Lake Forest council approves five-year consolidated plan and adjusts CDBG allocations

The Lake Forest City Council held a public hearing and voted 4-0 to approve the city’s five‑year consolidated plan and the fiscal year 2025–26 Annual Action Plan for Community Development Block Grant (CDBG) funding, and authorized staff to submit the plans to the U.S. Department of Housing and Urban Development (HUD).

Staff had proposed anticipated CDBG funding of approximately $479,750 for 2025–26 (HUD’s final allocation pending) and a budget that prioritizes housing improvements, ADA ramps and audible pedestrian signals, administration and public services. Following public comment from Rosalinda Bermudez of Families Forward and extended council discussion, members amended subrecipient allocations: the council reduced the Boys & Girls Club award from $12,000 to $7,000 and redistributed the remaining $5,000 in $1,000 increments to five other nonprofit applicants. The amended allocation passed 4-0.

Why it matters: CDBG funds are federal dollars that cities distribute to local nonprofit service providers and capital projects that benefit low‑ and moderate‑income residents. Lake Forest’s plan sets priorities for housing rehabilitation, ADA improvements and public services and serves as the city’s formal funding request and framework to HUD.

Discussion highlights: Economic Development Manager Adrian Grojalva presented the plan and explained that HUD allocations for 2025–26 had not yet been announced but staff used a planning estimate. He said the ad hoc committee recommended using federal CDBG funding to assist nonprofit agencies and reallocated $50,000 from a local boost program to fund an audible pedestrian signal (APS) project.

Council members questioned prior performance and use of funds by the Boys & Girls Club, noting the organization received $5,000 in 2022–23 that staff reported was not used. Rosalinda Bermudez of Families Forward described a success story in Lake Forest where program participation led to stable employment for a formerly homeless participant. Council discussion focused on accountability and impact; members tied the revised allocation to a requirement that subrecipients demonstrate use of funds and program outcomes.

Outcome and next steps: The council approved the consolidated plan, annual action plan and the regional assessment of fair housing, and authorized staff to submit the plans to HUD with the adjusted subrecipient awards. Staff indicated allocations will be adjusted proportionally if HUD’s final allocation differs from the planning estimate.