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Lake Forest reviews draft CDBG plan; council questions $50,000 for for‑profit childcare "Boost" program
Summary
At an April 15 meeting the city reviewed a draft five‑year CDBG plan and a FY25–26 expenditure plan that included a proposed $50,000 allocation to a for‑profit operator's "Boost" program to support in‑home licensed childcare providers. Councilmembers asked staff to explore alternatives and appointed an ad hoc to work with staff.
City staff presented a draft five‑year consolidated Community Development Block Grant (CDBG) plan and a draft FY 2025–26 expenditure plan to the Lake Forest City Council on April 15 and recommended allocating $50,000 to a program called Boost to help in‑home licensed daycare providers.
Economic Development Manager Adrian Grijalva explained the draft plan and noted HUD allocations had not been finalized. Staff recommended allocating the public‑services cap (15%) and administration cap (20%) and proposed dedicating $50,000 to Upwards Inc.'s Boost program to provide business and technical support for in‑home daycare operators. Grijalva said the Boost funds would cover a portion of staffing costs, payroll taxes and program supports. "This is the first time the city's received an application for these services," he said, and staff recommended providing approximately half of the requested $104,000 to test the program.
Several councilmembers expressed concern about using CDBG funds to contract with a for‑profit entity rather than only awarding grants to 501(c)(3) nonprofits. Councilman Tetimer said he had reservations because CDBG money traditionally funds nonprofit services and asked whether a nonprofit could deliver the same program. Councilman Yoo echoed the concern and suggested tabling or pausing the allocation to seek more information. Staff noted the notice of funding availability window had closed and that HUD allocations would be announced in mid‑May.
After discussion the council asked staff to continue refining the plan and appointed an ad hoc — Councilmembers Tetimer and Yoo — to work with staff on finalizing the plan for adoption at the May 6 meeting. Staff also described proposed allocations to housing rehabilitation, ADA ramps and other subrecipients; staff recommended $50,000 for Boost as a pilot and said the remainder of CDBG funds would be adjusted once HUD announces the final grant amount.
Council did not adopt the plan on April 15; staff will return with a final consolidated plan and annual action plan once allocations and committee input have been resolved.
