CITY OF MENIFEE
SUBJECT: Fiscal Year 2025/2026 Community Development Block Grant MEETING DATE: November 5, 2025
TO: Mayor and City Council
PREPARED BY: Edna I. Lebrón, Senior Management Analyst
REVIEWED BY: Orlando Hernandez, Community Development Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a budget amendment resolution amending the Fiscal Year 2025/26 budget, appropriating $70,907 of grant funds in revenue and expenditures increasing revenue and expenditures to the Community Development Block Grant Fund 248.
DISCUSSION
Background
The Community Development Block Grant (CDBG) Program, administered by the U.S.
Department of Housing and Urban Development (HUD), provides annual funding to cities to support housing, community development, and economic opportunities for low- and moderate- income residents. Eligible activities include public services, housing rehabilitation, public facility improvements, and other community development initiatives that address identified local needs.
The City of Menifee receives an annual CDBG allocation directly from HUD and administers the program. Funding priorities are established through the City’s Five-Year Consolidated Plan and implemented each fiscal year through the Annual Action Plan adopted by the City Council.
At its May 7, 2025, meeting, the City Council adopted Resolution No. 25-1574, establishing the Fiscal Year (FY) 2025/2026 Annual Action Plan in compliance with HUD requirements and an estimated $560,000 funding allocation.
At the time the Annual Action Plan was presented to the City Council for approval, the City had not yet received HUD’s final appropriation amount. The approved Resolution provided that if Congress had not finalized HUD’s FY 2025 appropriations prior to the public hearing, and the City’s final allocation was subsequently higher or lower than the amount presented in the draft Annual Action Plan, no additional public review would be required, allowing staff to adjust funding levels accordingly once HUD released the final allocation.
Additionally, City staff would meet with the Menifee Citizens Advisory Committee (MCAC) regarding the approved public services activities and determine if the agencies would be able to
City of Menifee Staff Report
CDBG BAR PY 2025/2026
November 5, 2025
3 0
0 6
implement their program with the budget change, and once the City had determined the number of agencies willing to proceed with their program, City staff would proportionately increase or decrease all agencies' grant awards based on the final funding amount.
Additional Funding Received
On September 10, 2025, the City received the official FY 2025 HUD’s CDBG program agreement allocation. The City of Menifee was awarded an additional $70,907, bringing the total allocation to $630,907.
Due to the additional funding, MCAC voted to fully fund Habitat for Humanity’s application, covering 100% of the requested amount instead of the initially planned 50%, as they were the only organization not receiving their full request. In response to the current waiting list for the Minor Home Rehabilitation Grant Program, extra funds have been allocated to help decrease the number of individuals awaiting assistance. Additionally, a $14,000 increase was added to the Kay Ceniceros project for labor compliance.
During the FY 2024/2025 CDBG funding cycle, MCAC evaluated all agency applications using HUD’s required criteria: need, benefit, readiness, past performance, and alignment with City objectives. In addition, each MCAC member recommended allocation amounts for each agency, with a minimum funding threshold of $10,000 to qualify for award consideration.
Three agencies, Temecula Valley Assistance League (now Thrifting and Gifting) ($8,500), Neighborhood Healthcare ($3,625), and Voices for Children ($5,000), did not meet the minimum average funding threshold of $10,000 and therefore were disqualified from receiving funding.
TABLE 1 - PROPOSED AMENDED FY 2025/2026 CDBG PROGRAM ALLOCATION Description
Account
Number
May 7, 2025
Approved
Amount
Additional
Funds
Allocated
Amended
Amount
Planning & Administration (20% Cap)
Administration
Fair Housing
2481-CDD-
CDBG-412-
Various
(Personnel)
$112,000
$89,000
$23,000
$181
$181
N/A
$112,181
$89,181
$23,000
Public Facilities/Infrastructure Projects
Kay Ceniceros’ Roof
Minor Home Repair Program
Activity Delivery Costs
2481-CDD-
CDBG-412-
658014-
$364,000
$100,000
$224,000
$40,000
$60,090
$14,000
$26,090
$20,000
$424,090
$114,000
$250,090
$60,000
Public Services (15% Maximum Cap)
Boys & Girls Club of Menifee Valley
Family Service Association (FSA)
Habitat for Humanity
Hospice of the Valley
Menifee Valley Community Cupboard
SAFE Family Justice Centers
2481-CDD-
CDBG-412-
658044-
$84,000
$10,000
$20,000
$10,000
$13,500
$20,000
$10,500
$10,636
N/A
N/A
$10,000
N/A
$636
N/A
$94,636
$10,000
$20,000
$20,000
$13,500
$20,636
$10,500
Grand Total $560,000 $70,907 $630,907
City of Menifee Staff Report
CDBG BAR PY 2025/2026
November 5, 2025
3 0
0 6
STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government
FISCAL IMPACT
The fiscal impact from acceptance of the CDBG allocation will result in an increase of $70,907 in FY 2025/2026 grant revenue (2481-441000) and an increase in expenditures appropriation to the accounts listed within Table 1 above.
There is no fiscal impact to the General Fund from the additional FY 2025/2026 allocation included above. All expenditures related to CDBG adopted and approved project and activities will come from the complete CDBG allocation to the City of Menifee.
ATTACHMENTS
1. Budget Amendment Resolution