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Agenda Report
June 15, 2026
TO: Honorable Mayor and City Council
THROUGH: Housing, Homelessness and Planning Committee (June 3, 2026) FROM: Housing Department
SUBJECT: PUBLIC HEARING: APPROVAL OF THE ANNUAL ACTION PLAN (2026) AND RELATED FUNDING APPLICATIONS FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT
PARTNERSHIP ACT, AND EMERGENCY SOLUTIONS GRANT
PROGRAMS
RECOMMENDATION:
It is recommended that upon close of the public hearing the City Council take the following actions:
1. Find that the recommended actions are not a "project" subject to the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21065 and within the meaning of State CEQA Guidelines Section 15378(b)(4) and (5):
2. Approve the submittal of a grant application for CDBG Program Year 2026 entitlement funds in the amount of $2,164,886, and the reprogramming of existing unspent CDBG funds in the amount of $912,114 for a total of $3,077,000 to be allocated towards CDBG program activities;
3. Approve the submittal of a grant application for hlOME Program Year 2026 entitlement funds in the amount of $662,156 to be allocated towards HOME program activities;
4. Approve the submittal of a grant application for ESG Program Year 2026 entitlement funds in the amount of $188,739, $290,365 in unspent prior year ESG funds, and the reprogramming of existing unspent Rapid Unsheltered Survivor Housing (RUSH) disaster grant funding in the amount of $470,136 for a total of $949,240 to be allocated towards ESG program activities; and MEETING OF06/15/2026AGENDA ITEM NO.9
2026 Annual Action Plan
June 15, 2026
5. Authorize the City Manager to execute, and the City Clerk to attest, the Annual Action Plan (2026), the grant applications, administrative amendments (such as time extensions, policy revisions, and budget modification corrections), certifications, and any and all other documents deemed necessary by hlUD to obtain the allocation of the aforementioned federal entitlement funds.
BACKGROUND:
Annual Action Plan (2026):
The Annual Action Plan sets forth the projected use of funds for the coming program year and addresses the available resources for program implementation, activities to be undertaken, program guidelines, and monitoring. The Action Plan identifies efforts to be made toward accomplishing the goals and objectives included in the City's Five-Year Consolidated Plan. The draft 2026 Annual Action Plan (Attachment B) was available for public review and comment from April 16 through May 15, 2026. Any comments received will be included in the final version prior to submission HDD. Recommended funding allocations under the CDBG, HOME, and ESQ programs are summarized in Attachment A. Table one below shows the funding availability and goals for year two of the Five-Year Plan:
Table 1: Anticipated Funding Availability
Funding Source
1CDBG Entitlement Annual Allocation
Amount
$2,164,886
2CDBG Unspent Carryover Funds$912,114
3hlOME Entitlement Annual Entitlement$662,156
4ESQ Entitlement Annual Allocation$188,739
5ESQ Unspent Carryover Funds$290,365
6ESG-RUSH Unspent Carryover Funds$470,136
Total$4,688,396
Goals and Funding:
Table two summarizes the proposed goals and funding to address community needs during Year 2 of the Five-Year Consolidated Plan (2025-2029). 2026 Annual Action Plan
June 15,2026
Activity Type
Housing
Table 2: PY26 Goals & Funding
Goals
Tenant-Based Rental
Assistance:
10 Housing Units
Funding*
HOME: $300,000
Public Service450 Persons AssistedCDBG: $132,000
Homelessness
Homeless Person
Overnight Shelter:
11 Persons Assisted
Street Outreach:
35 Persons Assisted
Rapid Rehousing:
14 Persons Assisted
ESQ: $479,104
ESG-Rush: $470,136
Infrastructure
Improvements25,000 Persons AssistedCDBG: $1,875,000
Public Facility
Improvements23,500 Persons AssistedCDBG: $170,000
*AII total available funds to be allocated in 2026 for proposed activities are identified in Attachment A.
ADVISORY COMMISSION RECOMMENDATIONS
On April 8, 2026, the Human Services Commission recommended that the City Council approve the public services funding allocations for CDBG listed in Attachment A.
On May 12, 2026, the Northwest Commission recommended that the City Council approve the CDBG infrastructure and public facility improvement projects listed in Attachment A.
COUNCIL POLICY CONSIDERATION:
This proposed action supports the City Council's strategic goals in the areas of improving, maintaining, and enhancing public facilities and infrastructure; improving mobility and accessibility throughout the City of Pasadena; and supporting and promoting the quality of life and the local economy.
2026 Annual Action Plan
June 15,2026
ENVIRONMENTAL ANALYSIS:
CEQA excludes, from environmental review, actions that are not "projects" as defined by Public Resources Code Section 21065 and within the meaning of State CEQA Guidelines Section 15378(b). Sections 21065 and 15378(b) define a project as an action which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Section 15378(b)(4) and (5) excludes from the definition of "project" government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT:
The recommended actions will have no direct fiscal impact. City Council approval of the Plan and grant application submissions, and subsequent approval thereof by HUD, will result in a total allocation to the City of $4,688,396 in CDBG, ESG and HOME funds to support housing, community development, and homeless prevention activities. These federal funds wilt be included as revenue in the proposed FY 2027 operating budget of the Housing Department. Approval also enables the City to be eligible for other federally funded programs that are consistent with an adopted Five-Year Consolidated Plan and Annual Action Plan.
Respectfully submitted,
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James Wong (May 27, 2026 16:08:16 PDT)
Prepared by:
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James Wong
Housing Director
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Randy Mabson
Program Coordinator
Approved by:
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MATTHEWS. HAWKESWORTH
Interim City Manager
Attachments: (2)
Attachment A-CDBG, ESG, and HOME 2026 Funding Recommendations Attachment B - 2026 Annual Action Plan