 2025-29 Consolidated Plan align with the City’s priorities of Affordable, Livable and Secure Housing for All; Clean Streets and Safe Neighborhoods; and Economic Opportunity and Growth. 3 of 7
Priority Needs Identified Related Proposed Consolidated Plan Goals
• Public Infrastructure and Facilities
Enhancements
1. Expand/Improve Public
Infrastructure/Facilities
• Affordable Housing Opportunities 2. Provide Safe, Affordable Housing Opportunities
• Services for Low Income
Community Members
3. Provide Vital Services for Low-Mod
Income (LMI) & Special Needs
• Services for People Experiencing Populations
Homelessness
• Support for Low Income Workers
and Business Owners
4. Economic Development Opportunities
Proposed 2025-26 Annual Action Plan
The Proposed 2025-26 Annual Action Plan is the first program year of the Proposed 2025-29 Consolidated Plan and details the use of the City’s annual CDBG & HOME allocations to address the priority needs and related goals identified in the five-year plan. The activities proposed in the Annual Action Plan are also part of the City’s broader effort to support its most vulnerable populations through local and regional programs.
The City’s total CDBG and HOME entitlements for 2025-26 are $1,617,360, which reflects modest decreases of 3.2% for CDBG and 1.5% for HOME compared to 2024-
25. Funding also includes an additional $90,000 in anticipated program income. While funding remains stable at present, the future of the CDBG and HOME programs remains uncertain. Any substantial reduction in subsequent annual allocations would decrease capacity to support the 40+ residents who rely on tenant-based rental assistance to maintain stable housing, reduce funding for homeless outreach services, and further limit the City’s ability to advance infrastructure projects in low-moderate income areas
2025-26 funds allocated to activities include:
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SOURCE CDBG HOME TOTAL
Entitlement $ 1,114,932 $ 502,428 $ 1,617,360
Program Income $ 50,000 $ 40,000 $ 90,000
$ 1,164,932 $ 542,428 $1,707,360
Santa Monica’s proposed activities for the 2025-26 program year include:
19th Street Parcel Development - Phase II (CDBG)
The vacant 2018 19th Street land parcel was originally purchased using CDBG and General Funds in 2019-20 in order to develop the land into a beneficial community resource. Following continued engagement of Pico Neighborhood residents within the service area, the City awarded 2023-24 CDBG funds for Phase I
development, which includes grading and preparing the land for general accessibility. Phase II development will include the necessary infrastructure to support a community garden, including raised garden beds, seating, and lighting. With the completion of Phase II, the parcel will be transformed into a valuable amenity serving the Pico Neighborhood community while also adding an additional garden to the City's Community Garden program. $500,000
Virginia Avenue Park Playground Replacement – Phase II
(CDBG)
The Virginia Avenue Park (VAP) Playground is in need of a renovation, specifically focused on equipment replacement, reducing sand, and providing shade. VAP is home to the only City playground in the Pico Neighborhood, and one which is heavily used by families, camps, and farmers market visitors. At present, the playground equipment is aging and in need of replacement. The sand surface prevents accessible use of the playground, and community members regularly request shade to be added to this site to provide relief from direct sunlight. The VAP Playground Replacement project will use a phased, multi-year approach to update playground equipment and install a more accessible surface and shade covering in order to create a safe, enjoyable playground experience for the community.
$ 207,946
Small Business Assistance and Tenant Improvement Fund:
(CDBG)
Fund the City’s Small Business Assistance and Tenant
Improvement Program to continue supporting economic growth for eligible Santa Monica small businesses.
$ 50,000
Public Services (CDBG)
Provides funding to CLARE|MATRIX for the operation of an outreach team for people experiencing homelessness, including substance abuse treatment services that increase the City's capacity to effectively address substance use and overdose among Santa Monica's homeless populations
$ 174,000
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Tenant-Based Rental Assistance (HOME)
Rental subsidies for qualifying low-income households who may be at risk of losing housing.
$ 412,821
Administration & Planning (CDBG, HOME)
Up to 20% of CDBG and 10% of HOME funds are allocated to staff time and resources to administer programs in compliance with federal regulations.
$ 287,229
CHDO Reserve (HOME)
15% set-aside for Community Housing Development
Organization activities (regulatory requirement)
$75,364
TOTAL $ 1,707,360
Public Outreach
Pursuant to Municipal Code Section 2.68.050, and in alignment with HUD regulations, the City is required to hold a minimum of two public hearings prior to Council’s adoption of a Consolidated Plan. To meet this requirement, public hearings were advertised for the March 25, 2025 meeting of the Recreation and Parks Commission, the May 1, 2025 meeting of the Housing Commission, and this June 24, 2025 City Council meeting. The City also conducted over 20 interviews with key stakeholders and subject-matter experts from a range of related fields and considered results from the City’s Budget Survey in the development of the plan.
The draft 2025-2029 Consolidated Plan and the 2025-26 Annual Action Plan were available for a 30-day public review and comment period beginning on May 23, 2025.
The public hearings and public review periods were promoted via official notices in the Santa Monica Daily Press and email notification to local grantees, service providers, neighborhood associations, and City boards, commissions, and workgroups. Notices invited participation from Spanish speakers and offered accommodations for people with disabilities upon request. Taken together, these outreach and engagement strategies are part of a concerted effort to obtain significant public input during preparation of the plans. All public comments received to date are included in the attached plan. All input received through the public review process and public hearings will be incorporated into the final version of the plan prior to submittal to HUD.
Past Council Actions
Meeting Date Description
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June 9, 2020 (Attachment B) Approval of FY 2020-24 Consolidated Plan and FY 2020-21 Annual Action Plan
April 23, 2024 (Attachment C) Approval of FY 2024-25 Annual Action Plan Environmental Review
Adoption of the annual action plan is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) (Common Sense Exemption) of the CEQA Guidelines, which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Many of the funding recommendations are for administrative programs (i.e., Small Business Assistance and Tenant Improvement Fund, Tenant-Based Rental Assistance (HOME), Funding for Public Services, Community Housing Development Organization Reserve) which would not result in a significant adverse physical impact on the environment. Furthermore, both CIP projects identified for the awards are subject to City Council approval, and environmental review would be conducted at the time they are approved.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the recommended action. The funding recommendations for these awards are included in the City’s Proposed FY 2025-26 Budget subject to City Council adoption.
Acronym Glossary
HUD: United States Department of Housing and Urban Development CDBG: Community Development Block Grant
HOME: Home Investment Partnerships Program
CIP: Capital Improvements Program
VAP: Virginia Avenue Park
CHDO: Community Development Housing Organization
CEQA: California Environmental Quality Act
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Prepared By: Marc Amaral, Administrator
Approved Forwarded to Council
Attachments:
A. Attachment A: Proposed CDBG/HOME 2025-29 Consolidated Plan and 2025-26 Action Plan
B. Attachment B: June 9, 2020 Staff Report (2020-24 Consolidated Plan) C. Attachment C: Staff Report: April 23, 2024 (2024-25 Action Plan) D. PowerPoint Presentation