CITY COUNCIL
MEETING
FEBRUARY 3, 2026
PRESENTATIONS
Item #1
RPT 26-011
Federal and State
Advocacy and
Legislative
Developments for
the 2025-26 Session
State Legislative Updates
February 3, 2026 - Revised
PRESENTATION OVERVIEW
Slide 2
Overview of Funding Efforts
Key State Legislative Items for 2026
State Budget Update
KEY STATE LEGISLATIVE ITEMS FOR 2026
Slide 3
Transportation Safety
Reforms
Affordable
Housing/Homelessness
Funding Stability
Illegal Dumping
Prevention and
Mitigation
SB 79 (Wiener, 2025)
Clean Up
Statewide Bond
Proposals
New Leadership and
Administration Changes
STATE BUDGET UPDATE
Slide 4
Governor’s Budget
Expects $2.9B Deficit
(Smaller than $18B
Projected by LAO
No New Funding for
Housing/Homelessness
(Anticipated in January
Processes)
Proposition 4 Climate
Bond Roll Out
Local Exposure to
Federal Cost Shifts
Early Action Budget
Items Anticipated –
Including Bay Area
Transit Operations Loan
Negotiations and Budget
Committees to Follow –
Next Milestone during
May Revision
GRANT FUNDING UPDATE
Slide 5
16 years of
Partnership
$14,611,500
in funding
secured
Strategic
engagement
on 158 +
pieces of
legislation
2025-26 LEGISLATIVE SESSION: STRATEGIC ENGAGEMENT
Slide 6
Regular check-in meetings with City staff
Ongoing engagement on homelessness
funding stability (HHAP, SB 2), affordable
housing, and community reinvestment
Consistent reports and updates on priority
issues
Earmark strategy and advocacy
Sacramento Advocacy Trip planning
Relationship development with Legislative
Delegation and Leadership
QUESTIONS?
Slide 7
California Advocacy | Federal Advocacy | Grant Writing
www.TownsendPA.com | (949) 399-9050
Carlin Shelby,
Deputy Director
[email protected]
Niccolo De Luca,
Vice President/
Chief Advocacy
Officer
[email protected]
Alex Gibbs,
Grants Director
[email protected]
Capitol Advocacy Partners
Washington, D.C. Federal Affairs Briefing: Key Developments & What’s Ahead February 3, 2026
2025 - The Longest Government Shutdown in U.S. History
2025 brought the longest federal shutdown in U.S. history at 43 days. — Ended in November. The Continuing Resolution funded most agencies at Fiscal Year 2025 levels through January.
Federal Appropriations
● Six spending bills signed into law: Agriculture, Military Construction, Legislative Branch, CJS, Energy and Water and Interior.
● Six funding bills pending: short-term extensions or partial shutdown of unfunded agencies possible. ● These six bills (with funding set to expire on January 30) cover more than 75% of federal discretionary spending, including the Departments of Defense, Labor, Health and Human Services, State, Transportation, Housing, and Homeland Security (DHS), the most contentious bill. ● The City’s FY26 Community Project for $381,000 for license plate readers was fully funded.
Affordable Care Act Subsidies
● Congress has not extended enhanced ACA marketplace subsidies that expired on December 31, 2025. ● A small group of senators from both parties are negotiating a compromise that could include a two-year extension with reforms like income caps, but a bipartisan agreement remains elusive. ● More than 82,000 Alameda County residents rely on subsidized plans; projections indicate 5,750 individuals could lose coverage without subsidies.
● Premiums could rise by ~$125/month per person without extension.
SNAP Program Status
● SNAP is fully funded through September 30, providing stability despite broader budget uncertainty. ● California recipients should have already received their delayed November benefits.
Key Federal Developments Impacting Hayward
● Immigration Enforcement: Trump Executive Order (EO) 14159 threatens funding cuts for “sanctuary” jurisdictions — Administration released a list of sanctuary cities – and Hayward wasn’t on it! ● Federal Agencies Directed to Review Funding Data: Starting January, Federal agencies will review all federal funding flowing to 13 states, including California, potentially leading to increased scrutiny of existing and pending funding in the effort described as a data-gathering exercise only. ● Medicaid Reform (One Big Beautiful Bill Act): $1 trillion in cuts + updated work requirements → higher local demand for housing, health, and homelessness services. ● DOGE Initiative: Massive federal staffing cuts slowing grant processing and reducing agency support. ● Grant Oversight E.O.: Increased scrutiny and risk of suspension; City must ensure strict compliance — CAP communicates each policy shift to staff.
