ADMINISTRATIVE REPORT
MEETING DATE: February 23, 2026 AGENDA CATEGORY: Staff Report TO: Finance, Economic Development and Jobs Committee
FROM: Jennifer Byers, Economic and Community Development Director DATE: February 5, 2026
SUBJECT: Draft Annual Action Plan Budget for FY 2026-27
Overview of staff recommendations for the Draft Annual Action Plan Budget for FY 2026-27 HUD Federal Entitlement Funds
RECOMMENDATION:
Receive and file.
BACKGROUND:
The City of Bakersfield expects to receive about $7,119,787 each year from several HUD programs.
These programs include the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA).
The proposed budgets for the FY 2026–27 Entitlement Programs are shown separately in the table below for each program. The HOME budget includes an additional $80,000 in program income.
At the time this report was prepared, HUD had not released the official funding amounts for FY 2026–
27. However, it is expected that Congress will keep funding at the same level as the previous year. For this reason, the table below uses last year’s funding amounts to estimate the HUD funds available for all projects.
Federal Program Previous FY25-26 Allocation
Community Development Block Grant (CDBG) $4,054,795
Home Investment Partnership (HOME) $1,572,489.76*
Emergency Solutions Grant (ESG) $344,660
Housing Opportunities for Persons with AIDS (HOPWA) $1,147,842 Total $7,119,787
*Includes an additional $80,000 in program income for HOME Applications Received
Each year, the City releases a Notice of Funding Availability (NOFA) for the annual entitlement funds shown in the table above. The deadline to submit CDBG, HOME, and ESG applications for FY 2026–27 was December 12, 2025. The projects requested are designed to improve the quality of life and neighborhood infrastructure for low-income residents in the City of Bakersfield.
This year, the City received 17 applications from nonprofit and private organizations totaling $14,853,490.50. In addition, 7 applications were received from City departments (including administration) totaling $3,877,463.48. The total amount requested from both City and non-City applicants was $32,301,768.95. Details of all applications are provided in Attachment C.
Recommendation
In accordance with federal requirements, City staff carefully reviewed and evaluated all funding applications. Based on this review, staff prepared the recommended budgets included with this report for consideration by the Finance, Economic Development, and Jobs Committee. The FY 2026–27 HUD Action Plan is expected to be presented to the City Council on April 22, 2026. This will be the second year of the 2025–2030 Consolidated Plan.
Next Steps
In April 2026, the City Council will hold a public hearing as required by the U.S. Department of Housing and Urban Development under Title 24 CFR Part 91. The purpose of the hearing is to receive public input and consider approval of the FY 2026–27 Action Plan. The City will submit the final documents to HUD before the May 14, 2026 deadline. HUD may extend this deadline if the final entitlement amounts are not received before the public notice period.
Consolidated Plan Timeline
February 2026: Draft Annual Action Plan presented to the Budget and Finance Committee March–April 2026: 30-day public review and comment period April 2026: Draft Action Plan presented to the City Council Before May 14, 2026 (unless delayed by HUD): Action Plan submitted to HUD Based on this process, staff recommends that the Committee forward the reviewed funding allocations for the CDBG, HOME, ESG, and HOPWA programs, as shown in Attachments A and B, to the City Council for approval. Final approval would be subject to administrative adjustments once HUD provides the final funding amounts.
FISCAL IMPACT:
No Fiscal Impact
COUNCIL GOAL:
Economic Opportunity for All
ATTACHMENTS:
1. FY26-27 Recommended CDBG Budget
2. FY26-27 Recommended ESG/HOME/HOPWA Budget
3. Overview of Applications Received (Reference)