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South Gate CAC reviews CDBG substantial amendments, plans demolition at 9001–9019 Long Beach
Summary
Staff presented proposed reallocations across multiple CDBG annual action plans to address HUD timeliness issues, including a $225,000 demolition/clearance project at 9001–9019 Long Beach to enable a Habitat for Humanity housing project; the committee received the report and offered public comment urging funds for neighborhood revitalization.
City staff and consultant Annamarie Lanou presented an informational report on proposed substantial amendments to multiple Community Development Block Grant (CDBG) annual action plans at the South Gate Citizen Advisory Committee meeting Wednesday night. The amendments are intended to address HUD "timeliness" requirements by shifting funds from stalled projects into activities ready to proceed.
Key proposed changes include moving $60,000 from a prior fiscal year neighborhood revitalization allocation into the current FY 25/26 neighborhood revitalization program; removing three park projects from FY 24/25 (including a $55,000 sports‑complex gymnasium divider, $64,254 girls’ clubhouse renovations and $120,000 in roof replacements) and reallocating those funds to more ready activities such as the Swim Stadium scoreboard (bringing that project to $144,254 after adding $64,254), demolition and clearance, and other projects. In FY 25/26 staff recommended removing an unimplemented $50,000 small‑business grant assistance allocation and moving that money to the neighborhood revitalization program, and proposing a new demolition and clearance project budgeted at $225,000.
Staff explained the demolition site is a contaminated parcel at 9001–9019 Long Beach (owned by the successor agency/housing authority) that must be demolished before remediation and transfer to a developer; Habitat for Humanity is listed as the partner to build approximately 11 townhomes on the site. For HOME program funds, staff said approximately $1,300,000 was available in an affordable housing project line and recommended moving $340,000 to the HOME residential rehabilitation program to increase the available rehab balance to about $381,000 and allow additional projects to proceed this fiscal year.
Lanou said projects stalled for a combination of reasons: cost estimates that proved too low, contractor bids that came in higher than anticipated, and staff turnover that delayed getting packages to bid. Staff said several larger projects—shade structures (about $600,000) and ADA resurfacing of a top lot (about $120,000)—remain moving forward.
The presentation also described the annual action plan process and the NOFA timeline: staff estimated a FY26/27 CDBG allocation of about $1,100,000 (final amounts depend on HUD appropriations). Under program rules cited by staff, up to 20% of the allocation can be used for administration and planning and up to 15% for public services; staff said that leaves roughly $715,000 for non‑public service/CIP projects in the estimate.
A member of the public sharply criticized prior departmental delivery, named former parks director Steve Costley and urged the CAC to prioritize the home/neighborhood revitalization program rather than continued facade programs. The commenter said many previously approved park projects were not delivered and urged that more CDBG dollars go to programs that directly benefit residents.
The CAC did not take action on the amendments; members moved to "receive and file" the informational report so public comments could be forwarded to the City Council, and the motion passed on roll call. Staff said the substantial amendment process will include required public notice, a comment period, and a City Council public hearing as part of HUD citizen participation requirements.
