City Council Agenda Report
March 17, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Alex Hamilton, Interim Director of Community Development Bethani Cardenas, Housing Manager
Rosio Medina, Senior Management Analyst
SUBJECT: PUBLIC HEARING - PROPOSED ACTIVITIES FOR FISCAL YEAR 2026/27
ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK
GRANT AND HOME INVESTMENT PARTNERSHIPS PROGRAM
Background:
The Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) are funded by the United States Department of Housing and Urban Development (HUD), and submittal of an Annual Action Plan (Plan) is required as part of the annual application process for funding. The Plan lists the specific activities that the City will undertake with the CDBG and HOME funds. The types of activities that the City may conduct are subject to federal rules and regulations, such as funding caps on program administration and social services, requirements for public-private partnerships, and compliance with National Objectives.
The purpose of this report is to give City Council an opportunity to review the proposed activities for the Fiscal Year (FY) 2026/27 Plan. After the public review period ends, new activities cannot be added to the Plan without triggering another 30-day public review period and a separate public hearing.
Use of Funds
HUD requires that CDBG and HOME funds be allocated to projects that meet the National Objectives of decent housing, a suitable living environment, and expanded economic opportunities. While HOME funds may only be used for housing related activities, CDBG funds may be used for a variety of community development activities, such as rehabilitation of housing and commercial buildings, infrastructure improvements, and certain services, such as counseling and job training. Funds may be used to directly benefit a household that meets
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the income limitations, such as repair of a specific home, or used for an area benefit, where the improvement is located in a census tract with at least 51% of the households being considered low to moderate income. In addition to meeting these general requirements, activities must comply with the regulations found in Chapter 24, Parts 92 and 570 of the Code of Federal Regulations.
Programs established in the Annual Action Plan should be consistent with the goals and priorities described in the City’s Five-Year Consolidated Plan. The following priorities were identified in the City’s 2025-2030 Consolidated Plan (Consolidated Plan):
Provide decent, affordable housing
Support special needs programs and services
Construct or upgrade public facilities and infrastructure Create public awareness of fair housing
Create job-generating businesses and job training
Create homeless prevention programs and services
Maintain and promote neighborhood preservation by preserving, rehabilitating and enhancing neighborhoods
The Consolidated Plan explains how the City will utilize these monies to improve community development needs, address affordable housing, and priorities for people experiencing homelessness. The Plan establishes strategies for the next program year and identifies specific projects and activities that will be carried out with CDBG, and HOME funds received from HUD. Currently, the City does not know the final entitlement amounts for CDBG and HOME. The figures shown below and, in the draft, Annual Action Plan reflect HUD's current entitlement allocation. The figure for "Expected Amount Available for Remainder of Con Plan" anticipates level funding using the current year allocations and projecting those allocations over the remaining years covered by the Consolidated Plan. If there are further cuts to the City's allocation over the coming years, the City will adjust this figure accordingly and prepare the Annual Action Plans reflective of the funding reality. Therefore, the amounts shown in the tables below are estimates based on the City’s 2025 funding allocation and estimated program income. The proposed activities are consistent with the priorities identified in the Consolidated Plan.
Funding and Proposed Activities for the Annual Action Plan The City anticipates approximately $1,065,871 in CDBG funds, which includes $940,871 entitlement, $25,000 program income, and $100,000 carryover funds from prior years. CDBG program income and carryover funds will be allocated to Capital Improvement or Economic Development projects.
The City anticipates approximately $1,265,781.53 in HOME funds, which includes $242,049.35 entitlement, $25,000 program income, and $998,732.18 carryover funds from prior years. HOME program income and carryover funds will be allocated for affordable housing or City Council March 17, 2026
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affordable housing rehabilitation projects.
