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May 19, 2026
ITEM TITLE
Housing Grant Funding: Approve the Fiscal Year 202 6/27 U.S. Department of Housing and Urban Development Annual Action Plan
Report Number: 26-0116
Location: Intersection of Naples and Granjas, 31 4th Avenue, and all other projects are not site specific Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice : The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required. Under the National Environmental Policy Act, the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations.
Recommended Actions
Adopt the following resolutions:
A. Approving the Fiscal Year 2026/27 U.S. Department of Housing and Urban Development annual spending plan for the Community Development Block Grant and HOME Investment Partnerships Program within the 2026/27 Annual Action Plan, authorizing the City Manager to execute subrecipient agreements, memorandum of agreement(s), and all documents related to the grants ; and
B. Approving the Fiscal Year 2026/27 annual spending plan for the Emergency Solutions Grant within the 2026/27 Annual Action Plan, authorizing the City Manager to execute subrecipient agreements and all documents related to the grant.
SUMMARY
The City of Chula Vista (“City”) has received and reviewed funding applications for the U.S. Department of Housing and Urban Development grant programs including: (1) Community Development Block Grant; (2) HOME Investment Partnerships Act; and (3) Emergency Solutions Grant funds. On March 13, 2026 , the 2026/2027 funding recommendations were released for a 30-day public comment period which closed and P a g e | 2
concluded with a public hearing on April 14, 2026, with six (6) public comments received in support. At this time, staff is requesting City Council approval of the final Annual Action Plan to be submitted to HUD.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the CEQA Guidelines because it will not result in a physical change in the environment . Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Under the National Environmental Policy Act (NEPA), the activity is exempt pursuant to Title 24, Part 58.34(a)(2)(3) & (10) of the Code of Federal Regulations. Thus, no further environmental review is necessary at this time.
This determination is predic ated on CEQA Guidelines Section 15004 which provides direction to lead agencies on the appropriate timing for environmental review. Projects for which these grant funds are intended will require preparation of environmental documents in accordance with the State CEQA Guidelines, NEPA, and the City’s Municipal Code.
COMMUNITY ENGAGEMENT
Community engagement efforts for this item included outreach through social media to request public survey feedback. Staff requested that the public participate in the decision -making process to allocate next fiscal year’s grant funds for the benefit of the community. A public survey was conducted online which was open from November 19, 2025, through January 21, 2026, a nd received a total 899 responses from 21 survey participants.
The results show the following:
1. The greatest needs in Chula Vista are public services, affordable housing, and economic development.
2. Regarding infrastructure needs, the most urgent are street l ighting and street improvements (new pavement).
3. The highest community facilities needs are for senior centers, parks and recreational facilities, and homeless shelters and facilities.
4. Affordable housing projects and programs are needed in the form of new construction of affordable rental housing, assistance to remove lead -based paint from homes, assistance for energy efficiency improvements to homes, and first-time homebuyer assistance.
5. Of the allowable public services, crime awareness/prevention, senior se rvices and health services had the highest scores, indicating greater need.
6. Substance abuse services scored highest among special needs services.
7. Lastly, participants indicated a desire for job training and new job opportunities.
In addition, the City he ld two (2) public hearings on January 6, 2026 , and April 14, 2026 , to receive community and City Council feedback on priorities for FY 2026/27 funding. Community feedback received through these engagement efforts was considered in the development of the Annual Action Plan and is reflected in the recommendation presented to the City Council, as appropriate.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable. The Housing and Homeless Advisory Commission was informed of the open pubic review period at their March 25, 2026, meeting.
DISCUSSION
As an entitlement community with the U.S. Department of Housing and Urban Development (HUD), the City receives annual funding under three (3) entitlement block grant programs: Community Development Block Grant (CDBG), HOME Investment Partnerships Act (HOME), and Emergency Solutions Grant (ESG). The grant amounts allocated to each jurisdiction are determined using a formula based on statistical and demographic data. The purpose of this funding is to provide housing and suitable living environment s, and to expand economic opportunities principally for low - and moderate -income persons. As a recipient of these HUD funds, the City is required to adopt a five-year planning document entitled the Consolidated Plan (“ConPlan”), which describes the City's five -year strategy for use of these funds based upon the identified goals and objectives related to its housing and community development priorities.
