FY 2026-2027 ANNUAL ACTION PLAN
FIFTH PROGRAM YEAR
ENGINEERING DEPARTMENT
68-700 AVENIDA LALO GUERRERO
CATHEDRAL CITY, CA 92253
(760) 202-2478
1 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan Executive Summary
AP-05 EXECUTIVE SUMMARY
1. Introduction
Cathedral City is located between the cities of Palm Springs and Rancho Mirage on the west end of the Coachella Valley approximately 115 miles from Los Angeles. While incorporated in 1981, development in the city began in 1925 as a housing subdivision of Palm Springs. The city is currently the second most populous city in the Coachella Valley.
Although the Coachella Valley is known as a playground for the wealthy, there are many low-income residents, that include senior citizens, large families and single-parent households. These groups, along with continued diversification in demographics, have resulted in an increased need for housing resources. Potential conflicts among different groups can create fair housing and equal opportunity concerns. The City traditionally used CDBG funds to help further fair housing choice, by partnering with a non-profit organization to provide fair housing education and other services. More recently, funds have been used to create suitable living environments, by supporting important infrastructure projects.
The Community Development Block Grant (CDBG) Program is administered by the Department of Housing and Urban Development (HUD) and is authorized by Title I of the Housing and Community Development Act of 1974, as amended. CDBG is one of the longest continuously run programs at HUD.
The grant program provides communities with resources through annual grants on a formula basis to address a broad range of unique community development needs. The primary objective of CDBG is to enhance and maintain urban communities through the provision of decent housing, a suitable living environment and the expansion of economic opportunities predominantly for persons or households of low to moderate income. Cathedral City is a CDBG Entitlement Community and receives direct annual allocations of CDBG program funds from HUD. The Annual Action Plan serves as the City’s application for CDBG funds, outlining the proposed use and allocation of funds for Federal Fiscal Year 2026-2027.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items, or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
The FY 2026-2027 Annual Action Plan (AAP) describes the proposed projects and goals the city plans to implement during Program Year (PY) 2026, the fifth year of the City’s Five-Year Consolidated Plan. The City will use its CDBG allocation to assist in the development of sustainable communities by supporting projects that provide decent housing, create sustainable living environments, and support the expansion of economic opportunities for low to moderate income persons. The City is required to adopt an Annual Action Plan for the use of these funds which serves as the means to meet the application and 2 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan submission requirements for the CDBG Program. Cathedral City does not receive ESG, HOME or HOPWA funding from HUD.
This Annual Action Plan outlines activities that will be undertaken during the program year beginning July 1, 2026, and ending on June 30, 2027. These activities will benefit low- to moderate-income residents, neighborhoods that are designated Census Tracts, and City-wide benefits. The proposed projects and activities undertaken by the city meet the HUD national objectives specified to create suitable living environments, accessibility, removal of slum or blight, and are of urgent need.
Road Improvement Project
For FY 2026-2027, the City of Cathedral City is proposing to make road improvements in a low- and moderate-income area of Census Tract 044926 on Avenida El Mundo and Avenida El Pueblo from McCallum Way to Ramon Road.
Staff proposes to reconstruct these sections to provide a safe travel route for residents in the area, increase economic opportunities for businesses in the area and improve drainage during rain events.
3. Evaluation of past performances
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.
In FY 2025-2026, the City's Entitlement Award was $511,608 in CDBG Funding. CDBG funds were apportioned for public improvements and fair housing services benefiting low- and moderate-income residents. The Program included activities that furthered fair housing choice, as well as increased economic development and accessibility through public improvements. The City provided public service support through other funding mechanisms, freeing up CDBG funds for a large-scale public improvement project. The City is proud of their continued achievement to meet and exceed the statutory expenditure ratio of 1.5.
