Staff Report
City Council
Item No. 4.I
Meeting Date: September 10, 2025
From: John A. Corella, Director of Public Works
Title: FY 2024-2025 Community Development Block Grant (CDBG) Consolidated Annual Performance Evaluation Report (CAPER) RECOMMENDATION:
To approve the city’s Community Development Block Grant (CDBG) Fiscal Year (FY) 2024- 2025 Consolidated Annual Performance Evaluation Report (CAPER) for submittal to the U.S.
Department of Housing and Urban Development (HUD).
BACKGROUND:
The Community Development Block Grant (CDBG) is a federal program administered by the U.S. Department of Housing and Urban Development (HUD). The city has received CDBG funding directly from HUD since becoming an Entitlement Grantee in 2012. These funds are used to address a variety of housing and community development needs, which are prioritized through the city’s Five-Year Consolidated Plan (ConPlan).
As a condition of receiving CDBG funds, jurisdictions are required to meet specific reporting obligations, including submission of the Consolidated Plan, Annual Action Plan (AAP), and the Consolidated Annual Performance Evaluation Report (CAPER). The CAPER outlines the city’s actual accomplishments and expenditures during each fiscal year. Once approved by HUD, the FY 2024-2025 CAPER will serve as a supporting document for the city's FY 2022– 2026 Consolidated Plan.
DISCUSSION:
In FY 2024-2025, the city received a CDBG entitlement award of $533,139. These funds were allocated to programs and services benefiting low- and moderate-income residents, as outlined in the city’s approved AAP. Funded activities promoted fair housing, supported economic development, and enhanced accessibility through public improvements.
The FY 2024-2025 CAPER documents the city’s accomplishments and expenditures related to the third year of the current five-year ConPlan. The CAPER includes the following:
Total CDBG funds invested
Use of prior-year funding
Demographic details of households served
Actions taken to affirmatively further fair housing
Progress on grant-funded projects addressing community and housing needs The following sections summarize how the city managed the CDBG program utilizing CDBG funds:
FY 2024-2025 Program Expenditures
1. Planning and Administration
HUD permits jurisdictions to allocate up to 20% of their CDBG entitlement grant toward administrative costs. In FY 2024-2025, the city utilized this administrative allowance to cover expenses including on-call CDBG consulting services (TAMJAC, LLC), city staff salaries, and other costs related to program management. This category also funded fair housing services.
Specifically, $20,000 was allocated to the Fair Housing Council of Riverside County (FHCRC) to support the city's efforts to affirmatively further fair housing. During the reporting period, FHCRC assisted 841 residents, addressing concerns such as evictions, habitability issues, lease disputes, rent increases, homelessness, foreclosures, harassment, and discrimination.
Of those served, 93% were low- or moderate-income.
2. Public Improvements
CDBG funds were primarily used for infrastructure upgrades in low- and moderate-income areas. There is no cap on this funding category.
In FY 2024–2025, the city committed $431,511 in CDBG funds to the Whitewater Neighborhood Street Reconstruction project. Of this amount, $421,511 came from the FY 2024–2025 allocation, while $10,000 was reallocated from unspent funds originally budgeted in FY 2023–2024 through an administrative amendment. The project involved the reconstruction of three residential street segments including Shifting Sands Trail, Whispering Palms Trail and Sky Blue Water Trail between 33rd Avenue and Dinah Shore Drive, and 33rd Avenue between Shifting Sands Trail and Cathedral Canyon Drive. The work included asphalt resurfacing, which required the removal and replacement of 1.5 to 3 inches of pavement.
According to US Census data, the improvements directly benefited an estimated 2,250 residents, of whom approximately 84 percent are low- or moderate-income.
The City Council also approved a 2024 Sidewalk Repair Assistance program, allocating $5,000 from the FY 2024–2025 CDBG public improvements allowance. No applications were received for this program during the reporting period; therefore, no funds were expended.
However, during development of the FY 2025–2026 Annual Action Plan, City Council supported the continuation of the program into the next fiscal year. The unspent $5,000 will remain allocated to the program, and early efforts in FY 2025–2026 have already resulted in the receipt of two applications. Increased collaboration between the Engineering and Code Compliance Divisions is expected to further promote the program in the coming year.
