Sacramento City Council
October 7, 2025

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01607 10/7/2025
Approval of the 2026 One-Year Action Plan and Amendments to Prior Years’ Action Plans for the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) Funded Projects and Programs; Amendment of Prior Years’ Action Plans; Amendment to the Sacramento Housing and Redevelopment Agency (SHRA) Budget; Execute Documents for the Administration of Federal Programs; Authorize Establishing City of Sacramento Revenue and Expenditure Budgets for CDBG; and Authorize Amendments to the SHRA Home Repair Program (HRP) Guidelines
File ID: 2025-01607
Location: Citywide
Recommendation: Adopt a 1) City Council Resolution a) approving amendments to prior years’ Action Plans and the 2026 One-Year Action Plan to allocate anticipated CDBG, HOME, ESG, and HOPWA funds as described in Exhibit A; b) approving amendments to prior years’ Action Plans are effective immediately; c) authorizing SHRA to amend its budget to allocate CDBG, HOME, ESG, and HOPWA funding for programs and projects in accordance with the amendments of the prior years’ Action Plans and the 2026 One-Year Action Plan, and to amend the budget if the United States Department of Housing and Urban Development (HUD) grant awards are less or greater than anticipated to the extent necessary to implement and ensure the timely completion of the activities; d) authorizing and delegating authority to SHRA to act as agent on behalf of the City of Sacramento to execute and amend grant agreements with HUD and execute agreements and contracts with the appropriate entities to carry out programs and projects in accordance with the Action Plans and in compliance with applicable federal laws and regulations as approved to form by SHRA’s Counsel; e) authorizing SHRA to make any budget adjustments, and execute and amend related documents as necessary to administer the programs as described in the 2026 Action Plan in compliance with applicable federal laws and regulations as outlined in Exhibit A; f) authorizing SHRA to submit the 2026 One-Year Action Plan and amendments to prior years’ Action Plans to HUD; and g) authorizing SHRA to amend the SHRA Home Repair Program (HRP) Guidelines as outlined in Exhibit B; and a 2) City Council Resolution a) authorizing the Interim City Manager or designee to increase the following revenue and expenditures budgets: $700,000 in Robla Community Park- Phase 4 Project (L19155600) from the CDBG Fund (Fund 2700); and $450,000 in Earl Warren Park Restroom Project (L19913200) from the CDBG Fund (Fund 2700); and b) authorizing the Interim City Manager or designee to transfer the following revenue and expenditure budget in the amount of $150,000, CDBG Fund (Fund 2700), from Argonaut Park Improvements (L19913100) to Mangan Park Improvements

File ID: 2025-01607 10/7/2025
(L19913700).

Contact: Stephanie Green, Federal Programs Manager, (916) 440-1302, [email protected]; Christine Weichert, Director of Development Finance, (916) 440-1353, [email protected]; 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-Attachment 2 - Background
3-City Council Resolution Approving 2026 Action Plan
4-Exhibit A - 2026 Action Plan Activities
5-Exhibit B - HRP Program Definitions
6-City Council Resolution Establishing Revenue and Expenditure Budgets 7-Presentation
Description/Analysis
Issue Detail: 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. HUD requires the submission of a Consolidated Plan every five years and a One-Year Action Plan (Action Plan) annually for the CDBG, HOME, ESG, and HOPWA grant programs.

This report recommends the approval of the 2026 Action Plan and amendments to prior years’ Action Plans, and requests authorization to submit the plan to HUD.

The Action Plan identifies specific activities, projects, and other actions for federally funded programs for the 2026 calendar year that align with the priorities identified in the Consolidated Plan. The Consolidated Plan is a five-year planning document that identifies the area’s housing, public service, and community development needs and describes a long-term strategy to meet those needs. Each year, the estimated entitlement amount is based on actuals received from the previous year. In 2025, HOME award amounts decreased, while CDBG, ESG, and HOPWA awards increased from the previous year. The Action Plan budget was developed on the assumption that the 2026 federal budget will be constant at 2025 funding levels.

