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Report regarding holding a public hearing on the City of South San Francisco's Community Development Block Grant (CDBG) Program Year 2026-2027 (PY 2026-27) Annual Action Plan and adopting a resolution approving the Annual Action Plan; authorizing its submittal and all other required documents to the U.S. Department of Housing and Urban Development; accepting funds and approving appropriation of CDBG and HOME Administrative Funds to be incorporated into the City’s proposed budget for Fiscal Year 2026-27; and authorizing the City Manager or authorized designee to execute all documents and certifications necessary to secure and award CDBG and HOME Administrative Funds. (Alvina Condon, Management Analyst II)
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RECOMMENDATION
Recommendation
Staff recommend that the City Council hold a public hearing to receive public testimony on the Program Year 2026-2027 (PY 2026-27) Annual Action Plan (Action Plan) for the Community Development Block Grant (CDBG) Program and adopt a resolution:
1. Approving the CDBG PY 2026-27 Action Plan;
2. Authorizing submittal of the PY 2026-27 Action Plan and all other required documents to the U.S. Department of Housing and Urban Development;
3. Accepting funds from all sources and approving an appropriation of CDBG and HOME Administrative Funds expenditures as detailed in Attachment 1 for PY 2026-27, which are incorporated into the City’s proposed budget for FY2026-27; and
4. Authorizing the City Manager or authorized designee to execute all documents and certifications necessary to secure and award CDBG and HOME Administrative Funds for the City.
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BACKGROUND
The City of South San Francisco is required by the U.S. Department of Housing and Urban Development (HUD) to prepare an annual Action Plan as part of its Community Development Block Grant (CDBG) program. This Action Plan recognizes the City’s housing, community, and economic development priorities and allocates available CDBG funds to address these needs. See Exhibit A to the associated resolution for a draft of South San Francisco’s PY 2026-27 Action Plan.
In December 2025, the City invited public service and minor home repair agencies to apply for CDBG and housing trust fund grant funding pursuant to a Notice of Funding Availability (NOFA). Program Year 2026-27 is the first year of the City’s two-year public service grant cycle. The applications were due on January 15, 2026, and the City received ten applications for Public Services, two for Minor Home Repair, and one for Fair Housing. The CDBG Subcommittee met on March 6, 2026, and staff presented the applications and the first round of funding recommendations.
HUD requires local jurisdictions to hold two public hearings as part of the Action Plan process. The first hearing was held on February 25, 2026, to gather community feedback and hear from non-profit organizations applying for CDBG funds. During this hearing, nonprofit organizations that had applied for funding also made public comments as to the need within their programs for the funds. Staff and clients from these organizations provided information on their programs, the value of the City’s contribution to their program, and thanked City Council for their support. One written comment was also received. Comments from the February 25th public hearing and the written comments are included in the draft Action Plan.
This second public hearing on May 27, 2026, allows for further public input and City Council’s review of the final PY 2026-27 Action Plan and budget allocations. A 30-day public comment period began on April 27, 2026, with a public notice published in the San Mateo County Times on April 10, 2026.
DISCUSSION
CDBG Allocation and Budget Overview
The City has been notified of its CDBG entitlement for PY 2026-27. The City will receive $459,847 in CDBG entitlement funds. This represents an increase of $3,528 from the City’s PY 2025-26 allocation. CDBG funds will be used for public services, administration, and public improvements.
The total anticipated budget, outlined in Attachment 1, for PY 2026-27 is $707,397, combining CDBG funds with additional sources, including the Housing Trust Fund, the State of California’s Permanent Local Housing Allocation (PLHA) Program, Economic & Community Development General Fund, and HOME Administrative funds.
Funding Recommendations
At the March 6, 2026 CDBG Subcommittee meeting, staff presented a draft budget based on a projected CDBG entitlement amount of $456,000. The preliminary allocation included $25,000 for public services, $91,200 for program administration, and $339,800 for public improvements.