Whitewater Neighborhood Road Improvement Project Phase II
In FY 2025-2026, the city allocated CDBG funding for the Whitewater Neighborhood Road Improvement Project Phase II. The City chose to use the largest share of FY 2025-2026 CDBG allocations for these improvements, in the amount of $409,288. Additional funding for the project ($43,124.76) was reallocated from unspent CDBG funds from FY 2023-2024, bringing the total CDBG funding for this project to $452,412.76. Improvements included road improvements, repairs, and rehabilitation, including curb and gutter and ADA compliance where appropriate in the Whitewater Neighborhood located in Census Tract 044907 on the following roadway segments:
• Ortega Road from Shifting Sands Trail to Pueblo Trail • Navajo Trail from Dinah Shore Drive to 33rd Avenue
• Pueblo Trail from Dinah Shore Drive to 33rd Avenue
The reconstruction of these roadways completed a two-phase construction project in the Whitewater 3 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan Neighborhood that began in FY 2024-25 with the reconstruction of:
• Shifting Sands Trail from 33rd Avenue to Whispering Palms Trail • Sky Blue Water from 33rd Avenue to Dinah Shore Drive
• 33rd Avenue from Shifting Sands Trail to Cathedral Canyon Drive Emergency Sidewalk Repair Assistance Program
In FY 2022–2023, FY 2023–2024, and FY 2024–2025, the City supported an Emergency Sidewalk Repair Program to assist low- and moderate-income residents in CDBG-eligible areas with repairing or replacing damaged sidewalk sections. The FY 2022–2023 AAP allocated $15,000 for emergency sidewalk repair; however, the City received no applications during the program year. A substantial amendment approved in December 2023 reallocated the $15,000 in unspent funds to the Via De Anza Phase III Project. The FY 2023–2024 AAP allocated $10,000 for the program, but again no applications were received. In December 2024, through an administrative amendment, the remaining $10,000 was reallocated to the Whitewater Neighborhood Road Improvement Project. In FY 2024–2025, the program received a $5,000 CDBG allocation. Although no applications were approved during the fiscal year, the City retained the $5,000 balance to continue the program into FY 2025–2026.
During FY 2025–2026, the City maintained the Emergency Sidewalk Repair Program using the remaining FY 2024–2025 funds. Public Works staff enhanced coordination with Code Compliance staff to increase program awareness, including providing updated maps of eligible areas. As a result, four applications were received: one was determined ineligible; two were approved but reimbursement documentation was never submitted; and one was fully approved and successfully completed all steps to receive reimbursement. The City currently has a remaining balance of $4,200 from the FY 2024–2025 allocation, which, based on prior years’ performance, is considered sufficient to support the program in the upcoming year. Public Works staff will also consult with the City’s on-call CDBG consultant to explore opportunities to streamline the application and reimbursement process, making it easier for residents to understand and complete, given that several applications were not finalized this fiscal year.
Fair Housing
The City also supports a Fair Housing Program with assistance from an outside agency.
4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.
Prior to adopting a Consolidated Plan, Annual Action Plan or Substantial Amendment to an Action Plan, Cathedral City prepares draft documents for public review and comment. The documents are available to citizens, public agencies, and other interested stakeholders. The draft plan includes information about the amount of assistance the jurisdiction expects to receive from HUD. It also includes descriptions of each program that the City plans to implement, with estimated funding amounts and projected outcomes.
The City held a public hearing to gather citizens’ views and to respond to proposals and questions during different stages of the development of the Action Plan. This hearing covered topics regarding housing 4 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan and community development needs, development of the proposed activities and review of program performance. Additionally, the City encouraged feedback from residents and interested parties to submit written responses to the CDBG/Engineering Department during the 30-day public comment period.
The Notice of Availability for Public Comment on the FY 2026-2027 Draft CDBG Annual Action Plan was advertised in The Desert Sun, a newspaper of general circulation, in English and Spanish and was available for review on the City’s website (www.cathedralcity.gov) as well as the Senior Center, Boys & Girls Club and the Library.
The Draft Annual Action Plan was made available for public review and comment for 30 days beginning March 12, 2026, through April 11, 2026. The Action Plan is also available electronically on the City's website.
5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.
The Draft Annual Action Plan was made available for public review and comment for 30 days beginning March 12, 2026, through April 11, 2026. The Action Plan is also available electronically on the City's website.
The City of Cathedral City will hold a public hearing on April 22, 2026, during its regularly scheduled City Council Meeting. City Council will open a public hearing to allow the public to comment on the Annual Action Plan and its content. Public comments received will be summarized here.
6. Summary of comments or views not accepted and the reasons for not accepting them Public comments not accepted will be summarized here.
7. Summary
The City of Cathedral City adheres to its Citizen Participation Plan and gathers public input during public hearings and during the required commenting period. The City will continue to explore other methods to encourage public participation and community input.
5 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan
6 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
Lead Agency CATHEDRAL CITY
CDBG Administrator CATHEDRAL CITY Public Works Department HOPWA Administrator
HOME Administrator
HOPWA-C Administrator
Table 1 – Responsible Agencies
Narrative (optional)
The Public Works Department serves as the primary unit that manages the CDBG Program for the City. Public Works is responsible for preparing the Assessment of Fair Housing, Consolidated Plan, Annual Action Plans (AAP), Consolidated Annual Performance Evaluation Reports (CAPER) and related reports. The Department coordinates all public improvements and ensures satisfactory product and service delivery by all sub- recipients and contactors and commits to meeting HUD requirements.
