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Study Session regarding the Community Development Block Grant (CDBG) Program Year 2026-2027 Applications and Budget Allocation. (Alvina Condon, Management Analyst II)
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RECOMMENDATION
Staff recommends that the Community Development Block Grant (CDBG) Subcommittee provide feedback regarding the Program Year 2026-2027 (PY 26-27) Annual Action Plan (Action Plan) and budget.
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BACKGROUND
This study session seeks CDBG Subcommittee feedback on the PY 26-27 Action Plan and proposed budget.
The U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to adopt an annual Action Plan to receive CDBG funds. The City must hold two public hearings: the first was conducted on February 25, 2026, to gather input on housing and community development needs and to allow nonprofit applicants to comment on their proposals. The second hearing, scheduled for May 27, 2026, will include City Council consideration of the Action Plan and final CDBG funding recommendations.
DISCUSSION
The City has not yet received its PY 26-27 CDBG allocation, therefore, staff recommends a provisional budget of $456,000, consistent with the current year's entitlement. Funding recommendations for public service subrecipients have been developed based on this estimate and other housing resources. If final allocations differ by 20% or more, staff will return to the Subcommittee and/or City Council to revise the funding proposals.
The budget outlined in Attachment 1 reflects an anticipated CDBG entitlement allocation of $456,000 to support public services, minor home repair, administration, and public improvement activities. When combined with additional funding sources-including the City's Housing Trust Fund, State Permanent Local Housing Allocation (funds), HOME Administrative funds, and as a last resort, minimal General Fund dollars. Staff estimates a total of $702,200[NS1] available to invest in public improvements, social services, and shelter.
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