The Fortuna City Council voted 5-0 on Oct. 5 to authorize an application to the California Department of Housing and Community Development for approximately $1 million in existing Community Development Block Grant program income.

Under Resolution 2026-34, the proposed program would dedicate $900,000 to revolving business-assistance loans and $100,000 to grants for improvements in Fortuna’s downtown character area. Proposed facade grants would range from $5,000 to $25,000.

The vote authorized the city to seek state approval; it did not award loans or grants to individual businesses or property owners. Final facade guidelines and design standards are expected to return to the council after stakeholder input and state review. Staff said the program would have no General Fund impact.

The Oct. 5 regular-meeting agenda listed the CDBG program-income application and Resolution 2026-34 for council consideration. The city must still receive HCD approval, and eligibility rules and recipients have not been finalized.