CITY OF ARCATA
SPECIAL CITY COUNCIL MEETING
AGENDA
Thursday, February 26, 2026, 5:00 p.m.
Council Chamber
736 F Street, Arcata
Special accommodations for the disabled who attend City meetings can be made in advance by contacting the City Clerk at 822-5953. Assistive listening devices are available. _____________________________________________________________________________________ Pursuant to Government Code section 54957.5, all writings or documents relating to any item on this agenda which have been provided to a majority of the City Council, including those received less than 72 hours prior to the City Council meeting, will be made available for public inspection in the agenda binder located on the counter in the lobby at Arcata City Hall, 736 F Street, during normal business hours, and on the City's website at www.cityofarcata.org.
PLEASE NOTE: Speakers wishing to distribute materials to the City Council at the meeting are requested to provide 10 copies to the City Clerk.
_____________________________________________________________________________________ How to Observe and Participate in the Meeting:
Observe:
Members of the public can attend the meeting in person.
Public Comment Participation in Person:
Members of the public may attend the meeting in person and give public comment.
1. CALL TO ORDER
2. LAND ACKNOWLEDGMENT
3. ROLL CALL
4. PUBLIC COMMENT
During special meetings, public comment is only taken at the beginning of the meeting. Pursuant to the Brown Act Section 54954.3(a), the public comment period provides an opportunity for people to address the Council only on items that are listed on the Special City Council Meeting Agenda.
5. OLD BUSINESS
a. Provide Direction on Potential Projects the City May Submit for Funding Under the State Community Development Block Grant (CDBG) 2025 Notice of Funds Availability (NOFA).
6. ADJOURNMENT
STAFF REPORT – CITY COUNCIL MEETING
TO: Honorable Mayor and City Council Members
FROM: Director of Community Development David Loya
PREPARER: Sara Cunha, Community Development Specialist
DATE: February 26, 2026
TITLE: Provide Direction on Potential Projects the City May Submit for Funding Under the State Community Development Block Grant (CDBG) 2025 Notice of Funds Availability (NOFA).
RECOMMENDATION:
It is recommended that the Council:
1) Open the Public Hearing and receive public comment on potential projects for funding under the CDBG 2025 NOFA;
2) Provide direction to staff regarding the activities for which the City should draft an application; and
3) Direct Staff to notice a hearing to authorize submission of the City’s 2025 CDBG Application.
INTRODUCTION:
The State Department of Housing and Community Development (HCD) released the amended 2025 CDBG NOFA on December 15, 2025. The 2025 CDBG NOFA has an application deadline of April 3, 2026. This hearing is required to receive public input regarding projects the City should consider applying for. Staff recommend the Council receive public comment, consider the project list (Attachment A), and provide staff direction on which activities to apply for.
BACKGROUND:
The City Council held a hearing on February 4, 2026, to discuss potential programs or projects for the 2025 CDBG NOFA. Staff held a noticed scoping meeting on February 17, 2026. And the Council’s February 18, 2026, meeting is the third opportunity for public input. Staff will provide updates from the February 17 meeting to the Council.
Approximately $27 million in federal funds will be allocated to eligible jurisdictions through the federal Small Cities Community Development Block Grant (CDBG) for the 2025 funding year, with funds provided as grants to Non-Entitlement Jurisdictions. Of this $27 million, $9,250,000 has been set aside for housing and economic development projects and programs, while $ 7,300,000 is set aside for planning and public services. An additional $2,000,000 is set aside for local administration.
The City currently has two active CDBG grants, one for Economic Development and Planning activities, utilizing this funding for its Business Assistance and Microenterprise loan programs, and one for Planning and Technical Assistance for the planning and feasibility of a Valley West Neighborhood Center.
The City is eligible to apply for the 2025 NOFA.
DISCUSSION:
City Council will decide which CDBG activities the City will include in the 2025 CDBG application. At the Public Hearing on February 4, 2026, Council reviewed a number of potential eligible activities the City may submit for funding under the CDBG 2025 NOFA, which encompasses the following eligible activities; Public Service and Planning and Technical Assistance, Housing and Economic Programs, Public Improvement, Community Facilities, and Housing Projects.
The 2025 CDBG NOFA limits are as follows:
All applications will be eligible under a Competitive Application process, with certain submissions competing under defined set-asides. There are no Over-the Counter (OTC) Applications.
Each Jurisdiction may submit up to three (3) applications during this NOFA cycle for a total of $3,600,000. Applications may be submitted in the following combinations:
i) One (1) Project + One (1) Program + One (1) Public Service or Planning - OR
ii) One (1) Project + Two (2) Public Service or Planning -OR iii) One (1) Program + Two (2) Public Service or Planning 2 Projects, 2 Programs, 3 Public Service, or 3 Planning applications are NOT allowed Public Service and Planning activities up to $300,000 Projects up to $3.3 million
$1.5 million for Housing Programs, and $1.5 million for Economic Development Programs.
