City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00935 5/13/2025 Item 19.
2026 One-Year Action Plan Federal Programs Allocation Process Workshop Number Two File ID: 2025-00935
Location: Citywide
Recommendation: Review, comment, and provide direction regarding the 2026 Community Development Block Grant Infrastructure and Public Facility projects.
Contact: Christine Weichert, Director of Development, (916) 440-1353, Sacramento Housing and Redevelopment Agency
Presenter: Stephanie Green, Program Manager, (916) 440-1302, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-2026 Action Plan Workshop 2 - City Staff Report
3-Attachment 1 - Background
4-Attachment 2 - Recommended List of Projects
5-Attachment 3 - Map: CDBG Low/Moderate Income Areas
6-Attachment 4 - Presentation
Description/Analysis
Issue Detail: The Sacramento Housing and Redevelopment Agency (SHRA) administers four formula program grants from the Department of Housing and Urban Development (HUD) on behalf of The City, including Community Development Block Grant (CDBG), HOME, Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). HUD requires the submission of a Consolidated Plan every five years and a One-Year Action Plan annually. Today’s workshop will be the second workshop for the 2026 Action Plan.
The One-Year Action Plan Allocation Process provides a specific opportunity for input from the Mayor and City Council, the City Manager, the community, and City Departments on the allocation of Community Development Block Grant (CDBG) funds for community development and infrastructure projects. Additionally, the process aligns with the development of the City’s Capital Improvement Program (CIP), resulting in improved alignment of funding resources to improve housing, economic,
File ID: 2025-00935 5/13/2025 Item 19.
and community development opportunities for low and moderate-income residents of Sacramento.
This is the second workshop specific to the Infrastructure and Public Facilities projects to be funded with CDBG and approved as part of the 2026 One-Year Action Plan in October 2025. The preliminary list of projects (Attachment 2) was evaluated by City and SHRA staff as part of the City’s CIP planning process.
Policy Considerations: The One-Year Action Plan Allocation workshop and the preliminary infrastructure and public facility project list for the 2026 Action Plan are consistent with the adopted Consolidated Plan, including the Citizen Participation Plan. This workshop provides transparency to the allocation process. City and SHRA staff developed the recommended list of Infrastructure and Public Facility projects to align with the City Budget and Capital Improvement Program.
Economic Impacts: None.
Environmental Considerations: This informational workshop is not considered a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15378, and there are no actions requiring review under the National Environmental Policy Act (NEPA). Environmental review pursuant to CEQA and NEPA will be completed prior to any project commitment.
Sustainability: The Consolidated Plan serves as a five-year planning document to direct investments that seek to improve health, nutrition, and social and economic sustainability. The action plan lays out specific activities to achieve the goals of the consolidated plan in the upcoming grant year.
Commission/Committee Action The Sacramento Housing and Redevelopment Commission (SHRC) held a workshop on May 7, 2025.
Rationale for Recommendation: As a condition of receiving various federal grants provided through HUD, the regulations require the submittal of a five-year Consolidated Plan and an annual One-Year Action Plan describing proposed activities and expenditures that meet the goals and priorities of the Consolidated Plan. In general, the purpose of the activities funded is to revitalize lower-income neighborhoods and to assist disadvantaged populations by providing adequate public facilities and services and generating affordable housing opportunities. SHRA and City staff met to identify, evaluate, and prioritize projects to be funded with the 2026 allocation of CDBG funds. Projects are also solicited from City Council members. In order to develop the recommended list of projects, projects submitted for consideration are assessed based on CDBG eligibility, alignment with Consolidated Plan goals, community need, City staff recommendations, ability to spend funds within 12-18 months, and funding availability.
The result is a preliminary list of eligible projects.
The recommended list of projects could change in the event CDBG funding is less than estimated or
File ID: 2025-00935 5/13/2025 Item 19.
based on further analysis and input. Newly funded capital improvement projects are scheduled to be implemented and completed within 18 months to comply with federal regulations governing the timely expenditure of funds in the current year.
Financial Considerations: Below are the estimated allocations by category for the 2026 CDBG entitlement funding, and are based upon previous years’ allocations, as well as reprogrammed funds and program income.
The amount of funding required for the HUD Loan Repayment for Mirasol Village has increased from previous years due to a rising variable interest rate.
All proposed allocations, including program income and reprogrammed funds, are estimates and may change prior to final Action Plan adoption.
