AGENDA REPORT
City Council
MEETING
DATE:
September 16, 2026
PREPARED
BY:
Cindy Schubert,
Management Analyst
DEPARTMENT
DIRECTOR:
Scott Drapkin
DEPARTMENT: Development Services CITY
MANAGER:
Jennnifer Campbell
SUBJECT:
FY 2025-26 Consolidated Annual Performance and Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program
RECOMMENDED ACTION:
1. Receive and file the FY 2025-26 CAPER (Attachment 1); and
2. Authorize the City Manager or designee to submit the FY 2025-26 CAPER to the U.S.
Department of Housing and Urban Development (HUD).
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.
This item is not related to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This action supports the “Public health and safety for the protection of life, property and the physical environment” focus areas of the City Council’s 2026-2027 annual work plan.
Additionally, the CDBG program supports the City’s General Plan Housing Element by aligning with the following policies:
2026-09-16 Item #10E Page 1 of 20
• Policy 1.7: Coordinate with local social service providers to address the needs of the homeless population and provide housing for special needs groups, including seniors, large families, people with disabilities, and farmworkers. • Policy 1.9: Support state, federal, and local fair housing agencies in enforcing fair housing laws and advancing regional efforts to affirmatively further fair housing. • Policy 3.3: Continue applying for and supporting federal, state, and local housing programs that provide housing assistance. This includes helping property owners with financial need upgrade substandard units, maintaining city housing rehabilitation programs, and pursuing additional external funding.
The City’s CDBG program also advances the following Housing Element programs:
• 2F: Continue Programs to Reduce Homelessness
• 4B: Assist in Rehabilitation Housing
• 5A: Affirmatively Further Fair Housing
FISCAL CONSIDERATIONS:
There are no fiscal considerations at this time.
BACKGROUND:
The CDBG program is a federal program administered by HUD. The City has received CDBG funds directly from HUD since 1990. CDBG funding is used to address a variety of housing and community development needs, which are prioritized during the five-year Consolidated Plan process.
Local jurisdictions must comply with various CDBG reporting requirements, such as the Consolidated Plan, Action Plan, and CAPER. The Consolidated Plan is a five-year plan that prioritizes community development and housing needs and guides the use of federal funds to meet those needs. The Action Plan identifies projects and activities to be funded and implemented during the fiscal year. The CAPER reports on the actual accomplishments and expenditures for the fiscal year. This CAPER represents the first year of the FY 2025-29 Consolidated Plan.
CDBG expenditures described in this report were approved by City Council on FY 2023-24 through FY 2025-26. The CDBG program operates on a reimbursement basis; general funds allocated are expended on approved activities and projects, and then funds are drawn down from a HUD account to reimburse the City of Encinitas (City). Funding for Program Administration (not to exceed 20 percent of the annual grant) is available through the CDBG program. Administrative costs in excess of the amount provided through the CDBG grant are covered by the approved Development Services Department operational budget.
The City received a CDBG entitlement grant of $287,051 for FY 2025-26. Because the grant did not provide sufficient funding to fully cover public service requests, which are limited to 15% of the total allocation, the City Council authorized a General Fund contribution of $11,945 on March 12, 2025 (Resolution No. 2025-32). On April 16, 2025, the City Council approved the FY 2025-26 Annual Action Plan. The subject of this report is the FY 2025-26 CAPER, which describes the accomplishments and expenditures identified in the Annual Action Plan, including CDBG funds allocated in FY 2023-24 and FY 2024-25 that were not expended during those fiscal years. During 2026-09-16 Item #10E Page 2 of 20
the FY 2025-26 reporting period, the City expended a total of $161,815 in CDBG funds, including $61,350 of prior-year funds from FY 2023-24 and FY 2024-25 allocations. In addition, the City expended $11,945 in General Fund funding to supplement CDBG-funded public services. Table 1 provides a detailed summary of all City Council-approved CDBG activities and expenditures in FY 2025-26.
