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Item Number: H.5. CITY COUNCIL REPORT SUBJECT: Resolution No. 2627 - Notice of Application and Potential Conflict of Interest – City of Tolleson Housing Rehabilitation Program MEETING DATE: December 4, 2025 TO: Mayor and Council FROM: George Good , Chief of Social Impact REVIEWED: Reyes Medrano, Jr., City Manager PURPOSE: The Human Services Department requests that the City Council adopt Resolution No. 2627 regarding notice of an application and potential conflict of interest under the City of Tolleson Housing Rehabilitation Program. BACKGROUND: The City of Tolleson participates in the U.S. Department of Housing and Urban Development’s Community Development Block Grant Program, which funds the City’s Housing Rehabilitation Program. The program is administered in partnership with the City of Tolleson by AllThrive365 (FSL Home Improvements). The City has received an application for Housing Rehabilitation Program assistance from Diana L. Ruiz, who currently serves as a City of Tolleson Planning and Zoning Commissioner. Because Ms. Ruiz is a City-appointed official, her application triggers conflict of interest requirements under HUD’s Community Development Block Grant regulations. DISCUSSION: To request an exception to a conflict of interest restriction, HUD requires the City to provide disclosure of the potential conflict, demonstrate that there has been public disclosure of the conflict, and obtain a written legal opinion stating whether granting the exception would violate State or local law. Adoption of Resolution No. 2627 will allow the City to begin this required process. Following adoption, the City Clerk will post the public notice online and in at least three conspicuous locations in City buildings for a period of 30 days. When the public comment period closes, the City will request a written legal opinion from its legal counsel. The attorney’s opinion, along with documentation of the public disclosure process, will then be submitted to HUD for review. HUD’s determination will decide whether the City may proceed with providing Housing Rehabilitation Program assistance to Ms. Ruiz. BUDGET IMPACT: There is no negative budget impact associated with adopting Resolution No. 2627. All required follow-up actions are routine administrative functions. RECOMMENDATION: Staff recommends approval of Resolution No. 2627 regarding notice of an application and potential conflict of interest under the City of Tolleson Housing Rehabilitation Program. ATTACHMENTS: 1. Res 2627 CDBG Program Housing Rehab Conflict of Interest - Diana Ruiz - Planning and Zoning Commissioner 12 04 25