The City annually selects activities for funding that best meet the needs of the community as specified within the five-year ConPlan, while also meeting the national objectives and requirements of the grant funds. The selected activities are then incorporated into a one -year planning document, known as the Annua l Action Plan (the “Action Plan”). The Action Plan constitutes the City’s formal funding application to HUD for the corresponding grant year. The 202 6/27 Action Plan (attached as Attachment 1 for your reference) covers the second year of the ConPlan period. The 2026/27 Action Plan was released for a 30-day public comment review period between March 13, 2026 and April 14, 2026; six public comments were received in support .
The City must now enter into a formal agreement with HUD and execute a Subrecipient 2-Party Agreement and MOU s with each approved applicant . Examples of such agreements are provided for reference in Attachments 2 through 4.
2025-29 CONPLAN
The City’s 202 5-29 Five-Year ConPlan identifies a total of five priorities under Housing and Community Development for funding consideration.
Table I: 2025-29 Consolidated Plan Funding Priorities
PRIORITY GOAL ACTIVITY TYPE
Affordable Housing Increase affordable rental and owner - occupied housing to improve housing
opportunities that reflect the community’s
needs.
New Construction
Acquisition
Rehabilitation
First-Time Homebuyer
Assistance
Tenant-Based Rental
Assistance
Capital
Improvement and
Public
Facilities
Support the development of vibrant,
equitable and accessible neighborhoods by
investing in public facilities and
infrastructure.
ADA improvements
New streets and sidewalks
Public facility improvements
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PRIORITY GOAL ACTIVITY TYPE
Social
Service
Programs
Invest in community social services to
promote equity and serve the most
vulnerable of the community’s population.
Public Services to low/moderate
income including the following
population:
Homeless Veterans; Youth;
Seniors; Victims of Domestic
Violence; Special Needs/
Disabled
Economic
Development
Enhance the City’s economic stability by
investing in inclusive economic growth
initiatives that develop and strengthen
small businesses, employment and
workforce development programs and
improving access to jobs.
Business Financial Assistance
Programs
Business Technical Assistance
Job Training and Placement
Homelessness Assist individuals and families to gain
stable housing after experiencing
homelessness or a housing crisis by
providing appropriate services and
housing solutions on a path to
stability.
Shelter Operations
Homeless Prevention
Homeless Outreach
Homeless Supportive Services
2026/27 ANNUAL ACTION PLAN
Resources
HUD released entitlement amounts on April 3, 2026. For the 2026/27 program year, Chula Vista will receive $2,262,340 in CDBG Funds, $ 800,731 in HOME funds, and $206,221 in ESG funds. These allocations are detailed in Table II below. These figures represent a $84,024 decrease in CDBG funds from the prior year, a $4,925.78 increase in HOME funds from the prior year, and a $616 decrease in ESG funds from the prior year.
Table II: 2026/27 Federal Grant Funding1
PROGRAM ENTITLEMENT
AMOUNT
PRIOR YEAR
(UNENCUMBERED)
TOTAL AVAILABLE
FOR 2026/2027
Community Development Block Grant $2,262,340 $239,143 $2,501,483 HOME Investment Partnerships Act $800,731 $400,000 $1,200,731 Emergency Solutions Grant $206,221 $0 $206,221
Total $3,269,292 $639,143 $3,908,435
1 amounts rounded up to whole dollars
Funding Requests
As part of the annual Action Plan process, the City releases a Notice of Funding Availability (NOFA) for the three (3) grant programs. City Staff emailed the NOFA to all formerly funded agencies and interested parties and advertised the NOFA at local meetings of the Chula Vista Community Collaborative, posted the NOFA on the City’s website, and announced the NOFA at a Council public hearing on January 6, 2026, which was advertised in the Star News. The NOFA was released on February 2, 2026, with a submittal deadline of March P a g e | 5
2, 2026. Housing staff has reviewed all proposals to ensure compliance with the prescribed regulations and consistency with the City’s goals and objectives.