ANALYSIS:
The FY 2025-26 CAPER is prepared and will be submitted online, via the HUD-required eCon Planning Suite. A summary of accomplishments and expenditures is provided below.
Below are some key highlights:
• Encinitas FY 2025-26 CDBG grant was $287,051, and approximately 35 percent ($100,465) was expended which resulted in assistance to 888 Encinitas residents. In addition, $61,350 in prior-year CDBG funds was expended for the Residential Rehabilitation Program. The remaining funds are allocated to the Residential Rehabilitation Program and will be expended during FY 2025-26. • 85 percent of Encinitas households assisted were extremely low-income, with incomes at or below 30 percent of area median income.
• Legal Aid Society of San Diego provided referrals, advice, or representation related to fair housing to 64 Encinitas households.
• Three (3) public service agencies leveraged CDBG funding to provide services to 5,849 households in need.
• Three (3) low-income homeowners were assisted with critical home repairs, including roofing, windows, and water heater replacement.
Table 1 CDBG FY 2025-26 Expenditures and Accomplishments Activity Allocated
FY 2023-24
Allocated
FY 2024-25
Allocated
FY 2025-26
Expended
FY 2025-26 Accomplishments
Residential
Rehabilitation
Program
$20,675 $186,848 $186,586 $61,350
Three (3) homeowners were
assisted in FY 2025-26
using FY 2023-24 and FY
2024-25 funds
Administration
and Fair
Housing
$57,410 $57,410
Overall program
administration and 64
Encinitas households
assisted with fair housing
services
Community
Resource
Center Food &
Nutrition Center
$23,485* $23,485*
583 Encinitas households
assisted
Meals on
Wheels
Senior Meal
Service
$7,828* $7,828*
117 Encinitas seniors
assisted
2026-09-16 Item #10E Page 3 of 20
Boys & Girls
Clubs $11,742* $11,742*
121 Encinitas youth
assisted
Total $20,675 $186,848 $287,051 $161,815* 888 Encinitas households assisted
* The City provided an additional $11,945 in General Fund funding to supplement public services, consisting of $6,515 for Community Resource Center, $2,172 for Meals on Wheels, and $3,258 for Boys & Girls Clubs. The General Fund subsidy is not included in the CDBG expenditure totals shown above.
Public Noticing
The draft CAPER was available for public review and comment from August 31, 2026, to September 14, 2026, on the City’s Community Development Block Grant webpage and at Encinitas City Hall. The public review period was advertised in a local newspaper and promoted through direct email notification, the City’s Weekly Update, and the City’s website. As of the preparation of this report, no comments have been received. In accordance with the City’s Citizen and Community Participation Plan for Programs Funded Under the U.S. Department of Housing and Urban Development’s Office of Community Planning and Development, any public comments received during the public review period will accompany the CAPER when submitted to HUD for review and acceptance. The FY 2025-26 CAPER will be submitted to HUD by the September 30, 2026 deadline.
ATTACHMENT(S):
1. FY 2025-26 Consolidated Annual Performance and Evaluation Report (CAPER) 2026-09-16 Item #10E Page 4 of 20
City of Encinitas
DRAFT FY 2025-26 Consolidated Annual
Performance and Evaluation Report (CAPER)
City of Encinitas
Development Services Department
505 S. Vulcan Ave.
Encinitas, CA 92024
ATTACHMENT 1
2026-09-16 Item #10E Page 5 of 20
Table of Contents
CR-05 - Goals and Outcomes ......................................................................................... 3 CR-10 - Racial and Ethnic composition of families assisted…....……..……………….…..5 CR-15 - Resources and Investments 91.520(a).............................................................. 6 CR-20 - Affordable Housing 91.520(b) ………………………….……………………………7 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ....... 9 CR-30 – Public Housing 91.220(h);91.320(j)… ………… ………………………………...11 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j).......................................................... 12 CR-40 - Monitoring 91.220 and 91.230 ......................................................................... 15 CR-45 - CDBG 91.520(c) .............................................................................................. 16 2026-09-16 Item #10E Page 6 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
