2026 Community Development
Block Grant (CDBG)
Final Action Plan
February 17, 2026
City Council Meeting
Maximum Allocation of Funds
$ 168,858 Public Improv. (low-income
benefit)
$ 38,967 Public Services (low-income
benefit)
$ 18,185 Administration
$ 226,210 Total
Draft Action Plan – CC
recommendation
Public Improvement Project:
24th Street Crosswalk
Premature project – need corridor plan
Alternative Project
32nd Street curb ramps
Options
1. Take no action
2. Approve CDBG allocations for the
City’s Annual Action Plan to the
County of San Luis Obispo with a
preferred public improvement project
3. Amend or modify Option 2
4. Provide alternative direction to staff.
Recommendation – Option 2
Approve Resolution 26-XXX, approving CDBG allocations for the City’s Annual Action Plan to the County of San Luis Obispo as follows: $120,108 for public improvement project (Spring and 32nd St. curb ramps); $48,750 for CAPSLO Home Repair Program; $19,483 to CAPSLO for Adult Day Care services; $19,484 to ECHO for Homeless Services; and $18,185 for City’s program administration, for a total of $226,010.
Questions?
What is CDBG?
Federal Funds allocated through the
County for the following purpose:
◦ Benefit low income persons
◦ Eliminate Blight
City Funding Priorities
Council to prioritize fund allocations:
1. Public Improvement Projects (low-income benefit)
2. Public Service Program Grants (low-income benefit)
3. Grant Administration (City & County)
Projected Allocation
$259,782 - Preliminary allocation:
$207,825 (80%)- projects / programs
Maximum 15% may be allocated to public service programs $51,957 (20%) - administration
Administration Funding
$33,772 (13% of total) San Luis Obispo County (Cooperation Agreement 7-7-20) $18,185 (7% of total ) City administration purposes.
Public Service Applications
City Received two applications totaling
$60,467
The maximum available is $38,967
Need to reduce by $21,500
Options for reducing to $38,967
Staff is looking for direction on which way to distribute the $38,967. Here are some alternatives:
• Distributing the maximum grant amount of $38,967 evenly amongst the two public service applicants, meaning each grant amount would be allocated $18,185 each.
• Approve one to two public service grant requests in a manner that would result in a total grant amount of $38,967.
• Do not fund any of the public service requests and put all funds (less administration) toward the 24th Street crosswalk project.
Application Summary
Application Summary
Notice of Funding Availability