City of Montebello

The City of Montebello receives annual Community Development Block Grant (CDBG) and HOME Investment Partnerships Act (HOME) entitlement grant funds from the U.S. Department of Housing and Urban Development (HUD).

CDBG is the principal federal program providing local governments with grants to improve physical, economic, and social conditions in their communities. While spending priorities are determined at the local level, the program is primarily intended to establish and maintain a suitable living environment and expand economic opportunities for low and moderate-income residents. Applications are solicited annually from local organizations to provide services for youth, seniors, special needs, or homeless individuals. If you are interested in being notified of funding availability during the next application cycle, email your agency’s contact information to: [email protected]

CDBG Subrecipients list:

YMCA

Housing Rights Center

City of Montebello- Youth Employment Program

City of Montebello- Recreation Scholarship Program 

Heart of Compassion

CDBG Available Programs:

Commercial Façade Program

The purpose of the Commercial Façade Program is to enhance economic opportunities in the City of Montebello. The Program will provide financial assistance in the form of a grant to commercial property and/or business owners to make facade improvements to commercial buildings. The updated boundaries will include any business within the city of Montebello that is identified to be located in a Low to Moderate income area may qualify. 

The goals and objectives of the Program are as follows:

• Facilitate commercial revitalization and enhance the character in the low-mod census tract areas (51% or more of the households earn less than 80 percent of the Area Median Income)
• Preserve and beautify the Low to Moderate Income (LMI) Areas in the City
• Create a pleasant walkable environment through improvements to the visual aesthetics of commercial building facades.

The Commercial Façade Program will assist in restoring, substantially beautifying, and/or enhancing the entire façade of a commercial building.

If you are a commercial property business owner who owns a commercial property located in the city limits of Montebello and who is interested in this grant program, please read the guideline requirements and submit an application.

City of Montebello-Commercial Facade Guidelines REVISED_July 2024.pdf

City of Montebello- Application for CFP_Update-(is)03.11.24_Fillable.pdf

Contractors List_2024.pdf:    Please note that the City neither recommends nor endorses these contractors in any way.

The HOME Investment Partnerships Program funds are intended to facilitate long-term public-private partnerships in an effort to expand the availability of affordable housing. HOME funds may be used exclusively to create affordable housing for low and moderate-income residents and to help improve the homes of our Montebello Residents.

Current City Programs:

HOME Rehabilitation & Preservation Program

HOME Investment Partnerships Program (HOME) funds may be used to assist existing homeowners with the repair, rehabilitation, or reconstruction of owner-occupied units. To be eligible for HOME funds, the homeowner must be low-income and occupy the property as a principal residence. Additionally, the value of the HOME-assisted property after rehabilitation must not exceed 95 percent of the median purchase price for the area. The current home value limit for the City of Montebello is $735,300.

Eligible Repairs:

• Attic Insulation
• Bathroom, Bedroom, and Kitchen Repairs
• Doors
• Painting
• Plumbing and Electrical Improvements
• Roofing
• Safety Improvements such as GFI Outlets
• Water Heater Code Requirements
• Window Replacement
• Other Items Subject to Program Approval

Note: Remodeling, room additions and luxuries, such as A/C, high-end items are not permitted.

Loan Requirements:

• The property must be located in the City of Montebello and be the homeowner’s principle residence.
• The applicant must provide documentation providing ownership of their home, proof of homeowners or hazard insurance and current property tax receipts.
• The applicant(s) must be a citizen of the United States or legal resident alien. If married, at least one must be a legal resident alien.
• Total household gross annual income cannot exceed the maximum household income adjusted to household size. If the property has more than 1 unit, the household income for each unit must be reported, and cannot exceed the maximum household income adjusted to household size. Household income is determined annually by the Department of Housing and Urban Development, FY 2023 Income Limits Documentation System -- Summary for Los Angeles County, California (huduser.gov)
• The property must have enough equity to secure a loan amount of $50,000.
• The property taxes, mortgage payments, and home insurance must be paid to date - No late payments allowed.
• The mortgage note cannot have any balloon payments, negative amortization, interest only payments or reverse equity.
• The homeowners cannot be in a home loan modification process or trial period.