Consolidated Plan Public Contact Information
Name and Title: John A. Corella, P.E., Director of Public Works Address: 68-700 Avenida Lalo Guerrero
Phone: 760-770-0327
Email: [email protected]
7 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
The City makes efforts to reach out to citizens, municipal officials, nonprofit agencies, public housing agencies, governmental agencies, and the Continuum of Care in preparing this plan. These meetings are summarized in the Citizen Participation Section of this plan.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)) The City continues to seek opportunities to coordinate between public and assisted housing providers and private and governmental health, mental health, and other service agencies:
• The Housing Authority of Riverside County provides residents throughout the County with rental assistance to those that are eligible based on income. The Authority administers the Section 8 Rental Assistance Program. They also own and operate affordable housing projects throughout the County and collaborate with local jurisdictions with rehabilitating and upgrading multi-family housing units. • Riverside County Continuum of Care is comprised of representatives from public, private, and nonprofit agencies including homeless and formerly homeless individuals that are committed to assisting in facilitating a continuum of care planning process throughout the County. This coalition assesses the need for affordable housing and homeless services countywide to provide a seamless delivery of services to those in need.
• The Department of Public and Social Services administers programs under the anti-poverty umbrella for the County of Riverside. The main goal for residents is to move them towards self-sufficiency and moving poor families from poverty. DPSS assists residents on many levels including childcare, education, employment training, health and human services, homelessness and housing.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
8 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan The City continues to support efforts to coordinate and consult with the Riverside County Continuum of Care (CoC) to address the needs of the homeless populations. For this program year, the City is proposing to allocate resources from the City’s general fund budget for homeless & other support services to address the needs of homeless & low-income individuals and families that are at risk of being homeless. In addition, the City's Police Department has a homeless taskforce and resources to build cases for such homeless persons, document their needs, and offer the necessary assistance needed for them to get back on their feet and/or prevent homelessness. This joint effort has worked successfully in the past, and the City pledges its continuing support of the endeavor.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City does not administer ESG funds.
2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Cathedral City Senior Center Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City has been in contact with the Cathedral City Senior Center to collect input regarding the CDBG Program. Among some of the items discussed were the information in the Action Plan, public services, and available funding. 2 Agency/Group/Organization Desert Access and Mobility
Agency/Group/Organization Type Services-Persons with Disabilities
9 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan
What section of the Plan was addressed by
Consultation?
Non-Homeless Special Needs
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
Desert Access and Mobility has previously provided programs and services to residents with disabilities. For the preparation of the Draft Action Plan, the City emailed an electronic version of the Plan for Desert Access and Mobility to review and provide feedback regarding the programs and services the City is proposing to fund.
3 Agency/Group/Organization Inland Fair Housing and Mediation Board Agency/Group/Organization Type Fair Housing Services
What section of the Plan was addressed by
Consultation?
Services- Homeless
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
The City has email communication with the Inland Fair Housing and Mediation Board (IFHMB). In January 2026, the City shared the Notice of Funding Availability and application for fair housing services with IFHMB and invited IFHMB to comment on this AAP during the development.
4 Agency/Group/Organization Fair Housing Council of Riverside County Agency/Group/Organization Type Fair Housing Services
What section of the Plan was addressed by
Consultation?
Services-homeless
Briefly describe how the Agency/Group/Organization
was consulted. What are the anticipated outcomes of
the consultation or areas for improved coordination?
In FY 2025-2026, the city accepted the application from the Fair Housing Council of Riverside County (FHCRC) to provide fair housing services for the program year.
As a result, the city has frequent communication with FHCRC. In January 2026, the City shared the Notice of Funding Availability and application for fair housing services for FY 2026-2027 with FHCRC and invited FHCRC to comment on this AAP during the development.
10 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan
Identify any Agency Types not consulted and provide rationale for not consulting
Other local/regional/state/federal planning efforts considered when preparing the Plan
Name of Plan Lead
Organization
How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of
Care
County of
Riverside
The City of Cathedral City allocates General Funds for homeless services which is also one of the main goals of Riverside County's Continuum of Care (CoC). In addition to the Board of Governance, the regional Program also has subcommittees that focus on various public services; one committee dedicated to ending homelessness.
Housing
Element
Based on the Regional Housing Needs Allocation (RHNA) set forth by the State of California, The Housing Element is the City's chief policy document for the development of affordable and market rate housing. Consistent with this policy document, the City will maintain and enhance the quality of existing residential neighborhoods through and promote and encourage fair housing opportunities for all economic segments of the community, regardless of age, sex, ethnic background, physical condition, or family size.
Table 3 – Other local / regional / federal planning efforts
Narrative (optional)
11 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting The City of Cathedral City's has an adopted Community Participation Plan (CPP). For the FY 2026-2027 Annual Action Plan, the city held two (2) public hearings to gather citizens’ views on the proposed Annual Action Plan. Additionally, the City encouraged feedback from residents and interested parties to submit written responses to the CDBG/Engineering Department during the 30-day public comment period for the FY 2026- 2027 Annual Action Plan.