Federal Funding
Entitlement Estimate 2025 Actual 2025 Estimate 2026
CDBG $4,600,000 $4,638,977 $4,600,000
ESG $400,000 $401,117 $400,000
HOME $2,300,000 $2,197,828 $2,200,000
HOPWA $2,050,000 $2,120,108 $2,100,000

File ID: 2025-01607 10/7/2025
Federal Funding
Entitlement Estimate 2025 Actual 2025 Estimate 2026
CDBG $4,600,000 $4,638,977 $4,600,000
ESG $400,000 $401,117 $400,000
HOME $2,300,000 $2,197,828 $2,200,000
HOPWA $2,050,000 $2,120,108 $2,100,000
SHRA held public meetings beginning in March to receive input on the Action Plan from the public, the Sacramento Housing and Redevelopment Commission (Commission), and the City Council. At the public meetings, SHRA staff reviewed the 2026 Action Plan, including CDBG objectives, eligibility requirements, 2026 entitlement estimates for CDBG, HOME, ESG, and HOPWA, estimated allocations by funding activity (Infrastructure, Housing, Public Service, and Planning and Administration), examples of previously funded projects, and the Action Plan preparation and adoption schedule.

Throughout the year, SHRA staff continued to work with City Staff and City Councilmembers to identify and review projects for funding in the Action Plan, specifically for the Infrastructure and Public Facilities CDBG funding. A draft list of projects was presented to the City Council on May 13, 2025, for review and comment.

The draft Action Plan was available for public review and comment for 30 days from September 1, 2025, through October 1, 2025. As required by HUD, the Commission held a noticed public meeting soliciting comments on the Action Plan on October 1, 2025.

Home Repair Program Guidelines
One of the programs recommended for funding in the 2026 Action Plan is SHRA’sHome Repair Program (HRP). The HRP receives annual allocations of CDBG funding to provide emergency home repair assistance to very low-income owner-occupants of single-family homes or mobile homes.

The program addresses urgent health and safety hazards, including immediate safety concerns, hazardous conditions, or violations of fire or health codes. To qualify, the owner must be income- qualified, and the property must be owner-occupied and in need of a repair that meets these criteria.

Currently, assistance is limited to a maximum of $5,000 per property and per client for eligible repairs. However, rising material and labor costs have made it increasingly difficult to complete necessary repairs within this cap. In addition, SHRA has experienced growing demand for accessibility-related modifications.

To address these challenges and to improve program accessibility, SHRA is requesting authorization to amend the HRP program guidelines as follows:
· Increase the maximum grant amount to $10,000 per property; · Expand eligible accessibility improvements, with documentation from a medical professional; · Modify the application timeline to allow greater flexibility. Currently, applications are accepted only during two periods: June 1 - August 31 and December 1 - February 28. SHRA is requesting the authority to extend or expand these application windows, up to and including year-round availability, as funding permits.

File ID: 2025-01607 10/7/2025
These changes will enhance the program’s responsiveness to community needs and ensure continued support for vulnerable homeowners. The updated HRP Guidelines are included as Exhibit B.

Policy Considerations: The proposed appropriation of funds for new and existing activities in the 2026 Action Plan is consistent with the goals and objectives outlined in the proposed 2025-2029 Consolidated Plan.

Economic Impacts: None.

Environmental Considerations: California Environmental Quality Act (CEQA): Pursuant to Cal.

Code Regs., tit. 14, section 15378 subds. (b)(2) and (5), the recommended actions are not considered a “project,” as they constitute administrative activities and policymaking of government entities that will not result in direct or indirect physical changes in the environment. Alternatively, if a determination is made that the plans and policies do constitute a project subject to CEQA, the recommended actions are exempt pursuant to Cal. Code Regs., tit. 14, section 15061 (b)(3), as they do not have the potential to cause a significant effect on the environment.