Loan Features:

• The maximum deferred loan amount is $50,000 with no payments for 15 years with an interest of 3%.
• The loan is secured by a Deed of Trust (the conditions of the city’s loan) on the property.
• The loan is due and payable to the city when the house is sold, no longer owner-occupied, ownership is transferred, refinanced with cash-out or at the death of the last surviving person signing the Deed of Trust.
• Loan costs are disclosed in writing before any agreements are signed but include a title report, recording fees, loan set-up and document preparation fees.
• The program loan covers the cost for all home improvements and the loan-closing costs made by the city for the homeowner. The homeowner does not receive any cash. Funds are paid directly to the licensed contractor with the homeowner's approval. Homeowners and/or household members are prohibited from performing any type of work under the program.

If you are interested in pre-qualifying for this program, please contact the Housing Division via email at [email protected] or by phone (323)887-1200 Ext. 1318.

HRPP Brochure - 2023.pdf

Contractors List_2024.pdf Please note that the City neither recommends nor endorses these contractors in any way.

Community Housing Development Organization (Acquisition and Rehabilitation)

At least 15 percent of HOME funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). A CHDO is a specific type of private nonprofit entity. CHDOs must meet certain requirements pertaining to their:

• Legal status;
• Organizational structure; and
• Capacity and experience.

HUD Notice CPD 97-11 (included in the Appendix) details these requirements.

If you are a CHDO who is interested in HOME Program Funds, please contact the Housing Division via email at [email protected] or by phone (323)887-1200 Ext. 1454.

On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) which provides $2 Trillion in emergency funds to support individuals and businesses affected by the Coronavirus (COVID-19) pandemic and economic downturn. Under the CARES Act, $5 billion was set aside in CDBG Coronavirus (CDBG-CV) funding to prevent, prepare and respond to COVID-19.

Of this amount, the City of Montebello was allocated $391,402 in the first round and $518,749 in the third round of CDBG-CV funding for a combined total of $910,151. (The second round of CDBG-CV funding was provided directly to the State Department of Housing and Community Development to be distributed to jurisdictions with a large homeless population. The City of Montebello was not eligible to receive CDBG-CV2 from the State.)

Click on the link below to view a Draft of the Annual Action Plan Amendment Number 2:

2nd Amendment AAP 2020-2021 - City website.pdf

For any questions regarding the CDBG-CV Funds, contact the Housing Manager at:

(323)887-1200 Ext. 1454

The American Rescue Plan (ARP) provides $5 billion to assist individuals or households who are homeless, at risk of homelessness, and other vulnerable populations, by providing housing, rental assistance, supportive services, and non-congregate shelter, to reduce homelessness and increase housing stability across the country. These grant funds will be administered through HUD’s HOME Investment Partnerships Program (HOME).

The City anticipates receiving approximately $1,088,774 of HOME-ARP funds which must be used to primarily benefit individuals or families from the following qualifying populations:

• Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a));
• At-risk of homelessness, as defined in section 401(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(1));
• Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking, as defined by the Secretary;
• In other populations where providing supportive services or assistance under section 212(a) of the Act (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability;
• Veterans and families that include a veteran family member that meet one of the preceding criteria.

HOME-ARP funds can be used for four eligible activities:

• Production or Preservation of Affordable Housing
• Tenant-Based Rental Assistance (TBRA)
• Supportive Services, including services defined at 24 CFR 578.53(e), homeless prevention services, and housing counseling.
• Purchase and Development of Non-Congregate Shelter.  These structures can remain in use as non-congregate shelter or can be converted to:  1) emergency shelter under the Emergency Solutions Grant program; 2) permanent housing under the Continuum of Care; or 3) affordable housing under the HOME Program. 

HUD Approved HOME-ARP Allocation Plan:

City of Montebello- HOME-ARP PLAN- May 2023.pdf

As the City receives CDBG funds directly from HUD, it must make strategic decisions on how to administer and fund its local programs. CDBG regulations guide the City's planning, implementation, and evaluation of its use of CDBG funds, which are incorporated into the following plans:

2023-2024 Annual Action Plan - FINAL.pdf

2022-2023 CAPER.pdf

2020_2025_Montebello_ConPlan_converted_1.pdf

Analysis of Impediments to Fair Housing Choice (AI).pdf

Citizen Participation Plan 2020.pdf