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Costa Mesa Allocates $1.1 Million for Low-Income Support

News Summary

Costa Mesa city leaders have approved nearly $1.1 million in federal grants to assist low-income residents and at-risk individuals. This funding, primarily from Community Development Block Grants, aims to enhance local housing programs and services. Key allocations include improvements to neighborhoods, support for nonprofits, and funding for affordable housing projects, showcasing the city’s commitment to addressing community needs. City officials stress the importance of these funds to improve service accessibility and quality of life for vulnerable residents.

Costa Mesa city leaders have allocated nearly $1.1 million in federal grants to support programs aimed at assisting low-income residents and those at risk of homelessness. This decision was made during a recent city council meeting, with a focus on anticipated Community Development Block Grants (CDBG) and funds for housing rehabilitation and assistance.

The funding comes from the U.S. Department of Urban Housing and Development (HUD) and is designed to bolster local programs that benefit moderate- to low-income households. Costa Mesa receives CDBG funding annually, targeting residents who fall within HUD’s definition of low-income, which includes households earning $108,300 for a two-person household and $67,700 considered very low-income.

This year’s CDBG allocation consists of $907,261 plus an additional $172,000 from previously unspent grants, bringing the total to $1.1 million. Proposed allocations from the CDBG funding include $251,720 for improvements to Wilson Street, $385,000 to fund code enforcement officers in eligible neighborhoods, and $136,089 set aside for public service grants to selected nonprofits.

Nonprofits receiving funding this year encompass Families Forward, Human Options, Project Hope Alliance, Assistance League of Newport-Mesa’s Operation School Bell, and Trellis International. Each of these organizations will receive varying amounts to support their work with low-income individuals and families in the community.

The Housing and Public Service Grant Committee faced challenges in effectively distributing the funds to maximize their impact within the community. In addition to the CDBG funding, the city is set to receive $378,720 as part of its annual HOME Investment Partnership Grants for 2025-26, combined with $1,735,283 previously banked, which totals over $2.1 million for housing projects.

Allocations from HOME funds include $200,000 for tenant-based rental assistance, $319,323 designated for loans and grants for single-family residence rehabilitation, and $1.5 million reserved for future affordable housing projects. One notable potential project involves converting a Motel 6 into residential units to address the shortage of affordable housing.

City officials expressed concerns regarding the potential freezing of federal funds, which could occur under different governmental administrations. Nevertheless, they noted a strong bipartisan support for these assistance programs at the federal level that could benefit local communities.

Mayor Pro Tem Manuel Chavez highlighted the significance of these funds being returned to the city to support and assist its community members. The city has also previously partnered with a nonprofit developer, Jamboree Housing Corp., to construct affordable senior housing on city property.

The proposed senior housing project aims to provide 70 units targeted for low-income seniors, including 34 units designated as permanent supportive housing. This development is designed to offer case management services and other life improvement resources for its occupants.

City officials anticipate that the funding will lead to significant improvements in service accessibility and community support for vulnerable residents of Costa Mesa. These initiatives reflect the city’s ongoing commitment to enhancing the quality of life for all its residents through strategic funding and partnerships.

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Author: HERE Costa Mesa

HERE Costa Mesa

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