The Notice of Availability for Public Comment on the FY 2026-2027 Annual Action Plan was advertised in the Desert Sun, a newspaper of general circulation, in English and Spanish and was available for review on the City’s website (www.cathedralcity.gov) as well as Boys & Girls Club and the Library. The Draft Annual Action Plan was made available for public review and comment for a 30-day period beginning March 12, 2026, through April 11, 2026. The City will continue to focus their CDBG funding on public facility improvement projects and fair housing activities.
12 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
Minorities
1 Newspaper Ad
Non-English
Speaking - Specify
other language:
Spanish
Persons with
disabilities
Non-
targeted/broad
community
A public notice was
published in the
Desert Sun, a
newspaper of general
circulation in English
and Spanish.
Comments received
will be summarized
here
Comments not
accepted will be
summarized here
Residents of Public
and Assisted
Housing
13 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
2 Internet Outreach
Minorities
Persons with
disabilities
Non-
targeted/broad
community
Residents of Public
and Assisted
Housing
The public notice and
draft FY2026-2027
Action were posted
on the city website.
The draft Action Plan
Was available for 30
days for the public
from March 12, 2026,
through April 11,
2026
Comments received
will be summarized
here
Comments not
accepted will be
summarized here
3 Public Hearing
Non-
targeted/broad
community
A Public Hearing was
held on April 22, 2026,
during the regularly
scheduled City
Council Meeting.
Comments received
will be summarized
here
Comments not
accepted will be
summarized here
Table 4 – Citizen Participation Outreach
14 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
One of the main challenges of meeting community needs is inadequate resources. As with most of the priority goals, the need far exceeds the City’s available resources; The funds available are not enough to address all the needs of low- and moderate-income persons or special needs residents in the City. It is anticipated that Federal and private funding sources for housing and community development programs will remain limited economic conditions recover. Even under these circumstances, the city strives to make progress in implementing its public improvement projects while meeting Consolidated Plan objectives.
Cathedral City expects to receive an allocation of $482,495 for FY 2026-2027. Funds will be used primarily for public facility (infrastructure) improvements, fair housing activities and program administration. The proposed projects are primarily for the benefit of low- and moderate- income persons in Cathedral City.
Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Admin and
Planning
Public
Improvements
Public Services
482,495
0 0
482,495
482,495
Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how 15 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan matching requirements will be satisfied
Cathedral City does not receive HOME, or ESG grants and is not required to provide matching funds for these programs. While the CDBG program does not require a match, the city seeks opportunities to leverage CDBG funding with other funding to complete or expand activities and projects in low- and moderate-income areas. For activities and projects that require matching funds, the City will utilize CDBG funds for such match(es) to benefit low- and moderate-income clientele or area. The City has traditionally used CDBG funds to support road and sidewalk improvements in low- and moderate-income areas, leveraging State and local transportation funds.
In FY 2026-2027, Cathedral City will leverage general revenue funds to non-profit organizations to provide public services to assist homeless persons. This change in program funding and structure will allow the City to concentrate CDBG funds on much needed public facility (infrastructure) improvements in low- and moderate-income areas and fair housing services.
16 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City’s Regional Housing Needs Assessment for 2022-2027 estimates that a total of 2,549 housing units will be built in Cathedral City. Of these, 1,199 are expected to be constructed for those of above moderate income. These units are expected to be market-driven and constructed as single-family units typical of those already in Cathedral City. As shown in the “Housing Costs and Affordability” analysis above, moderate income households in Cathedral can afford currently marketed housing in the community. The City has also identified sites for moderate income units in its land inventory to bolster the availability of these units during the planning period.
Data provided in the City’s General Plan offers a list of available parcels to meet the City’s RHNA allocation. The data below includes the Assessor’s Parcel Number (APN), acreage, and potential number of units that could be developed on each parcel. The table also provides a comparison of each site’s permitted density per the Development Code and the realistic density of the site, which has been adjusted to account for space required for infrastructure, open space, and the commercial components of the mixed-use zones. The City has an RHNA allocation of 893 units for low-, very-low- and extremely- low-income units. The inventory of sites could accommodate 1,088 lower-income units in the DTC, DRN, MXC, R-2 and R-3 zones, which exceeds the lower-income RHNA allocation.
Discussion
None.
17 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Administration and
Fair Housing Activities
2022 2026 Citywide Administration
and Fair Housing
CDBG:
$96,499
Other: 801 Other
2 Construct or upgrade
public facilities and
infrastructure
2022 2026 Non-Housing
Community
Development
Census
Tract
044926
Infrastructure
and Public Facility
CDBG:
$385,996
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 2325 Persons Assisted
Table 6 – Goals Summary
Goal Descriptions
1 Goal Name Administration and Fair Housing Activities
Goal
Description
Funds will be used for CDBG program planning and administration.