3 CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.
91.520(a)
During FY 2025-26, the City directed CDBG resources toward its highest priorities as identified in the Consolidated Plan: fair housing, homeless services, renter and homeowner assistance, affordable housing, public improvements, public infrastructure and public services, LMI, special needs. A total of 888 residents were assisted, 85 percent of whom were extremely low-income households. While some activities, such as housing rehabilitation, will continue into FY 2026-27, the program year demonstrated meaningful progress in preserving affordable housing and supporting vulnerable populations. Performance fell short in certain categories, such as rehabilitation, due to project pipeline timing and applicants not able to qualify or withdrawing their application; however, other areas exceeded goals, such as fair housing services, homeless services, public services providing student and senior support, demonstrating strong leveraging of limited federal resources.
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g)
Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.
Goal Category Source /
Amount Indicator Unit of Measure
FY 2025-29 % FY 2025-26 %
Expected Actual Expected Actual
Renter and
Homeowner
Assistance
Affordable
Housing CDBG:
$186,586
Housing Units
Rehabilitated
Household
Housing
Unit
20 3 15% 4 3 75%
Fair Housing
NonHomeless
Special
Needs
(Legal Aid)
CDBG:
$20,000
Public service
activities other
than
Low/Moderate
Income
Housing
Persons
Assisted 100 64 64% 20 64 320%
Homeless
Services
Homeless
Special
Needs
(CRC)
CDBG:
$23,485
Homelessness
Needs
Households
Assisted 2,075 583 28% 415 583 140%
Affordable
Housing
Affordable
Housing CDBG: $0 Rental Units Constructed
Household
Housing
Unit
30 0 0% 0 0 0%
2026-09-16 Item #10E Page 7 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
4 Public
ServicesSpecial
Needs/LowIncome
Residents
NonHomeless
Special
Needs
(Meals on
Wheels &
Boys & Girls
Club)
CDBG:
$19,570
Public Service
Activities other
than
Low/Moderate
Income
Housing Benefit
Persons
Assisted 400 238 60% 100 238 238%
Public
Improvements
Non-Housing
Community
Developmen
t
CDBG: $0
Public
Improvement
Activities other
than
Low/Moderate
Income
Housing Benefit
Persons
Assisted 500 0 0% 0 0 0%
Public Infrastructure
Non-Housing
Community
Developmen
t
CDBG: $0
Public
Infrastructure
Activities other
than
Low/Moderate
Income
Housing Benefit
Persons
Assisted 500 00%
0 0 0%
Table 1 - Accomplishments – Program Year & Strategic Plan to Date Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.
As defined by the City’s Consolidated Plan, the highest priorities are:
• Homeless services
• Low-income renter and homeowner assistance
• Senior housing and services
• Fair housing
• Affordable housing
• Public improvements
• Public infrastructure
• Public services for LMI and special needs population
2026-09-16 Item #10E Page 8 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
5 CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).
91.520(a)
CDBG
White 556
Black or African American 25
Asian 23
American Indian or American Native 11
Native Hawaiian or Other Pacific Islander 4
Other & Multi-Racial 269
Total 888
Hispanic 325
Not Hispanic 563
Table 2 – Table of assistance to racial and ethnic populations Narrative
Of the 888 Encinitas residents assisted, approximately 63 percent were White, three (3) percent were Black, three (3) percent were Asian, and 30 percent were Other/Multi-racial. Approximately 37 percent of the total assisted households were Hispanic.
2026-09-16 Item #10E Page 9 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
6 CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made
Available
Amount Expended
During Program Year
CDBG HUD $287,051 $100,465
City of Encinitas General Fund $11,945 $11,945
Table 3 – Resources Made Available
Narrative
The City received a Community Development Block Grant (CDBG) entitlement of $287,051 in FY 2025-26 and expended $100,465 during FY 2025-26. In addition, $61,350 in prior-year funds were used for rehabilitation projects, bringing the total expended to $161,815. This lower expenditure rate is due to the Residential Rehabilitation Program, which reflects the multi-year nature of rehabilitation activities, where project timelines depend on homeowner readiness, contractor availability, and permitting. A total of $11,945 was contributed and expended from the Development Services Department Advanced Planning & Housing division’s operating budget.
