September 22, 2026
Agenda Item No. 17
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Seimone Jurjis, City Manager - 949-644-3001, [email protected] PREPARED BY:
Lauren Wooding Whitlinger, Real Property Manager - 949-644-3236, [email protected] TITLE:
Community Development Block Grant Program Year 2025-26, Consolidated Annual Performance and Evaluation Report (CAPER) ABSTRACT:
After the close of each fiscal year, the U.S. Department of Housing and Urban Development (HUD) requires that the City of Newport Beach (City) prepares and submits a Consolidated Annual Performance Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program. The CAPER is a report on the projects and expenditures of the annual CDBG funding issued to program subrecipients. It also describes the City’s progress towards meeting the goals established in the 2025-26 Annual Action Plan, as amended. The report must be submitted to HUD by the end of September 2026.
For the City Council’s consideration is the Program Year (PY) 2025-26 CAPER, which was prepared and made available for the HUD-required 15-day public review and comment period beginning September 5, 2026, and concluding with the City Council’s action on this item.
RECOMMENDATIONS:
Hold a public hearing to receive comments on the Program Year 2025-26 Consolidated Annual Performance Evaluation Report; Find this activity exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and Section 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; Approve the Program Year 2025-26 Consolidated Annual Performance Evaluation Report; and Authorize the City Manager or his designee to submit the Program Year 2025-26 Consolidated Annual Performance Evaluation Report to the U.S. Department of Housing and Urban Development.
DISCUSSION:
The attached Draft PY 2025-26 CAPER is substantially complete in form and accounting; however, it may include minor changes to match the City’s records before it is submitted to HUD. No changes will be made to the final amounts drawn for public services, administration or beneficiaries, as those amounts are subject to, and comply with, statutory caps.
On September 5, 2026, the City published a notice in the Daily Pilot informing the public that the Draft PY 2025-26 CAPER would be available for review and comment from September 5, 2026, to September 22, 2026. To date, no public comments have been received. Any public comments received after this staff report is published or at the public hearing will be included in the final version submitted to HUD. Additionally, the City’s adopted CDBG Citizen Participation Plan requires that a public hearing be held to receive comments from interested parties regarding the CAPER. The September 22, 2026, public hearing addresses the requirement.
The PY 2025-26 CDBG allocation from HUD was $402,015. The City anticipated receiving $315,000 in program income but received $318,141.70. Table 1 below shows the annual CDBG budget and expenditures.
Table 1, CDBG Budget and Expenditures for the PY2025-26 CAPER Program Categories
Budget
Expenditures
Public Service Activities
$30,000
$30,000
Homelessness Prevention
$30,000
$27,050
ADA Sidewalk Improvements Program
$750,000*
$562,205
Program Administration & Fair Housing
$92,700
$79,238
Total:
$902,700
$698,493
*Note: Any unspent program funds will be carried forward into the new fiscal year and allocated to eligible CDBG activities.
The accomplishments for this year include, but are not limited to, a mobile meals program serving 42 senior residents, fair housing services for 142 residents, and the Motel Voucher Program for homeless individuals, serving 16 residents.
A more detailed explanation of accomplishments can be found in the attached Draft PY 2025-26 CAPER.
FISCAL IMPACT:
This item is a report on accomplishments for the past year; there is no related fiscal impact.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find the approval of the PY2025-26 CAPER is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
In accordance with HUD requirements for a 15-day public review and comment period, notice of the public hearing was published in the Daily Pilot on September 5, 2026. Notice was also emailed to all parties that signed up to receive email notifications from the Planning Division. Further, the agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A – Draft PY 2025-26 CAPER
Community Development Block Grant Program Year 2025-26, Consolidated Annual Performance and Evaluation Report (CAPER) September 22, 2026
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