National City council OKs HUD allocations for 2026–27 and backs housing rehab loan; votes on consent items and personnel actions

The National City Council on May 5 approved its FY2026–27 HUD Annual Action Plan and took several administrative actions including a small construction financing commitment for a major affordable‑housing rehabilitation project.

David MacCachren, a community development specialist, presented the draft allocations for Community Development Block Grant (CDBG) and HOME program funds. Recommended CDBG allocations include $370,000 to the National City Fire Department for essential emergency medical equipment; $61,000 to fund 0.5 FTE of an existing housing inspector (to offset general‑fund costs); $519,000 for Camacho gym upgrades to support sheltering capability; and the statutory 20% setaside for administration and fair‑housing services. For HOME, the staff recommendation included $294,000 for tenant‑based rental assistance administered through SBCS and a 15% Community Housing Development Organization (CHDO) set‑aside for future development projects.

Becky Rapp, a community health advocate, urged stronger local enforcement to keep kratom and other regulated products out of local stores after noting state enforcement actions against a manufacturer; she asked the council to “strengthen local enforcement and coordination with state agencies including increasing inspections.”

Councilmembers questioned staff about the housing‑inspection funds and the CHDO set‑aside. Staff said the $61,000 would offset roughly half of the salary of a senior code enforcement/housing inspector who will perform CDBG‑funded property inspections and that CHDO funds must be reserved for eligible CHDO organizations and cannot be diverted without meeting federal requirements. After Q&A and public comment, the council voted to approve the Action Plan by roll call.

Housing loan for rehabilitation: Angelita Palma, community development manager with the National City Housing Authority, outlined a proposal to commit $10,000 from the low‑ and moderate‑income housing fund as a construction loan to support rehabilitation of 238 of 240 units at National City Park Apartments. The developer and housing partners described a deep‑rehab scope (new windows, roofing, insulation, asbestos/mold remediation, converting to an all‑electric system and interior gut rehab). Council discussed disclosures and recusal; the motion to approve passed 4–1 with Councilmember Rodriguez recusing himself.

Other votes: The council approved consent calendar items, adopted warrant registries, authorized an RFP for towing/impound services, approved a temporary 15% base salary increase for the Director of Public Works while he serves as acting city manager (reading required under SB 707), and adopted third‑quarter budget adjustments. Most routine motions passed by roll call.

What it means: The HUD allocations set federal funds for emergency medical equipment, housing inspection capacity, park/gym upgrades and tenant assistance in National City for the coming fiscal year. The loan commitment to National City Park Apartments is intended to help the project secure tax‑exempt bond authority and tax credits by demonstrating local financial support and will trigger prevailing wage and a project‑labor agreement requirements as part of the financing.

Authorities and amounts (as presented): CDBG allocations cited by staff: $370,000 (fire/EMS equipment), $61,000 (0.5 FTE housing inspector), $519,000 (Camacho gym upgrades); HOME: $294,000 for tenant‑based rental assistance; 15% CHDO set‑aside. Housing loan: $10,000 commitment from the city’s low/moderate income housing fund; project to rehabilitate 238 units with long‑term affordability covenants (55 years) and prevailing wage/PLA requirements.