Staff Report
City Council
Item No. 3.J
Meeting Date: July 9, 2025
From: John A. Corella, Director of Public Works
Title: Award Subrecipient Agreement to Fair Housing Council of Riverside County
RECOMMENDATION:
To authorize the award of a subrecipient agreement to the Fair Housing Council of Riverside County (FHCRC) in the amount of $20,000 to provide fair housing services under Cathedral City’s FY 2025-2026 Community Development Block Grant (CDBG) program; approve a corresponding budget allocation of $20,000 from CDBG funds; and authorize the City Manager to execute all necessary contract documents following the execution of the Annual Action Plan (AAP) funding agreement with the U.S. Department of Housing and Urban Development (HUD).
BACKGROUND:
Cathedral City receives annual entitlement funding through the Community Development Block Grant (CDBG) program, administered by the U.S. Department of Housing and Urban Development (HUD). These funds support various activities that benefit low- to moderate- income residents, including public infrastructure improvements, community services, and fair housing initiatives.
Each year, the city develops an Annual Action Plan (AAP) to outline the allocation of CDBG funds in accordance with the priorities set forth in the City’s 5-Year Consolidated Plan. On April 23, 2025, the City Council approved the Fiscal Year (FY) 2025-2026 AAP, which allocates funding across three main categories: program administration, public services, and public infrastructure improvements.
Within the program administration category, funds are designated to support fair housing initiatives that provide housing-related services to qualifying residents. In accordance with CDBG program requirements, the city conducts an annual competitive procurement process to select an external provider to deliver fair housing services.
On May 15, 2025, HUD announced Cathedral City’s CDBG allocation for FY 2025-2026 in the amount of $511,608. The AAP was subsequently updated to reflect this funding amount while maintaining the previously approved allocation percentages. The finalized AAP was submitted to HUD for review and approval on May 27, 2025. Based on past timelines, HUD’s approval and execution of the funding agreement are anticipated by August 2025.
Once the funding agreement is finalized, the city will be authorized to proceed with executing subrecipient agreements, including those for fair housing services. To facilitate a timely transition, staff are presenting the recommended provider for FY 2025-2026 fair housing services for City Council’s advance approval, enabling prompt execution of the agreement upon completion of the AAP funding agreement.
DISCUSSION:
In accordance with CDBG program requirements for securing fair housing services, city staff published a Notice of Funding Availability (NOFA) for Fair Housing Services on January 30, 2025. The NOFA was published in both English and Spanish in The Desert Sun and posted on the City’s website.
The application period was open from January 30 to February 21, 2025. During this time, city staff also notified interested parties who had previously inquired about Fair Housing Service grant opportunities.
Only one application was received from the Fair Housing Council of Riverside County (FHCRC). The City’s Engineering Division staff, in collaboration with TAMJAC, the on-call CDBG administrative consultant, conducted a thorough review of the application.
FHCRC’s application was responsive and demonstrated strong qualifications, including a clear understanding of the tasks required to deliver fair housing services to the Cathedral City community. FHCRC also provided fair housing services during the current FY 2024- 2025 through the CDBG program and has delivered effective, comprehensive support to residents.
City staff recommend that the City Council authorize the award of a subrecipient agreement to FHCRC in the amount of $20,000 to provide fair housing services under Cathedral City’s FY 2025-2026 CDBG program; approve a corresponding budget allocation of $20,000 from CDBG funds; and authorize the City Manager to execute all necessary contract documents following the execution of the AAP funding agreement with HUD.
FISCAL IMPACT:
FHCRC initially requested $25,000 in its application. However, to align with the total CDBG allocation and preserve the funding distribution previously approved by the Council, FHCRC has accepted the recommended $20,000 contract.
This amount will be funded through Cathedral City’s FY 2025-2026 CDBG allocation. All expenditures under the CDBG program are reimbursable and contingent on HUD’s execution of the Annual Action Plan funding agreement.
DESCRIPTION GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE
AMOUNT ONE TIME or
ONGOING
2025-2026
CDBG Fair
Housing
Services
251-100-150-
156-8600-8601
CDBG - PROF
SVCS $20,000 One Time
2025-2026 Total $20,000
FIVE-YEAR STRATEGIC PLAN:
Goal F: Embracing, Inclusive Community
Objective: Cathedral City is valued and respected as a community that welcomes and embraces diversity, has an abundance of high quality and affordable housing options, and vibrant businesses. Our neighborhoods are attractive and well-maintained and issues surrounding homelessness have been compassionately addressed with thoughtful, coordinated, and collaborative programs.
ATTACHMENTS:
1. FHCRC Subrecipient Agreement
2. FHCRC Public Service Grant Application for Fair Housing Providers