Funds in the amount of $20,000 will be allocated for Fair Housing Activities 2 Goal Name Construct or upgrade public facilities and infrastructure Goal
Description
Funds will be used to continue to arrest the decay of City aging infrastructure by creating safe paths of travel for residents in the area, increasing economic opportunity to businesses in the area and improving drainage during rain events.
18 DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan Projects
AP-35 Projects – 91.220(d)
Introduction
The Annual Action Plan provides a concise summary of the eligible programs or activities that will be undertaken during the program year to address the priority needs and specific objectives identified in the City's Consolidated Plan.
Projects
# Project Name
1 Program Administration: Planning and Management (2026) 2 Fair Housing & Mediation (2026)
3 Avenida El Mundo and Avenida El Pueblo Street Reconstruction (2026) Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
As stated in the Consolidated Plan, the City will use a place-based strategy during the planning period.
The geographic distribution of funding is predicated somewhat on the nature of the activity to be funded. It is the City’s intent to fund activities in the areas most directly affected by the needs of low- income residents and those with other special needs.
The Annual Action Plan directs investment geographically to eligible neighborhoods. An area benefit activity is one that benefits all residents in an eligible area, where at least 51% of the residents are low- and moderate-income persons. Public infrastructure improvements are an area benefit activity when they are in a predominately low- and moderate-income neighborhood.
DRAFT- City of Cathedral City FY 25 CDBG Annual Action Plan 19 AP-38 Project Summary
Project Summary Information
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 20 1 Project Name Program Administration: Planning and Management (2026) Target Area Citywide
Goals Supported Administration and Fair Housing Activities Needs Addressed Administration and Fair Housing
Funding CDBG: $76,499
Description Administrative CDBG funding will be used to manage the overall program processes and planning. The Administrative Allowance for managing the CDBG program is a maximum of twenty percent (20%).
The Administrative Allowance may be used to fund program planning activities such as the development of comprehensive plans, community development plans, energy strategies, capacity building, environmental studies, neighborhood plans and other plans. Administrative CDBG funding includes salaries, wages, and related costs of City Staff involved in program management, monitoring, and evaluation.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
Location Description 68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Planned Activities Administrative CDBG funds will be used to manage the overall program processes, reporting and planning. Activities include the development of comprehensive plans, community development plans, energy strategies, capacity building, environmental studies, neighborhood plans, reports and other plans. Administrative CDBG funding includes salaries, wages, and related costs of City Staff involved in program management, monitoring, and evaluation.
2 Project Name Fair Housing 2026
Target Area Citywide
Goals Supported Fair Housing Activities
Needs Addressed Fair Housing
Funding CDBG: $20,000
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 21 Description A designated Fair Housing Agency will provide Cathedral City with fair housing services to assist approximately 800 persons/households (including education, outreach and enforcement designed to further the fair housing objectives of the Fair Housing Act and of the Assessment of Fair Housing (AFH).
A designated Fair Housing Agency will provide at least two educational workshops to the stakeholders of Cathedral City and mobility counseling to educate residents about the benefits of moving to higher opportunity.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
800 low/moderate income persons
Location Description Cathedral City, CA
Planned Activities A Fair Housing Agency will be designated to assist individuals in resolving issues related to housing discrimination, homeownership sustainability, rental complaints, and disputes in court through the provision of resource recommendations, education, and mediation.
A designated Fair Housing Agency will provide Cathedral City with fair housing services to assist approximately 800 persons/households (including education, outreach and enforcement designed to further the fair housing objectives of the Fair Housing Act and of the Assessment of Fair Housing (AFH).
A designated Fair Housing Agency will provide at least two educational workshops to the stakeholders of Cathedral City and mobility counseling to educate residents about the benefits of moving to higher opportunity.
3 Project Name Avenida El Mundo and Avenida El Pueblo Street Reconstruction Target Area Census Tract 044926
Goals Supported Construct or upgrade public facilities and infrastructure Needs Addressed Infrastructure and Public Facility
Funding CDBG: $385,996
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 22 Description For FY 2026-2027, the City of Cathedral City is proposing to make road improvements, including pavement reconstruction in a low- and moderate-income area of Census Tract 044926 on Avenida El Mundo and Avenida El Pueblo from McCallum Way to Ramon Road.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
2325 low/moderate income persons.
Location Description The proposed project is located in Census Tract 044926 and includes the following roadway segments:
• Avenida El Mundo from McCallum Way to Ramon Road
• Avenida El Pueblo from McCallum Way to Ramon Road
Planned Activities For FY 2026-27, the City of Cathedral City is proposing road improvements, repairs and/or rehab including curb and gutter and ADA compliance as appropriate.
