Agenda Item No: M.2
AGENDA REPORT
DATE: September 15, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-194 HD First Amendment to Fiscal Year 2026-2027 Annual Action Plan
Approving the First Amendment to the Fiscal Year 2026-2027 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 a public hearing and adopt resolution.
STATEMENT OF ISSUE
Adopt a resolution approving a Substantial Amendment to the fiscal year (FY) 2026–2027 Annual Action Plan to reprogram $250,000 entitlement funds to the Homeowner Rehabilitation Program thereby increasing the overall budget to the Homeowner Rehabilitation Program by $250,000.
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 people.
During FY 2026–2027, the City allocated $300,000 in CDBG funds for a Workforce Development Program. The program is currently in the development and planning phase, and implementation is not anticipated to occur during the current fiscal year. As a result, the $300,000 allocation is not expected to be expended during FY 2026 –2027. The proposed Ann ual Action Plan Amendment would reprogram these funds to support an activity that is currently ready to utilize
the funding and address an identified community need. The Workforce Development Program remains under development and may be considered for future funding as the program is finalized and funding becomes available.
The City currently administers a Housing Rehabilitation Revolving Loan Program, which supports low-to-moderate income homeowners with essential health and safety repairs. The program is supported by CDBG funds and loan repayments that are returned to the RLF and made available for future rehabilitation assistance. Due to increasing rehabilitation needs among eligible homeowners, additional funding is necessary to expand the program’s capacity.
During FY 2025 –2026, $150,000 in CDBG funds was allocated to the Housing Rehabilitation Program. The proposed Annual Action Plan Amendment would provide an additional $250,000.
The additional $250,000 will be reprogrammed from funds previously allocated for the workforce development program that are not anticipated to be expended during FY 2026–2027.
This increased investment will allow the City to assist additional low - and moderate -income homeowners with critical health and safety repairs, address deferred maintenance, and preserve the City's existing affordable housing stock.
FINANCIAL IMPACT
There is no fiscal impact to the City’s General Fund. The proposed action involves the reprogramming of existing FY 2026 –2027 CDBG funds to increase 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 on August 16, 2026, to enable the public to respond to the First Amendment to the FY 2026-2027 CDBG Annual Action Plan.
ALTERNATIVE ACTION
The council may choose not to approve the resolution to amend the FY 2026-2027 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
Miesha Garnett, Management Analyst II
(707) 428-7426
[email protected]
ATTACHMENTS
Attachment: Proposed Resolution
Attachment: FY 2026-2027 Annual Action Plan Amendment