Westminster studies draft 2025–29 consolidated plan; council hears options for housing, parks and homelessness

At a special study session on Feb. 12, 2025, Westminster staff and consultants briefed the City Council on development of the city’s five‑year Consolidated Plan for fiscal years 2025–2029, which sets priorities for federal Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds.

The presentation, led by Michael San, the city’s housing specialist, explained that Westminster typically receives about $1 million annually in CDBG and roughly $400,000 in HOME funds and noted limits on how those funds may be used. Veronica Tam and Jamie Powers of Veronica Tam & Associates joined the meeting to describe outreach results and proposed priority areas.

Why it matters: The Consolidated Plan determines how Westminster directs limited federal housing and community development dollars. Decisions shape whether money goes toward affordable rental assistance, rehabilitation grants, park and street improvements in low‑ and moderate‑income neighborhoods, or social services for special‑needs populations.

Michael San summarized federal eligibility rules and program caps, explaining CDBG requires projects to meet one of three national objectives and caps public‑service spending at 15% of the annual allocation. “CDBG funds are probably the most flexible in terms of what activities you can use it for, but it’s also most stringent because there are a lot of strings attached,” San said. He noted HOME dollars may be used for new construction of affordable housing but that the program’s small local allocation limits what can be achieved without additional leverage.

Consultant Veronica Tam reviewed outreach the consultant team conducted, including a community survey with roughly 73 responses and stakeholder meetings with local nonprofits and service providers. Respondents rated street and alley repairs, parks and recreation, and health facilities among the top public‑improvement priorities; housing respondents emphasized homeownership assistance, housing code enforcement and rental assistance.

Council members pressed staff on several operational details. Councilwoman Fan West asked whether unspent public‑service set‑asides could be repurposed; Tam replied that unspent public‑service set‑asides cannot be reused for public services the following year because of the cap, but unspent funds can be allocated to other eligible activities such as affordable housing or public improvements. Vice Mayor Monzo asked for a list of stakeholder organizations; staff said participants included the Westminster Family Resource Center, Families Forward, Human Options, Realtor Commission, NeighborhoodWorks Orange County and Fair Housing Foundation.

Council members also discussed past programs. Staff reported the city’s 2020–22 multifamily rental rehab pilot was not successful because property owners were unwilling to accept deed restrictions and rent limits. By contrast, rental assistance (including one‑time CARES Act CDBG allocations during the COVID emergency) had been used effectively; staff said most Housing Division inquiries relate to rental assistance requests.

Staff highlighted specific program rules and constraints: up to 20% of CDBG may be used for planning and administration, and HOME administration is capped at roughly 10%. Tam described the HUD definition of urgent need (an event within the prior 18 months that cannot be funded by other means) and noted the city’s low‑ and moderate‑income areas cover more than half of Westminster, giving flexibility in siting physical improvements.

Council direction: No formal action was required or taken at the study session. Council members offered initial priorities and asked staff to return with draft language for the five‑year Consolidated Plan and the annual action plan scheduled later in the spring. Council members also asked for follow‑up detail on: (1) the number of survey and stakeholder responses and a list of participating agencies; (2) performance data for current 2020–24 projects (to be provided in the upcoming Consolidated Annual Performance and Evaluation Report due in autumn); and (3) options for reusing funds currently budgeted for programs that have had low take‑up, such as the multifamily rehab pilot.

The city indicated a draft Consolidated Plan will be released for public review in April and considered for adoption in May. Staff told the council the city does not yet have its 2025 HUD allocations but plans for funding levels based on prior years’ awards.