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June 16, 2026
ITEM TITLE
Fund Appropriation: Appropriation of U.S . Department of Housing and Urban Development (HUD) Grant Allocations to Fund the CDBG, HOME, and ESG Projects for the 2026-2027 Fiscal Year Report Number: 26-0165
Location: Intersection of Naples and Granjas, 31 4th Avenue, no other projects have specific geographic locations.
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
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 th e 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 and pursuant to the U.S.
Department of Housing & Urban Development Environmental Guidelines.
Recommended Actions
Adopt resolutions to appropriate funds from the U.S. Department of Housing and Urban Development (HUD) as approved on May 19, 2026, as follows:
A. $2,501,482.59 for the Community Development Block Grant (CDBG) Program and $1,200,730.78 for the HOME Investment Partnerships (HOME) Program (4/5 Vote Required); and B. $206,221.00 for the Emergency Solutions Grant (ESG) Program. (4/5 Vote Required)
SUMMARY
The City of Chula Vista ( “City”) receives annual federal funding through three (3) entitlement programs administered by HUD: the CDBG, HOME, and the ESG programs. The City has reviewed funding applications submitted under these programs and prepared the Fiscal Year 2026-2027 Annual Action Plan (Action Plan) describing the proposed use o f these funds which was approved on May 19, 2026 . This item now appropriates such funds.
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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 State 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 predicated on CEQA Guidelines Section 15004 which provides direction to lead agencies on the appropriate tim ing 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 activities for this item included social media outreach requesting completion of a public survey. Staff invited community members to participate in identifying community priorities related to allocation of grant funds in the upcoming fiscal year.
The onl ine survey was available from November 19, 2025 , through January 21, 2026, and received 899 responses from 21 participants.
Survey responses indicate the following priorities:
1. Public services, affordable housing, and economic development are the greatest community needs.
2. The most urgent infrastructure needs are street lighting and street improvements (new pavement).
3. The highest priority community facility needs are senior centers, parks and recreational facilities, and homeless shelters and facilities.
4. Affordable housing needs include 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. Among eligible public services crime awareness and prevention, senior services, and health services received the highest scores, indicating greater need.
6. Substance abuse services ranked highest among special needs services.
7. Participants also express a need for job training and new job opportunities.
In addition, the City held a public hearing on January 6, 2026, to receive community and City Council input regarding Fiscal Year 2026 -2027 funding priorities. Community feedback received through these engagement activities informed development of the draft Action Plan and is reflected, as appropriate, in the funding recommendations presented to the City Council.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Housing and Homelessness Advisory Commission were informed of the public review period during their March 25, 2026, meeting.
DISCUSSION
As a HUD entitlement community, the City receives annual funding through three (3) federal entitlement programs: the CDBG, HOME, and the ESG programs. The Action Plan, which serves as the City’ s annual P a g e | 3
funding application to HUD was considered and approved for the Fiscal Year 2026-2027 on May 19, 2026, and subject request will appropriate such funds to the Fiscal Year 2026/27 Housing budget.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the Naples Street and Granjas Road CIP which is the subject of this action. It was determined that Mayor John McCann has r eal property holdings within 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 Counc il member of any other fact 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.
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. This action will amend the approved Fiscal Year 2026/27 budget to appropriate funds to the Housing budget as summarized below.
Fiscal Year 2026-2027 Funding Appropriations
Community Development Block Grant (CDBG)
Public Services $339,351
CDBG Administration and Planning $452,468
Section 108 Loan Payment $709,896
Capital Improvement and Community Development $999,768 Subtotal $ 2,501,483
Home Investment Partnerships Act (HOME)
HOME Planning and Administration $80,073
Affordable Housing Projects/Programs $1,120,658
Subtotal $1,200,731
Emergency Solutions Grant (ESG)
ESG Administration and Planning $15,467
Shelter Services $70,000
Homeless Prevention and Rapid Re-Housing $120,754
Subtotal $206,221
TOTAL CDBG, HOME and ESG $3,908,435
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In the remote event that HUD should withdraw the City's CDBG, HOME, and ESG funding, the Agreements/Memorandum of Understandings provide that the City is not obligated to compensate subrecipients or City Departments for program expenditures.
ATTACHMENTS
None.
Staff Contact: Stacey Kurz, Director of Housing and Homeless Services Stelle Pacifico, Management Analyst