June 1, 2026 www.paloalto.gov
City Council
2026-2027 Annual Action Plan
Public Hearing
Presenter: Leif Christiansen, Senior Housing Specialist Meeting Purpose
▪ City Council review and approval of
the draft Community Development
Block Grant (CDBG) Fiscal Year (FY)
2026-27 Annual Action Plan (AAP)
Brief Overview
▪ CDBG program funding administered by Department of Housing and Urban Development (HUD):
▪ City receives approximately $500k/year
▪ Funded activities must benefit low and very low-income persons ▪ Program Requirements:
▪ Five-Year Consolidated Plan: identifying community needs and goals (approved by City Council in June 2025)
▪ Annual Action Plan: outlining projects to be funded
CDBG Funds Available for Allocation in FY 2026-27
Funding Sources Amount
FY 2026-27 Entitlement Grant $512,139
Program Income in FY 2025-26 (Estimated) $100,000
Estimated Total CDBG Funds Available for Allocation $612,139 Funding
Categories
&
Proposed
Grantees
• Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program $6,500 • LifeMoves – Case Management $30,500
• Silicon Valley Independent Living Center (SVILC)– Case Management $15,750 • Project Sentinel – Fair Housing Services $16,250
• Next Door Solutions to Domestic Violence: $6,500
• La Comida – Food Assistance Program: $6,321
• YWCA – Domestic Violence Services: $5,500
• RotaCare Bay Area – Mobile Clinic: $4,500
CDBG Public Services – 15% Cap
• WeeCare/Upwards $72,000
CDBG Economic Development
• Rebuilding Together Peninsula(RTP) – Safe at Home $73,585 CDBG Housing Rehabilitation
• Public Works - ADA Curb Ramp Improvements: $172,335
• Peninsula Healthcare – Facility Rehabilitation: $79,970 CDBG Public Facilities and Improvements
• City of Palo Alto $122,428
CDBG Planning & Administration – 20% Cap
FY 2026-27 AAP Funding Recommendations
Timeline
*HUD allocations are expected in mid-May
HRC Selection
Committee
March 27
HRC
Meeting/Public
Hearing
April 9
Public Review
and Comment
Period
May 1 to May 31
City Council
Meeting/Public
Hearing
June 1
Submission to
HUD
By July 1
▪ The Human Relations Commission (HRC) reviewed the draft AAP on April 9, 2026. ▪ The HRC voted 4-0 to recommend Council approval of the Plans, with the following direction:
– Increase allocation to La Comida by the largest allowable amount within cap – Increase recommended funding to YWCA to $5,500 by decreasing funding from LifeMoves, Silicon Valley Independent Living Center and Project Sentinel – Direct additional available funds to public facility projects ▪ Staff updated the Plans to reflect the HRC's recommendations.
HRC Review and Recommendation
The Human Relations Commission (HRC) and staff recommend City Council take the following actions:
1. Adopt the draft FY 2026-2027 Annual Action Plan (Attachment A) and the associated resolution (Attachment B) allocating Community Development Block Grant (CDBG) funding for FY 2026-2027;
2. Authorize the City Manager to execute the FY 2026-2027 CDBG application to fund the FY 2026-2027 Annual Action Plan (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 2026-2027 AAP to U.S. Department of Housing and Urban Development (HUD) by the extended deadline of August 16, 2026.
RECOMMENDATION
Leif Christiansen
Senior Housing Specialist
[email protected]