Revenue Source 2026 Estimated
Allocation
Total Estimated Allocation $4,500,000
Estimated Reprogrammed Funds $165,000
Funding Categories
- Infrastructure and Public Facility Improvements $1,165,000 - Housing Development, Preservation, and Homeownership: minor repair program
$525,000
- Public Services (15% maximum) $675,000
- Grant Planning and Administration (20% maximum) $900,000 - HUD Loan Repayment $1,300,000
- Capital Reserve $100,000
Total $4,665,000
Local Business Enterprise (LBE): M/WBE & Section 3 Considerations:
The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply.
REPORT TO CITY COUNCIL AND
HOUSING AUTHORITY
City of Sacramento
915 I Street, Sacramento, CA 95814
www.CityofSacramento.org
Meeting Type: Discussion
Meeting Date: May 13, 2025
Honorable Mayor and Members of the City Council
Title: 2026 One-Year Action Plan Federal Programs Allocation Process Workshop Number Two
Location/Council District: Citywide
Recommendation: Review, comment, and provide direction regarding the 2026 Community Development Block Grant Infrastructure and Public Facility projects.
Contact: Christine Weichert, Director of Development, (916) 440-1353, Sacramento Housing and Redevelopment Agency
Presenter: Stephanie Green, Program Manager, (916) 440-1302, [email protected], Sacramento Housing and Redevelopment Agency
Department: Sacramento Housing and Redevelopment Agency
Description/Analysis
Issue Detail: The Sacramento Housing and Redevelopment Agency (SHRA) administers four formula program grants from the Department of Housing and Urban Development (HUD) on behalf of The City, including Community Development Block Grant (CDBG), HOME, Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). HUD requires the submission of a Consolidated Plan every five years and a One-Year Action Plan annually. Today’s workshop will be the second workshop for the 2026 Action Plan.
The One-Year Action Plan Allocation Process provides a specific opportunity for input from the Mayor and City Council, the City Manager, the community, and City Departments on the allocation of Community Development Block Grant (CDBG) funds for community development and infrastructure projects. Additionally, the process aligns with the development of the City’s Capital Improvement Program (CIP), resulting in improved alignment of funding resources to improve housing, economic, and community development opportunities for low and moderate-income residents of Sacramento. This is the second workshop specific to the Infrastructure and Public Facilities projects to be funded with CDBG and approved as part of the 2026 One-Year Action Plan in October
2026 Action Plan Workshop Number Two August 12, 2025
2 2025. The preliminary list of projects (Attachment 2) was evaluated by City and SHRA staff as part of the City’s CIP planning process.
Policy Considerations: The One-Year Action Plan Allocation workshop and the preliminary infrastructure and public facility project list for the 2026 Action Plan are consistent with the adopted Consolidated Plan, including the Citizen Participation Plan.
This workshop provides transparency to the allocation process. City and SHRA staff developed the recommended list of Infrastructure and Public Facility projects to align with the City Budget and Capital Improvement Program.
Economic Impacts: Not applicable.
Environmental Considerations: This informational workshop is not considered a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15378, and there are no actions requiring review under the National Environmental Policy Act (NEPA). Environmental review pursuant to CEQA and NEPA will be completed prior to any project commitment.
Sustainability: The Consolidated Plan serves as a five-year planning document to direct investments that seek to improve health, nutrition, and social and economic sustainability. The action plan lays out specific activities to achieve the goals of the consolidated plan in the upcoming grant year.
Commission Action: The Sacramento Housing and Redevelopment Commission (SHRC) held a workshop on at its May 21, 2025, meeting.
Rationale for Recommendation: As a condition of receiving various federal grants provided through HUD, the regulations require the submittal of a five-year Consolidated Plan and an annual One-Year Action Plan describing proposed activities and expenditures that meet the goals and priorities of the Consolidated Plan. In general, the purpose of the activities funded is to revitalize lower-income neighborhoods and to assist disadvantaged populations by providing adequate public facilities and services and generating affordable housing opportunities. SHRA and City staff met to identify, evaluate, and prioritize projects to be funded with the 2026 allocation of CDBG funds.
Projects are also solicited from City Council members. In order to develop the recommended list of projects, projects submitted for consideration are assessed based on CDBG eligibility, alignment with Consolidated Plan goals, community need, City staff recommendations, ability to spend funds within 12-18 months, and funding availability.
The result is a preliminary list of eligible projects.
The recommended list of projects could change in the event CDBG funding is less than estimated or based on further analysis and input. Newly funded capital improvement projects are scheduled to be implemented and completed within 18 months to comply with federal regulations governing the timely expenditure of funds in the current year.
Financial Considerations:
Below are the estimated allocations by category for the 2026 CDBG entitlement funding, and are based upon previous years’ allocations , as well as reprogrammed funds and program income.