National Environmental Policy Act (NEPA): Pursuant to 24 C.F.R. section 58.34(a)(1) and (3) (2025), the recommended actions are considered the development of plans and administrative and management activities exempt from NEPA review. With respect to the laws and authorities specified in section 58.6, the recommended actions do not involve activity that would require compliance with:
· 24 C.F.R. section 51.300-305;
· 16 U.S.C. section 3501 (Coastal Barrier Resources Act); or · 42 U.S.C. sections 4001-4128, 5154(a) (Flood Disaster Protection Act and National Flood Insurance Reform Act).

Activities identified in the Action Plan as public services, supportive services, tenant-based rental assistance, facility operations, and program administration have been reviewed pursuant to CEQA and NEPA and no further review is required for these activities. Environmental review under CEQA and NEPA, as applicable, for all new projects with the potential to significantly affect the environment will be completed prior to taking any choice-limiting action.

Sustainability: The proposed appropriation of funds for existing and new activities is consistent with the City’s Sustainability Master Plan’s Focus Area - Public Health and Nutrition by improving residents’ health. The Consolidated Plan serves as a five-year planning document to direct investments that seek to improve health, nutrition, and social and economic sustainability.

Commission/Committee Action: At its meeting of October 1, 2025, it is anticipated that the Sacramento Housing and Redevelopment Commission will recommend approval of the attached

File ID: 2025-01607 10/7/2025
resolutions. In the event it fails to do so, Staff will advise the Council at the meeting.

Rationale for Recommendation: As a condition of receiving various federal grants provided through HUD, the regulations require the submittal of the Consolidated Plan once every five years and the annual submittal of the One-Year Action Plan describing proposed activities and expenditures that meet the goals and priorities of the City of Sacramento. 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.

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: The proposed allocations in the 2026 One-Year Action Plan are based on estimated revenues. Exhibit A includes details regarding the proposed program and project allocations.

Local Business Enterprise (LBE): Local Business Enterprise requirements do not apply to this report. Minority and Women’sBusiness Enterprise requirements and Section 3 considerations will be applied to all activities to the extent required by the federal funding and in accordance with SHRA’s Section 3 Economic Opportunity Plan.

1 Attachment 2

Background

Since 1982, the Sacramento Housing and Redevelopment Agency (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 an agree ment between the City and County and its housing authorities. SHRA administers four formula grants on behalf of the City: Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Solutions Grant (ESG). The United States Department of Housing and Urban Development (HUD) requires the submission of two documents as part of the formula grant programs. These documents include the Five-Year Consolidated Plan and the annual One-Year Action Plan, which are described below.

Consolidated Plan
A Consolidated Plan is required of any city, county, or state that receives federal block grant dollars for housing and community dev elopment funding from HUD. HUD consolidated the planning and application process of formula grant programs in 1995, with the purpose of coordinating program requirements and simplifying the process of requesting and obtaining federal funds. The consolidated planning process is intended to achieve the following:

 Promote citizen participation in the development of local priority needs benefiting low- and moderate-income persons.
 Develop a series of One -Year Action Plans that will be the basis for the assessment of performance.
 Consult with public and private agencies to identify needs and appropriate actions required to address their needs.

The Consolidated Plan identifies the Cit y’s housing, public service, and community development needs and describes a long -term strategy to meet those needs. The Consolidated Plan provides the vision, goals, and strategies for the allocation of these federal formula grant funds.

The Consolidated Plan’s go als and priorities for the Cit y are developed through an extensive community engagement process and consultation with public agencies in the City. To meet its community's needs, th e Consolidated Plan is guided by three overarching goals that are applied according to these needs. The three overarching goals are:

1) To provide decent housing by preserving the affordable housing stock, increasing the availability of affordable housing, reducing discriminatory barriers, increasing the supply of supportive housing for those with special needs, and transitioning homeless persons and families into housing.
2) To provide a suitable living environment through safer, more livable neighborhoods, greater integration of low - and moderate -income residents throughout Sacramento, increased housing opportunities, and reinvestment in deteriorating neighborhoods.

2 3) To expand economic opportunities through more jobs paying self-sufficient wages, greater homeownership opportunities, development activities that promote long - term community viability, and the empowerment of low - and moderate -income persons to achieve self-sufficiency.

The City Council adopted the 2025-2029 Consolidated Plan on October 8, 2024.

