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Oxnard staff proposes $1 million CDBG reallocation to La Colonia street and ADA project
Summary
City housing staff recommended reallocating $1 million in uncommitted Community Development Block Grant funds to the La Colonia Neighborhood Street Resurfacing and ADA Improvement Project to close a funding gap and meet HUD timeliness rules, increasing the project's CDBG allocation to $2 million; council action not recorded in the transcript.
Brenda Lopez, housing director for the City of Oxnard, told the City Council during a public hearing that staff recommends allocating $1,000,000 in uncommitted Community Development Block Grant (CDBG) funds to the La Colonia Neighborhood Street Resurfacing and ADA Improvement Project, raising the project's CDBG allocation to $2,000,000.
Lopez said the reallocation is intended to help the city comply with U.S. Department of Housing and Urban Development (HUD) timeliness requirements for CDBG spending and to close an identified funding gap for a shovel‑ready public infrastructure project in a predominantly low‑ and moderate‑income neighborhood.
HUD regulations limit an entitlement grantee's unexpended CDBG line‑of‑credit balance to 1.5 times its most recent annual grant allocation, Lopez said. Staff reported the city's unexpended CDBG balance as roughly $6,000,071.97 as of August 2025, including $1,000,000 identified as uncommitted funding. The recommended $1,000,000 reallocation would be applied to the La Colonia project (project number C2209), which previously had a $1,000,000 CDBG award from the fiscal 2024–25 Annual Action Plan.
Staff provided cost detail for the La Colonia project: an original engineer's estimate of $6,000,853; one competitive bid received for $8,000,665.05 (not including soft costs); and an estimated total project cost of approximately $10,400,000 when soft costs are included. Lopez said about 2,600 residents would benefit from the improvements. Staff told the council the amended $2,000,000 CDBG allocation can be fully expended by the end of calendar year 2025.
During the presentation Lopez outlined the recommendations staff will ask the council to take: (1) conduct the public hearing on the first substantial amendment to the fiscal year 2025–26 Annual Action Plan (AAP); (2) approve the first substantial amendment to the AAP to use CDBG funds for public infrastructure improvements; (3) authorize the city manager to incorporate the amended grant allocations into the fiscal year 2025–26 AAP and make necessary budget appropriations and revenue recognitions in CDBG Fund 201 for the project; (4) authorize the city manager to execute required documents to submit the amended AAP; and (5) receive and file any comments made during the 30‑day public comment period or made in person at the public hearing with the amendment.
The transcript records the staff presentation and recommendations but does not include a recorded council vote or final action on those recommendations. The issue will progress through the council's formal decision process following the public hearing and the 30‑day public comment period noted by staff.
Additional context provided by staff: the consolidated plan that guides the AAP was adopted by the City of Oxnard on May 6, 2025; HUD defines a “substantial” amendment to an AAP as adding a new activity, cancelling an existing activity, or relocating $200,000 or more, each of which requires public notice and a public hearing prior to approval. The La Colonia project is described by staff as predominantly residential and in a low‑to‑moderate income neighborhood.
