The Soledad City Council meeting on December 18, 2024, focused on the allocation of $500,000 in Community Development Block Grant (CDBG) program income funds. The funds are intended to support various community initiatives, particularly in economic development and housing assistance.

City staff presented the need for the allocation after missing a previous application deadline for additional CDBG funding. Tanya Vargas, the Economic Development Coordinator, highlighted that the city has generated approximately $500,000 from the repayment of previous CDBG loans, which can now be classified as program income. This income must be allocated according to federal regulations, with several options available for its use.

The council discussed four primary allocation options:
1. Fully fund the existing business loan program to support local businesses.
2. Establish a new homebuyer assistance program to address housing affordability challenges.
3. Allocate funds for ongoing improvements to the community center, which is currently undergoing upgrades.
4. A hybrid approach that divides the funds among the business loan program, homebuyer assistance, and community center improvements.

Public comments included concerns about the missed grant application and the importance of supporting local businesses while also addressing housing needs. Council members expressed differing opinions on how to best allocate the funds, with some advocating for a hybrid approach that would allow for investment in all three areas.

Ultimately, the council leaned towards a hybrid allocation, with suggestions to prioritize funding for the homebuyer assistance program while also addressing urgent needs at the community center. The council emphasized the importance of making informed decisions based on community needs and previous investments in local businesses and facilities.

The meeting concluded with a consensus to further explore the hybrid allocation and ensure that the city is prepared to apply for future funding opportunities, particularly for housing initiatives. The council plans to revisit the allocation once more information is available regarding the upcoming funding opportunities.