To: MAYOR AND CITY COUNCIL
From: JOY A. FORD, CITY ATTORNEY
STEPHANIE JOHNSON, QUALITY OF LIFE PROSECUTOR
TITLE
title
ADOPT BY 4/5 VOTE AND BY TITLE ONLY RESOLUTION NO. CC-2606-034, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, AUTHORIZING A 2025-2026 FISCAL YEAR BUDGET MODIFICATION TO APPROPRIATE $150,705.93 IN COMMUNITY DEVELOPMENT BLOCK GRANT CARES ACT (CDBG-CV) FUNDS TO THE INTERGOVERNMENTAL GRANTS FUND FOR HOUSING NAVIGATOR SUPERVISOR SALARY REIMBURSEMENT ($75,167.45) AND PALLET SHELTER OPERATIONS ($75,538.48)
end
EXECUTIVE SUMMARY
In early 2026, Community Services staff, working with the City’s Community Development Block Grant (CDBG) consultant, identified available, unspent funds totaling $150,705.93 related to the City’s 2020 CDGB CARES Act (CDBG-CV) award to address interim housing and homelessness. Staff confirmed with the City’s CDBG consultant, MNS Engineers, Inc., and grantor that funding is available with a spending deadline of December 31, 2026. Of the total, $75,167.45 is eligible for salary reimbursement, while the remaining $75,538.48 can support operations. The City Attorney’s Office has identified the Housing Navigator Supervisor salary costs and Pallet Shelter operating costs as eligible uses for each funding category.
The initial award occurred in prior years, with budget not carried forward through the current year. Therefore, the City requires a budget appropriation to spend funds. Staff recommends that the City Council adopt the resolution to appropriate available unspent CDBG-CV funds to the Intergovernmental Grants Fund for Housing Navigator Supervisor’s salary reimbursement and Pallet Shelter operations.
BACKGROUND
The 2020 Congressional CARES Act provided additional funding allocations from the U.S. Department of Housing and Urban Development (HUD), specifically to support programs and services that helped agencies respond to the COVID-19 pandemic. The City of Redondo Beach allocated these funds towards the City’s response to homeless services, including housing navigation and operations of the pallet shelter, both of which are eligible expenses. In total, the City has $150,705.93 available CDBG-CV funds, with $75,167.45 available for personnel expenses, and $75,538.48 available for operations of the Pallet Shelter.
The Redondo Beach Pallet Shelter provides people who are experiencing homelessness with a place to stay while they work to acclimate to a more structured lifestyle and secure permanent housing. The City has historically funded Pallet Shelter operating costs through external grant funding, specifically the California Permanent Local Housing Allocation (PLHA). Currently, the City has exhausted its 2019 to 2023 allocations, and is awaiting a NOFA regarding the City’s 2024 and 2025 allocations. Half of the CDBG-CV funds will be used to support ongoing operational costs to run the Pallet Shelter program through September 30, 2026. The other half will be used for the salary of the Housing Navigator Supervisor.
Staff will budget for both programs in the Intergovernmental Grants Fund for appropriate tracking and monitoring. Staff will charge Pallet Shelter operating costs directly to the accounts set up for that purpose, and the Housing Navigator Supervisor will charge time directly to the Intergovernmental Grants fund accounts up to the appropriated amount. Because the Housing Navigator Supervisor’s full salary is budgeted in the General Fund, directly charging the CDBG-CV funded amount to the Intergovernmental Grants Fund will result in General Fund savings.
Staff recommends that the Mayor and Council adopt the resolution to appropriate the CDBG-CV funds for the purposes described above.
COORDINATION
The City Attorney’s Office coordinated with the Community Services and Finance Departments in preparation of this Administrative Report and Resolution.
FISCAL IMPACT
The CDBG-CV grant funding will support the City’s portion of operational expenses at the Redondo Beach Pallet Shelter through September 30, 2026. It will offset a portion of the Housing Navigator Supervisor’s salary, resulting in a $75,167.45 General Fund savings.
Submitted by:
Joy A. Ford, City Attorney
ATTACHMENTS
• Resolution No. CC 2606-034