Committee approves reprogramming of CDBG/CV funds and directs staff to coordinate small-business relocation applications

The Committee on Human Rights and Stability approved a package of actions to reprogram Community Development Block Grant (CDBG) and coronavirus-response (CV) funds to finance capital projects, support microenterprise and small-business recovery, and to direct staff to coordinate with business owners on relocation and application requirements.

Committee members and staff said the reprogramming would use funds left over from completed projects so the city can spend the money before federal deadlines and avoid returning the grants. A staff presenter identified about $8.9 million available to finance capital needs and said roughly $2,000,000 had been identified for certain CV allocations; staff warned that unused federal funds could be recaptured if not obligated and spent within program deadlines.

During discussion members asked about eligibility and timing. Staff explained program rules and limits on uses: public comments and staff referenced a typical public-services cap of 15 percent in any year and up to 20 percent for administrative uses as part of annual budgeting considerations. The staff presentation said the current award period runs through June 30, 2026; members raised the need to prioritize projects that can be completed before deadlines.

Jorge Espinoza, speaking for a council office, moved to require that staff from the Office of Government Programs (OGP) confirm with business owners that relocation and contract paperwork is complete before proceeding with awards for a legacy-business relocation program. The committee supported a modification to ensure owners have an opportunity to participate; the committee voted to approve the motion.

Councilmember Nazaria offered an amendment directing staff to work with public-lighting programs and to apply CDBG funds toward projects in specified local priorities identified in the amendment (the amendment text was read into the record). The committee adopted the amendment and approved the consolidated-plan reprogramming on the same vote.

A member of the public had urged the committee not to reprogram one specific $1,000,000 grant that funds renovation of preschool classrooms because the building requires accessible upgrades for people with disabilities; the commenter said the preschool has served low-income Los Angeles families since 1976 and asked that the funds remain dedicated to that site. Committee members acknowledged the public comment during the discussion but proceeded with the reprogramming vote.

Votes were taken on consent items earlier in the meeting and on the business-relocation confirmation and the consolidated-plan reprogramming; the chair announced approval for the items on the record.