Report to City Council
ID: 25-0488 Page 1
TO: Mayor and City Council
FROM: Dena Heald, Chief Financial Officer/City Treasurer
AGENDA DATE: December 2, 2025
TITLE: PUBLIC HEARING FOR THE PROGRAM YEAR 2026 -
2027 AND ADOPTION OF OBJECTIVES AND POLICIES
IN PREPARATION OF THE ANNUAL ACTION PLAN
(REPORT OF: FINANCIAL & MANAGEMENT
SERVICES) (ALL DISTRICTS)
TITLE SUMMARY: Public Hearing and Adoption of the Program Year 2026-2027 Programs Objectives and Policies
DISTRICT: All Districts
Recommendation(s)
That the City Council:
1. Conduct a Public Hearing to allow for the public to comment on the needs of low- and moderate-income residents in Moreno Valley.
2. Approve the proposed CDBG, HOME, and ESG Grant Objectives and Policies for the 2026-2027 Program Year (PY).
SUMMARY
Every year, the Department of Housing and Urban Development (HUD) allocates federal grant funds to the City of Moreno Valley known as the Community Development Block Grant (CDBG), the HOME Investment Partnerships Program (HOME), and the Emergency Solutions Grants (ESG) Program. These grants are used to provide services to benefit l ow-to-moderate-income persons. (See Attachment 2 for the most recent income levels). Eligible CDBG activities range from social services to capital
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improvements. HOME funds must be used toward the development of affordable housing programs, and ESG funds a re used to assist people with housing stability and address homelessness. HUD has identified certain areas determined to contain residents of which at least 51% earn low -to-moderate-incomes. These areas are referred to as ‘CDBG Target Areas’. (See Attachme nt 3 for a map of Moreno Valley’s HUD Low -Mod Census Tracts/Blocks.)
As a condition for receiving Federal funding under the CDBG, HOME, and ESG Programs, grantee cities must prepare an Annual Action Plan consistent with the 2023 - 2028 Consolidated Plan as adopted May 16, 2023. The City conducts at least two public hearings with 30 -day comment periods to allow for public input in the development of these documents. The City Council is asked to open the PUBLIC HEARING to discuss and adopt Objectives/Policies and Collect Community Needs Comments. The Plan will address housing, homelessness, and community development needs to be undertaken with federal funds under the CDBG, HOME, and ESG programs.
DISCUSSION
Consolidated Plan
The Consolidated Plan identifies the housing and community development needs of the City’s low-to-moderate-income community, as defined by HUD, and establishes the City’s HUD-funded strategies for addressing these needs for a five-year period. It serves as the official application to HU D for the CDBG, HOME, and ESG Programs. Moreno Valley’s existing Consolidated Plan was adopted in Program Year (PY) 2023-2024 and is in effect through the end of PY 2027-2028, June 30, 2028. Program Year 2026-2027 is the fourth year of the current Consolidated Plan.
The goals and priorities for each category in the 2023-2028 Consolidated Plan are listed below:
CDBG Housing and Community Development Goals & Funding Priorities
1. Public Facilities and Infrastructure Activities
2. Fair Housing Activities
3. Public Service Activities*
4. Homeless/Homelessness Prevention Activities
5. Housing and Neighborhood Improvement Activities
6. Health, Safety and Public Welfare
7. Economic Development Activities
8. Slum or Blight Activities
9. Historic Preservation
10. Planning and Administration
CDBG Public Service Funding Priorities*
1. Basic Needs Related to Social Services Programs (such as, but not limited to emergency food, shelter (homelessness), abused children advocacy, and utility assistance)
2. Community Public Safety Programs
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3. Programs Offering Low-Cost Transportation
4. Employment Services/Programs and Job (Skills) Training
5. Free/Low-Cost Programs for School-Aged Youth
6. Fair Housing Activities
HOME Investment Partnerships Program (HOME) Funding Priorities
1. Housing and Neighborhood Improvement Activities
Emergency Solutions Grants (ESG) Program Funding Priorities
1. Sheltering Homeless/Homeless Prevention Activities
Annual Action Plan
For each program year represented within the 2023-2028 Consolidated Plan, entitlement cities must adopt a separate planning document called the Annual Action Plan. The Annual Action Plan identifies how the City will allocate CDBG, HOME, and ESG funds for the upcoming year while meeting the goals established in the Consolidated Plan. Each Annual Action Plan must include up-to-date Objectives and Policies for CDBG, HOME, and ESG Programs.
Prior to submittal of the PY 2026-2027 Annual Action Plan, the City will complete a series of sequential activities including three City Council meetings to:
1. Adopt current Program Year Objectives and Policies, and
2. Review CDBG, HOME and ESG Project Applications to Council, and
3. Adopt the Program Year Annual Action Plan.
An eligible use of CDBG funds is ‘Public Services.’ Public Services can include , but are not limited to food b anks, homeless shelters, specialized counseling, foster youth services, and a variety of other services that benefit the City’s low -to-moderate-income households. HUD limits the funds that can be used toward Public Services to 15% of the overall annual CDBG allocation, which averages approximately $1,900,000 per year for Moreno Valley. Because Public Service funds are limited and the demand is so high, staff have established a priority ranking within this objective category that assists in reaching decisions on which programs are best suited for the community within a given program year.