For CDBG Administration, CDBG allows the City to spend up to 20% of its grant award on program Planning and Administration. Given the actual award amount of $459,847, staff propose to utilize the full budget of $91,969 for these expenses. For CDBG Public Improvements, the City did not request any applications for projects during the NOFA; however, the City will allocate $342,878 to Public Improvements. ECD staff are working with various City departments to identify priority projects that are CDBG eligible.
Minor Home Repair is a vital program to assist City residents with maintaining a safe and healthy environment while promoting housing stability. Staff has shifted the one minor home repair applicant, Rebuilding Together Peninsula, from the CDBG Minor Home Repair program to the City’s Permanent Local Housing Allocation (PLHA) - a State entitlement grant. To fulfill the City’s requirement of allocating 40% of designated PLHA funds toward Affordable Ownership Workforce Housing (AOWH), $100,000 is committed to the rehabilitation of affordable ownership housing through the Minor Home Repair Program. PLHA funds were accepted by Council on October 22, 2025 (Resolution 157-2025).
Proposed funding at $100,000 for organizations supported through the Housing Trust Fund (Fund 205), including CORA, HIP Housing, Legal Aid Society, LifeMoves, and Samaritan House, remains unchanged. The City will be supporting Friends for Youth and Renaissance Entrepreneurship Center through the Economic & Community Development Department’s FY 26-27 operating budget.
The City has targeted the HOME Administrative funds it receives from the County of San Mateo for fair housing activities since CDBG regulations require the City to affirmatively further fair housing. Fair housing activities may only be funded from administrative or public service type funds. The City received one application in this category from Project Sentinel, and staff recommend the full amount of PY2026-27 HOME administrative funds, $9,350, be awarded to Project Sentinel.
Table 1: Summary of recommended funding for PY 2026-27
|
CDBG - $459,847 |
|
|
CDBG Public Services - Rape Trauma Services |
$25,000 |
|
CDBG Administration |
$91,969 |
|
CDBG Public Improvements |
$342,878 |
|
Total |
$459,847 |
|
Housing Trust Fund - $100,000 |
|
|
CORA |
$20,000 |
|
HIP Housing |
$10,000 |
|
Legal Aid Society of San Mateo County |
$15,000 |
|
LifeMoves |
$35,000 |
|
Samaritan House |
$20,000 |
|
Total |
$100,000 |
|
ECD FY26-27 Operating Budget - $38,200 |
|
|
Friends for Youth |
$13,200 |
|
Renaissance Entrepreneurship Center |
$25,000 |
|
Total |
$38,200 |
|
PLHA - $100,000 (Up to 3 years to spend) |
|
|
Rebuilding Together Peninsula |
$100,000 |
|
Total |
$100,000 |
|
HOME Administrative Funds - $9,350 |
|
|
Project Sentinel |
$9,350 |
|
Total |
$9,350 |
FISCAL IMPACT
Approving the City’s CDBG AAP, Housing Trust Fund, and ECD General Fund allocations has no new fiscal impact on the General Fund. If approved by City Council, funding recommendations for the CDBG budget, the City’s Housing Trust Fund (Fund 205), Economic & Community Development Department FY 26-27 operating budget (which is being accommodated in our base budget and not separately requested), and the City’s PLHA will substantially align with previous funding years, as described above in Table 1.
RELATIONSHIP TO CITY COUNCIL PRIORITIES ACTION PLAN
The PY 2026-27 Annual Action Plan directly advances the City Council’s priorities related to housing stability and resident support by allocating CDBG and HOME Administrative funds to programs that prevent homelessness and expand access to supportive services. The inclusion of Housing Trust Fund and General Fund resources further reinforces the City’s commitment to assisting low- and moderate-income residents with housing needs and services. Collectively, these investments align with the Council’s goal of preserving housing stability and strengthening the social safety net for South San Francisco residents.
CONCLUSION
Staff recommend that the City Council adopt the associated resolution approving the PY 2026-27 Annual Action Plan and budget, along with taking other related actions to effectuate the recommendations included in this report.
ASSOCIATED DOCUMENTS
1. South San Francisco Community Impact PY26-27 Funding Allocations
2. CDBG PY2026-27 Annual Action Plan Presentation