The following tables list the proposed activities and expenditures for FY 2026/27:
PROJECTS/ACTIVITIES FUNDED BY CDBG Estimated funding
Program Administration – CDBG (20% cap) $175,174
Fair Housing – CDBG (20% cap) $13,000
Emergency Services Program – Social Services Center* $75,000 Community Legal Aid SoCal* $20,000
Jovenes, Inc.* $20,000
Los Angeles Centers for Alcohol and Drug Abuse* $20,000 Economic Development Activities $100,000
Upwards Inc. $20,000
Capital Improvement Project $622,697
Total $1,065,871
*CDBG funding for public service programs (15% cap of CDBG funds)
PROJECTS/ACTIVITIES FUNDED BY HOME Estimated funding
Program Administration – HOME (10% cap of HOME funds) $24,204.94 TBRA – Security Deposit Assistance $30,000
Affordable Housing Rehabilitation $200,000
Affordable Housing Project $1,011,576.59
Total $1,265,781.53
Public Services/Social Services Agencies Fund Recommendations The City is allowed to allocate a maximum of 15% of its CDBG entitlement for public services related activities, such as health services, substance abuse services, homeless services, employment services, crime prevention and other public services.
Public services funding has been distributed to various Social Service Agencies and the Emergency Services Program administered by the Social Services Department in previous years.
On November 7, 2025, the availability of CDBG funds was announced to 89 non-profit agencies. Twelve applications for CDBG funding were received by the deadline of December 12, 2025. On January 8, 2026, the Social Services Commission reviewed and City Council March 17, 2026
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discussed the applications. After discussion and review, the Commission and Social Services Director made the following recommendations for City Council consideration. The recommendations are based upon an estimated maximum funding amount of $141,130 for public service programs:
Agency 2025/26 Funding
Allocation
Social Services
Director/Commission
Funding
Recommendation for FY
2026/27
Emergency Services Program –
Social Services $75,000 $75,000
Community Legal Aid SoCal $20,000 $20,000
Jovenes, Inc. $0 $20,000
Los Angeles Centers for Alcohol
and Drug Abuse $20,000 $20,000
Policy for funding changes
HUD requires that the City establish a methodology to adjust funding for activities and allocate excess program income and carry-over funds after the exact amounts are known. The above entitlement, program income, and carry-over amounts are estimates. As the final amounts are known, HOME and CDBG activity funding amounts will be adjusted in the following manner:
HOME Program administration will be adjusted up or down to equal 10% of the actual entitlement amount plus 10% of program income
FY 2025/26 HOME carryover will be committed to an Affordable Housing Project HOME program income received in FY 2025/26 will be allocated to program administration (up to 10%) and to an Affordable Housing Project CDBG Program administration will be adjusted up or down to equal 20% of the actual entitlement amount plus 20% of program income
CDBG carryover amount will be revised at year end to match the actual uncommitted balance remaining in the CDBG program
CDBG program income received in FY 2025/26 will be allocated to program administration (up to 20%) and remaining program income will be allocated to Capital Improvement or Economic Development projects.
Timeline
The draft FY 2026/27 CDBG and HOME Annual Action Plan will be made available for public review and comment for a period of 30-days starting March 30, 2026. After the 30-day public review period, the final Plan will be presented to City Council for adoption at a public hearing scheduled on or before May 5, 2026. At the public hearing, City Council may increase, reduce, City Council March 17, 2026
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or eliminate the funding allocated to any of the proposed activities listed above, but new activities cannot be added at that time without triggering another 30-day public review period and another public hearing. The final plan is due to HUD by May 15, 2026.
Fiscal Impact:
There is no impact to the general fund. The CDBG and HOME programs are funded solely by the United States Department of Housing and Urban Development.
Citizens Advised:
Notice of the Public Hearing was posted on the City website and at the City’s official posting sites on February 26, 2026, and published in The Norwalk Patriot and La Opinion in accordance with State law on February 27, 2026.
The 2026/27 Annual Action Plan will be made available at City Hall (Community Development Department), the Social Services Center and the Norwalk Regional Library from March 30, 2026 to May 1, 2026 for citizens to review and make comments.
Strategic Plan 2023 Implementation:
The recommended actions will further the City’s Strategic Plan Goal 2: Objective 1 Re-invest in existing and aging infrastructure and Objective 3: Improve living conditions for residents in greatest need; Goal 3: Objective 1 Create dynamic neighborhoods, Objective 2 Diversify and grow the economy, and Objective 3 build great public destinations.
Recommended Action:
Staff recommend City Council and the public provide input on the proposed Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding activities for Fiscal Year 2026/27 Annual Action Plan.
Attachments:
1. Draft FY 2026/27 CDBG and HOME Annual Action Plan
2. CDBG Census Tract Map