San Bernardino council reallocates nearly $2.0M in CDBG funds to Hope Campus after residents demand stronger oversight

The San Bernardino City Council on March 4 approved a substantial amendment to the city’s annual action plan, reallocating $1,979,926.86 in Community Development Block Grant (CDBG and CDBG-CV) funds to the Hope Campus navigation center.

The vote followed public testimony that urged tighter financial controls and regular progress reporting. “Reallocating nearly $2,000,000 is not just a bookkeeping entry; it is a promise to the taxpayers and to our neighbors,” said Ron Alvarado, a lifelong resident and candidate for the First Ward, urging the council to require stronger administrative accountability.

City staff told the council that HUD rules require annual consolidated and annual action plans and that the housing division discovered the unspent funds while auditing projects dating back to 2019. A staff spokesperson said staffing was skeletal during the city’s bankruptcy period and that projects sometimes did not proceed, leaving funds available for reallocation. The city framed the amendment as a necessary step to avoid losing entitlements that are scheduled to expire.

Several residents and speakers asked for quarterly updates and independent audits to ensure the money buys beds, meals, and pathways to stability rather than being reallocated again. “We must ensure that every dollar results in a bed, a meal, or a path to stability,” Alvarado said. Dorothy Navarres, a Ward 5 resident, asked the council to establish checks and balances and to publish quarterly spending reports.

Councilmember Ortiz said the city has encountered repeated years of unspent funds and emphasized the urgency: “We have till the end of this year to expend these funds and build this campus—or we’re going to be responsible for giving this money back.”

After staff explained the HUD compliance rationale and the city’s plan to monitor performance, digital voting showed unanimous council approval. The council’s action directs staff to allocate the funds to the Hope Campus project and to continue monitoring compliance with HUD requirements.

The vote concludes the public-hearing portion of the item; staff will return with contract and program details and any required reporting timelines tied to the project.