Applications are rated and ranked competitively. An applicant’s score will be the total of the points received from all scoring criteria including High Poverty Service Area, Community Need Data, Capacity & Knowledge, CDBG as Gap Funding, Application Corrections (Attachment B). Any activities involving displacement, will require relocation per Federal relocation plan requirements.
Staff will provide a summary of the competitiveness of each potential application at the hearing.
POLICY IMPLICATIONS:
The CDBG program has been used in a variety of projects and programs implementing the City Council’s goals and priority projects over the years. This funding is critical to funding affordable housing, public facilities, the City’s business loan programs, housing rehabilitation programs, and a variety of other public benefit projects. The City must maintain a Certified Housing Element of the General Plan to be eligible for CDBG funds.
ENVIRONMENTAL REVIEW (CEQA):
Environmental review levels are reviewed for each activity. Some projects or programs may be exempt, as noted for each proposed activity (see Attachment A).
BUDGET/FISCAL IMPACT:
The matching funds requirements vary by program and are not required of all activities. Staff will provide a thorough analysis of match and fiscal impact when the projects are determined for the grant.
RECOMMENDED COUNCIL ACTION:
For the Recommended Council Action:
1. Open the public hearing, receive a staff report and public comment on potential projects for funding under the CDBG 2025 NOFA;
2. Provide direction to staff regarding the activities for which the City should draft an application; and
3. Direct Staff to notice a hearing to authorize submission of the City’s 2025 CDBG Application for March 18.
ATTACHMENTS:
A. Potential CDBG Project List
B. CDBG Scoring Matrix
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF FEDERAL FINANCIAL ASSISTANCE
651 Bannon Street, 7th Floor
Sacramento, CA 94252-2054
(916) 263-2771
www.hcd.ca.gov
Department of Housing and Community Development 2025 CDBG NOFA Revised 8/15/2025 Page 1
Appendix F: CDBG Scoring Matrix
This scoring matrix will be used to score all applications under the current Notice of Funding Availability (NOFA). An applicant’s score will be the total of the points received from all scoring criteria in the table below. The max score is 230 points.
If you have any questions on how this scoring matrix works, please email [email protected].
Applicant Name:
Application Name:
Reviewer: Total Score:
Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 2
Criteria Max
Points
High Poverty Service Area – Points are awarded to sub applications for which the service area for the proposed activity occurs in cities, counties or census tracts experiencing a poverty rate of 30 percent or more.
Data is compiled from the most recent ACS 5-Year Estimate and available on: Poverty Status by Census Area.
For activities that occur in multiple census tracts, 50 percent or more of the total number of census tracts for the activity must be above the threshold. i.e.: if an activity occurs in four census tracts, two out of the four census tracts must have a poverty rate of 30 percent or higher.
Where it appears that the service area does not make sense, the CDBG Program Manager may, at their sole and absolute discretion, review and revise the service area.
Applicants will need to define the service area for the activity within the application.
For applications for which the National Objective is Low-Mod Area (LMA), the LMA area used to meet the LMA National Objective must be within the service area.
Additionally, as a reminder Code Enforcement programs may only be used for targeted efforts in deteriorating or deteriorated areas where the enforcement, combined with other actions, is designed to arrest the decline of the area. Therefore, for Code Enforcement programs, the service area will typically not be the entire jurisdiction. 25 Community Need Data – Based on the low- and moderate-income summary data (LMISD) from HUD Exchange 50
Capacity & Knowledge – If applicant has in-house expertise or has already procured or chosen a consultant or subrecipient respectively to operate and/or manage its proposed activity, award up to 10 points. • Fully executed contracts and agreements (up to 10 points) o At least 4 months left on the contract/agreement at the time of application closing date (10 points)
o Less than 4 months left on the contract/agreement at the time of application closing date (5 points)
• In-House expertise with at least 3 years of experience running a CDBG program for the proposed activity (10 points)
• Draft contracts/agreements with draft RFP/RFQ (0 points) 10
Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 3
Criteria Max
Points
CDBG as Gap Funding – Award points based on the ratio of the amount of leveraging funds to the amount of CDBG funds requested (round to nearest 1/100):
• 1.01:1 or more: 25 points
• 0.76:1 to 1:1: 20 points
• 0.51:1 to 0.75:1: 15 points
• 0.26:1 to 0.50:1: 10 points
• 0.01:1 to 0.25:1: 5 points
• No leveraging funds: 0 points
This must be documented on the Sources and Uses Excel, the Activity Description, and the Threshold section of the application. 25 Application Corrections – Award points based on the number of corrections that would be required for the application if it were to be awarded:
• 4 or less: 50 points
• 5 to 8: 10 points
• 9 or more: 0 points
Any exceptions made to a correction will still count as an application correction under this criterion. Number of corrections will be averaged for Housing and Economic Development Programs applications with multiple Sub Applications.
