CC - Item 3A - Public Hearing to Receive Comments on the Program Year 2026-2027 Action Plan for the Community Development Block Grant and HOME Investment Partnerships ProgramsROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BEN KIM, CITY MANAGER �—
DATE: MAY 12, 2026
SUBJECT: PUBLIC HEARING TO RECEIVE COMMENTS ON THE PROGRAM
YEAR 2026-2027 ACTION PLAN FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIPS PROGRAMS
SUMMARY
The U.S. Department of Housing and Urban Development (HUD) provides Community
Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds to the
City of Rosemead for the purpose of developing viable urban communities by providing decent
housing, suitable living environments, and by expanding economic opportunities, specifically for
low- and moderate -income people. For Program Year (PY) 2026-2027, the City will receive
approximately $542,776 in CDBG funds and $230,551.14 in HOME funds from HUD. As a
recipient of CDBG funds, the City has also previously received Community Development Block
Grant Coronavilus (CDBG- CV) funds with a current balance of approximately $200,000. The
purpose of this public hearing is to inform residents about the CDBG and HOME programs and to
solicit public input regarding community needs and priorities prior to final funding decisions.
DISCUSSION
To receive CDBG and HOME funding from HUD, the City is required to prepare a five-year
Consolidated Plan (ConPlan) that identifies needs for affordable and supportive housing,
community development, public services, and economic opportunities. Annually, the City is also
required to prepare an Annual Action Plan (AAP) that implements the goals and objectives
contained in the ConPlan. These documents outline extensive strategies aimed at uniting
community needs and resources together to achieve statutory goals, thereby addressing decent
housing, creating a suitable living environment, and expanding economic opportunities for the
City's residents, particularly for low- and moderate -income people.
The Annual Action Plan implements the ConPlan goals and priorities by allocating CDBG and
HOME resources to a variety of eligible projects and programs. It also serves as the City's
application to HUD for these grants. While the City conducts its own process to identify
community needs and programs, all expenditures of these grant funds must comply with HUD
guidelines.
AGENDA ITEM 3.A
City Council Meeting
May 12, 2026
Page 2 of 4
CDBG Funds
CDBG funds may be used for activities that meet one of three national objectives established by
HUD. Activities that do not meet at least one national objective are not eligible for CDBG funding.
The three national objectives are:
• Benefit low- and moderate -income persons
• Prevent or eliminate slum or blight
• Address urgent community development needs that pose an immediate threat to health or
welfare when no other funding sources are available
In addition to the national objectives above, CDBG funds may also be used for public service
activities which are capped at 15% of the total grant ($81,416), program administration which is
limited to 20% ($108,555), and the remaining funds may be allocated to other CDBG eligible
programs such as economic development, public facilities and infrastructure, and housing -related
activities.
Funding Requests & Outreach Timeline
On January 15, 2026, the City released the Notice of Funding Availability (NOFA) for PY 2026-
2027. The notice was sent to organizations on the City's CDBG Interest List, published in the
Rosemead Reader, posted on the City's website, and posted at the six (6) public locations.
Application materials were also made available on the City's website.
The NOFA was released for 30 days and the application period closed on February 17, 2026. Staff
received eight (8) eligible public service applications, which totaled $264,500 in funding requests
for PY 2026-2027. The amount exceeds the fifteen (15) percent public service funding cap
of $81,416 allowed by HUD. To support the evaluation process, staff reviewed all submitted public
service applications and prepared a PY 2026-2027 Public Service Applications Summary
(Attachment "A") that includes a summary of their services. A complete list of recommended
funding for public service and non-public service is shown below:
CDBG
1
CDBG Planning and Administration
$108,555.00
2
Owner -Occupied Rehabilitation Grant Program
$120,000.00
3
Owner -Occupied Rehabilitation Administration
$50,000.00
4
Commercial hn rovement Program
$111,611.00
5
ISummer Youth Employment Program
$4,000.00
6
Senior Nutrition Program
$20,000.00
7
Family Promise of San Gabriel Valley
$9,560.00
8
Heart of Compassion
$9,560.00
9
Fair Housing Foundation
$9,560.00
10
Goodwill of Southern California
$9,560.00
11
Wealth by Health
$9,560.00
12
Asian Youth Center
$9,560.00
13
ADA Elevator Project at City Hall
$71,250.00
TOTAL
$542,776.00
City Council Meeting
May 12, 2026
Page 3 of 4
HOME Funds
HOME funds must be used to create and preserve affordable housing for low-income households
by:
• Building, acquiring, or rehabilitating affordable housing
• Providing rental assistance (e.g., tenant -based vouchers)
• Assisting low-income households with home purchases (e.g., down payment assistance)
No more than 10% ($23,055) may be used for planning and administration, and at least 15%
($34,583) must be reserved for projects owned, developed, or sponsored by qualified Community
Housing Development Organizations (CHDOs). The remaining balance ($172,913.14) must be
used exclusively for housing activities. A complete list of recommended funding for housing
activities is shown below:
HOME
14
HOME Planning and Administration
$23,000.00
15
CHDO Set -Aside
$35,000.00
16
Owner -Occupied Rehabilitation Loan Program
$172,551.14
TOTAL
$230,551.14
In addition, the City will allocate $600,000 in prior year HOME funds to a Homebuyer Assistance
Program to provide down payment and/or closing cost assistance loans to income -eligible
homebuyers purchasing homes within the City of Rosemead.
CDBG-CV Funds
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act of 2020 (the
"CARES Act") was signed into law by the Federal Government. The City currently has a balance
of approximately $200,000 of Coronavirus funds from HUD. These funds are intended to facilitate
households and businesses that have been impacted by the pandemic.
Staff is recommending the following CDBG-CV fund allocations for FY 2026-2027: $90,000 for
public services (Wealth by Health, Heart of Compassion, Goodwill of Southern California, Herald
Christian Health Center, and Asian Youth Center), $100,000 for repairs at the Senior Housing
Complexes (Garvey and/or Angelus), and $10,000 for Planning and Administration costs. The
CDBG-CV funds must be expended by September 2026, or the funds are required to be returned
to HUD. A complete list of recommended funding for CDBG-CV activities is shown below:
CDBG-CV must be used by Se tember 2026
17
Planning and Administration
$10,000
18
Wealth By Health
$10,000
19
Heart of Compassion
$25,000
20
Goodwill of Southern California
$20,000
21
Herald Christian Health Center
$20,000
22
Asian Youth Center
$15,000
23
Senior Housing Complexes
$100,000
TOTAL
$200,000
City Council Meeting
May 12, 2026
Page 4 of 4
STAFF RECOMMENDATION
That the City Council conduct a public hearing to receive citizen input on community needs and
priorities prior to final CDBG and HOME funding decisions for the PY 2026-2027 Action Plan.
FISCAL IMPACT
There is no fiscal impact on the General Fund. The PY 2026-2027 Action Plan includes HUD
funding allocation for CDBG and HOME programs.
STRATEGIC PLAN IMPACT
The PY 2026-2027 Action Plan aligns with the City's 2030 Strategic Plan's mission statement to
"provide quality programs, services, and support that builds community, increases opportunity,
and makes Rosemead a great place to live, work, and play."
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
loin Tea lle&
Priscila Davila, Contract Housing Consultant
Submitted by:
-44k
Lily alenzuela, Director of Community Development
Attachment A: PY 2026-2027 Public Service Applications Summary
Attachment A
PY 2026-2027 Public Service Application
Summary
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