CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: JULY 14, 2026
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVE THE FY 2026-2027 ANNUAL ACTION PLAN FOR NEW
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME
INVESTMENT PARTNERSHIPS PROGRAM (HOME),
EMERGENCY SOLUTIONS GRANT (ESG), AND HOUSING
OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) FUNDS
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) subrecipient agreements and Memorandum of Understandings associated with the Fiscal Year 2026-2027 Annual Action Plan for a term starting July 1, 2027;
2. Approve substantially in the form attached the United States Department of Housing and Urban Development Fiscal Year 2026-2027 Annual Action Plan for new federal CDBG, HOME, ESG, and HOPWA funds totaling $9,505,222.89; and
3. Designate the Director of the Housing and Community Development Department, or her designee, as the Certifying Official authorized to execute all documents related to the administration, management, and implementation of the CDBG, HOME, ESG, and HOPWA programs and authorize de minimis changes that do not substantially change the terms and conditions of the Annual Action Plan, as determined by the City Attorney’s Office.
BACKGROUND:
The City of Anaheim receives an annual funding allocation from the U.S.
Department of Housing and Urban Development (HUD) for four major programs:
Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA). These funding programs address critical, 201 S. Anaheim Blvd.
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Approval of FY 2026-2027 Annual Action Plan for CDBG, HOME, ESG, and HOPWA Funding July 14, 2026
unmet local needs in the areas of affordable housing, public facilities, homelessness, infrastructure, economic development, and public services.
As a recipient of HUD funding, federal regulation 24 CFR 91.200(a) requires the City to have an established Consolidated Plan. The Consolidated Plan serves as five-year long-range plan that outlines the City’s priorities for the use of HUD funding. The City’s current Consolidated Plan covers the period of 2025-2029 and was approved by the City Council on July 22, 2025. Each year, an Annual Action Plan (AAP) is developed to outline specific projects and activities that align with the Consolidated Plan’s goals. The Annual Action Plan covers a federal fiscal year (FY) that runs from July 1 to June 30 of the following year.
For FY 2026-2027, the proposed entitlement budget for the four programs discussed herein is $9,505,222.89. The entitlement budget will not be finalized until the City receives the HUD agreements from the HUD field office confirming the final award. If changes to the allocation occur, subrecipient allocations will increase or decrease proportionate to anticipated needs. Additionally, the city identifies carryover funds and program income from previous years that can be used for current and future planning projects.
The breakdown of the FY 2026-2027 anticipated allocation and carryover funds for each specific program is as follows:
Proposed FY 2026-2027 Activities
Recommended Allocations
The AAP for FY 2026-2027 identifies how the City will utilize the new entitlements and any applicable carryover or program income funds which supplement programming budgets for the year. More details on proposed programming and activities can be found in Section AP- 20 or Appendix A of Attachment 1, but include:
Funding Source Amount
CDBG FY26/27 Entitlement $ 3,964,701
CDBG (est. carryover) $ 532,484
CDBG (est. program income) $ 66,789 Subtotal CDBG Funds $ 4,563,974
HOME FY26/27 Entitlement $ 1,306,590.89
HOME and HOME-ARP (est. carryover) $ 2,149,932.75 HOME (est. program income) $ 93,444.69 Subtotal HOME Funds $ 3,549,968.33
ESG FY26/27 Entitlement $ 357,380
ESG (est. carryover) $ 6,164
Subtotal ESG Funds $ 363,544
HOPWA FY26/27 Entitlement $ 3,876,551 HOPWA (est. carryover) $ 3,102,418
Subtotal HOPWA Funds $ 6,978,969
TOTAL $ 15,456,455.33
Approval of FY 2025-2029 Consolidated Plan and FY 2025-26 Annual Action Plan for CDBG, HOME, ESG, and HOPWA Funding July 14, 2026
Community Development Block Grant
Activity Proposed Allocation
Fair Housing Services $ 90,000
Code Enforcement and Res. Rehab. Activities $ 1,636,959 Public Facility Improvements $ 929,067 Economic Development Activities $ 250,000 Community and Public Services including Services for
Youth, Families, Disabled, Seniors, and Disenfranchised Populations (15% max. cap)
$ 594,705
Grant Administration $ 702,940
Total Program Costs $ 4,203,671
HOME Investment Partnerships Program
Activity Proposed Allocation
Community Housing Development Org. (15% req.) $ 195,989 Tenant-Based Rental Assistance Programs $ 1,184,942 Grant Administration $ 130,659
Total Program Costs $ 1,511,590
Emergency Solutions Grant
Activity Proposed Allocation
Homeless Management Information System Services $ 72,248 Homelessness Prevention $ 50,000
Emergency Shelter $ 210,000
Grant Administration $ 26,804
Total Program Costs $ 359,052
Housing Opportunities for Persons with AIDS
Activity Proposed Allocation
Tenant-Based Rental Assistance $ 2,012,000 Emergency Housing Services $ 800,000 Facility-Based Housing Assistance $ 80,040 Supportive Services $ 45,750
Affordable Housing Development $ 3,000,000 Grant Administration and Resource Identification $ 166,297 Total Program Costs $ 6,104,087
This year’s allocations include but are not limited to the continuance of tenant-based rental assistance programs for families, seniors, homeless individuals, and individuals living with HIV/AIDS; the funding of shelter beds for transition-aged youth, victims of domestic violence, and families with minor children; Americans with Disabilities Act (ADA) upgrades to the Harbor Station and City Hall for increased accessibility; economic development technical assistance for small-business-owned childcare services; and park improvements at Schweitzer Park. In total, the recommendations reflect $12,178,400 in commitments to housing and community development activities.
