Agenda Item No: M.1
AGENDA REPORT
DATE: May 6, 2025
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2025-71 HD Fiscal Year 2025-2026 CDBG Annual Action Plan
Approving the Fiscal Year 2025-2026 Community Development Block Grant Annual Action Plan and Authorizing the City Manager to Execute Any and All Documents, Contracts, and Memorandum of Understanding
Funding Source: N/A
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Hold public hearing and adopt resolution.
STATEMENT OF ISSUE
The City Council has been asked to hold a public hearing and adopt a resolution for the following action:
Approve and authorize staff to submit the Community Development Block Grant (CDBG) fiscal year (FY) 2025-2026 Annual Action Plan and authorize the city manager to execute CDBG funding agreements associated with the FY 2025-2026 Annual Action Plan.
DISCUSSION
For each year of the five-year Consolidated Plan, the City must develop specific strategies during the program year to address the priorities, needs, and goals outlined in the Consolidated Plan.
This is known as the Action Plan. The FY 2025-2026 Action Plan identifies the use of grant funds, the use of program income, and the proposed accomplishments of each activity recommended for funding.
The U.S. Department of Housing and Urban Development ( HUD) annually awards the City of Fairfield with CDBG funding using a standardized formula for entitlement jurisdictions. The entitlement amount for FY 2025 -2026 has not yet been awarded however, HUD allows the
jurisdictions to continue the approval process with approximate funding recommendations, to ensure timely submission of the Annual Action Plan. While the City has not yet received its approved funding allocation, staff are recommending funding based upon prior year funding levels for each of the subrecipients, as well as ensuring that the recommended allocations are in line with CDBG regulations. Per this award, city staff recommend CDBG funding expenditures in three different ways:
1). Administrative costs for the City to operate the program and comply with HUD regulations. Program administration is capped at 20% of the entitlement award. The City will allocate 20% of the final FY 2025-2026 award towards program administration.
2). The public service category is funds granted to non-profit organizations to assist low- and moderate-income (LMI) Fairfield residents with supportive services. Local nonprofit organizations typically implement public service activities that provide social support services to LMI persons. Per HUD regulations, the City must limit the allocations in the public services category to no more than 15% of the total entitlement award. The City will allocate and cap the public service portion of the funds at 15% of the final FY 2025-2026 CDBG allocation.
3) Nonpublic Service projects. The remaining available funding will be used for public facilities and infrastructure projects. HUD does not place a cap on the amount of funds that can be utilized for projects that fall into the nonpublic service category.
Funding Recommendations
Between October and December 2023, the City solicited proposals from qualified public service agencies that were interested in receiving CDBG funds. Several strong applications were received, particularly in the areas of youth services and services for special-needs populations.
Per the FY 2022–2027 Consolidated Plan, the City accepts applications for public service funding during Years 1 and 3 of the five -year cycle. This structure allows the City to approve applicants for either two or three years of funding, covering the entire five-year Consolidated Plan period.
Applicants approved for funding during the FY 2024-2025 cycle are eligible to continue receiving funding for FY 2025-2026 and FY 2026-2027 without reapplying. However, continued funding is subject to annual review. The CDBG Advisory Committee (CAC), with input from City staff, evaluates subrecipients' performance to determine contract renewals and funding amounts.
Factors considered in the renewal process include:
Timeliness of expenditures
Responsiveness to City staff
Compliance with CDBG regulations
During FY 2024-2025, staff closely monitored all subrecipients to ensure compliance and effective use of funds. Based on this performance, those subrecipients remain eligible to receive the same level of funding for FY 2025-2026, pending a favorable review by the CAC.
Although the City has not yet received its official FY 2025 -2026 CDBG allocation from HUD, staff and the CAC have reviewed the public service grant recommendations and propose maintaining the FY 2024-2025 funding levels for continuing subrecipients.
PUBLIC SERVICE GOALS AND STRATEGIES
AGENCY PROGRAM SERVICE AREA AMOUNT
Meals on Wheels Senior Meal Program Special Needs Approximately 6.3% of total FY 2025-2026
allocation not to
exceed $63,464
The Leaven Tutoring Program Youth Approximately 1.5%
of total FY 2025-2026
allocation not to
exceed $12,750
Empowered Aging Ombudsman Special Needs Approximately 1.8% of total FY 2025-2026
allocation not to
exceed $15,000
Lions Center for the
Blind
Independent Living Special Needs Approximately 1.8%
of total FY 2025-2026
allocation not to
exceed $15,000
Parks & Recreation Youth Scholarship Youth Approximately 3.6% of total FY 2025-2026
allocation not to
exceed $30,000
The City’s Consolidated Plan prioritizes Infrastructure and Public Facility projects for the non - public service category for funding. There is no cap on the amount of funding that can be used to support non-public service projects. However, the City generally uses the remaining 65% of the annual allocation towards public facilities and infrastructure projects.
The City prioritizes funding for nonpublic services in areas where at least 51% of the residents are LMI. Currently, over 20 census tracts meet this definition.
The remaining 65% of the City’s CDBG allocation will be allocated to the Lee Bell Park bathroom project promoted by the Public Works and Parks & Recreation Departments.
In addition to the Public Service and Nonpublic Service funding for the Entitlement Grant, the CDBG Advisory Committee also recommended $275,000 from the City’s Housing Revolving Loan Fund to support the City's Owner-Occupied Rehabilitation Program. These funds will be used to rehab low-income homeownership units.
FINANCIAL IMPACT
The projects approved under the FY 2025 -2026 Annual Action Plan will be processed as reimbursement. HUD will fund all projects through the CDBG Program
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
April 2, 2025, Public Meeting with the CDBG Advisory Committee Meeting April 6, 2025, Public Notice issued to receive comments on the Annual Action Plan
ALTERNATIVE ACTION
The City Council may decide not to approve the FY 2025-2026 Annual Action Plan. However, doing so will result in the City losing CDBG funding for FY 2025-26.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Annual Action Plan