The One -Year Action Plan, described below, details the s pecific activities the City of Sacramento and SHRA will undertake to achieve the objectives.

Action Plan
The One -Year Action Plan details the 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, nonfederal, and private sources.

It includes a description of the activities that will be undertaken to meet the specific objectives in the Consolidated Plan. These activities are designed to serve extremely low, low-, and moderate-income residents by funding programs and projects in the following categories: 1) Infrastructure and Public Improvements, 2) Affordable Housing Development, and 3) Public Services. The Action Plan 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 HUD Entitlement Grants covered by the Action Plan (CDBG, HOME, HOPWA, ESG) are described below:

CDBG Program
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; housing development, preservation and homeownership; and planning and environmental studies.

HOME Program
The HOME Program empowers grantees to design and implement affordable housing strategies to respond to locally determined needs. Unlike CDBG, HOME funds can be used for construction of new housing. Additionally, HOME funds are also used for the rehabilitation of existing housing.

ESG program
ESG provides funds for various activities to address homelessness as authorized under the federal Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009. ESG funds may be used for five pro gram components: street outreach, emergency shelter, homelessness prevention, rapid re -housing assistance, and administrative activities. Rapid re -housing services include housing search and placement, housing stability case management, direct short-term rental assistance, rental application fees, security/utility deposits, and first/last months’ rent.

3 HOPWA
HOPWA provides housing assistance and related supportive services to low -income persons living with HIV/AIDS and their families. These include, but are not limited to, the acquisition, rehabilitation, or new construction of housing units, costs for facility operations, rental assistance, and short -term payments to prevent homelessness.

Supportive services can include case management , substance abuse treatment, mental health treatment, nutritional services, job training and placement assistance, and assistance with daily living.

As a HOPWA recipient, SHRA is responsible for serving eligible individuals within the Eligible Metropolitan Statistical Area (EMSA), a metropolitan area with more than 500,000 people and more than 2,000 persons living with HIV or AIDS. The eligible area f or HOPWA funds allocated to the City includes Sacramento, Yolo, Placer, and El Dorado counties. SHRA works with sub-recipients to provide services to HOPWA-eligible clients.

In 202 6, the anticipated service providers include: 1) CARES Community Health (Sacramento), 2) Sunburst (Sacramento), 3) Volunteers of America (Sacramento), 4) Colonia San Martin (Sacramento), 5) Communicare (Yolo County), and 6) Sierra Foothills AIDS Foundation (El Dorado and Placer Counties). These organizations provide services, case management, and emergency shelter to individuals and families.

The Action Plan’s key components are outlined below:

Infrastructure and Public Facility Improvements
There is a continuing need in the Ci ty 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 are suffering from heavy use or deferred maintenance, leading to disrepair. Capital improvement funding identified in the Action Plan strives for maximum leveraging opp ortunities in order to provide the greatest impact to residents. Supporting large infrastructure and public facility improvement projects benefiting low - and moderate-income areas is a key objective of the City’s CDBG Program. 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 vi sible impacts promoting positive community changes.

The infrastructure and public facility improvement project recommendations are selected through consultation with City staff and are based on the following criteria:

 Benefits to Low-Income Residents and Neighborhoods – Eligible projects must be located in or directly benefit Sacramento’s low-and moderate-income residents.

At least 51 percent 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 twelve to eighteen months, or shortly thereafter. Project readiness is a consideration tracked by the federal government.
 Priority – To rate highly in this catego ry, the project must meet a Ci ty priority category, such as being listed in an approved project planning guide or meeting a Council or City Manager priority.

4  Leverage/Match for Grant Applications – Using CDBG as a match for grants increases the impact of these scarce funds. The federal government monitors this consideration.
 Availability of Other Funding Sources – While leverage is an important criterion, other Ci ty funds may not be available to pay for needed community priorities.

CDBG can provide a valuable resource when no other funds are ava ilable 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 districts ensures funds are disbursed throughout eligible areas of the City.

