CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
Placement: Consent
Meeting Date: February 23, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Megan Martin, Community Development Director Janet Reese, Associate Planner
SUBJECT: California Department of Housing and Community Development 2025 Community Development Block Grant Application Resolution
RECOMMENDATION
Adopt a Resolution authorizing staff to prepare and submit an application for a Community Development Block Grant for Capital Improvement CIP 5010, a Non-Congregate Shelter Navigation Center Program, and a Subsistence Payment Program.
BACKGROUND
Local governments, either directly or through State governments, are eligible to receive Community Development Block Grant (CDBG) funds on an annual basis from the U.S.
Department of Housing and Urban Development (HUD). These funds can be used for a variety of purposes including infrastructure needs, low-moderate income housing needs, and other eligible activities. The California Department of Housing and Community Development (HCD) administers the CDBG programs and publishes a Notice of Funding Availability (NOFA) for each program for eligible activities.
The 2025 CDBG NOFA provides approximately $27.15 million in federal funds statewide for nonentitlement jurisdictions. Of the total available funds, nearly $6.75 million of the overall pool for jurisdictions have been set aside for those who have not been awarded funds from 2020-2024, greatly reducing the amount available to other applicants, including the City. CDBG allows a jurisdiction to apply for a maximum of three (3) activities. Given the CDBG program’s funding limitations this cycle, the Council directed staff to pursue one project (up to $3.3 million), and up to two public service or planning activities (max of $300,000), for a maximum request of $3.6 million. Prior to applying for funds within a program year, the City is required to conduct public outreach and hold a public hearing to discuss potential applications and eligible activities.
On November 10, 2025, the Council received a presentation and held a public hearing related to potential activities for inclusion in a 2025 CDBG application. The Council directed staff to pursue a sewer infrastructure project (up to $3.3 million) and the Public Works Department is currently preparing the necessary technical documents and environmental review for Capital Improvement Program (CIP) Project 5010, which would continue to expand sewer capacity consistent with the Sewer Master Plan. Based on public comment from three public service applicants including 5Cities Homeless Coalition (5CHC), Exploration Discovery Center, and Shower the People, the Staff Report: 2025 CDBG Application Resolution Page 2
February 23, 2026
Multi-Year Goals
☐ Public Safety and Community Services ☒ Economic Development and Housing ☒ Community Infrastructure ☐ Financial and Organization Sustainability Council Priorities
☒ Water & Wastewater Infrastructure ☐ Community Engagement Council directed staff to review these proposals more thoroughly and continued the hearing to a future date for further consideration.
A second public hearing was held on February 10, 2026, for additional discussion and direction on qualifying public service or planning activities. The Council directed staff to pursue an application for the following two qualifying activities:
• Public Service: Non-Congregate Shelter Navigation Center Program, Applicant – 5CHC o Operating funds to provide shelter, food, and supportive services at two noncongregate shelter navigation centers ($230,000). • Public Service: Subsistence Payment Program, Applicant – 5CHC o Provide funds for utilities to avoid shutoff or rent to prevent eviction for low- or moderate-income residents who are at risk of homelessness ($70,000).
To document and formalize this direction, a Resolution prepared by HCD is required to be adopted and submitted as part of the application. This Resolution also includes the sewer infrastructure project given the Council’s earlier direction. Staff recommends the Council adopt the Resolution shown in Attachment 1.
FISCAL IMPACT
Adams Ashby Group, the City’s CDBG general administration consultant, estimates the cost to prepare the application(s) and related materials to be approximately $10,000. The cost associated with the preparation of applications is an eligible expenditure of existing CDBG general administration funds included in the Community Development Department’s operating budget. If awarded, the funds would support the currently unfunded project and programs.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Adopt a Resolution authorizing staff to prepare and submit applications for the 2025 CDBG grant for Capital Improvement CIP 5010, a Non-Congregate Shelter Navigation Center Program, and a Subsistence Payment Program; or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
ATTACHMENTS
1. Resolution
Resolution of the Governing Body
RESOLUTION NO. Insert Number
A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE
EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS
THERETO FROM THE 2025 FUNDING YEAR OF THE STATE CDBG
PROGRAM
BE IT RESOLVED by the City Council of the City of Grover Beach as follows:
SECTION 1:
The City Council has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, of $3,600,000 for the following CDBG activities, pursuant to the and 2025 CDBG NOFA:
List activities and amounts
Activity
(e.g. Public Services, Infrastructure, etc.)
Dollar Amount Being
Requested for the Activity
Public Infrastructure: Sewer Line Replacement $ 3,084,112.15 Public Service: Emergency Shelter Operations $ 214,953.27 Public Service: Subsistence Payment Program $ 65,420.56 General Administration $ 222,04.02
$
SECTION 2:
The City Council hereby approves the use of Program Income in an amount not to exceed $0.00 for the CDBG activities described in Section 1.
SECTION 3:
The City Council acknowledges compliance with all state and federal public participation requirements in the development of its application(s).
SECTION 4:
The City Council hereby authorizes and directs the City Manager or designee*, to execute and deliver all applications and act on the City’s behalf in all matters pertaining to all such applications.
SECTION 5:
If an application is approved, the Mayor or designee*, is authorized to enter into, execute and deliver the grant agreement (i.e., Standard Agreement), any recordable or Attachment 1
nonrecordable contract documents, and any and all subsequent amendments thereto with the State of California for the purposes of the grant.
SECTION 6:
If an application is approved, the City Manager or designee*, is authorized to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Grover Beach held on 2/23/2026 by the following vote:
AYES: Enter # of votes or names
NOES: Enter # of votes or names
ABSENT: Enter # absentees or names
ABSTAIN: Enter # of abstains or names
Kassi Dee, Mayor
City Council
STATE OF CALIFORNIA
City of Grover Beach
I, Wendi Sims, City Clerk of the City of Grover Beach, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this 23 day of February, 2026and that said resolution has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.
Wendi Sims, City Clerk of the City of Grover Beach, State of California
______________________________________
By: Wendi Sims, City Clerk