Agenda Item No: L.1
AGENDA REPORT
DATE: May 5, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-72 HD Fiscal Year 2026-2027 Annual Action Plan
Approving the Fiscal Year 2026-2027 Community Development Block Grant Annual Action Plan
Funding Source: N/A
Contact: Miesha Garnett, (707) 428-7426
RECOMMENDED ACTION
Hold a public hearing and adopt resolution.
STATEMENT OF ISSUE
Request for the City Council 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) 2026-2027 Annual Action Plan and authorize the City Manager or designee to execute CDBG funding agreements associated with the FY 2026-2027 Annual Action Plan.
DISCUSSION
For each year of the five-year Consolidated Plan, the City of Fairfield (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 2026-2027 Action Plan identifies the use of grant funds, the use of program income, and the proposed accomplishments of each activity recommended for funding.
Funding Recommendations
U.S. Department of Housing and Urban Development (HUD) annually awards the City of Fairfield with CDBG funding using a standardized formula for entitlemen t jurisdictions. The entitlement
amount for FY 2026 -2027 is $866,668 . Per this award, city staff recommends CDBG Funding expenditures in three different areas:
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 amount available for program administration for FY 2026-2027 is $173,334.
2). Public service grants 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 ent itlement award.
The amount available for public services for FY 2026-2027 is $130,000.
The City requested proposals from qualified public service agencies between October and December 2023 and received several qualified proposals in youth services and se rvices to the special-needs population. The FY 2022 -2027 Consolidated Plan allows the City to accept applications for the CDBG Program during years 1 and 3 of the Consolidated Plan cycle.
Therefore, the City plans to approve applicants for two years of fu nding, and three years of funding, to cover the five -year period. The City received multiple applications during the application period. Applicants approved for funding during the FY 2025 -2026 application period will have the opportunity to continue receiv ing funding for FY 2026 -2027 without reapplying .
While renewal will be considered annually, the CDBG Advisory Committee (CAC) will receive feedback from City staff regarding subrecipients' performance to determine which contracts would be renewed and how much funding each would receive. Consideration will be given based on the timeliness of the expenditures, responsiveness, and CDBG compliance. During FY 2023- 2024, the CAC conducted a lengthy application review and scored all the eligible applications.
The review and discussion resulted in CAC recommendations to fund the following agencies in FY 2026-2027:
PUBLIC SERVICE GOALS AND STRATEGIES
AGENCY PROGRAM AMOUNT
Meals on Wheels Elder Nutrition Program $63,464
Empowered Aging Ombudsman Services $12,750
Lions Center for the
Visually Impaired
Independent Living $15,000
The Leaven Tutoring $17,000
City of Fairfield Parks &
Rec
Youth Scholarship $20,000
Total: $128,214
3). Nonpublic Service projects. The remaining available funding will be used for public facilities and infrastructure projects. There is no cap on the amount of funding used in the Nonpublic service category. The amount available for nonpublic services in FY 2026-2027 is $565,120.
The City prioritizes funding for nonpublic services in areas where at least 51% of the residents are LMI. The City of Fairfield has 20 census tracts that meet this threshold.
NONPUBLIC SERVICE GOALS AND STRATEGIES
AGENCY PROGRAM AMOUNT
Affordable Housing Multifamily Housing
Rehabilitation
$115,120
Economic Development Workforce Development $300,000
Housing Revolving Loan
Fund
$150,000
Total: $565,120
In addition to the Fiscal Year 2026-27 Entitlement Grant, the City has prior year entitlement funds to be allocated in Fiscal Year 2026 -27. The City will allocate $350,000 to the Housing Revolving Loan Fund and $350,000 to Multifamily Housing Rehabilitation.
FINANCIAL IMPACT
The projects approved under the FY 2026-2027 Annual Plan will be processed as reimbursements.
HUD will fund all projects through the CDBG Program.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
January 14, 2026, Public Meeting with CDBG Advisory Committee.
ALTERNATIVE ACTION
The City Council may decide not to approve the FY 2026-2027 Annual Action; however, doing so will cause the City to lose CDBG funding for FY 2026-2027.
COORDINATED WITH
N/A
STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: FY 2026-2027 Annual Action Plan