A detailed table showing funding recommendations can be found in the Action Plan as well as a summary of each request, proposed use of funds, and benefit to the community in Attachment 1. The federal grant funding recommendations for CDBG, HOME, and ESG are presented below.
Community Development Block Grant (CDBG)
For FY 2026/27, the City will utilize a total of $2,501,483 of CDBG funds. All projects considered for funding must address at least one of the three CDBG National Objectives: (1) benefit primarily low/moderate income families; (2) aid in the prevention or eliminatio n of slums or blight; or (3) meet community needs due to a major emergency such as a natural disaster.
Projects are then classified into three (3) distinct categories:
1. Administration and Planning
2. Public Services
3. Capital Improvement Projects (CIPs) and Community Development
Below is a summary of the funding recommendations under each respective category.
1. Administration/Planning Recommendations
Funds under this category cover all City staff costs associated with the management and administration of the City ’s CDBG program including regulatory compliance, contract administration, subrecipient monitoring, and fiscal management. This also includes preparation of the required planning documents, such as the Action Plan, the ConPlan, and the Analysis of Impediments to Fair Housing Choice. As detailed in Table III, Federal regulations governing the CDBG program limit the amount that the City spends on administration/planning activities to 20 percent (20%) of the entitlement amount for the program year (cap of $452,468 in 2026/27).
A portion of the City’s CDBG Administration/Planning allocation is allocated to the City’s Fair Housing Provider. This year, the City received multiple applications from Fair Housing Providers. After careful and thorough review of the applications Staff recommends that City continue to contract with CSA San Diego County.
Table III: 2026/27 CDBG Administration Funding
Applicant Program Recommended
1 Housing and Homeless
Services Department
CDBG Administration/Planning $387,468
2 CSA San Diego County Fair Housing and Tenant/Landlord Services $65,000 Total $452,468
2. Public Services Program Recommendation
Funds for Public Services activities are awarded to local agencies and community organizations to implement projects and programs that improve the lives of low-income residents, including the elderly, disabled, at-risk, and persons living in homelessness. The amount of funds the City may allocate to public services is limited to fifteen percent (15%) of the annual CDBG entitlement (cap of $339,351 in 2026/27).
Staff’s funding recommendations for public service activities are based on funding priorities established P a g e | 6
in the ConPlan, along with application scoring and an established ranking criterion which categorizes the programs by community need (Tier I-III, with Tier I being the highest).
Public Services Community Need Ranking
Tier I
(highest) Tier II Tier III
Emergency Needs:
Programs that address basic,
fundamental needs
including shelter, food, and
other commodities.
Special Needs/Disabled:
Programs that provide services to
persons with disabilities, special
needs, and who are at high-risk.
Other General Services:
All other services which do not
fall within Tier I or II and provide
general public services to
low/moderate income persons.
A total of 12 public service applications were received and all 12 are recommended for funding . All recommended funding requests are from previous grant recipients who are in good standing with the City and HUD . The applicants are recommended for funding at their full request due to receiving less applications this year than is typical. Additionally, th is is the first year that staff is recommending providing funding for a City-run Homeless Services program as there are still Hotel/Motel Voucher funds from the prior year.
Summarized in Table IV are the list of public services applicants, their program na mes, requested funding, and amount of recommended funding by Staff.
