South Gate approves 2025–29 HUD consolidated plan and 2025–26 action plan with $50,000 small-business assistance carve‑out

The South Gate City Council approved on Tuesday the city’s 2025–29 Consolidated Plan and the 2025–26 Annual Action Plan that lay out how the city will use federal Community Development Block Grant (CDBG) and HOME Investment Partnerships funds.

Carol Everbreed, the consultant presenting the plan, told the council this was the second public hearing for the consolidated plan and the annual action plan. “These plans outline how the city will allocate its CDBG and HOME Investment Partnership funds that are received from the U.S. Department of Housing and Urban Development,” she said, summarizing the program goals and the required elements: needs assessment, housing market analysis, a five‑year strategic plan and the annual action plan.

The proposed spending in the action plan reflected HUD allocations received in May and some prior‑year uncommitted funds: roughly $1.3 million available for CDBG (including a required 20% cap for administration) and approximately $3.1 million available for HOME. Recommended CDBG programming included public service grants (totaling the 15% cap), a neighborhood revitalization rehabilitation grant program for seniors, and a $513,990 street and sidewalk improvement project. HOME recommendations included homeowner rehabilitation and 3 affordable housing projects with allocations recommended for Azure development, Habitat for Humanity and the Cesar Chavez Foundation’s multifamily project on Firestone Boulevard.

During the hearing several residents and two emails urged the council to dedicate more CDBG dollars to parks and recreation. The council also heard a staff recommendation to take public questions before council questions and to recess the item for additional staff time; the council ultimately returned to the item later in the meeting.

Councilmember Pilat Avalos proposed and the council approved an amendment to create a small‑business assistance grant program. The adopted change reduces the Neighborhood Revitalization program from $415,000 to $365,000 and establishes a $50,000 small‑business assistance allocation to help local businesses—particularly those reporting recent revenue declines—through a CDBG‑eligible economic development activity. Staff was directed to draft guidelines consistent with federal CDBG rules and return with eligibility criteria and implementation steps; council emphasized the need to target assistance to businesses demonstrably impacted by recent community conditions.

The consolidated plan and annual action plan were approved by unanimous roll call. Staff said the city must submit the plan to HUD within the HUD schedule (city staff noted HUD deadlines and that the absolute date to avoid jeopardizing entitlement funds is mid‑August). The council also received an overview of HOME‑funded projects, including the Cesar Chavez Foundation multifamily project on Firestone Boulevard and homeownership projects on Long Beach Boulevard.

City staff and consultants will finalize the submitted documents to reflect the council’s amendment and the small‑business assistance program design, post required public notice, and submit the consolidated plan and annual action plan to HUD.