● HUD Continuum of Care: FY25 NOFO shifts jeopardize funding for 1,400+ Permanent Supportive Housing units countywide, threatening stability for Hayward residents — CAP is engaging congressional offices to mitigate impacts.
Bottom Line: Federal cost-cutting and policy shifts are increasing local administrative burden and service demand. CAP mitigates these risks through targeted advocacy, including formal letters, legislative tracking, and 60+ meetings with congressional offices and federal agencies.
CAP’s Ongoing Federal Priorities for Hayward
1. Protect Funding & Policy Alignment – Defend sanctuary city standing; maintain compliance; safeguard current/future federal funding.
2. Pursue New Funding Opportunities
● EDA Stack Center Phase II
● Airport modernization
● Homelessness
● Youth services
3. Strengthen Federal Relationships – 60+ staff meetings with Padilla, Schiff, Butler, Swalwell, committees, and agencies; 70+ briefings; 40+ legislative position letters sent; active coordination for 2026 CPF cycle.
4. Support Active Grant Portfolio – Post-award coordination FY24 CPF St.
Regis Facility, AFG, and Prop 47 programs.
CAP keeps priorities visible in D.C. and City positioned for federal investment ● Transportation
● Water
● Behavioral-health
Delivering Results: CAP’s Impact Overview
2025 Funding Achievements = Funding added to Hayward’s budget ● $15M – WRDA (Phase II): Hayward Water Pollution Control Facility Improvements ● $1.78M – FEMA Assistance to Firefighters Grant: To train and certify 19 firefighter-EMTs as paramedics
● $1.91M – BSCC Proposition 47 Grant: Expansion of the Navigation Center to fund services for homeless, including diversion and reentry services
● $1.11M – Alameda County Youth Development Grant: Supports mentoring and youth violence prevention
● FY26 Community Project Funding – Project Wide Net: $381,000 request for ALPRs and situational awareness cameras
● CAL FIRE Wildfire Prevention Grant - Wildfire Ready East Bay: $215,040 request to reduce hazardous fuels near homes and evacuation routes, expand defensible space compliance, promote community preparedness, and support long-term resilience planning Return on Investment
● Since 2014, CAP has helped secure $34.3 million in grant funding ● This reflects an ROI of 5,394% — approximately $54 returned for every $1 invested with CAP for federal advocacy and grant services
Thank you! Questions?
Item #5
LB 26-003
Residential Rent
Stabilization and
Tenant Protection
Ordinance
1 Residential Rent Stabilization and Tenant Protection
Ordinance: Introduction of an Ordinance Amending Chapter 12, Article 1 of the Hayward Municipal Code to Extend the Arbitration Decision Deadlines and Include a Cost Recovery Process Consistent with Other Housing Program Fees
LEGISLATIVE BUSINESS
February 3, 2026 | Mayor & City Council
Ayush Patel, Management Analyst II
2 RESIDENTIAL RENT STABILIZATION ORDINANCE
Applicable to all pre-1979 units (“Covered Rental Units”), except single-unit properties, consistent with State law (approximately 11,000 units):
• Sets rent increase limits and requires mediation and arbitration to resolve rent disputes
• Sets capital improvement pass-through and landlord’s right to a fair return Applicable to all rental units:
• Provisions to protect Section 8 voucher holders from discrimination • Requirements that landlords file rent increase notices and eviction notices • Tenant retaliation protection provisions
• Just Cause for tenant evictions
3 IDENTIFIABLE DEFICIENIES & PROPOSED AMENDMENTS
Extend deadline to
30 days
20-day arbitration
decision deadline
is too short
Assess properties
with outstanding fees
Fee collection
≠ cost recovery
**Staff recommend discussing more significant policy issues and amendments to the RRSO when the RRS returns** for consideration later this calendar year
4 RECOMMENDATIONS
That the City Council introduces an Ordinance
(Attachment II) amending Sections 12-1.07(j)(7) and
12-1.17 of Article 1, Chapter 12 of the Hayward
Municipal Code that extends the arbitration decision
deadline and includes a cost recovery process
consistent with the process used for the Residential
Rental Inspection Program (RRIP).
5 Questions