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Council approves $1.7 million repayment agreement with HUD
Summary
Huntington Park formalized a settlement with HUD to repay $1.7 million for prior allocations; payments will come from future HUD allocations and non-federal funds spread over three years, and the first payment is due July 1.
The Huntington Park City Council approved a repayment agreement with the U.S. Department of Housing and Urban Development that reduces the city’s repayment obligation to $1.7 million and establishes a repayment schedule tied to future HUD allocations.
Interim Community Development staff explained the negotiated agreement covers allocations from several prior years and will be repaid through a combination of deductions from the city’s future HUD allocations over the next three years and by non-federal payments of about $161,000 per year for three years. Staff said the city originally faced a figure close to $3 million and successfully negotiated the reduced amount.
The council voted to approve the agreement by voice vote after hearing no public comment; roll call later confirmed the motion passed with Council Member Macias — yes; Council Member Martinez — yes; Council Member Sanabria — yes; Mayor Flores — yes.
Why it matters: The repayment affects how much federal funding the city will receive in coming years and requires budgeting to meet the scheduled payments. Interim Director Luis Bonavis said the first payment is due July 1.
Discussion and staff remarks: Bonavis described the item as a formality to finalize the agreement with HUD and summarized the repayment mechanism: reducing the prior assessed liability to $1.7 million, recouping future allocations for three years and making annual non-federal payments. A council member thanked finance staff for identifying findings during audits and for negotiating a “creative and reasonable” solution.
Next steps: With council approval, staff will finalize the repayment documents and implement the three-year schedule. The council did not direct additional study or modifications during the meeting.
