South Gate committee to continue vote after staff outlines $1.7M CDBG reprogramming for street and facade projects

City staff presented a proposal on Feb. 11 to reprogram about $1,700,000 in unused Community Development Block Grant (CDBG) funds toward a construction-ready street improvement project and a consolidated commercial façade program, and the Citizen Advisory Committee voted to continue action on the amendment to the next meeting after members requested more detail.

Housing staff said the proposed reprogramming would allocate $752,540 in CDBG money to a street improvement project located in eligible CDBG census tracts, and would consolidate prior-year funds into a single commercial façade program totaling approximately $1,400,000. Housing staff also presented the draft 2024–25 annual action plan, which estimated $1,200,000 in CDBG entitlement funding and noted that 20% of that estimate—$249,001—would be set aside for administration (including $21,343 for housing services and about $227,000 for program administration).

The city’s deputy city engineer, Luis Osuna, described the street project focus: Industrial Avenue from Main Avenue to Century Boulevard would receive curb and sidewalk work, drainage improvements, ADA ramps and a pavement rehabilitation using a 1.5‑inch grind-and-overlay of rubberized asphalt. Pinehurst Avenue (Southern to Tweedy) and Hilda Avenue (Southern to Tweedy) are proposed to receive a triple cape seal. Osuna told the committee that the CDBG portion would fully fund improvements along Industrial Avenue and partially fund work on Pinehurst and Hilda. He said other city funds—roughly $5,500,000—are anticipated for the overall project, bringing the total project estimate cited in the presentation to about $6.2 million.

On timing, Osuna said plan specifications were being finalized and the city hoped to advertise for bids in March, begin construction around April 14 and complete work necessary to meet HUD timeliness requirements by June 2025, with the broader contract work finishing later in the year. Housing staff explained the reprogramming is intended to keep the city in compliance with HUD’s CDBG timeliness ratio requirement: "we have to meet a timeliness ratio," a staff member said during questions, describing the requirement that grant outlays meet HUD’s formula-based benchmarks.

Several committee members pressed staff for more detail before forwarding the amendment to city council. Committee members asked for historical spending data on the commercial façade and sign programs (how much was awarded versus banked) and for a count of businesses that have benefited from those programs. A member said the committee should review prior-year expenditures going back to 2019 given that the amendment consolidates funds from multiple years.

Public commenters urged the committee to prioritize streets and parks spending. Mario Dominguez Jr., a South Gate resident, requested $160,000 for plans and design of a splash pad at South Gate Park and suggested combining Measure A and CDBG funds to fund design work. Edgar Palayo, a resident and parks and recreation commissioner, commended the façade program concept but said unused façade funds might be reallocated to street repairs; he also suggested outreach to Metro for possible funding related to the planned Southeast Gateway Line station at Century Boulevard and Industrial Avenue.

After discussion, the committee voted to continue action on the substantial amendment (Item 1) to its next meeting so staff can provide the requested historical expenditure figures and counts of businesses served; the motion to continue passed with committee members voting in favor. The committee separately voted to receive and file the information regarding the CDBG program (Item 2) and to receive and file an informational presentation on the five‑year consolidated plan process (Item 3).