The Montebello City Council on May 13 voted unanimously to adopt its fiscal year 2026–27 Community Development Block Grant (CDBG) and HOME annual action plan, clearing a slate of federal projects and grants the city will administer.
Resident Linda Nicholas asked the council to explain a proposed CDBG allocation of about $204,000 toward restoration of the Montebello Woman’s Club, which she said is privately owned and raised questions about public benefit, prioritization and oversight. “Residents see public funds being directed towards a privately owned property,” Linda Nicholas said, asking how often the facility is open for public use and who will be responsible for monitoring the spending.
Housing division staff responded that the city follows HUD rules and a public vetting process. Rosemary (housing staff) told the council the funding allocations reflect the city’s five‑year consolidated plan, more than 60 community survey responses, and HUD‑required eligibility checks. She said CDBG program caps restrict public services spending to 15% of allocation and administrative uses to 20%, and noted the city must submit documentation and RFPs that HUD reviews.
Staff described the city’s HOME program changes: Montebello converted a prior home‑loan program to a grant program, offering grants of up to $50,000 for owner‑occupied homes that meet the established home‑value limits. Staff said the city has two completed HOME projects and three in the pipeline and that the city’s administration works closely with HUD to ensure compliance.
Council member Melendez moved to adopt the action plan; Council member Peralta seconded. The plan carried on a unanimous recorded vote.
What happens next: staff will execute the action plan consistent with HUD requirements, publish applicant documentation where required, and monitor awarded projects for compliance and reporting to both the council and federal authorities.
(Reporting based on the council public hearing, staff presentation and council vote.)