Housing
The housing activities outlined in the Action Plan seek to support, increase, and improve the multi-family housing stock, fund minor and emergency repairs to existing single-family homes, and provide decent and affordable housing to low - and moderat e-income individuals.

To maximize fair housing choice, affordable housing rehabilitation and new construction are not limited to low- and moderate-income areas and can be developed where it is most appropriate. Guidelines for investing in affordable hou sing rehabilitation and new construction activities were approved by the City Council separately as part of SHRA’s Multi-family Lending and Mortgage Revenue Bond Policies.

Public Services
An overall priority for CDBG is to increase self -sufficiency and economic opportunity for low- and moderate-income residents and individuals with special needs so that they can achieve a reasonable standard of living. The priority in the Consolidated Plan for the utilization of public service funding is to support the provision of vital services to the City’s most vulnerable populations, such as providing meals to seniors.

SHRA is part of the Continuum of Care Advisory board and is committed to partnering with Sacramento Steps Forward (SSF), the lead agency for the Continuum of Care (CoC).

As such, SHRA continues to participate in discussions about the most effective ways to reach out to homeless individuals and assess their individual needs as part of ongoing coordination efforts. SHRA continues to work with City staff on the most strategic use of federal funding for homeless services, including CDBG and ESG to reflect and complement the broader commitments of the City to prevent and end homelessness.

Objectives to address homelessness include supporting the continua tion of the CoC homeless assistance system for individuals and families through the provision of emergency shelters, rapid re-housing/prevention services, permanent supportive housing services, and supportive services for low - and moderate-income individuals and those with special needs, including the homeless and persons living with HIV/AIDS.

As part of the Action Plan, CDBG and ESG funding is expected to continue for established programs, which include emergency shelters, rapid re-housing, and other actions related to homelessness prevention.

5 Fair Housing
SHRA, the City and County of Sacramento, and the Cities of Citrus Heights, Elk Grove, Rancho Cordova, and Folsom implement fair housing services through local partnerships.

The result is the Renter’s H elpline, which serves as a central intake point to provide counseling, dispute resolution, and fair housing services for Sacramento residents in a housing crisis or dispute. Access is thr ough the telephone and the internet. Other components include fair housing education and training for landlords, implicit bias training, and Investigation/Testing/Litigation.

RESOLUTION 2025-

Adopted by the Sacramento City Council

October 7, 2025

Approval of the 2026 One-Year Action Plan for the Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME), Housing Opportunities for Persons with Aids (HOPWA), and Emergency Solutions Grant (ESG) Funded Projects and Programs; Amendment of Prior Years’ Action Plans; Amendment to the Sacramento Housing and Redevelopment Agency (SHRA) Budget; Execute Documents for the Administration of Federal Programs; and Authorize Amendments to The SHRA Home Repair Program (HRP) Guidelines

BACKGROUND

A. The U.S. Department of Housing and Urban Development (HUD) requires the adoption of a Five-Year Consolidated Plan and an annual Action Plan, consistent with the Consolidated Plan, to identify the programs and projects for the expenditure of federal Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Housing Opportunities for Persons With AIDS (HOPWA), and Emergency Solutions Grant (ESG) funds.

B. Since 1982, the Sacramento Housing and Redevelopment Agency (SHRA) and its constituent entities have served as the public entity designated to administer the CDBG program efficiently and were subsequently designated as the public entity to administer HOME, ESG, and HOPWA funding originating from HUD.

C. As the recipient of HUD funding and designated agent for the City of Sacramento, SHRA is authorized to submit environmental determinations on behalf of the City and non-profit sub- recipients.

D. The recommended actions are consistent with the goals of the 2025-2029 Consolidated Plan, which was approved in 2024 by City Council Resolution 2024- 0289.

E. The Sacramento Housing and Redevelopment Commission noticed and held a public hearing on October 1, 2025, soliciting comments on the 2026 One -Year Action Plan. The 30-day public comment period was from September 1, 2025, to October 1, 2025.

