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Study session regarding the Community Development Block Grant (CDBG) Program Year 2025-2026 Annual Action Plan and Budget Allocation. (Alvina Condon, Management Analyst II)
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RECOMMENDATION
Recommendation
Staff recommends that the Community Development Block Grant (CDBG) Subcommittee of the City Council provide feedback regarding the Program Year 2025-2026 (PY 25-26) Annual Action Plan (Action Plan) and budget.
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BACKGROUND
The purpose of this study session is to receive feedback from the CDBG Subcommittee regarding the PY 25-26 Action Plan and budget.
The U.S. Department of Housing and Urban Development (HUD) requires local jurisdictions to prepare an Action Plan for the upcoming PY 25-26 to receive funds through the CDBG Program. As part of the development of the Action Plan, the City is required to hold two public hearings. The first public hearing was held at the regular meeting of the City Council on February 26, 2025, to obtain citizens' views on housing, community, and economic development needs, which will inform the Action Plan. Additionally, for those non-profit organizations seeking CDBG funds, they used this public hearing to make brief comments to the City Council regarding their programs. The second and final public hearing is scheduled for May 28, 2025. At this meeting, the City Council will consider adopting the PY 25-26 Action Plan and make final recommendations on CDBG funding allocations.
DISCUSSION
At present, the City has not been notified of its CDBG entitlement allocation for PY 25-26 and the federal government has not yet approved the budget for HUD. Given the level of uncertainty surrounding entitlement awards, staff recommends an estimated budget of $403,568, reflecting a decrease of 9% from the entitlement amount for Program Year 2024-2025 (PY 24-25). Based on this estimate, staff have developed funding recommendations for public service sub-recipients and programs. Should the final funding allo...
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