Identify the geographic distribution and location of investments Target Area Planned
Percentage of
Allocation
Actual
Percentage of
Allocation
Narrative Description
Citywide 100 100 Citywide
Table 4 – Identify the geographic distribution and location of investments Narrative
The City of Encinitas does not have a specific geographic area designated to receive CDBG funds and no specific Target Area has been designated. Consistent with the Consolidated Plan, all investments were applied citywide without a designated target area.
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.
The CDBG program does not have a match requirement. However, funds were leveraged for most of the CDBG-funded projects and programs. The leveraged funds are from a combination of public and private sources. For organizations that are allocated CDBG funds, these funds do not cover all the organization’s program costs and are leveraged with other sources to operate their programs.
Additionally, any costs related to the administration of the CDBG Program, in excess of the amount provided through the CDBG grant are covered by the approved Development Services Department operational budget.
2026-09-16 Item #10E Page 10 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
7 CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderateincome, and middle-income persons served.
One-Year Goal Actual
Number of homeless households to be
provided affordable housing units 0 0
Number of non-homeless households to be
provided affordable housing units 0 0
Number of special-needs households to be
provided affordable housing units 0 0
Total 0 0
Table 5- Number of Households
One-Year Goal Actual
Number of households supported through
rental assistance 0 0
Number of households supported through
the production of new units 0 0
Number of households supported through
the rehab of existing units 4 3
Number of households supported through
the acquisition of existing units 0 0
Total 4 3
Table 6 - Number of Households Supported
Discuss the difference between goals and outcomes and problems encountered in meeting these goals.
The City’s Consolidated Plan set a broad goal of supporting affordable housing through acquisition, preservation, rehabilitation, and—when feasible—new production. Given limited annual CDBG allocations, no direct HOME funds, and Encinitas’s very high land costs, no numeric goal for new affordable housing production was included for FY 2025-26. Instead, the strategy has been to leverage CDBG funds where possible for rehabilitation and preservation.
During FY 2025-26, CDBG-funded activities contributed to this goal by assisting three low-income homeowners through the Residential Rehabilitation Program, addressing health, safety, and accessibility needs.
Discuss how these outcomes will impact future annual action plans.
The City will continue to strategize on ways to leverage CDBG funds for future needs and the City will focus on using CDBG resources on high-impact activities, particularly housing rehabilitation. The outcomes of the current program year reinforce the need to focus CDBG resources on activities where 2026-09-16 Item #10E Page 11 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
8 they can have the greatest measurable impact, particularly in the preservation of existing affordable housing. The City will continue to prioritize the Residential Rehabilitation Program, which has proven effective in assisting low-income homeowners with critical repairs.
Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.
Number of Persons Served CDBG Actual HOME Actual
Extremely Low-income 757 0
Very Low-income 51 0
Low-income 35 0
Other 45 0
Total 888 0
Table 7 – Number of Households Served
Narrative Information
During FY 2025-26, 888 Encinitas residents were assisted, of whom approximately 85 percent were extremely low-income.
2026-09-16 Item #10E Page 12 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
9 CR-25 - Homeless and Other Special Needs 91.220(d, e);
91.320(d, e); 91.520(c)
Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
In 2025, the City strengthened its homeless response system through expanded outreach, case management, and regional coordination. The City restructured its homeless services program, created a Homeless Programs Coordinator position, and contracted with San Diego Rescue Mission (SDRM) to provide street outreach, housing navigation, and case management to individuals experiencing homelessness, including those who are unsheltered. SDRM also maintains a By-Name List to help identify and prioritize individuals for available housing and supportive services.