F. Environmental review for all projects with the potential to significantly affect the environment will be completed prior to taking any choice-limiting action. Activities identified in the Action Plan as public services, supportive services, tenant-based rental assistance, facility operations, and program administration have been reviewed pursuant to CEQA and NEPA and no further review is required for these activities. The recommended actions are not considered a “project” pursuant to Cal. Code Regs., tit. 14, section 15378 subds. (b)(2) and (5) as they constitute administrative activities and policymaking of government entities that will not result in direct or indirect changes to the environment . Alternatively, if a determination is made that the plans and policies do constitute a project subject to the California Environmental Quality Act (CEQA), the recommended actions are exempt pursuant to Cal. Code Regs., tit. 14, section 15061(b)(3) as they do not have the potential to cause a significant effect on the environment. The recommended actions are considered the development of plans and administra tive and management activities exempt from review under the National Environmental Policy Act (NEPA) pursuant to 24 CFR

58.34(a)(1) and (3) (2025), and with respect to the laws and authorities specified in 58.6, the recommended actions do not involve activity that would require compliance with 24 C.F.R. section 51.300-305, 16 U.S.C. section 3501 (Coastal Barrier Resources Act), or 42 U.S.C. sections 4001-4128, and 5154(a) (Flood Disaster Protection Act and National Flood Insurance Reform Act).

G. SHRA staff will continue integrat ing and collaborat ing on programming efforts with City departments, utilizing Federal, State, and local funding.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.

SECTION 2.

Amendments to prior years’ Action Plans and the 202 6 One-Year Action Plan, which allocates CDBG, HOME, ESG, and HOPWA funds as described in Exhibit A, is approved.

SECTION 3.

Amendments to prior years’ Action Plans are approved and effective immediately.

SECTION 4.

SHRA is authorized to amend its budget to allocate CDBG, HOME, ESG, and HOPWA funding for programs and projects in accordance with the amendment of the prior years’ Action Plans and the 2026 One-Year Action Plan and amend the budget if the HUD grant awards are less or great er than anticipated to the extent necessary to implement and ensure the timely completion of the activities. These actions supersede any actions in the 2025 SHRA budget.

SECTION 5.

SHRA is authorized and delegated authority to act as an agent on behalf of the City of Sacramento to execute and amend grant agreements with HUD and execute and amend agreements and contracts with the appropriate entities to carry out projects and programs in accordance with the 2026 One-Year Action Plan and amendments to prio r years’ Action Plans in compliance with applicable federal laws and regulations as approved to form by SHRA’s Counsel.

SECTION 6.

SHRA is authorized to make any budget adjustments and execute any and all related documents, including invoicing, contracts, and amendments as necessary to carry out the federal programs as described in the 202 6 One-Year Action plan in compliance with applicable federal laws and regulations as outlined in Exhibit A.

SECTION 7.

SHRA is authorized to submit the 202 6 One-Year Action Plan and amendments to prior years’ Action Plans to HUD.

SECTION 8.

SHRA is authorized to amend the SHRA home repair program (HRP) guidelines as set forth in Exhibit B.

TABLE OF CONTENTS:

Exhibit A – 2026 Action Plan
Exhibit B – HRP Program Definitions 2025

Exhibit A
City of Sacramento
2026 One-Year Action Plan and Previous Years' Reprogramming In addition, a description of other actions to further the Consolidated Plan strategies is required by HUD as part of the One-Year Action Plan application.

These include the Public Housing Authority Administrative Plan, the Citizen Participation Plan, the Continuum of Care Plan, and Analysis of Impediments to Fair Housing (AI). These documents, on file with the Agency Clerk, are incorporated into this staff report and the record by this reference.

The U.S. Department of Housing and Urban Development (HUD) requires a consolidated planning process for the federal Community Development Block Grant (CDBG); HOME Investment Partnerships Program (HOME); Housing Opportunities for Persons with AIDS (HOPWA); and Emergency Solutions Grant (ESG) programs. This process consolidates multiple grant application requirements into a single submission. The concept of the Consolidated Plan was developed to further HUD's statutory goals through a collaborative process involving the community to establish a unified vision for future community development actions.