Approval of FY 2026-2027 Annual Action Plan for CDBG, HOME, ESG, and HOPWA Funding July 14, 2026
Fiscal Year 2026-2027 Programmatic Evaluations and Changes Every fiscal year, City staff evaluate the performance of entitlement programs and recommend changes to guidelines to better align programming to HUD expectations. Each year the City also releases new applications or bidding cycles to re-evaluate services rendered by long-term providers. This fiscal year, the CDBG public services application guidelines were updated to bring evaluation metrics closer to the priorities and needs outlined in the Consolidated Plan and to increase the minimum grant award to subrecipients. This update was necessary because the last comprehensive update was completed in 2012. This review and update allows for continued compliance with regulations and recommendations made by HUD.
Under the HOPWA program, a Request For Applications (RFA) was released in February 2026 to solicit services for people living with HIV/AIDS. The RFA followed the mutual dissolution of a longstanding partnership with the Orange County Health Care Agency in favor of closer contract management between the City and community-based organizations, eliminating the need for a passthrough agreement. As a result, the proposed funding recommendations include four new contracts with operators of services for special needs households.
Professional Service Agreements
The HUD entitlement programs fund several professional service agreements that provide specialized technical assistance necessary for grant administration, regulatory compliance, and implementation of federally funded activities. In 2024, the city released a Request for Proposals to procure on-call HUD technical assistance services. That solicitation resulted in contracts with Priscila Davila and Associates, Inc. and Cloudburst Consulting Group, Inc., which continue to provide ongoing HUD grant management and technical assistance services through March 2028. Funding for these agreements is provided annually through the CDBG Grant Administration budget.
The Community Development Block Grant (CDBG) Residential Rehabilitation Program also requires specialized administrative services to implement the City's federally funded owner- occupied rehabilitation activities. Following Habitat for Humanity's departure as the City's program partner in 2025, staff completed a comprehensive review of the program, updating policies and procedures, refining loan documentation and eligibility requirements, modernizing the application process, and implementing a new program delivery model. In October 2025, the City Council approved the updated Residential Rehabilitation Program policies and procedures and authorized an initial sole-source agreement with John Sottek dba Housing Programs to assist with implementation of the revised program and processing of existing applicants.
Implementation of the revised program also requires escrow trust account services to facilitate timely payments to contractors performing rehabilitation work. Under the updated program model, homeowners select qualified contractors from an approved pool, and construction payments are administered through an escrow trust account rather than through reimbursement to a nonprofit partner. This approach strengthens financial controls while helping ensure timely payment to contractors.
Approval of FY 2025-2029 Consolidated Plan and FY 2025-26 Annual Action Plan for CDBG, HOME, ESG, and HOPWA Funding July 14, 2026
Funding for both the Residential Rehabilitation Program administration services and escrow trust account services is included within the FY 2026-2027 CDBG program budget reflected in this Annual Action Plan. Authorization to waive Council Policy 4.1 and approve the associated professional service agreements is being requested under a companion agenda item. Separating the procurement actions from the Annual Action Plan allows this report to focus on the City's proposed use of HUD entitlement funds, while the companion report addresses the procurement method and contract approvals necessary to implement those activities.
Citizen Participation
The drafting of the Annual Action Plan is meant to elicit feedback from the community and affected parties to identify local priorities that should be reflected in the proposed allocations.
To this end, City staff attended all six District meetings in February 2026 and solicited feedback from 99 total residents on priority areas. Additionally, City staff held a public hearing on March 18, 2026, at the Housing and Community Development Commission (HCDC) meeting to hear in-person comments on needs and priorities.
This feedback, along with priorities set by the Consolidated Plan were used to draft the initial FY 2026-2027 Annual Action Plan. On April 27, 2026, the draft Plan was posted for a 30- day public comment period. On June 3, 2026, the HCDC held a public hearing to hear final comments on the draft FY 2026-2027 Annual Action Plan and voted to recommend that the City Council approve the drafted Plan. All public comments received during the entirety of the drafting process were accepted by City staff and summarized in Appendix B of Attachment 1.
Federal Directives
City staff continue to monitor the status and implementation expectations of a series of federal executive orders issued in January and February 2025, including Executive Orders:
14168 (Prohibition on Using Grant Funds to Promote Gender Ideology); 14182 (Prohibition on Using Grants to Fund or Promote Elective Abortions); and 14218 (Compliance with Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) which Prohibits Undocumented Immigrants from Receiving Public Benefits).
HUD guidance issued through the local field office maintains the expectation that the Executive Orders are reflected in the development of the City’s FY 2026-2027 Annual Action Plan.
The City must submit the final FY 2026-2027 Annual Action Plan to HUD by August 16, 2026 per Notice CPD-26-05.
These requests directly support the City’s Strategic Plan Goal B: Enhance Livability, Strategy 2: Develop strategies to stabilize and expand affordable, workforce, and home ownership housing options for low-income residents, and Strategy 9: Maintain and expand services to address homelessness and its impacts.
Approval of FY 2026-2027 Annual Action Plan for CDBG, HOME, ESG, and HOPWA Funding July 14, 2026
IMPACT ON BUDGET:
All activities in the FY 2026-2027 Annual Action Plan are anticipated to be fully funded by HUD grants and are included in the FY 2026-2027 Citywide budget. In the event grant funds are reduced or eliminated, the Annual Action Plan would be amended to only support activities that are fully funded by available grant allocations. All affected parties will be notified by City staff of budget changes. There is no impact on the City’s general fund.
Respectfully submitted,
Grace Ruiz-Stepter
Housing and Community Development Director
Attachment:
1. Fiscal Year 2026-2027 HUD Annual Action Plan