The City continued to coordinate with the County of San Diego's Office of Homeless Solutions, the Homeless Outreach Program for Empowerment (HOPE Team), People Assisting the Homeless (PATH), and other regional partners. Participation in the regional Homeless Management Information System (HMIS) and Coordinated Entry System supports assessment of individual needs, coordination of services, and connections to available housing and supportive resources. The City also continued its partnership with the City of Vista to operate the Buena Creek Navigation Center, with Encinitas having exclusive access to 12 beds. In 2025, the BCNC served 72 individuals experiencing homelessness in Encinitas.
The City also provided CDBG funding to the Community Resource Center (CRC), the City's CDBG-funded homelessness service, which provides housing support, case management, and assistance connecting individuals experiencing homelessness or housing instability with appropriate resources.
Overall, these efforts strengthened the City's ability to reach unsheltered individuals, assess their needs, and connect them with appropriate services and housing resources.
Addressing the emergency shelter and transitional housing needs of homeless persons The City supports the Community Resource Center, which operates an emergency shelter for women and children who are survivors of domestic violence and provides food assistance to low-income residents and individuals experiencing homelessness.
The City partners with the City of Vista to operate the Buena Creek Navigation Center (BCNC), a lowbarrier interim housing facility for adults experiencing homelessness. Encinitas has exclusive access to 12 beds at the facility. In 2025, the BCNC served 72 individuals experiencing homelessness in Encinitas.
The City also coordinates with the County of San Diego to connect individuals and families experiencing homelessness with available housing assistance, emergency shelter, healthcare, mental health, and substance use services through regional programs, including HOME and Emergency Solutions Grants (ESG).
2026-09-16 Item #10E Page 13 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
10 Together, these resources expand access to emergency shelter and interim housing and provide supportive services to help individuals experiencing homelessness move toward greater housing stability.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after 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); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs During FY 2025-26, the City provided $23,485 in CDBG funds and a $6,515 General Fund subsidy to support homelessness prevention programs through the Community Resource Center (CRC). The CRC's Homeless Intervention and Prevention Program provides food assistance to low-income residents experiencing homelessness or at risk of homelessness, including survivors of domestic violence and victims of crime. By helping households meet basic food needs, the program allows limited household resources to be used for rent and other housing expenses. Households may also receive case management and assistance developing an individual housing stability plan.
During the reporting period, 583 low-income Encinitas residents experiencing homelessness or at risk of homelessness received access to healthy food. These services helped address immediate needs and support housing stability for vulnerable households.
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
During FY 2025-26, the City supported programs that address immediate needs, promote housing stability, and connect individuals and families experiencing homelessness or housing instability with shelter, interim housing, case management, housing navigation, and permanent housing resources. The City provided $23,485 in CDBG funds and a $6,515 General Fund subsidy for the Community Resource Center's (CRC) food and nutrition services. The program provided access to healthy food for 583 lowincome Encinitas residents experiencing homelessness or at risk of homelessness.
The City also supported the BCNC, which provides interim housing and supportive services while individuals work toward permanent housing and greater housing stability. Through partnerships with SDRM, CRC, the County of San Diego, the Regional Task Force on Homelessness, and other regional service providers, individuals and families are connected to available housing opportunities and supportive services based on their individual needs. The City's participation in the regional Coordinated Entry System and use of the By-Name List further support access to available housing and supportive services.
Overall, the City's efforts supported homelessness prevention, access to shelter and interim housing, and connections to housing and supportive services, helping advance the City's objectives of promoting housing stability and preventing homelessness or a return to homelessness. 2026-09-16 Item #10E Page 14 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
11 CR-30 – Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City of Encinitas has a Public Housing Authority (PHA). The Encinitas PHA administers the Section 8 Housing Choice Voucher Program and does not have any public housing.
Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
This does not apply as the City of Encinitas does not have Public Housing.
Actions taken to provide assistance to troubled PHAs
The City of Encinitas Housing Authority is not a troubled PHA. 2026-09-16 Item #10E Page 15 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
12 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken 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. 91.220 (j); 91.320 (i) The City of Encinitas continued to address public policy barriers to affordable housing, including land use, zoning, development standards, processing times, and development fees. The City continued implementation of the Sixth Cycle Housing Element (2021–2029) and updated regulations and procedures to comply with State housing laws, including the Density Bonus Law and Accessory Dwelling Unit (ADU) requirements.