Use of Prior-Year Funds
During FY 2024–2025, Cathedral City expended a total of $769,351.65 in CDBG and CDBG CARES Act (CDBG-CV) funding. Of this amount, $241,212.65 came from prior program years.
Several key projects were funded using this carryover.
From the FY 2023–2024 allocation, $259,581.26 was available to complete construction of the final phase of the Via De Anza Sidewalk Improvement Project (Phase III), which was completed in September 2024. Of this amount, $216,456.50 was spent during FY 2024–2025, leaving a remaining balance of $43,124.76. These remaining funds are proposed to be reallocated to another project in FY 2025–2026. Additionally, $10,000 in unspent funding from the 2023 Sidewalk Repair Assistance program was reallocated to the Whitewater Neighborhood Street Reconstruction project via an administrative amendment in December 2024.
An unspent balance of $14,756.15 from the FY 2020–2021 CDBG-CV allocation was also reallocated through an administrative amendment in December 2024. These funds were assigned to Desert Access and Mobility, a transportation program serving residents who are unable to drive due to disability. With this funding, the organization provided eighty-four (84) individual rides within, to, or from Cathedral City during the reporting period.
The FY 2024–2025 CAPER was prepared using HUD’s eCon Planning Suite and includes comprehensive reporting for all three (3) phases of the Via De Anza Sidewalk Improvement project. As the project was completed in multiple stages over several years, the first two (2) phases had not previously been reported in a CAPER as notified to HUD in the FY 2023-2024 CAPER. As required, all accomplishments for the entire project were included in the CAPER covering the year in which final construction was completed.
Public Notice
In accordance with the city’s citizen participation plan (CPP), the draft CAPER was made available for public review and comment for a period of fifteen (15) days, from August 6, 2025, through August 21, 2025. Any comments received during this public comment period will be included as an attachment in the final CAPER submitted to HUD. The CPP does not require a public hearing for CAPER approval. Upon City Council approval, the FY 2024–2025 CAPER will be submitted to HUD for review and acceptance.
City staff recommend that the City Council approve the city’s CDBG FY 2024-2025 CAPER for submittal to HUD.
FISCAL IMPACT:
The city effectively managed its FY 2024–2025 CDBG program budget by expending $528,139 of the total $533,139 allocation, leaving a remaining balance of $5,000 allocated to the Sidewalk Repair Assistance program. This unspent balance will continue to fund the program in FY 2025–2026 and does not require a formal amendment.
FY 2024-2025 PROJECTS AND
PROGRAMS BUDGETED SPENT BALANCE
Planning and Administration $86,628.00 $86,628.00 $0.00 Fair Housing Council of Riverside
County (FHCRC) $20,000.00 $20,000.00 $0.00
Whitewater Neighborhood Street
Reconstruction $421,511.00 $421,511.00 $0.00
2024 Sidewalk Repair Assistance
Program $5,000.00 $0.00 $5,000.00
TOTAL $533,139.00 $528,139.00 $5,000.00
Of the $284,337.41 in unspent funds from previous years available during FY 2024–2025, $241,212.65 was expended. The remaining balance of $43,124.76, originally designated for the Via De Anza Sidewalk Improvements Phase III project, will be reallocated in FY 2025– 2026. A proposed amendment to the AAP reflecting this reallocation will be brought to City Council for approval at a later date.
PROJECTS AND PROGRAMS
FUNDED WITH PREVIOUS YEAR
FUNDING
FUNDING
AVAILABLE IN
FY 2024-2025
SPENT IN FY
2024-2025 BALANCE
Via De Anza Sidewalk Improvements
Project Phase III (CDBG FY 2023-2024) $259,581.26 $216,456.50 $43,124.76 Whitewater Neighborhood Street
Reconstruction Project (CDBG FY
2023-2024)
$10,000.00 $10,000.00 $0.00
Desert Access and Mobility (CDBG-CV
FY 2020-2021) $14,756.15 $14,756.15 $0.00
TOTAL $284,337.41 $241,212.65 $43,124.76
FIVE-YEAR STRATEGIC PLAN:
GOAL C: FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
1.FY 2024-2025 Draft CAPER