CITY OF SOUTH GATE
SPECIAL JOINT CITY COUNCIL/HOUSING AUTHORITY
MEETING MINUTES
TUESDAY, MAY 12, 2026
CALL TO ORDER The Special Joint meeting of the City Council South Gate Housing Authority was called to order by Joshua Barron, Mayor/Chairperson at 5:00 p.m.
ROLL CALL City Clerk Yodit Glaze, City Clerk/Recording Secretary
PRESENT Mayor/Chairperson Joshua Barron, Vice Mayor/Vice Chairperson Al Rios, Council/Authority Member Maria Davila, Council/Authority Member Gil Hurtado; City Treasurer Jose De La Paz, City Manager/Executive Director Rob Houston, City Attorney/Authority Counsel Raúl F. Salinas
LATE Council/Authority Member Maria del Pilar Avalos
1 DEVELOPMENT It is recommended that the City Council and Housing Authority:
a. Approve the Memorandum of Understanding (MOU) among the City of South Gate (Contract No. 2026-33-CC), the South Gate Housing Authority (Contract No. 2026-01-HA), and Habitat for Humanity of Greater Los Angeles or Partnership Housing, Inc. (Developer) to establish initial terms for negotiating a Disposition, Development and Loan Agreement (DDA) and an Affordable Housing and Loan Agreement (AHA); and
b. Authorize the Chairperson of the South Gate Housing Authority and Mayor or authorized designee to execute the MOU in a form approved by the City Attorney.
Carol Averell, Housing Manager, gave the presentation.
Council/Authority Member Avalos asked whether staff will be presenting a detailed financial analysis before any binding agreements with Habitat are considered or executed.
Ms. Averell replied in the affirmative and stated that the city is already in the process of developing the Disposition and Development Agreement.
She explained that the agreement will be presented to the Council and Housing Authority at a later date, along with an item regarding the allocation of any City funding for this project. She noted that such an allocation is required in order for Habitat to work with the city and provide a pro forma and analysis of the financing and all funding sources that will be included in the project.
SPECIAL JOINT CITY COUNCIL AND HOUSING AUTHORITY MEETING MINUTES OF MAY 12, 2026
Council/Authority Member Avalos stated that under Security and Covenants, it indicates that if a buyer decides to sell before the 45-year period is over, they must first offer the property directly to the developer.
Ms. Averell explained that this requirement is part of Habitat for Humanity’s program. Habitat holds the first right of rescission, meaning that if a homeowner chooses to sell, the developer has the right to take back the property and then select another qualified low-income family to purchase it.
Council/Authority Member Avalos asked whether the developer would purchase the property at market value or at the original price at which it was initially sold.
Patrick Sunpanich, Senior Director for Government Affairs with Habitat for Humanity, responded that the property would be purchased at the market rate at that time.
Council/Authority Member Avalos asked about the South Gate loan.
Ms. Averell responded by outlining the various funding sources the city has applied for in connection with this project. She explained that the City has allocated HOME funds specifically for this development. In addition, the City has secured state funding, designated PHA funds for the project, and has applied for CalHome funding to support mortgage assistance.
Council/Authority Member Avalos inquired about the DTSC grant funding that Habitat has received and the total amount awarded.
Naomi Zahler, Associate Director of Public Funding and Contracts for Habitat, stated that she believes the DTSC grant amount is $800,000.
Council/Authority Member Avalos further asked whether there were any estimates indicating that remediation costs might exceed the DTSC grant amount.
Ms. Averell believes that pretty much most of the money is going to be utilized for that remediation. The remediation is quite costly. She also stated the city allocated CDBG funds for the demolition of the structure.
Council/Authority Member Avalos asked what preliminary risks or uncertainties staff would like the Council/Housing Authority to be aware of at this stage, if any.
SPECIAL JOINT CITY COUNCIL AND HOUSING AUTHORITY MEETING MINUTES OF MAY 12, 2026
Mr. Perez stated that it will be important for the city to resume remediation work, including demolition of the building. He emphasized that no approvals for the project are being considered at this meeting. The project will still require future approval by both the Planning Commission and the City Council.
Council/Authority Member Avalos asked whether there was anything in the proposed MOU that staff recommended the Council or Housing Authority modify prior to approval, or if staff was satisfied with the document as presented.