2026 Action Plan Workshop Number Two August 12, 2025
3 The amount of funding required for the HUD Loan Repayment for Mirasol Village has increased from previous years due to a rising variable interest rate.
All proposed allocations, including program income and reprogrammed funds, are estimates and may change prior to final Action Plan adoption.
Revenue Source 2026
Estimated
Allocation
Total Estimated Allocation $4,500,000
Estimated Reprogrammed Funds $165,000
Funding Categories
- Infrastructure and Public Facility Improvements $1,165,000 - Housing Development, Preservation, and Homeownership:
minor repair program
$525,000
- Public Services (15% maximum) $675,000
- Grant Planning and Administration (20% maximum) $900,000 - HUD Loan Repayment $1,300,000
- Capital Reserve $100,000
Total $4,665,000
LBE - M/WBE and Section 3 requirements:
M/WBE & Section 3 Considerations:
The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply.
Attachments
1- Description/Analysis
2- Attachment 1 - Background
3- Attachment 2 - Recommended List of Projects
4- Attachment 3 - Map: CDBG Low/Moderate Income Areas
5- Attachment 4 - Presentation
Attachment 1
Background
Since 1982, SHRA has managed and administered federal housing, public service, and community development funds on behalf of the City and County of Sacramento (City and County) and has served as the federal housing and community development staffing entity pursuant to a joint powers agreement between the City and County and its Housing Authorities. The Department of Housing and Urban Development (HUD) requires the submission of a Consolidated Plan every five years and a One-Year Action Plan annually.
Action Plan
The One-Year Action Plan (Plan) details programs, activities, and budgets for the year beginning January 1 through December 31. The Plan describes the resources expected to be available in the coming program year from federal sources. It includes a description of the activities that will be undertaken to meet the specific objectives in the Consolidated Plan. It also provides the City with a basis for assessing its progress in meeting the goals of the Consolidated Plan through the Consolidated Annual Performance and Evaluation Reports (CAPER).
The Action Plan’s key components are outlined below:
CDBG Eligible Activities
The CDBG program requires that each activity must meet one of three national objectives: 1) Benefit low and moderate-income persons using one of four subcategories: a) Low and Moderate Income (LMI), Area Benefit in a primarily residential census tract; b) LMI Clientele (homeless, seniors, etc.); c) Housing for LMI residents; d) Jobs for LMI residents; 2) Prevention or elimination of slums or blighted areas; and 3) Urgent Need. Additionally, the activity must also be eligible and generally include the following: Public Facility/Infrastructure Improvements; Public Services; Acquisition; Clearance and Remediation Activities; Homeownership Assistance; and Planning and Environmental Studies.
Infrastructure and Public Facility Improvements
There is a continuing need for infrastructure and public facility improvements to serve low- and moderate-income residents who reside within older neighborhoods that either have inadequate facilities or where existing facilities suffer from heavy use or deferred maintenance, leading to disrepair. Capital improvement funding identified in the Action Plan strives for maximum leveraging opportunities to provide the greatest impact to residents.
Supporting large infrastructure and public facility improvement projects benefiting low and moderate-income areas remains a key objective of the City’s CDBG Program.
The infrastructure and public facility improvement project recommendations are selected through consultation with City and County staff and are based on the ability for Attachment 1
them to be completed in a timely manner, CDBG program eligibility, and current priorities. The Action Plan recognizes the limited federal, state, and local funding available for Projects, and strategically focuses funding on fewer, but larger projects in low- and moderate-income neighborhoods. The goal is to create a concentration of activity that generates strategic and visible impacts that promote positive changes within the community.
Infrastructure and Public Facility – Project Selection Criteria:
Benefits to Low-Income Residents and Neighborhoods – eligible projects must be located in or directly benefit Sacramento’s low- and moderate-income residents (map of eligible areas attached as Attachment 3). At least 51% of those residents in the project service area need to be at low and moderate income. Project Readiness – projects must be able to expend the CDBG funds within the calendar year or shortly thereafter. This is a consideration tracked by the federal government.
City Priority – to rate highly in this category, the project must meet a City priority category, such as being listed in an approved project planning guide or meeting a City Council or City Manager priority.
Sustainability, Safety, and ADA Considerations – as Citywide goals, these issues are weighed in terms of increasing safety, reducing City liability, reducing ongoing operating costs, and improving access for disabled persons. Leverage/Match for Grant Applications – using CDBG as a match for grants increases the impact of these scarce funds. It is also a consideration that the federal government monitors.
