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City shifts CDBG funds to La Colonia street resurfacing; council approves transfer to finish neighborhood work
Summary
The council approved a substantial amendment to the FY 2025‑26 Annual Action Plan reallocating Community Development Block Grant dollars to La Colonia neighborhood street resurfacing and authorized related capital transfers totaling $1,019,255.54 to complete Phase 3 work.
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The Oxnard City Council on Oct. 7 approved a substantial amendment to the fiscal year 2025‑26 Annual Action Plan to reallocate Community Development Block Grant (CDBG) funds to public infrastructure work in La Colonia, and then authorized related project budget transfers to consolidate funding for La Colonia Phase 3 neighborhood resurfacing.
Housing Director Brenda Lopez told the council staff had reviewed the city's CDBG balances and timeliness requirements under HUD rules, and identified approximately $1.0 million in uncommitted funds that could be used for a shovel‑ready neighborhood resurfacing project. The amendment directs CDBG dollars to the La Colonia street resurfacing project, which staff said will improve about 25 streets and reach roughly 2,600 residents.
After the public hearing opened with one virtual commenter and limited in‑person public comment, the council voted 6‑0 to approve the substantial amendment and to authorize the city manager to incorporate the amended grant allocations and execute required documents with HUD.
Following the legislative action, the council also authorized the city manager to approve project budget appropriation transfers totaling $1,019,255.54 to consolidate funds in the active La Colonia resurfacing capital project. The transfers included $953,255.54 from the 2014 Lease Revenue Bond fund and $66,000 from the water operating fund, moving money from dormant or prior projects into the active construction account so the contractor can complete work without delay.
Housing staff said the amendment was driven by the CDBG timeliness rule and the availability of a ready‑to‑build project in La Colonia. A series of staff and council members emphasized the need to spend federal funds in a timely way and to select projects with clear benefits to low‑ and moderate‑income residents.
Ending: With the funding amendment and budget transfers approved, staff said they will proceed with the La Colonia Phase 3 resurfacing construction and follow HUD reporting requirements. Councilors urged staff to continue outreach to residents and to track spending to meet federal timeliness benchmarks.

