Agenda Item No: M.1
AGENDA REPORT
DATE: February 17, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-25 HD First Amendment to Fiscal Year 2025 -2026 Annual Action Plan
Approving the First Amendment to 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: Miesha Garnett, (707) 428-7426
RECOMMENDED ACTION
Hold public hearing and adopt resolution.
STATEMENT OF ISSUE
Adopt a resolution approving a Substantial Amendment to the fiscal year (FY) 2025–2026 Annual Action Plan to reprogram $180,000 entitlement funds to the Homeowner Rehabilitation Program and to increase the overall budget to the Homeowner Rehabilitation Program by an additional $100,000 that will come from existing Revolving Loan Funds (RLF) for a total increase of $280,000.
DISCUSSION
Each year, the City receives Community Development Block Grant (CDBG) Program funds from the U.S. Department of Housing and Urban Development (HUD). Each year, these resources are allocated through the City’s Annual Action Plan. The goal of the CDBG Program is to create viable communities by providing decent housing, a suitable living environment , and expanded economic opportunities with a focus on benefiting low- and moderate- income persons.
During FY 2025 –2026, the City allocated $474,655 in CDBG funds for a mul tifamily housing rehabilitation project located at Orchard Crossing. The owner decided not to move forward with the CDBG funds for the project. The City currently administers a housing rehabilitation revolving
loan program, which supports low -to-moderate income homeowners with essential health and safety repairs. This program is supported by CDBG set -aside funds in a RLF. Due to increasing rehabilitation needs among eligible homeowners, additional funding is necessary to expand the program’s capacity.
During FY 2025-26, CDBG allocated $220,000 to be used for the Housing Rehabilitation Program.
The substantial amendment proposes allocating an additional $280,000, increasing the total budget to $500,000. Of this amount, $180,000 will be reprogrammed from othe r unallocated CDBG funds and added to the RLF, and $100,000 will come from existing RLF funds that were not previously included in the FY 2025-2026 budget.
This budget increase will allow the City to assist additional low - and moderate -income homeowners in need of critical home repairs.
FINANCIAL IMPACT
There is no fiscal impact to the City’s General Fund. The proposed action involves the reprogramming of existing FY 2025–2026 CDBG funds and the inclusion of previously unbudgeted RLF resources to increas e the Housing Rehabilitation Program budget. No new funds are requested, and the amendment does not increase the City’s overall CDBG entitlement allocation or require additional local funds.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
A public notice was published in the Daily Republic Newspaper to enable the public to respond to the First Amendment to the FY 2025-2026 CDBG Annual Action Plan.
ALTERNATIVE ACTION
The council may choose not to approve the resolution to amend the FY 2025-2026 CDBG Annual Action Plan. However, this decision could result in the Housing RLF being fully expended and may therefore be insufficient to meet the current program demand and constrain the City’s ability to assist additional low-and moderate-income homeowners.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: FY 2025-2026 Annual Action Plan Amendment