Mr. Perez stated that staff are satisfied with the MOU as written and recommends moving it forward to the Planning Commission and the City Council for future consideration.
Council/Authority Member Avalos asked if there were any external deadlines, such as funding cycles, that could affect the project’s completion timeline.
Ms. Averell stated that for CDBG funding, the project must be completed by the end of the year. She also noted that DTSC’s deadline is tied to the completion of the remediation work.
Vice Mayor/Vice Chairperson Rios asked how much the City and Habitat for Humanity have spent to date and what the projected total cost of the project will be.
City Manager/Executive Director Houston clarified for anyone who may be new to the City’s housing-related funding discussions over the past year that none of the funding for this project comes from the General Fund.
Ms. Averell explained that projects of this type rely on multiple funding sources.
Ms. Zahler stated the spending of about $200,000 of the DTSC fund so far.
That’s just for remediation and doesn’t have the exact total for the remediation. DTSC has not expressed concern for the funding, especially since DTSC have waived the fees on their end. She also mentioned that Habitat for LA is exploring a lot of funds for the development, including new market tax credits and LACAHSA funds.
Council/Authority Member Avalos asked how much additional funding the City anticipates contributing to this specific project, excluding General Fund dollars.
SPECIAL JOINT CITY COUNCIL AND HOUSING AUTHORITY MEETING MINUTES OF MAY 12, 2026
Ms. Averell responded that the HOME funds represent the final City- controlled funding source currently committed. She explained that the city must still evaluate all other funding sources that Habitat for Humanity will bring to the project. This evaluation will be part of the financial analysis conducted through the pro forma to determine the City’s total contribution.
As an example, she noted that the city applied for $5 million in CalHome funding to support mortgage assistance for two affordable housing projects, and the full amount was awarded. Habitat will utilize at least half of those funds to provide up to $200,000 in mortgage assistance for the fourteen (14) units.
Council/Authority Member Hurtado and Mayor/Chairperson Barron expressed that they are looking forward to seeing this project get off the ground.
City Attorney/Authority Counsel Salinas reiterated that he previously served on the Board of Directors for Habitat for Humanity of Greater Los Angeles, a role he was proud to hold. He clarified that he no longer serves on the fiduciary board and currently participates only as a member of the Ameritas Board. He further stated that he has no legal obligations to the organization and does not receive any income from it.
Council/Authority Member Hurtado stated that when the property is eventually sold, there will be a profit because the original appraisal value is no longer accurate. He added that the proceeds would return to the housing program.
Council/Authority Member Avalos asked whether, once all the properties are sold, the City will release the titles to the new homeowners indicating that the City-provided mortgage has been fully paid off.
Ms. Averell clarified that under the mortgage assistance program, homeowners will still be responsible for making certain mortgage payments. She explained that in some cases the City may structure the assistance as deferred, meaning repayment would occur upon sale, transfer, or refinancing of the property. She added that the city is currently finalizing the program guidelines.
Council/Authority Member Avalos asked whether the City would recover any of the funds it contributes.
Ms. Averell responded that the city would receive a portion back.
Mr. Sunpanich added that repayment structures vary depending on the municipality partnering with Habitat for Humanity.
SPECIAL JOINT CITY COUNCILAND HOUSING AUTHORITY MEETING MINUTES OF MAY 12, 2026
EMAILS Mario Dominguez, a South Gate resident, raised concerns regarding soil contamination at the proposed 14 town home development and requested information on the timeline for remediation and disposal of the contaminated soil. He also asked about next steps following remediation including site development plans, additional testing and urges the city to avoid delays experienced in the past projects.
Council/Authority Member Hurtado motioned, seconded by Mayor/Chairperson Barron to approve items A & B.
ROLL CALL: Council/Authority, Avalos, yes; Council/Authority Hurtado, yes; Council/Authority Davila, yes; Vice Mayor/Vice Chairperson Rios, yes; Mayor/Chairperson Barron, yes.
ADJOURNMENT Mayor/Chairperson Barron unanimously adjourned the meeting at 5:28 p.m. and seconded by Council/Authority Member Hurtado.
PASSED and APPROVED this 26" day of May 2026.
ATTEST:
ua Barron, Mayor/Chairperson Yodit City Clerk