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Oxnard Council approves reallocation of CDBG and HOME funds for three housing projects; HUD waiver pending
Summary
The City Council approved a substantial amendment reallocating federal Community Development Block Grant and HOME funds to support Casa Aliento and Dolores Huerta housing projects and other activities, while staff awaits a pending HUD waiver that could change final funding amounts.
The Oxnard City Council on Jan. 21 approved a substantial amendment to the city's 2023-24 annual action plan to reallocate Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds for local affordable housing projects and supportive housing activities.
City staff told the council the amendment reallocates funds to support Casa Aliento (the former Vagabond motel redevelopment) and the Dolores Huerta apartments, among other activities, but noted the U.S. Department of Housing and Urban Development (HUD) has not yet approved a requested waiver that would allow the city to cover eligible expenses incurred before the council's approval. If HUD denies the waiver, staff recommended a lower funding allocation for Dolores Huerta and shifting more funding to Casa Aliento.
The amendment passed on a 7-0 vote. Councilmember Mikayla Perez moved approval; Councilmember John Perallo seconded. The clerk recorded unanimous votes from Mayor Pro Tem Gabriel Turan, Mayor McArthur, Councilmembers Perez, Rodriguez, Starr, Basula and Perallo.
City staff provided specific program details during the hearing. The Dolores Huerta development is a 58-unit project with set-asides for farmworker households and veterans; the Casa Aliento redevelopment of the former Vagabond motel includes project-based voucher commitments. Staff said project-based vouchers and other eligibility screens will require multiple eligibility checks by continuum-of-care partners, the housing authority and the property managers before units are leased. The staff presentation also described a contingency plan that would reduce the Dolores Huerta allocation from the originally proposed amount to a smaller figure if HUD does not grant the waiver.
Public testimony included comments from community advocates and a representative of the developer's partners urging continued support to avoid a financing shortfall. One caller, Barbara Macri Ortiz, urged council approval to prevent the project from stalling and cited prior delays tied to layered funding and infrastructure requests.
What happens next: staff said they submitted the waiver request to HUD and expected a response within days to weeks; if HUD denies the waiver, staff will implement the alternative allocations described in the staff report and will proceed with projects under the revised funding levels. The council directed staff to proceed with the amendment as written and to complete the necessary agreements and certifications required by HUD and the city.
Votes at a glance: The council approved the amendment 7-0. The motion was moved by Councilmember Mikayla Perez and seconded by Councilmember John Perallo.