50
Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 4
Criteria Max
Points
Community Engagement – Award points based on applicant’s additional community engagement efforts beyond the minimum required by HCD (cumulative; up to 15 points):
• Noticed and held additional public meetings/hearings: award 5 points per additional public meeting/hearing
• Noticed public meetings/hearings in additional locations: award 1 points per additional unique notice location
• Noticed public meetings/hearings using methods other than newspaper publications and bulletin board postings (e.g., social media, flyers, etc.): award 1 points per unique method of noticing • Utilized community meeting spaces other than board/council chambers for public meetings/hearings (e.g., library, neighborhood facility, non-profit halls): award 5 points per public meeting/hearing held at a community meeting space
• Provided resources to remove barriers to participation at public meetings/hearings (e.g., childcare, food, transit fare vouchers, interpreter and/or closed caption services [provided without request]): award 5 points per resource provided
• Solicited community feedback through additional methods of engagement other than speaking at a public meeting (e.g., anonymous questionnaire, online survey, boothing): award 2 points per additional method of engagement
15 Labor Standards Reporting – If applicant is current on labor standards reporting to HCD, award 5 points (if applicant has no active HCD awards, award 5 points) 5
Timely Reporting – Award points based on the number of reports during the past year for which an Activity Report, Financial Report, and/or Closeout Package was submitted late. At a minimum, Activity and Financial Reports must be submitted every three months (up to 20 points):
• 0 late reports: 20 points
• 1 late report: 15 points
• 2 late reports: 10 points
• 3 late reports: 5 points
• 4 late reports: 0 points
Applicants with no active awards during the past year, award 20 points.
Reports must be submitted in the grants management system and pass at least 2 steps of approval by the Submission Portal Opening Date. 20
Department of Housing and Community Development 2025 CDBG NOFA Revised 3/12/2025 Page 5
Criteria Max
Points
Program Income Receipting – Award points based on applicant’s progress in complying with HCD’s CDBG Program Income requirements (cumulative):
• If the applicant has submitted a Program Income Receipting and Reporting application, award 5 points
• If the applicant has accepted a Program Income Receipting and Reporting award in eCivis, award 5 points
• If the applicant’s first Program Income Receipting and Reporting report has been approved by HCD, award 5 points
• If the applicant’s report(s) for FY 2023-2024 and/or FY 2024-2025 have been approved by HCD, award 5 points
• If the applicant has encumbered its Program Income into an award OR applicant does not have any Program income to encumber, award 5 points
Reports must be submitted in the grants management system and pass at least 2 steps of approval by the Submission Portal Opening Date. 25 State-owned Excess Sites (Planning applications only) – Planning applications related to sites identified under Executive Order N-06-19 to create affordable housing on excess state-owned property. 5 Tie Breaker – In the event of a tied score, the application submitted first will be awarded. -
Total 230
Attachment A
ATTACHMENT A
COMMUNITY DEVELOPMENT BLOCK GRANT
POTENTIAL ACTIVITIES
ACQUISITION OF REAL PROPERTY
PROJECT
1. Project: Purchase and Development of Valley West Neighborhood Center Project Proponent: City of Arcata
NEPA Environmental Review Level: Unknown
Estimated Cost: Total: $12-$77 million CDBG: Unknown
Description: Funding for the purchase and development of property for Valley West Neighborhood Center.
ECONOMIC DEVELOPMENT ACTIVTIES
PROGRAMS
1. Program: Business Assistance and Microenterprise Loan Program Program Proponent: City of Arcata
NEPA Environmental Review Level: Categorically Excluded Subject to Section 58.5 Estimated Cost: Up to $1,500,000
Description: The City would apply for up to $1,500,000 for the Business Assistance Loan Program and Microenterprise Loan and Grant Program. Funds would be used to continue the City’s Business Assistance and Microenterprise Programs.
2. Program: Façade Improvement Program
Program Proponent: City of Arcata
NEPA Environmental Review Level: Environmental Assessment Estimated Cost: Unknown
Description: The Façade Improvement Program would encourage property owners and businesses to improve the exterior appearance of their buildings and storefronts.
PROJECTS
3. Project: Aldergrove Industrial Park Lot Development
Project Proponent: City of Arcata
NEPA Environmental Review Level: Environmental Assessment Estimated Cost: $500,000 - $1,000,000
Description: The City owns two (2) available parcels (APN’s: 507-251-040, -039) in the Aldergrove Industrial Park that are approximately one (1) acre in size each. The City’s Economic Development Committee has discussed the possibility of building a condominiumstyle business development on one or more of the parcels. The City may construct this type of building, then sell each condominium type unit to a small business or microenterprise.