The City continued to streamline the ADU permitting process by providing clear permitting guidance, allowing concurrent review of ADU Coastal Development Permits and building permits, and reducing processing times. The City also continued to offer no-fee plan check reviews and inspections for ADUs and subsidize third-party review costs. The Permit Ready ADU (PRADU) Program provides pre-approved plans to further reduce permitting barriers. In 2025, 91 ADUs received certificates of occupancy, including three PRADUs.
The City also used a Regional Early Action Planning (REAP) 2.0 grant to support expedited development review and housing production. These actions reduced regulatory, procedural, and financial barriers to housing development and supported the City's efforts to facilitate additional housing production.
Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The City continued to address obstacles to meeting the needs of individuals experiencing homelessness by expanding interim housing, improving coordination of services, and providing additional funding for homeless programs. In partnership with the City of Vista, the City operates the Buena Creek Navigation Center (BCNC), which provides interim housing and supportive services to adults experiencing homelessness. Encinitas has exclusive access to 12 beds at the facility.
The City also participates in the regional Homeless Management Information System (HMIS), which improves coordination among service providers, supports assessment of individual needs, and helps identify service gaps and opportunities for program improvements.
Because CDBG public service funding is limited to 15 percent of annual CDBG funding, the City Council authorized an $11,945 General Fund subsidy during FY 2025-26 to fully fund all eligible public service requests. This additional funding helped the City maintain support for programs addressing underserved needs.
Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The City of Encinitas continued to address lead-based paint hazards in accordance with HUD requirements. Under the Residential Rehabilitation Program, homes built prior to 1978 that receive assistance are evaluated for lead-based paint hazards, and any identified deteriorated lead-based paint is required to be stabilized as part of the rehabilitation work. Lead hazard work is performed by certified professionals, with clearance inspections completed before the rehabilitation project is closed. 2026-09-16 Item #10E Page 16 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
13 Lead-based paint education is also provided through the City's federally funded housing programs, including the Section 8 Program, Residential Rehabilitation Program, and assisted rental housing projects.
Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The City of Encinitas continued to support efforts to reduce the impacts of poverty by providing and coordinating access to housing assistance, public services, food assistance, employment resources, and other supportive services for low-income residents. The City supports CDBG-funded public services and General Fund programs that address basic needs and promote housing and financial stability.
The Encinitas Housing Authority provides Housing Choice Vouchers to approximately 107 households, helping low-income residents maintain access to affordable housing. The City also works with the County of San Diego and regional service providers to connect residents with assistance such as CalWORKs, CalFresh, employment and job training, health services, childcare, and other resources.
Together, these programs help low-income households meet basic needs, access employment and supportive services, and maintain stable housing.
Actions taken to develop institutional structure. 91.220(k); 91.320(j) The CBDG program is managed by the Policy Planning and Housing Division within the Development Services Department. The Policy Planning and Housing Division is the responsible department for coordinating efforts with the San Diego HOME Consortium, and monitoring of existing HOME programs.
The Policy Planning and Housing Division also monitors all the deed restricted units within the City and works very closely with property managers and developers to ensure that compliance with affordability restrictions is maintained.
The Development Services Department offers the opportunity to meet with City Staff in order to become more familiar with the City programs, processes, and requirements prior to application submittal. These meetings are referred to as Staff Advisory Committee (SAC) meetings and are provided free of charge.
Developers of housing with affordability requirements are provided with all the necessary information and technical assistance prior to application submittal.
Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
The City continued to strengthen coordination with public, private, and nonprofit housing and social service agencies through participation in regional housing, homelessness, and fair housing partnerships.
The City participates in the San Diego HOME Consortium and regional groups addressing housing, homelessness, fair housing, workforce, and community development issues, including SDRAFFH, the Regional Task Force on Homelessness, and SANDAG.
