Whittier Council Approves HUD Annual Action Plan After Staff Warns Delay Could Not Wait

The Whittier City Council unanimously approved the city’s Program Year 2026–27 HUD Annual Action Plan Tuesday night after staff warned the item needed to move forward because the city had already received an extension from the federal government.

The item, listed as Item 8D, was initially discussed as the council considered postponing multiple public hearings to the next meeting. However, City Manager Brian Saeki noted there appeared to be concern from staff about delaying the HUD item. Ben Pongetti of Community Services then told the council that the Annual Action Plan is typically due to HUD around May 15 each year and that the city had received “special dispensation” to extend the matter to that night’s meeting.

Councilmember Mary Ann Pacheco pushed back against delaying the item, saying the report involved affordable housing funds and that staff had spent considerable time preparing a presentation to explain where the money comes from, how much is available, who is eligible, and how many people are served.

The council then continued Item 8B, the 1991 Lighting Assessment District item, and Item 8C, the Hazard Mitigation Plan item, to the June 23 meeting, while moving forward with Item 8D.

Pongetti explained that the Annual Action Plan is part of the city’s HUD-required Consolidated Plan process. He said the Consolidated Plan is a five-year plan, while the Annual Action Plan identifies the budget and activities for the upcoming year. The city’s Consolidated Annual Performance and Evaluation Report, or CAPER, will come back in September and will report on prior-year spending and accomplishments.

According to the city’s presentation, HUD published Whittier’s FY 2026–27 allocations on April 3. Whittier is expected to receive $640,024 in Community Development Block Grant funds and $282,447 in HOME Investment Partnerships Program funds. Pongetti said those amounts represent minor reductions from the prior year, totaling about $9,000 less than last year. The city also expects to receive at least $50,000 in program income in both CDBG and HOME.

The CDBG project list presented to the council totaled $690,024. The proposed CDBG allocations included $102,000 for home improvement loans, $64,024 for home improvement grants, $15,000 for a minor home repair program through California Resource Services for Independent Living, $100,000 for housing program delivery, $40,000 for Southeast Area Social Services Funding Authority senior services, $8,250 for Salvation Army Whittier Navigation Center homeless services, $47,750 for graffiti removal, $180,000 for code enforcement, $118,000 for CDBG planning and administration, $10,000 for Housing Rights Center fair housing services, and $5,000 for lead safe housing testing.

The HOME project list totaled $332,447.58. The proposed allocations included $261,836.58 for HOME owner rehabilitation loans, $42,367 for the HOME Community Housing Development Organization set-aside, and $28,244 for HOME administration.

Pongetti said the city’s CDBG target areas are based on low- and moderate-income block groups. He said the city uses code enforcement and graffiti abatement funds in those areas on an area-wide basis.

During council questions, Councilmember Aida Macedo asked how the city selects projects and whether the city has flexibility to change the types of projects funded with CDBG money. Pongetti said the city does have flexibility and that CDBG can be used for a wide variety of eligible activities. He said Whittier’s CDBG allocation was once about $1.2 million, but has been cut roughly in half over time, leading the city to run what he called a “meat and potatoes” program focused largely on housing rehabilitation.

Pongetti said about 80 percent of Whittier’s housing stock is more than 60 years old, which makes housing rehabilitation a practical use of the funds. He said code enforcement can identify properties needing repairs and provide homeowners with information about city housing rehabilitation programs.

Macedo also asked how residents learn about the programs. Pongetti said the city advertises through inserts in city water bills, calling it the cheapest method available. He said the housing rehabilitation loans are favorable because they carry zero percent interest, and that the city typically has a waiting list. Applicants must income qualify and must be property owners.

Pacheco thanked staff for breaking down the funding categories, saying the presentation helped make clear how the federal money is used. She also addressed public concerns about why CDBG money is used for code enforcement, saying code enforcement is connected to the housing rehabilitation program because it can alert homeowners to needed repairs and connect them with assistance. She also defended graffiti removal funding, saying graffiti affects community quality of life.

After the presentation, Mayor James Becerra opened the public hearing. Staff said there were no speakers on the item, and the public hearing was closed. The council then unanimously approved the Annual Action Plan and directed staff to finalize the plan and submit it to HUD.