The Glendale City Council and the Glendale Housing Authority on Sept. 30 approved a substantial amendment to reprogram Community Development Block Grant (CDBG) funds across multiple program years to avoid losing prior-year allocations to U.S. Department of Housing and Urban Development (HUD) timeliness rules.

Council approved moving $1,328,171 in CDBG city CIP funds from the Pacific Natural Grass Project to the Pacific Edison artificial-turf project and shifting $1,328,171 in general-fund CIP dollars from the Pacific Edison artificial turf project back to the Pacific Natural Grass Project. The bodies also authorized swapping $96,587.38 in undesignated HUD fund balance from program-year 2019 into the Armenian Cultural Foundation’s Glendale Youth Center project (currently in program year 2021), and authorized execution of agreements and submission of a substantial amendment to HUD.

Why it matters: City staff said HUD enforces a timeliness test that limits how large a CDBG balance a jurisdiction can carry; failure to meet the test can result in the loss of future funds. City staff told council that $421,000 in program-year 2019 funds were at risk without timely expenditure; shifting dollars to projects that can draw quickly — such as the Pacific Edison artificial-turf project, which has completed bidding and is scheduled to begin construction in October — will reduce the city’s untimely balance.

Staff explanation: “Approval of these recommendations will safeguard the city's allocation of CDBG funding by ensuring timely expenditure to prevent the loss of over $421,000 in program year 2019 funds,” city staff member Rubik Galania said when introducing the item. Community Services Manager Maggie Kovarian explained the mechanics: the Pacific Edison artificial-turf project is construction-ready and will draw down funds faster, while moving undesignated 2019 fund balance into the Glendale Youth Center (a project that has completed construction and is ready to expend) preserves monies nearing HUD’s seven-year performance deadline.

Council action and vote: Council and the housing authority each moved and seconded the relevant motions and approved the reprogramming and the associated resolution of appropriation by roll call. City staff said HUD had given the city an additional year to address timeliness and that these reprogramming steps were part of meeting HUD’s schedule.

Concluding detail: Council also authorized the city manager or designee to redirect excess, canceled or unused program funds under $50,000 among projects with CDBG Advisory Committee approval and to execute all documents necessary to carry out the reprogramming and submit the substantial amendment to HUD.