CITY OF MENIFEE
SUBJECT: Community Development Block Grant for Program Year 2025/2026 Annual Action Plan
MEETING DATE: May 7, 2025
TO: Mayor and City Council
PREPARED BY: Edna Lebron, Senior Management Analyst
REVIEWED BY: Orlando Hernadez, Acting Community Development Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a Resolution approving the City’s Community Development Block Grant (“CDBG”) Program Year (“PY”) 2025/2026 Annual Action Plan; and
2.Authorize the City Manager or his designee to execute all necessary agreements and other grant-related documents to receive CDBG funds.
DISCUSSION
The City of Menifee elected to become a CDBG entitlement jurisdiction beginning July 1, 2012.
This entitlement status enables the City to receive funds directly from the Federal Department of Housing and Urban Development (“HUD”) for distribution and expenditure within the City and allows the City Council to have greater control of the use of the funds and ensure greater accountability to Menifee residents. PY 2025/2026 will be the 14 th year the City of Menifee participates in the CDBG Program as an entitlement community.
As a recipient of annual CDBG grant funds, the City assists with the enhancement and support of low to moderate-income populations within the City of Menifee through the delivery of various programs and activities. Each year, the City must prepare and submit to HUD an Annual Action Plan, which identifies all the programs/activities to be completed in the upcoming program year, which runs from July 1 st to June 30 th. The Annual Action Plan is formally approved by the City Council at a public hearing.
The Annual Action Plan will generally include the following main categories of activities/programs:
•Planning/Administration (20% Cap)
•Fair Housing Services (Mandatory for Participation)
City of Menifee Staff Report
CDBG PY 2025/2026 Annual Action Plan
May 7, 2025
2 6
6 3
•Public Services (15% Cap)
•Housing (Senior Minor Home Rehabilitation Grant Program) •Public Facilities/Infrastructure Projects
On December 20, 2024, the City posted a Notice of Funding Availability (“NOFA”) and released the Public Services Application Booklet. Applications for Public Service funds requests were due on February 28, 2025. On March 20, 2025, the Menifee Citizen Advisory Committee (“MCAC”) reviewed the funding proposals received as a result of the NOFA and formulated their Public Services program funding recommendations for City Council consideration. The MCAC’s Public Services program recommendations are summarized below and are included within the proposed 2025/2026 Annual Action Plan.
TABLE 1 - PY 2025/2026 CDBG PUBLIC SERVICES
Organizations Requested MCAC Recommended
1. Assistance League of Temecula Valley $15,000 0*
2. Boys & Girls Club of Inland Valley $10,000 $10,000
3. Family Service Association (FSA) $20,000 $20,000
4. Habitat for Humanity Inland Valley $26,570 $10,000
5. Hospice of the Valleys $10,000 $13,500
6. Menifee Valley Community Cupboard $20,000 $20,000
7. Neighborhood Healthcare $15,000 0*
8. SAFE Family Justice Centers $10,500 $10,500
9. Voices for Children $10,000 0*
* Organization not recommended for funding in PY 2025/2026 based upon MCAC’s combined total scores of the “Community Needs Assessment”.
2025/2026 Annual Action Plan
At this time, allocations have not been announced. Per correspondence with HUD, jurisdictions are to project their Annual Action Plan using last year’s allocation ($560,000). The following summarizes the funding plan included within the proposed 2025/2026 Annual Action Plan:
TABLE 2 – PY 2025/2026 CDBG BREAKDOWN
Planning & Administration (20% Maximum Cap) $112,000.00 Administration 89,000.00
Fair Housing Services 23,000.00
Minor Home Rehabilitation Grant Program (MHRGP)** $264,000.00 **$40,000 for Activity Delivery Cost (ADC)
Public Services (15% Maximum Cap) $ 84,000.00
Boys and Girls Club of Menifee Valley 10,000.00
Family Service Association (FSA) 20,000.00
Habitat for Humanity Inland Valley 10,000.00 Hospice of the Valleys 13,500.00
Menifee Valley Community Cupboard 20,000.00
SAFE Family Justice Centers 10,500.00
City of Menifee Staff Report
CDBG PY 2025/2026 Annual Action Plan
May 7, 2025
2 6
6 3
Public Facilities/Infrastructure Projects $100,000.00 Kay Ceniceros’s Roof
Grant Total $560,00.00
**Staff recommend an increase in the MHRGP and ADC. The interest in the program remains vastly high, and the added ADC would help support the salary of the part-time management aide who assists in administering the MHRGP, therefore alleviating the general fund.
Should the actual CDBG award increase or decrease from the draft budget of $560,000, modifications would be made to the projects/activities line items. The modifications would not require a public hearing at the City Council, instead, staff would consult with the MCAC to adjust as needed.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
The fiscal impact for the acceptance of the grant is approximately $560,000 in both revenue and expenditure accounts, to be recognized in Fiscal Year (“FY”) 2025/2026. The biennial budget for FY 2025/2026 and 2026/2027 would propose federal grant revenue within the CDBG Fund (2481- 441000) and appropriate those funds to the various expenditure accounts, to be reviewed for adoption by the City Council on June 4, 2025. There is no match required by the City through the CDBG program. The FY 2025/2026 budget for CDBG presented within the City biennial budget would be generally broken out as follows, based on a draft allocation of $560,000:
TABLE 3 - BUDGET ACCOUNTS
Expenditure Description Account Code Amount
Administration 2481-CDD-CDBG-412-650100 83,060.00
Legal Advertising 2481-CDD-CDBG-412-651400 3,000.00 Membership & Dues 2481-CDD-CDBG-412-652200 940.00 Professional Services 2481-CDD-CDBG-412-652800 2,000.00 Minor Home Repair 2481-CDD-CDBG-412-658014 264,000.00 Fair Housing Services 2481-CDD-CDBG-412-658043 23,000.00 Public Services 2481-CDD-CDBG-412-658044 84,000.00
Public Facilities/Infra 2481-PWD-CIPC-412-760050 100,000.00 TOTAL $560,000.00
ATTACHMENTS
1. Proposed 2025/2026 Annual Action Plan
2.Resolution