After comprehensive resear ch, including consideration of public input and review of various program reports, including those provided by the City’s local non-profits currently serving the City’s low -to-moderate-income population, staff recommends the following priority ranking under the Public Service Objective:
1. Fair Housing Activities
2. ‘Basic Needs’-Related Social Services Programs such as, but not limited to, emergency food and shelter (homelessness), abused children advocacy
3. Programs offering Low-Cost Transportation
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4. Free/Low-Cost programs for School-Aged Youth
5. Community Public Safety Programs
6. Employment Services/Programs and Job (Skills) Training
Public Engagement
Citizen participation is one of the most important components of the Annual Action Plan process. To solicit public input during the development of the plans, two public hearings and a 30 -day comment period will be conducted. Before the City begins the project selection process for CDBG, HOME, and ESG, HUD requires the City to follow its ‘Citizen Participation Process’, which includes adopting objectives and policies that reflect the current needs of the community.
Moreno Valley’s ‘Citizen Participation Process’
The ‘Citizen Participation Process’ is intended to encourage active and informed participation in the CDBG, HOME, and ESG Programs by the community. Each year as part of this process, Moreno Valley holds community -based Public Meetings and Public Hearings to receive input on the current needs of its low -to-moderate-income residents.
Attendees are asked to comment on issues and problems affecting low -to-moderate- income individuals so that the City can make informed funding decisions.
Comments received at these meetings are taken into consideration when forming the Objectives and Policies for the program year.
Preliminary Dates
Event
Tuesday, November 25, 2025
Public Meeting 1: Public Meeting to Review Action Plan Calendar Schedule and Objectives/Policies
Tuesday, December 2, 2025
Public Hearing 1: Public Hearing to Adopt Objectives/Policies & Collect Community Needs Comments
Friday, December 12, 2025 Notice of Funding Availability (NOFA) Available.
APPLICATIONS AVAILABLE.
Thursday, January 8, 2026 Application Workshop
Friday, January 30, 2026 Applications Due from Applicants Tuesday, March 24, 2026 Public Meeting 2: Open Technical Review Committee during Finance Subcommittee Meeting
Tuesday, April 21, 2026 Public Hearing 2: Public Hearing to Review Project Applications Tuesday, May 5, 2026 Public Hearing 3: Approve Annual Action Plan Friday, May 15, 2026 Submittal of 2026-27 Action Plan to HUD
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Purpose of Objectives and Policies
Moreno Valley’s Objectives and Policies are re -evaluated each year to ensure they adequately reflect the current needs of the community. The updated Objectives and Policies are then adopted by the City Council for the upcoming CDBG, HOME, and ESG program year. Objectives and Policies primarily focus on: (1) defining the City’s funding priorities, (2) offering project selection criteria, and (3) providing guidance for staff when reviewing and recommending programs and projects for funding. Both are distribut ed to agencies that are interested in applying for funding to develop a local social service program in Moreno Valley and convey important information about the eligible categories of programs and the City’s priorities for local organizations.
30-Day Public Comment Period
In accordance with the City's Citizen Participation Plan (Attachment 4), the City will release the draft PY 2026-2027 Annual Action Plan for public comment. The documents will be made available to the public for a 30 -day review and comm ent period, which is anticipated to begin on April 3, 2026, and end on May 5, 2026.
ALTERNATIVES
1. City Council may conduct a Public Hearing, receive comments, and adopt the proposed CDBG, HOME, and ESG Objectives and Policies as listed on Attachment 1. Staff recommends this alternative as doing so will meet HUD’s requirements, as well as provide the pu blic and staff with direction regarding funding proposals for PY 2026-2027.
2. City Council may choose not to adopt the proposed CDBG, ESG, and HOME Objectives and Policies as listed on Attachment 1. Staff does not recommend this alternative because it would delay the necessary measures to meet HUD’s established deadline for submission of these documents.
FISCAL IMPACT
The City, as an entitlement city for CDBG, HOME, and ESG funds, receives grant funds every year to carry out eligible housing and community development activities. Further, staffing costs for administering the CDBG, HOME, and ESG programs are covered by an administration cap within each program. No General Fund money is used for the CDBG, HOME, or ESG programs; therefore, there is NO FISCAL IMPACT TO THE GENERAL FUND.
NOTIFICATION
Notice of this meeting was published in the local edition of the Press -Enterprise and La Opinion newspapers on October 31, 2025.
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PREPARATION OF STAFF REPORT
Prepared By: Approved by:
Joe Barron Launa Jimenez
Grants Division Manager Assistant City Manager (Administration)
Concurred By: Approved by:
Sandra Brieno Brian Mohan
Deputy Compliance Director City Manager
CITY COUNCIL GOALS
None
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
ID: 25-0488 Page 7
Report Approval Details
Document Title: STAFFREPORT_FMS_PY 26-27 PUBLIC HEARING NO.1_
12.02.25.docx
Attachments: - Attachment 1 - PY 26-27 Objectives and Policies- Draft.docx
- Attachment 1 - PY 26-27 Objectives and Policies- Draft.pdf - Attachment 2 - 2025 HUD Annual Income Limits.pdf
- Attachment 3 - Map of CDBG Eligible Areas (HUD Low-
Mod Census Tracts).pdf
- Attachment 4 - PY 26-27 MoVal Citizen Participation Plan .pdf
Final Approval Date: Nov 24, 2025
This report and all of its attachments were approved and signed as outlined below:
Natalia Lopez
No Signature - Task assigned to Dena Heald was completed by workflow administrator Patty Rodriguez
Dena Heald
Launa Jimenez
Brian Mohan
Patty Rodriguez