Table IV: 2026/2027 CDBG Public Services
Applicant Program Requested Recommended
3 Chula Vista Elementary
School District
Family Resource Center
Emergency & Basic Services
$50,000
$50,000
4 Chula Vista Housing and
Homeless Services
Department
City Homeless Services1 $27,251
$27,251
5 City of Chula Vista Parks
and Recreation
Norman Park Senior Center
$30,000
$30,000
6 City of Chula Vista Parks
and Recreation
Therapeutic Recreation Programs
for Adults with Severe Disabilities
$20,100
$20,100
7 Jacobs & Cushman San
Diego Food Bank
Food for Kids Backpack Program
$15,000 $15,000
8 Mama's Kitchen Home-Delivered Meal Service $10,000 $10,000 9 Meals-on-Wheels Greater
San Diego
Senior Meal Delivery &
Accompanying Services
$30,000 $30,000
10 SBCS Corporation Family Violence Support Services $50,000 $50,000 11 SBCS Corporation Homeless Services $55,000 $55,000
12 SBCS Corporation South Bay Food Program $15,000 $15,000 13 Voices for Children Court Appointed Special Advocate (CASA) Program
$20,000 $20,000
14 Interfaith Shelter
Network of San Diego
Rotational Shelter Program
$17,000 $17,000
Total
$339,351
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3. CIPs and Community Development
After the Public Services and Administration activities are funded, a n estimated total of $1 ,709,664 remains for eligible capital improvement projects, public facility improvements, and other housing/community/economic development-related activities. The City has earmarked $709,896 for the annual Castle Park Infrastructure Section 108 debt service payment, with two years remaining on the 20-year loan term. This leaves a balance of $999,768 for new projects.
To be considered eligible for funding within the CIP category, the project must be located in a primarily residential area designated as low/moderate income by the U.S. Census and cannot be regional in nature (serving the entire City or county region). Priority is given to those projects with the most effectiveness and the greatest feasibility by demonstrating leveraging of additional funding sources, benefit and impact to the community.
A total of three (3) applications are presented under this category: the City’s Section 108 Loan payment, a CIP (Naples and Granjas), and the BOOST program offered by Upwards Care Inc.
Table V: 2026/2027 CDBG Community Development Projects
Applicant Program Recommended
15 Chula Vista Engineering Department Naples and Granjas $615,985 16 Upwards BOOST (Business Operations &
Optimization Tools)
$383,783
17 Chula Vista Housing Homeless
Services Department
Section 108 Loan $709,896
TOTAL $1,709,664
Housing staff continuously work with the City’s
Engineering Department to gather information
on and identify projects that meet CDBG
eligibility and expenditure requirements. Per
CDBG regulations, CIP projects must serve an
area where at least fifty one pe rcent (51%) of
residents are low and moderate income and
sidewalk infrastructure projects must be for
new construction. The Naples & Granjas project
is for sidewalk gap improvements along Naples
Street from just east of Broadway to just west of
Third Avenu e and a segment of Granjas Road
north of Naples Street. The project will include
installation of missing curb, gutter, and sidewalk in various locations. The project map illustrat es the location and HUD-designated Low/Moderate Income Census Tract (shaded in yellow).
The BOOST Program offered by Upwards assists micro-enterprise in-home daycares through personalized coaching and technical assistance. Low -income business owners in Chula Vista will be assisted, increasing both the strength and income of these microenterprise daycares, while also increasing childcare options for Chula Vista residents. This program’s goals align with the City’s 2025 - 2029 ConPlan economic development goals of business technical assistance and job creation. Upwards Naples Street and Granjas Road
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demonstrates thorough knowledge of CDBG regulations, is in good standing with HUD, and Staff are fully confident in their ability to execute the programming.
HOME Investment Partnerships Act (HOME)
HOME funds may be used to provide affordable rental housing and home ownership opportunities through:
1. New construction
2. Acquisition
3. Rehabilitation
4. First-time homebuyer assistance
5. Tenant-based rental assistance
For 2026/27, the City will utilize the HOME entitlement (2026/2027 allocation amount of $ 800,731 plus $400,000 in prior year funds) to address the City’s housing priorities identified in the 2025-29 ConPlan and summarized in Table VI. Per the HOME regulations , fifteen percent (15%) of the annual allocation must be set aside to assist Community Housin g Development Organizations (CHDOs) for the creation of affordable housing units (minimum of $120,110 in 2026/27). Should these funds not be utilized in a timely manner for this specific purpose, these funds would be recaptured by HUD and would be unavailable to the City. The City will allocate this year’s fifteen percent (15%) towards “Production of Affordable Housing”, with the intent to award funds to an affordable housing developer identified through a future Request for Proposals process.
