City Council

1.\nSUBSTANTIAL AMENDMENT TO THE 2025-2029 CONSOLIDATED PLAN, 2025-26\nACTION PLAN, AND RESOLUTION AUTHORIZING THE SUBMISSION OF A SECTION\n108 LOAN APPLICATION TO THE US DEPARTMENT OF HOUSING AND URBAN\nDEVELOPMENT FOR THE ALHAMBRA COMMUNITY CENTER – F2M25-36, N2M25117, R2M25-39\nThis is the time and place set by Notice No. N2M25-117 for the City Council to hold a\npublic hearing regarding the proposed First Amendment to the City of Alhambra’s 20252026 Annual Action Plan and 2025-2029 Consolidated Plan to receive comments on the\nproposed changes and with regard to the proposed reprogramming and utilization of a\nSection 108 Loan from the Community Development Block Grant (CDBG) funds. For\nProgram Year 2025-2026, the City is proposing a Substantial Amendment to the Action\nPlan and the 2025-2029 Consolidated Plan to include a $4,079,000 Section 108 Loan\nGuarantee under CDBG to fund the development of the Alhambra Community Center.\nThis effort is in alignment with the goals stated in the 2025-2029 Consolidated Plan to\nprovide public facility improvements. The Section 108 Loan Program was established to\nprovide cities with financing for large CDBG-eligible projects by using a portion of the\njurisdiction’s future CDBG grants as collateral for repayment. The maximum amount cities\ncan borrow is five times the annual CDBG grant allocation. In 2025-26, Alhambra’s\nallocation was $815,800; hence, the maximum available to Alhambra for a Section 108\nLoan is $4,079,000. Upon loan approval, entities can request a repayment period of twenty\nyears. Staff identified the Alhambra Community Center as an appropriate use of Section\n108 Loan funds under CDBG. The Alhambra Community Center Project is estimated at\n$30,900,000 for 17,000 square feet of new facility space, with approximately half of that\nspace planned for adaptive reuse. While a total of $25,000,000 from 2023 California\nBudget Act (grant) will be utilized by the City for the construction of the project, any\ndifferences that exceed the grant amount (estimated at $5,900,000) will need to be\nfinanced by the City. The City is seeking $4,079,000 in Section 108 Loan funds with\npayments from future CDBG proceeds to help finance the project, leaving $1,821,000 in\nCity financing from other sources. The Alhambra Community Center is centrally located\nat 612 West Shorb, within a low and moderate-income area for CDBG eligibility. Utilizing\nHUD defined data, the Alhambra Community Center (within a one-mile radius) is 63.7%\nlow and moderate-income, suggesting the Alhambra Community Center project will\nprovide a unique opportunity to make a profound and impactful community investment via\nthe use of CDBG restricted funds.\nFor the City to apply for the Section 108 Loan Program, it is necessary to amend the City’s\n2025-2029 Consolidated Plan and 2025-2026 Action Plan to incorporate the Alhambra\nCommunity Center Project as an activity to be funded by Section 108 Loan funds. In\naddition, HUD requires applicants to submit evidence of the citizen participation process\nfor the proposed use of funds. This item including the Substantial Amendments and the\nSection 108 Application were expected to be discussed and reviewed with the HCDA\nCitizen Advisory Committee on September 10, 2025 and October 7, 2025, however, a\nquorum could not be obtained for either meeting. Nevertheless, Committee members were\nencouraged to provide written feedback, if any, to incorporate as part of the public review\nprocess. Further, the City’s draft loan application and substantial amendments were made\navailable to the community on the City’s website and at City Hall for a minimum of 30 days\nprior to the Council conducting the public hearing, with notifications posted in the\nPasadena Star News, La Opinion and World Journal. As of this report, no public comments\nwere received.\nRecommended Action:\nCity Council 1) Conduct a public hearing on the proposed\nsubstantial amendments to the Community Development Block Grant Program for the\n2025-2029 Consolidated Plan and 2025-26 Action Plan; 2) Adopt Resolution No. R2M2539 authorizing the submission of a Section 108 Loan Application to the US Department of\nHousing and Urban Development in the amount of $4,079,000 for the Alhambra\nCommunity Center; and, 3) Direct staff to undertake the steps necessary to finalize the\nCouncil’s action.\nPRESENTATION