Attachment A
HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES
PROGRAMS
1. Program: Homeownership Assistance and Housing Rehabilitation Program Program Proponent: City of Arcata
NEPA Environmental Review Level: Categorically Excluded Subject to Section 58.5 Estimated Cost: Up to $1,500,000
Description: The City would apply for up to $1,500,000 for the Homeownership Assistance and Housing Rehabilitation Combo Program. Funds would be used to continue the City’s Homebuyer Assistance Program and Housing Rehabilitation Program.
PROJECTS
2. Project: Bayview Courtyard Multi-Family Rehabilitation Project Proponent: Elizabeth Matsumoto
NEPA Environmental Review Level: Unknown
Estimated Cost: $2,000,000
Description: Funding to rehabilitate Bayview Courtyard affordable senior housing development.
3. Project: The Grove Multi-Family Rehabilitation
Project Proponent: City of Arcata
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Funding to rehabilitate The Grove affordable housing development.
PLANNING AND TECHNICAL ASSISTANCE ACTIVITIES
1. Planning: Little Lake Redevelopment (Planning & Technical) Project Proponent: City of Arcata
NEPA Environmental Review Level: Exempt
Estimated Cost: CDBG: Up to $300,000
Description: The approximately 11-acre site located adjacent to the Marsh and, under the City’s agreement with the former redevelopment agency, must be used for economic development. This request would be a planning and technical application to help the City develop a clear redevelopment plan, better understand which uses are feasible given the site’s constraints, and ensure the plan is informed by robust community engagement.
2. Planning: Foodworks Expansion (Planning & Technical) Project Proponent: City of Arcata
NEPA Environmental Review Level: Exempt
Estimated Cost: Unknown
Attachment A
Description: The City’s Foodworks Culinary Center is at capacity and has potential for expansion on-site. This request would be a planning and technical application to determine feasibility and need for expansion.
3. Planning: Workforce Housing Reuse (Planning and Technical) Project Proponent: City of Arcata
NEPA Environmental Review Level: Exempt
Estimated Cost: Unknown
Description: Workforce housing has been identified as a need in the community. The request would be for financial assistance related to the planning and feasibility for this type of housing.
PUBLIC FACILITIES
PROJECTS
1. Project: Sea Level Rise Shoreline Revetment
Project Proponent: City of Arcata
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Assist with funding for shoreline revetments that will be necessary due to sea level rise. The focus of this project would be areas adjacent to Jolly Giant Creek.
2. Project: Arcata House Partnership Shelter Rehabilitation Project Proponent: Darlene Spoor
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Renovations are various shelters run by Arcata House Partnership, including addition of ADA compliant bathrooms, kitchen renovations, and roof repairs.
PUBLIC IMPROVEMENTS
PROJECTS
1. Project: Water Meter Replacement
Project Proponent: City of Arcata
NEPA Environmental Review Level: Unknown
Estimated Cost: CDBG: Up to $3,300,000
Description: Upgrade water meter replacements to provide real time water usage monitoring and faster recognition of potential leaks throughout the City of Arcata.
2. Project: Inflow and Infiltration (I and I) elimination (City owned and maintained) Project Proponent: City of Arcata Public Works
NEPA Environmental Review Level: Categorically Excluded Estimated Cost: Total: $185,000 CDBG: $150,000
Attachment A
Description: The City has previously applied for funding through CDBG to replace sewer main lines and sewer laterals from the sewer main line to the clean-out at the property line for low-income households. However, due to this project only benefiting approximately 52% Low-Income household, it was not competitive enough to be awarded a grant.
3. Project: Public Improvements for Accessibility - benches, bathrooms, trash cans.
Project Proponent: City of Arcata
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Enhance public spaces by improving accessibility for all community members, through the installation of accessible benches, bathrooms and trash cans.
PUBLIC SERVICES ACTIVITIES
PROJECTS
1. Project: Homeless Services for Operations at Arcata House Partnership Annex One Stop Project Proponent: Darlene Spoor
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Fund Arcata House Partnership’s homeless services, allowing the organization to continue providing essential services despite expected reduction in other funding sources.
2. Project: Homeless Services for Operations at The Grove and West Village Studios.
Project Proponent: Darlene Spoor and Danco Communities
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Fund Arcata House Partnership’s homeless services, allowing the organization to continue providing essential services despite expected reduction in other funding sources.
3. Project: Veteran Services for Operation at Affordable Housing Complex Project Proponent: Chris Nelson
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: To be determined.
4. Project: Little Lake Research Lab
Project Proponent: Community Member
NEPA Environmental Review Level: Unknown
Estimated Cost: Unknown
Description: Fund the development of a Little Lake Research Lab, a partnership between the City of Arcata and Cal Poly Humboldt. The lab would support research focused on the Arcata Marsh, and Little Lake for long-term stewardship and management of these natural resources.