Availability of Other Funding Sources – while leverage is an important criterion, other City funds may not be available to pay for needed community priorities. CDBG can provide a valuable resource when no other funds are available in low-income communities.
Geographic Distribution – this criterion weighs how well eligible areas of the city are being served by CDBG. Examining the distribution by Council districts ensures funds are disbursed throughout eligible areas of Sacramento.
Attachment 2
Preliminary Infrastructure and Public Facility Project List for the 2026 CDBG Action Plan
Recommended Projects
Project District Location Amount
Requested Use of Funds
Robla Park Restroom 2 625 Bell Avenue $700,000 Construction Earl Warren Park Restroom 6 7420 Vandenberg
Dr
$450,000 Construction
Environmental Review $15,000
Total $1,165,000
Other Project Requests
Project District Location Amount
Requested
Use of Funds
Austin Street Safe Routes to
School Feasibility Study
1 Austin Street near
Norwood Junior
High
$100,000 Study
Babcock Park Improvements 2 2340 Cormorant
Way
$200,000 Design
Dixieanne Alley Phase 2 2 Area between
Calvador St, Arden
Way, Forrest St,
and Boxwood St.
$500,000 Design
Northgate Blvd. Complete
Streets
3 Northgate Blvd
between I-80 and
Highway 160
$500,000 Design
Dos Rios Site Remediation 4 1451 Sproule
Avenue
$175,000 Environmental
Remediation
Envision Broadway Oak Park 5 Broadway between
Franklin Blvd and
Martin Luther King
Jr Blvd
$587,000 Design
Mangan Park Community
Center
5 2140 34th Ave $3,000,000 Design,
Construction
Northgate Wall 3 Northgate
Boulevard from
West El Camino
Avenue to
Winterhaven
Avenue
$500,000 Design
Fruitridge Complete Streets 6 Fruitridge between
65th Expressway
and Power Inn Rd.
TBD Construction
Nunn Park Improvements 6 6920 Power Inn Rd $250,000 Design, Construction
TOTAL
$5,812,000
2026 One-Year Action Plan
Allocation Workshop #2 – City Council
2026 One-Year Action Plan
Allocation Workshop #2 – City Council
May 13, 2025
2026 Estimated CDBG Allocations - City
CDBG Activity
Infrastructure and Public Facility Improvements $1,165,000 Housing Development, Preservation & Homeownership $525,000 Public Services (max 15% of entitlement) $675,000
Grant Planning and Administration (max 20% of entitlement) $900,000 HUD Loan Repayments $1,300,000
Capital Reserve $100,000
Total $4,665,000
2026 Recommended Projects - City
Project Location District Amount
Requested Use of Funds
Robla Park Restroom 625 Bell Avenue 2 $700,000 Construction Earl Warren Park Restroom 7420
Vandenberg Dr 6 $450,000 Construction
Environmental Review Citywide Citywide $15,000 Environmental Review
TOTAL $1,165,000
2026 Other Project Requests - City
Project Location District Amount
Requested Use of Funds
Austin Street Safe Routes to School
Feasibility Study
Austin Street near
Norwood Junior High 1 $100,000 Construction
Babcock Park Improvements 2340 Cormorant Way 2 $200,000 Design Dixieanne Alley Phase 2
Area between
Calvados St, Arden
Way, Forrest St, and
Boxwood St.
2 $500,000 Design
Northgate Blvd. Complete Streets
Northgate Blvd
between I-80 and
Highway 160
3 $500,000 Design
Northgate Wall
Northgate Boulevard
from West El Camino
Avenue to
Winterhaven Avenue
3 $500,000 Design
2026 Other Project Requests - City
Project Location District Amount
Requested Use of Funds
Dos Rios Site Remediation 1451 Sproule Avenue 4 $175,000 Environmental Remediation
Envision Broadway Oak Park
Broadway between
Franklin Blvd and
Martin Luther King Jr
Blvd
5 $587,000 Design
Mangan Park Community Center 2140 34th Ave 5 $3,000,000 Design and Construction
Fruitridge Complete Streets
Fruitridge between
65th Expressway and
Power Inn Rd.
6 TBD Construction
Nunn Park Improvements 6920 Power Inn Rd 6 $250,000 Design and Construction
Total $5,812,000
Action Plan Allocation Process
Month Action Departments
May SHRC AP Workshop #2 at SHRC SHRA
June Action Plan Workshop #2 at CC & BOS City/County/SHRA May-August Action Plan Meetings with City and County
Staff
City/County/SHRA
August Action Plan Budget Complete SHRA
October Action Plan at SHRC/CC/BOS SHRA/City County
November Action Plan Submitted to HUD SHRA