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 23 AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Cathedral City has approximately eleven Census Tracts that qualify to receive CDBG assistance. After the required percentage allocations for Administration and Public Services, the City will allocate at least 80% of CDBG funding towards public improvements. During this program year, the city will focus improvements to the Census Tract area 044926 on the roadway segments of Avenida El Mundo and Avenida El Pueblo from McCallum Way to Ramon Road. This area covers census blocks 2 and 3, where 52% of the residents are low- and moderate-income persons.
Geographic Distribution
Target Area Percentage of Funds
Citywide
Census Tract 044702
Census Tract 044907
Census Tract 044916
Census Tract 044924
Census Tract 044925
Census Tract 044926 100
Census Tract 044933
Census Tract 044934
Census Tract 045000
Census Tract 940600
Census Tract 941001
Census Tract 941100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically
The City will use a place-based strategy during the planning period. The geographic distribution of funding is predicated somewhat on the nature of the activity to be funded. It is the City’s intent to fund activities in the areas most directly affected by the needs of low-income residents and those with other special needs. The Annual Action Plan directs investment geographically to an area benefit neighborhood. The area benefit category is the most used national objective for activities that benefit a residential neighborhood. An area benefit activity is one that benefits all residents in a particular area, where at least 51% of the residents are low- and moderate-income persons. Public infrastructure improvements are an area benefit activity when they are in a predominately low- and moderate-income neighborhood.
Discussion
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 24 N/A
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 25 Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The Action Plan must specify goals for the number of homeless, non-homeless, and special needs households to be provided affordable housing within the program year. The plan must also indicate the number of affordable housing units that will be provided by program type, including rental assistance, production of new units, rehabilitation of existing units, or acquisition of existing units. For the purpose of this section, the term “affordable housing” is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 0
Special-Needs 0
Total 0
Table 9 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 0
Total 0
Table 10 - One Year Goals for Affordable Housing by Support Type
Discussion
The City does not plan to use CDBG funding for the purpose of affordable housing as defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership. However, the City did partner with the County of Riverside (County) to offer Affordable Housing Development (80%) and Down Payment Assistance (20%) through the Permanent Local Housing Allocation (PLHA) Program. The County is the lead agency for this Program and will prepare the reporting and evaluation on behalf of the City. The number of households assisted and/or served shall be documented in coordination with the County and described in the City's CAPER.
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 26 AP-60 Public Housing – 91.220(h)
Introduction
Cathedral City does not own or operate public housing.
Actions planned during the next year to address the needs to public housing
Cathedral City does not own or operate public housing.
Actions to encourage public housing residents to become more involved in management and participate in homeownership
Cathedral City does not own or operate public housing.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not Applicable
Discussion
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 27 AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The Action Plan must describe the jurisdiction’s one-year goals and the specific actions steps it will undertake in the program year to carry out the homeless strategy outlined in SP-60 Homelessness Strategy.
The Action Plan must also describe the jurisdiction’s one-year goals and specify the activities it will undertake to serve the housing and supportive service needs of non-homeless populations who require supportive housing.
Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The County of Riverside Continuum of Care (CoC) has established chronically homeless persons as the highest need priority. The CoC implements a targeted street-to-home outreach program/campaign that covers 100% of its area and takes a housing first approach for chronically homeless households and others with a disabling condition. Non-disabled persons are referred to emergency shelter or transitional housing programs and housed as quickly as possible. The CoC will soon implement a coordinated assessment system to ensure the right intervention through program admissions that will be marketed to community groups and outreach providers who coordinate outreach efforts with staff trained to guide households through the process regardless of age, gender, ethnicity, disability, etc. The city will continue to cooperate in the Point-In-Time Count (PIT) which seeks to identify the homeless and assess their needs.
The city continues to allocate funding from its general revenue to continue supporting homeless and related services in Cathedral City.
Coachella Valley Rescue Mission (CVRM):
CVRM's Emergency Shelter Program provides outreach and response services to assess and determine the best method of assistance for each individual and/or family. CVRM provides overnight emergency shelter, first-aid, meals, showering, clothing, and related assistance for the enrollment to the Annex Emergency Services Program; mental and behavior health services to individuals and families; available and/or qualifying rapid rehouse, permanent housing, and Section 8 housing services; including transportation services to school, daycare and offsite appointments.
According to the annual Point-in-Time results compiled by the Riverside County Continuum of Care (CoC), the City of Cathedral City accounted for approximately nearly 90 homeless persons identified during this count. Although this figure is not an actual projection of the exact number of homeless and DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 28 transients, the City will contract with the Coachella Valley Rescue Mission (CVRM) to assist and provide support services to 100 people. The goal of this effort is to reduce the number of homeless people in Cathedral City, which is counted annually. However, each year more people, including youth, are subject to homelessness and will cause this number to fluctuate.
