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La Mirada council approves $573,260 in CDBG projects, raises maximum rehab loan to $40,000
Summary
The City Council approved the city27s FY 2026–27 Community Development Block Grant projects, including a $543,241 housing-rehab loan pool and $30,019 for senior services, and increased the maximum loan per household from $35,000 to $40,000 to address rising construction costs.
The La Mirada City Council on Jan. 27 approved the city27s proposed 2026–27 Community Development Block Grant (CDBG) projects, confirming staff recommendations for program continuation and a loan-cap increase intended to help more low- and moderate-income homeowners complete needed repairs.
City Manager (staff) told the council the Los Angeles County Development Authority has requested submission of FY 2026–27 documents and that La Mirada27s estimated allocation is projected at $211,839, with $361,421 in unallocated program income available for a total budget of $573,260. Staff recommended continuing the housing rehab loan program and the senior services program and increasing the maximum loan per household from $35,000 to $40,000 to accommodate rising construction costs.
The change to the housing rehabilitation program is designed to fund roughly 12 loans, cover lead and asbestos abatement prior to work, and pay related administrative costs. Staff said eligible uses include interior and exterior home improvements to correct code violations and restore deteriorated conditions; block walls are not an eligible use. The deferred loan is recorded as a lien and accrues simple interest at 3%, to be repaid on sale or transfer of the property, staff said.
Councilmember DeRousse asked whether demand exceeded available funds; staff said two projects were completed in the current fiscal year, one was expected to finish in February, two were in the bidding stage, two applicants dropped out for personal reasons, and about 20 households remain on the waiting list. In response to a separate clarification, staff said the senior services allocation follows the 15% cap of the city27s annual CDBG allocation and does not include additional program income from prior loans paid off.
A motion to approve the proposed FY 2026–27 CDBG projects, authorize the city manager to execute contracts and amendments with the LA County Development Authority, and adopt program guideline updates carried on a roll-call vote.
The council approved the item and directed staff to proceed with implementing the revised program guidelines and to continue outreach to eligible homeowners on the waiting list.