The City also maintained partnerships with housing providers, nonprofit organizations, developers, and industry organizations to support affordable housing and community development. The City provides technical assistance to developers and community-based organizations and encourages coordination among housing providers, nonprofit agencies, and government partners.
The Encinitas Housing Authority is housed within the City's Policy Planning and Housing Division, allowing for direct coordination between City housing programs and the Housing Authority. These partnerships 2026-09-16 Item #10E Page 17 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
14 support the City's efforts to address housing needs, coordinate services, and advance the goals of the Consolidated Plan.
Identify actions taken to overcome the effects of any impediments identified in the jurisdiction’s analysis of impediments to fair housing choice. 91.520(a) The City of Encinitas continues to affirmatively further fair housing through implementation of the actions identified in the City's 2020 Regional Analysis of Impediments to Fair Housing Choice and compliance with applicable federal and state fair housing and civil rights requirements. The City did not undertake a comprehensive update of the Regional AI in 2025, as HUD no longer requires jurisdictions to prepare or update a formal fair housing plan as a condition of receiving federal assistance. In June 2025, the City executed an Affirmatively Furthering Fair Housing (AFFH) Certification as part of its federal assistance application.
During the reporting period, the City, in coordination with its fair housing service provider, Legal Aid Society of San Diego (LASSD), held 12 virtual fair housing workshops addressing fair housing basics, legislative and regulatory updates, and reasonable accommodations. The workshops were directed to renters, tenants, and housing providers. LASSD also assisted 64 Encinitas households with housing-related or discrimination concerns, including 26 households reporting allegations of discrimination.
Approximately 86 percent of households served had incomes at or below 80 percent of AMI. LASSD also conducted five (5) paired tests focused on disability-related reasonable accommodations. The testing identified potential fair housing concerns at some properties, while other test results were inconclusive. LASSD plans to conduct additional testing to gather further information and will follow up, as appropriate, with the properties to provide notification of the results and fair housing education.
The City continued to participate in the San Diego Regional Alliance for Fair and Affordable Housing (SDRAFFH) and collaborate with regional partners to identify and address barriers to fair housing choice. 2026-09-16 Item #10E Page 18 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
15 CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
The overall purpose of the monitoring is to maximize grant performance through identifying efficiencies, developing partnerships with stakeholders, collaboration with various service providers and providing the greatest number of services to the citizens of Encinitas. All federally funded programs are monitored on a regular basis to ensure compliance with all applicable federal regulations. Monitoring is directed toward the program goals, and financial and regulatory performances. Each organization receiving CDBG grant money is visited, at least once, during the fiscal year by staff. In addition, staff collects quarterly reports and invoices to ensure program goals are on target to ensure the timeliness of expenditures. The primary objectives of these visits, as well as the overall monitoring process are to identify deficiencies and promote corrections in order to improve, reinforce or augment grant recipients’ performance. The City also ensures that sub-recipients comply with all regulations related to administrative, financial and programmatic operations including Davis-Bacon prevailing wage regulations, and to ensure sub-recipients achieve their performance objectives within the project schedule and budget. No significant findings were issued during the year.
Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.
In accordance with the City’s adopted Citizen and Community Participation Plan, a public notice was published in the newspaper notifying the public of the availability of the CAPER for a 15-day public review and comment period on the City’s Community Development Block Grant webpage and at Encinitas City Hall. The public review period was advertised in a local newspaper and promoted for public input via the City’s Weekly Newsletter and on the City’s website.
2026-09-16 Item #10E Page 19 of 20
City of Encinitas FY 2025-26 CAPER FY 2022-2 3 CAPE R
16 CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.
The City has not made any program changes in FY 2025-26.
Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No. The City of Encinitas does not have any Brownfield Economic Development Initiatives. [BEDI grantees] Describe accomplishments and program outcomes during the last year.
The City of Encinitas does not have any Brownfield Economic Development Initiatives. 2026-09-16 Item #10E Page 20 of 20