Addressing the emergency shelter and transitional housing needs of homeless persons
The city is committed to working jointly with the Continuum of Care (CoC), which provides funding and a network of resources for homeless abatement. The CoC provides emergency shelter, supportive services, transitional housing, and permanent housing. The city commits staff to the CoC planning and implementation process and provides the CoC Steering Committee with critical information regarding the types of resources and programs provided to assist the homeless. In addition, the City will continue to look at the use of CDBG funds for local homeless facilities, as funding needs are analyzed.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
With the implementation of the Affordable Care Act (ACA), the County of Riverside CoC participates in enrollment and outreach activities to ensure eligible households can take advantage of new healthcare options. The CoC initiated a series of trainings and workshops that provide information on the ACA which has expanded Medi-Cal eligibility for people who are experiencing chronic homelessness and allows for the integration of housing, primary care and behavioral health. DPSS also received funding to conduct medical outreach and enrollment and is working with CoC member agencies to train outreach workers and enrollment counselors throughout Riverside County.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
The County of Riverside CoC Discharge Policy is mandated by the State and followed by the CoC. The CoC established a Discharge Planning Committee, responsible for implementing policies and protocols and coordinating with various organizations, to ensure that persons being discharged from a publicly funded institution or system of care are not discharged immediately into homelessness. The goals are to identify discharge housing needs inclusive of housing and supportive services and to link the individual with community resources that will include mental health services, substance abuse support, and DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 29 housing.
Discussion
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:
Cathedral City's FY 2022-2026 Consolidated Plan identified significant affordable housing needs and challenges faced by homeowners and renters. Additional needs were identified for households with lower household incomes and the Analysis of Fair Housing Choice report highlighted additional needs of Latino households
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The city continues to allocate funding to a designated Fair Housing Agency to provide Fair Housing Support in the Community as well as services like assistance for families for “second moves” after they have accessed stable housing, and ongoing post-move support for families. The goal is to increase levels of integration by Hispanic residents within higher opportunity neighborhoods. This new mobility counseling program administered by IFHMB will monitor the efficacy of outreach by tracking the percentage of households reached and who completed the counseling program.
The City tracks the percentage of households receiving counseling who successfully move to higher opportunity areas. This metric helps City & the designated Fair Housing Agency determine whether the program is effective at meeting the goal of increased levels of integration by Hispanic residents within higher opportunity neighborhoods. A high rate of successful moves could lead to expanding the program, while a low rate of successful moves might indicate the need to change the counseling curriculum or investigate what other factors pose barriers to integration.
The City continues to work with the designated Fair Housing Agency to increase testing of multifamily housing market in higher opportunity neighborhoods and census tracts to determine levels of discrimination based on source of income, including SSDI, Housing Choice Vouchers, or other tenant- based rental assistance. The City will work with the designated Fair Housing Agency to implement a targeted campaign of engaging housing providers and tenants in the specific areas with education and outreach materials to address the issue. The City will review fair housing complaints based on disabilities to determine annual reduction.
Discussion:
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 30 AP-85 Other Actions – 91.220(k)
Introduction:
The City’s goal is to continue to pursue the following community efforts:
• Foster and support affordable housing
• Evaluate and reduce lead-based paint (LBP) hazards
• Reduce the number of poverty-level families
• Develop institutional structure
In addition, this section will identify obstacles to meeting underserved needs and propose actions to overcome those obstacles.
Actions planned to address obstacles to meeting underserved needs
A major obstacle for the City is the lack of adequate financial resources to meet the growing needs of low and moderate-income persons. The City will continue to expand its housing resources to meet the growing need for affordable housing through alternate funding streams, including general fund resources. Currently, the City is using General Funds to support non-profit agencies that address the needs of the underserved including the homeless, the potential for homeless, youth, seniors, female- headed families, victims of domestic violence, and the disabled. The City is also proactively seeking additional resources to meet the underserved needs. Federal, state, and local resources expected to be made available to address the needs are identified in the Consolidated Plan
Actions planned to foster and maintain affordable housing
The City will utilize several policies intended to provide additional flexibility in housing site planning and promote more intense development where appropriate. A density floor is another tool that can be used to promote the maximum use of residential land. The density floor would establish a minimum density requirement within a given residential land-use designation. The availability of developable acreage in upper density ranges allows for the development of certain types of housing.
The City will also continue to consider alternate forms of residential development, including various types of small-lot, single-family subdivisions; mobile home parks that allow owner-occupied spaces; senior citizen multifamily housing developments offering various degrees of care and assistance; mixed- use residential, office and commercial developments; and planned unit developments.
