Staff Report
City Council
Item No. 3.G
Meeting Date: September 16, 2026
From: Brenda Morales, Analyst I
Title: FY 2025-2026 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) 2025- 2026 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 2025-2026 CAPER will serve as a supporting document for the city's FY 2022– 2026 Consolidated Plan.
CDBG regulations require the city to have no more than 1.5 times its annual allocation in unexpended funds as of May 2 of each year. As of May 2, 2026, the City of Cathedral City was in compliance with this requirement. Currently, only $4,200 remains unexpended across all CDBG grant years.
DISCUSSION:
The FY 2025-2026 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 2025-2026 Program Expenditures
1. Planning and Administration
HUD permits jurisdictions to allocate up to 20% of their CDBG entitlement grant toward administrative costs. In FY 2025-2026, 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 289 residents, addressing concerns such as evictions, habitability issues, lease disputes, rent increases, homelessness, foreclosures, harassment, and discrimination. Of those served, 89% 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 2025–2026, the city expended $452,412.76 in CDBG funds to the Whitewater Neighborhood Road Improvement Project Phase II. Of this amount, $409,288 came from the FY 2025–2026 allocation, while $43,124.76 was reallocated from unspent funds originally budgeted in FY 2023–2024 through an administrative amendment.
The project included the removal and replacement of existing asphalt concrete (AC) pavement, reconstruction of Americans with Disabilities Act (ADA) compliant curb ramps, adjustment of existing utility facilities to final grade, and installation of pavement striping and markings on the following roadway segments:
Ortega Road between Shifting Sands Trail and Cathedral Canyon Drive; Navajo Trail between 33rd Avenue and Dinah Shore Drive; and Pueblo Trail between 33rd Avenue and Dinah Shore Drive.
According to US Census data, the improvements directly benefited an estimated 4,060 residents, of whom approximately 83 percent are low- or moderate-income.
A total of $800 in FY 2023–2024 CDBG funds were expended through the Sidewalk Repair Assistance Program to repair a damaged sidewalk at 31820 Avenida El Mundo, benefiting a household size of five. The program was allocated $5,000 from the FY 2023–2024 CDBG Public Improvements allocation. No other applications were processed during the reporting period, leaving an unspent balance of $4,200. However, during development of the FY 2025– 2026 Annual Action Plan, the City Council supported continuation of the program into the next fiscal year. The remaining $4,200 will continue to be allocated to the program. Increased coordination between the Engineering and Code Compliance Divisions is expected to help promote the program and increase participation in the coming year.
Use of Prior-Year Funds
During FY 2025–2026, Cathedral City expended a total of $555,532.76 in CDBG funding. Of this amount, $43,924.76 came from prior program years. Several key projects were funded using this carryover.
From the FY 2023–2024 allocation, $800.00 was available for the Sidewalk Improvement Program from the original allocation of $5,000.00. A total of $4,200.00 remains as a set aside for this program.
Unexpended funds for the Via De Anza Sidewalks Improvement Project from program year 2024 were re-allocated to the Neighborhood Road Improvement Project Phase II in the amount of $43,124.76.
The FY 2025–2026 CAPER was prepared using HUD’s eCon Planning Suite and includes comprehensive reporting for all CDBG expenditures.
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 18, 2026, through September 1, 2026. Any comments received during this public comment period will be included as an attachment in the final CAPER submitted to HUD. No comments have been received during the comment period. The CPP does not require a public hearing for CAPER approval. Upon City Council approval of the submittal, the FY 2025–2026 CAPER will be submitted to HUD for review and acceptance.
City staff recommend that the City Council approve the city’s CDBG FY 2025-2026 CAPER for submittal to HUD.
FISCAL IMPACT:
The city effectively managed its FY 2025–2026 CDBG program budget by expending $555,532.76 of the total $559,732.76 allocation, leaving a remaining balance of $4,200.00 allocated to the Sidewalk Repair Assistance Program. This unspent balance will continue to fund the program in FY 2026–2027 and does not require a formal amendment.
FY 2025-2026 PROJECTS AND
PROGRAMS BUDGETED SPENT BALANCE
Planning and Administration $82,320.00 $82,320.00 $0.00 Fair Housing Council of Riverside
County (FFCRC) $20,000.00 $20,000.00 $0.00
Whitewater Neighborhood Street
Reconstruction $452,412.76 $452,412.76 $0.00
2024 Sidewalk Repair Assistance
Program $5,000.00 $800.00 $4,200.00
TOTAL $559,732.76 $555,532.76 $4,200.00
Of the $48,124.76 in unspent funds from previous years available during FY 2025–2026, $43,924.76 was expended. The remaining balance of $4,200.00, originally allocated for the Sidewalk Repair Assistance Program will continue to fund the program in FY 2026–2027 and does not require a formal amendment.
PROJECTS AND PROGRAMS
FUNDED WITH PREVIOUS YEAR
FUNDING
FUNDING
AVAILABLE IN
FY2025-2026
SPENT IN FY
2025-2026 BALANCE
Whitewater Neighborhood Street
Reconstruction Project (CDBG FY
2024-2025)
$43,124.76 $43,124.76 $0.00
2024 Sidewalk Repair Assistance
Program $5,000.00 $800.00 $4,200.00
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 2025-2026 Draft CAPER