The City received one (1) application eligible for HOME funds from SBCS to provide tenant -based rental assistance for general low- and moderate-income residents. The remainder of the funds will be utilized for the City’s own tenant-based rental assistance and first-time homebuyer programs.
Table VI: 2026/27 HOME Projects
Applicant Program Recommended
21 Chula Vista Housing and Homeless
Services Department
HOME Planning and Administration
$80,073
22 Chula Vista Housing and Homeless
Services Department
Production of Affordable Housing1 $120,110
23 Chula Vista Housing and Homeless
Services Department
Tenant-Based Rental Assistance $400,000
24 SBCS Corporation Tenant-Based Rental Assistance $400,000 25 Chula Vista Housing and Homeless
Services Department
First-Time Homebuyer Program $200,548
TOTAL $1,200,731
1CHDO funding set-aside.
Emergency Solutions Grant (ESG)
Chula Vista will receive $206,221 in ESG entitlement funds for FY 2026/27. ESG funds may be used to provide homeless services through:
1. Homeless Prevention
2. Rapid Re-Housing (rental assistance)
3. Street Outreach
4. Emergency Shelter
5. Homeless Management Information Systems (HMIS)
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The City received one (1) proposal for ESG funds, an application from SBCS Corporation for operations of the Casa Nueva Vida shelter . SBCS is a previous grant recipient and is in good standing with the City of Chula Vista and HUD. The remaining funds will be earmarked for Planning and Administration Costs (seven and a half percent (7.5%) of the entitlement, $15,467 in 2026/27), and Homeless Prevention Services, as detailed in Table VII. The Homeless Prevention program will be administered by Housing staff.
Table VII: 2026/2027 ESG Projects
Applicant Program Recommended
22 Housing and Homeless Services
Department
ESG Planning and Administration $15,467
23 Housing and Homeless Services
Department
Homeless Prevention Program $120,754
24 SBCS Corporation ESG - Casa Nueva Vida $70,000
TOTAL $206,221
Conclusion
While the ESG and the HOME programs were designed to meet very specific objectives, the CDBG program allows flexibility in the type of activities it funds. This allows the City to leverage its CDBG funds with ESG and HOME funds to maximize the impact of the grant funding to meet the housing needs of the lower income community. As the cost of housing has increased year after year, far outpacing income growth, housing has become increasingly unaffordable to more members of the community. The City’s Housing an d Homeless Services Department continues to pursue funding opportunities to leverage with available Housing funds, including HOME, to develop affordable housing projects and programs.
Staff recommends that the City Council adopt the 2026/27 Action Plan as presented and authorize its submittal to HUD. Staff additionally recommends that City Council authorize the City Manager to execute all Subrecipient Agreements and MOUs with each approved applicant.
DECISION-MAKER CONFLICT
Staff has reviewed the propert y holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the Naples Street & Granjas Road CIP which is the subject of this action.
It was determined that Mayor John McCann has real property holdings w ithin 500 feet of the boundaries of the property located at 31 4th Avenue which is subject of Resolution B. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(7), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the above-identified member for Resolution B.
Staff is not independently aware and has not been informed by any City Council member of any other f act that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no current year fiscal impacts to the General Fund as a result of this action.
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact to the City's General Fund as a result of this action. All costs associated with the administration of the CDBG, HOME and ESG programs are covered by the respective grants.
Staff will return to City Council to appropriate HUD funds in June 2026.
ATTACHMENTS
1. 2026/27 Annual Action Plan
2. 2026-27 CDBG Interdepartmental MOU
3. 2026-27 CDBG Subrecipient Agreement
4. ESG Subrecipient Agreement
5. SBCS TBRA 2025-26 - DRAFT Agreement
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Stelle Pacifico, Management Analyst II