City Council – June 9, 2025 www.paloalto.gov
City Council
CDBG FY 2025-2030
Consolidated Plan and
2025-2026 Annual Action Plan
Public Hearing #2
Presenter: Robert Feign, Housing Planner
Meeting Purpose
City Council review and approval of
the draft Community Development
Block Grant (CDBG) Fiscal Year (FY)
2025-2030 Consolidated Plan and
2025-26 Annual Action Plan
2 Consolidated Plan and CDBG
▪ The City receives approximately $500k/year from HUD through the CDBG program.
▪ Funded activities must benefit low and very low-income persons. ▪ To receive funding, HUD requires:
▪ A Five-Year Consolidated Plan identifying community needs and goals ▪ An Annual Action Plan outlining projects to be funded 3 Consolidated Plan Primary Findings
Top Housing Needs:
▪ Affordable rentals
▪ Rental assistance
▪ Homeownership opportunities
▪ Housing navigation support
▪ Supportive services in affordable
housing
4 Top Community Needs:
▪ Childcare assistance
▪ Services for those who are unhoused
▪ Mental health services
▪ Support for survivors of domestic
violence
▪ Workforce development opportunities
Consolidated Plan Five-Year Goals
▪ Increase the supply and condition of affordable housing ▪ Respond to homelessness and risk of homelessness
▪ Strengthen neighborhoods through investing in infrastructure and public facility improvements that prioritize safety, accessibility, and community building
▪ Support projects that increase opportunities for workforce development ▪ Provide supportive services to low-income households
5 6
Palo Alto CDBG Funds Available for Allocation in FY 2025-26 Funding Sources Amount
FY 2025-2026 Entitlement Grant $516,233
Program Income in FY 2025-26 (Estimated) $100,000
Estimated Total CDBG Funds Available for
Allocation
$616,233
Funding
Categories
&
Proposed
Subrecipients
• Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program $8,500 • LifeMoves – Case Management $39,154
• Silicon Valley Independent Living Center (SVILC) – Case Management $20,067 • Project Sentinel – Fair Housing Services $22,005
• Next Door Solutions to Domestic Violence: $7,200
CDBG Public Services – 15% Cap
• WeeCare/Upwards $90,000
CDBG Economic Development
• Rebuilding T ogether Peninsula(RTP) – Safe at Home $73,585 • Community Work Group/Abode – Alma Garden $162,474
CDBG Housing Rehabilitation
• Homekey Palo Alto – Recreation Project $70,000
CDBG Public Facilities and Improvements
• City of Palo Alto $123,246
CDBG Planning & Administration – 20% Cap
7 FY 2025-26 AAP Funding Recommendations
Implementation Timeline
8 HRC Selection
Committee
March
Human
Relations
Commission
May
Public Review
& Comment
Period
May-June
City Council
June 9th
Submission to
HUD
By July 15th
▪ The Human Relations Commission (HRC) reviewed the draft AAP and ConPlan on May 8, 2025.
▪ The HRC voted 6-1 to recommend Council approval of the Plans, with the following direction:
– Consider a 25% reduction to the proposed allocation for Upwards – Reallocate those funds to other applicants, with emphasis on the Alma Garden project
▪ The HRC also approved a contingency plan in case the City's CDBG award differed from the staff estimate.
▪ Staff updated the Plans to reflect the HRC's recommendations.
HRC Review and Recommendation
9 The Human Relations Commission and staff recommend that the City Council:
1. Adopt the draft Fiscal Year (FY) 2025-2026 Annual Action Plan (AAP), 2025-2030 Consolidated Plan (ConPlan), and the associated resolution (Attachment A) allocating Community Development Block Grant (CDBG) funding for FY 2025-2026;
2. Authorize the City Manager to execute the FY 2025-2026 CDBG application to fund the FY 2025-2026 AAP and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds;
3. Authorize staff to submit the FY 2025-2030 Consolidated Plan and 2025-2026 AAP to U.S. Department of Housing and Urban Development (HUD) by the extended deadline of August 16, 2025;
4. Authorize the City Manager or designee to draft and execute amendments to a loan agreement, regulatory agreement, and related documents necessary to implement City Council direction on the Alma Garden Rehabilitation Project in a form consistent with the City’s affordable housing loan documents and approved by the City Attorney; and
5. Direct staff to return to Council following budget adoption to amend the FY 2026 Budget Appropriation for the Community Development Block Grant Fund (2/3 vote needed) by
1. Increasing Revenue from Other Agencies by $616,233.
2. Increasing General Expenses by $616,233.
Recommendations
10 Robert Feign
Housing Planner
[email protected]