CITY OF MENIFEE
SUBJECT: Community Development Block Grant for Program Year 2026/2027 Annual Action Plan
MEETING DATE: May 6, 2026
TO: Mayor and City Council
PREPARED BY: Edna Lebron, Senior Management Analyst
REVIEWED BY: Orlando Hernadez, 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 2026/2027 Annual Action Plan; and
2.Authorize the City Manager or his designee to execute all necessary 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. Program Year (PY) 2026/2027 will be the 15 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 generally includes the following main categories of activities/programs:
•Planning/Administration (20% Cap)
•Fair Housing Services (Mandatory for Participation)
•Public Services (15% Cap)
•Housing (Senior Minor Home Rehabilitation Grant Program) •Public Facilities/Infrastructure Projects
City of Menifee Staff Report
CDBG PY 2026/2027 Annual Action Plan
May 6, 2026
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On December 19, 2025, 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 19, 2026. On March 23, 2026, the Menifee Citizen Advisory Committee (MCAC) reviewed the funding proposals received and formulated their Public Services program funding recommendations for City Council consideration. The minimum grant amount for any Public Services established by the CDBG Administrator is set at $10,000. MCAC determines funding levels for Public Services based on the five criteria listed below, each weighted at 10 points:
1) Need – Level of need within the City.
2) Benefit – Percentage of Low- and Moderate-Income (LMI) persons served. 3) Readiness – Program is ready for immediate implementation, with systems and staff in place, and able to be completed by June 30, 2027.
4) Applicant Capacity/Past Performance – Experience with CDBG and other grants, ability to manage documentation, reporting, and reimbursements, and overall financial stability. 5) Alignment with City Objectives – Degree of alignment with City priorities as identified in the Community Needs Assessment and Consolidated Plan.
The MCAC’s Public Services program recommendations are summarized in Table 1 and are included within the proposed 2026/2027 Annual Action Plan. 2026/2027 Annual Action Plan
HUD released its allocation on April 3, 2026, awarding the City $670,960 - an increase of $40,053 from the current year.
TABLE 1 - PY 2026/2027 CDBG PUBLIC SERVICES
Organizations Requested MCAC Recommended
1.Boys & Girls Club of Inland Valley $10,000 $10,000
2.Family Service Association (FSA) $20,000 $15,644
3.Habitat for Humanity Inland Valley $25,000 $10,000
4.Hospice of the Valleys $10,000 $10,000
5.Menifee Valley Community Cupboard $20,000 $20,000
6.SAFE Family Justice Centers $11,000 $10,000
7.Thrifting 4 Gifting (Formally Assistance League) $15,000 $15,000
8.Voices for Children $10,000 $10,000
City of Menifee Staff Report
CDBG PY 2026/2027 Annual Action Plan
May 6, 2026
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6 5
Table 2 summarizes the funding plan included within the proposed 2026/2027 Annual Action Plan.
TABLE 2 – PY 2026/2027 CDBG BREAKDOWN
Description Amount
Planning & Administration (20% Maximum Cap) $134,192.00 Administration 110,192.00
Fair Housing Services 24,000.00
Minor Home Rehabilitation Grant Program (MHRGP) $436,124.00 *Activity Delivery Cost (ADC) 40,000.00
**Minor Homer Rehabilitation Grant Program (MHRGP) 396,124.00 Public Services (15% Maximum Cap) $ 100,644.00
Boys and Girls Club of Menifee Valley 10,000.00
Family Service Association (FSA) 15,644.00
Habitat for Humanity Inland Valley 10,000.00 Hospice of the Valleys 10,000.00
Menifee Valley Community Cupboard 20,000.00
SAFE Family Justice Centers 10,000.00
Thrifting 4 Gifting 15,000.00
Voices for Children 10,000.00
Grant Total $670,960.00
*The ADC contributes to funding the salary of the part-time management aide who supports the administration of the MHRGP, thereby reducing the burden on the general fund. **Staff recommends increasing funding for the MHRGP, as demand for the program remains exceptionally high despite the waiting list being closed. Additional funding would allow the program to serve 16 more residents, raising total annual participation to 26, compared to the typical 10 residents served each year.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
FISCAL IMPACT
The fiscal impact for the acceptance of the grant is $670,960 in both revenue and expenditures, an increase of $110,960 from the adopted budget of $560,000, to be recognized in Mid-Cycle FY 2026/2027. There is no match required by the City through the CDBG program.
The revised FY 2026/2027 budget for CDBG will be presented with the City Budget and will generally be as follows, based on a draft allocation of $670,960 as shown on Table 3 on the following page.
City of Menifee Staff Report
CDBG PY 2026/2027 Annual Action Plan
May 6, 2026
3 2
6 5
TABLE 3 - BUDGET ACCOUNTS
Account Account # Adopted
Budget
Revised
Budget
Federal Grant
Revenue
2481-441000 $560,000.00 $670,960.00
Revenue Total $560,000.00 $670,960.00
Administration 2481-CDD-CDBG-413-Various 84,096.00 104,252.00 Legal Advertising 2481-CDD-CDBG-413-651400 3,000.00 3,000.00 Membership & Dues 2481-CDD-CDBG-413-652200 940.00 940.00 Professional Services 2481-CDD-CDBG-413-652800 56,365.00 2,000.00 Minor Home Repair 2481-CDD-CDBG-413-658014 306,112.00 436,124.00 Fair Housing Services 2481-CDD-CDBG-413-658043 23,000.00 24,000.00 Public Services 2481-CDD-CDBG-413-658044 84,487.00 100,644.00 Expense Total $560,000.00 $670,960.00
ATTACHMENTS
1. Annual Action Plan
2. Resolution