To encourage developers to pursue low- and moderate-income housing projects, California has provided regulations to govern the approval process, permitting greater density for affordable housing projects that include additional incentives to the developer. The City utilizes this Density Bonus Ordinance to encourage developers interested in additional density or incentives to develop a portion of their market rate project as affordable to low- and moderate-income households to meet the state housing DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 31 requirements.
The City will continue to maintain policies and procedures to increase access to housing without LBP hazards. Funding is not provided until it is determined properties are free of LBP hazards. Types of properties covered include: a) federally-owned housing being sold; b) housing receiving a federal subsidy that is associated with the property, rather than with the occupants (project-based assistance); c) public housing; d) housing occupied by a family (with a child) receiving a tenant-based subsidy (such as a voucher or certificate); e) multifamily housing for which mortgage insurance is being sought; and, f) housing receiving federal assistance for rehabilitation, reducing homelessness, and other special needs.
Actions planned to reduce lead-based paint hazards
Cathedral City is committed and will continue to eliminate lead-based paint (LBP) hazards citywide particularly in homes occupied by low and moderate-income households. The City will collaborate with local agencies, HUD, and the County of Riverside to provide information on health dangers of lead-based paint. The city will participate in and support the regional lead-based poisoning prevention program administered by Riverside County, Department of Public Health. The objectives of this agency are as follows:
1. Educate the public about the dangers of lead through the creation and distribution of health education materials.
2. Assist Property Owners and Families in eliminating sources of lead from their homes through Lead Hazard Control Services and Incentives; required testing on homes built prior to 1978; and, visit homes identified as potential health risks to determine source of lead to educate parents on how to eliminate it.
The Riverside County Childhood Lead Poisoning Prevention Program (CLPPP) program provides presentations about lead poisoning to the general community, schools, parent groups, healthcare providers, pregnant women, and others interested in learning more about lead. Presentations are available in both English and Spanish. The CLPPP provides free educational materials about lead poisoning, including topics such as sources of lead, reducing the risk of lead poisoning, pregnancy, and nutrition. These materials are available upon request in both English and Spanish.
Childhood Lead Poisoning Prevention Program (CLPPP):
• Provide Medical Testing for children for lead poisoning on a sliding scale based on family income • Assist parents in treating children identified with lead poisoning.
Actions planned to reduce the number of poverty-level families The City's anti-poverty strategy utilizes existing Riverside County job training and social service programs to increase employment marketability, household income, and housing options. Below are the City's goals for reducing the number of Poverty-Level Families within the City:
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 32 Goal #1: Continue to support and coordinate with public and private efforts aimed at preventing and reducing poverty level incomes.
Goal #2: Conduct outreach with public and private agencies whose mission is to reduce poverty level incomes.
The City will implement the above policies by increasing job opportunity through education and job training programs; collaborating with state, county and local agencies that offer trade skills training and basic job search techniques; encouraging local education facilities to offer education and training that will lead to employment opportunities in the community; and supporting job creation through business- friendly policies and practices.
Actions planned to develop institutional structure
Staff continue to stay informed and abreast of new policy or changes to existing legislative policy will develop the institutional structure needed to better manage programs for offering the best services. These efforts also include coordination with local agencies and neighboring cities.
Actions planned to enhance coordination between public and private housing and social service agencies
The City plans to enhance coordination between public and private housing and social agencies as follows:
• The City will continue to foster and maintain relationships with other agencies to establish an institutional structure that maximizes its resources. The City's institutional structure will consist of public agencies, for-profit agencies, and non-profit organizations. • The City will have conducted a request for professional services to address fair housing needs. • The City will continue to work with the County of Riverside to provide affordable housing opportunities to extremely low and low-income renters in Cathedral City. • The City will continue to work with the Continuum of Care (CoC) to address homeless issues. • The City will also work with the agencies and internal departments listed in AP-38 to bridge any identified gaps in the service delivery system. We receive quarterly reports from the agencies and internal departments we fund about the ongoing services they provide. • The City anticipates holding public meetings and workshops to provide and solicit input regarding the needs of the community.
These efforts provide for regional collaboration to better serve our community and enhances coordination between public and private housing and social service agencies.
Discussion:
DRAFT- City of Cathedral City FY 26 CDBG Annual Action Plan 33 Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:
The City of Cathedral City does not implement activities that generate program income, as the CDBG program is primarily focused on public facility improvements, fair housing activities and program administration. In accordance with CDBG regulations, the City devotes at least 80% of its CDBG funds to activities that benefit low/ moderate income individuals or households.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan.
0 3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan
0 5. The amount of income from float-funded activities 0 Total Program Income: 0
Other CDBG Requirements
1. The amount of urgent need activities 0
2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
80.00%
The city does not anticipate receiving program income during FY 2026-2027. The city anticipates having an overall low/moderate income benefit of 80%.