Oxnard City Council allocates $1.5M for affordable housing amid funding deadlines

The Comm. Services, Public Safety, and Housing & Development Committee of Oxnard convened on December 10, 2024, to discuss the allocation and management of federal funds aimed at supporting low-income populations and addressing housing needs in the city.

The meeting began with a review of the funding requirements set by the U.S. Department of Housing and Urban Development (HUD). Officials emphasized the necessity of utilizing allocated funds in a timely manner, with a deadline approaching in May 2025. The committee noted that they must not exceed 1.5 times their annual allocation in reserve, which currently amounts to $2.6 million that needs to be expended by the deadline.

To address potential shortfalls, the committee proposed reallocating approximately $1.5 million in uncommitted funds to projects experiencing cost overruns, specifically on Casariento and Edin Road. This decision aims to ensure that these projects are completed without leaving any unfinished construction, thereby preventing the return of funds to HUD, which officials stated is undesirable.

The committee highlighted that the funds are designated for various purposes, including Community Development Block Grants (CDBG) for low-income services, Emergency Solutions Grants (ESG) for homelessness, and HOME funds for affordable housing development. Officials reassured that there is no inefficiency in fund usage, as $4.2 million is currently under contract and actively being utilized for eligible projects.

After addressing all inquiries, the committee moved to approve the proposed allocation of funds. The motion was seconded and passed unanimously with a vote of 3-0.

In conclusion, the meeting underscored the city’s commitment to effectively managing federal funds to support essential housing and community development projects, ensuring that resources are directed towards the needs of Oxnard's low-income residents.