REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Kriss Casanova, Economic Development Manager
Subject:
title
Approve the Surf City ADA Improvement Grant Program
body
Statement of Issue:
The Surf City ADA Improvement Grant Program would provide reimbursement grants of up to $10,000 to eligible small businesses open to the public for qualifying accessibility improvements. Funded through the City’s Disability Access Fund, $500,000 would be allocated to help offset the cost of these improvements and support local businesses in providing more accessible spaces for the public.
Financial Impact:
$500,000 from the City’s Disability Access Fund (Fund 234) would be allocated to the Surf City ADA Improvement Grant Program. Individual reimbursement grants would not exceed $10,000 and would be awarded subject to available funding and Program eligibility requirements.
The Disability Access Fund currently has a balance of $631,409 and generates approximately $60,000 to $70,000 annually through the State-mandated fee assessed on business license applications and renewals. These ongoing revenues will continue to support eligible accessibility-related programs and activities. No General Fund contribution is required.
Recommended Action:
recommendation
Approve the Surf City ADA Improvement Grant Program; authorize the use of $500,000 of available funds from the Disability Access Fund (Fund 234) for the program; and authorize the Community Development Director, or designee, to administer the program on behalf of the City and execute reimbursement agreements and related documents with eligible applicants for individual awards not to exceed $10,000.
end
Alternative Action(s):
Do not approve recommended action and direct staff accordingly.
Analysis:
California Government Code Section 4467 requires cities and counties to collect an additional fee on business license applications and renewals to support compliance with construction-related accessibility requirements. Since 2018, the City has collected a $4 fee, with 90 percent of the revenue retained locally and deposited into the City’s Disability Access Fund. The funds may be used for eligible accessibility-related activities, including Certified Access Specialist (CASp) training and certification, financial assistance to small businesses for physical accessibility improvements, and allowable administrative costs. State law identifies the training and retention of CASps as the highest priority for use of these funds.
The City currently collects approximately $60,000 to $70,000 annually through the fee. Over time, revenues have accumulated within the Disability Access Fund, providing an opportunity to establish a program that directly assists small businesses with the cost of required accessibility improvements. A total of $500,000 is proposed to be allocated to the Surf City ADA Improvement Grant Program, while remaining and future revenues will continue to be available for CASp-related activities and other eligible accessibility compliance activities consistent with Government Code Section 4467.
The Surf City ADA Improvement Grant Program would provide reimbursement grants of up to $10,000 to eligible small businesses open to the public for qualifying accessibility improvements.
Program eligibility requirements include:
• Small business with an average of 50 or fewer employees over the past three years;
• Business is located in Huntington Beach and open to the public;
• Active City of Huntington Beach business license;
• Business and property are in good standing with the City; and
• Qualifying accessibility improvements required a City permit and received final City inspection approval on or after January 1, 2026.
Eligible improvements may include accessible paths of travel, entrances, restrooms, counters and service areas, and other qualifying accessibility improvements identified through the City’s plan review and permitting process.
The Program would operate on a reimbursement basis. Applicants would first obtain the required City permit, complete the qualifying accessibility improvements, and receive final City inspection approval. Eligible accessibility improvements would be verified through the City’s permit records, including the Summary of Accessible Upgrades - Form A, as applicable. Applicants would then submit an application with documentation of the completed improvements, eligible costs, and proof of payment. City staff would review each application to confirm eligibility prior to reimbursement.
Funding would be awarded on a first-come, first-served basis, subject to available Program funds, with individual awards not to exceed $10,000. Approved applicants would enter into a reimbursement agreement with the City prior to receiving funds.
Upon Council approval, the Community Development Director, or designee, would be authorized to administer the Program on behalf of the City and execute reimbursement agreements and related documents with eligible applicants. This approach would allow individual grants to be processed administratively without requiring subsequent Council approval for each award. Program expenditures and financial assistance provided to small businesses would be included in the City’s annual reporting to the Division of the State Architect, as required by Government Code Section 4467.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth.
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Reimbursement Agreement
2. PowerPoint Presentation