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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 VS! 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