Definitions:

Reprogrammed Funds are made available when an activity has been cancelled, completed with cost savings, or funds are being moved to ensure timely expenditure. CDBG funds may also include prior years' capital reserve funds.

Program Income are funds generated by a grant-supported activity (e.g., loan repayment, property sale, etc.).

The Sacramento Housing and Redevelopment Agency (SHRA), as the direct recipient of HUD funding, assumes the responsibility for environmental review, decision-making, and actions under the National Environmental Policy Act (NEPA). SHRA is also the lead agency for SHRA initiated projects under the California Environmental Quality Act (CEQA). Environmental review records are on file at SHRA.

The One-Year Action Plan, and amendments, are updates to the Consolidated Plan. A key component of the One-Year Action Plan is the allocation of the funds to proposed activities. This portion of the plan describes activities the jurisdiction will undertake in the coming year, including geographic locations, funding allocations, and eligibility critieria. Proposed activities address the priority needs and specific objectives adopted by the City Council on October 7, 2025.

The following programs are listed on the pages below: CDBG, HOME, ESG, and HOPWA Exhibit A
CDBG Revenue Source 2023 2024 2025
2026
Action Plan Total
Estimated Entitlement $4,600,000 $4,600,000
Unobligated Capital Reserve Available for Reprogramming* $0 $0 $150,000 $150,000 Single-Family Rehab $35,215 $229,395 $3,829 $268,439
Multi-Family Rehab $0 $409,479 $32,298 $441,777
First-Time Homebuyers Assistance $0 $16,700 $3,573 $20,272 Total $35,215 $655,574 $189,700 $4,600,000 $5,480,488
CDBG Activity Summary Previous Years
Reprogramming
2026
Action Plan Total
Infrastructure and Public Facility Improvements $150,000 $1,200,000 $1,350,000 Housing Development, Preservation and Homeownership $0 $455,000 $455,000 Public Services $0 $675,000 $675,000
Grant Planning and Administration $0 $915,000 $915,000
HUD Loan Repayments $730,488 $1,209,544 $1,940,032
Capital Reserve $0 $145,456 $145,456
Proposed Funding Total $880,488 $4,600,000$5,480,488
Proposed activities are based on the following estimated revenues:
*Reprogrammed Funds are made available when an activity has been cancelled, completed with cost savings, or are funds being moved to a new activity to ensure timely expenditure.

Reprogrammed CDBG funds may also include prior years' capital reserve funds. **Program Income are funds generated by a grant-supported activity (e.g., loan repayment, property sale, etc.). Program income for 2026 is estimated.

Program Income:**
Previous Years Revenue Sources

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
The following summarizes proposed CDBG activities. Activities are organized into Infrastructure and Public Facility Improvements, Housing Development, Preservation and Homeownership, Public Services, Grant Planning and Administration, Loan Repayments, and Capital Reserve.

Exhibit A
Activity Name Previous Years
Reprogramming
2026
Proposed
Funding
Total Funding Source1 CDBG
Criteria2
Robla Community Park: Construction of new restroom. (D2) $0 $700,000 $700,000 2026 CDBG EN
03F/6501-2,
6703, 6704/
LMA
Earl Warren Park: Construction of new restroom. (D6)
$0 $450,000 $450,000 2026 CDBG EN03F/3001,
3204/LMA
Mangan Park: Construction of accessible walkway (D5)
$150,000 $0 $150,000 2025 CDBG EN
03F/3300, 3400,
3502,
3800/LMC
Capital Improvement Project Environmental Review: Environmental review and studies for CDBG-eligible projects. $0 $50,000 $50,000 2026 CDBG EN LMA Total CDBG Infrastructure and Public Improvements $150,000 $1,200,000 $1,350,000 Activity Name 2026 Proposed
Funding
Total
Funding Source1 CDBG
Criteria2
Minor Repair & ADA for Seniors and Low-Income Homeowners Program: Provides for minor home repairs for low- and moderate-income homeowners and the administrative oversight for the Safe at Home Program and the Home Assistance Repair Program for Seniors (HARPS).
$55,000 $55,000 2026 CDBG
EN 14H / LMH
Home Repair Program: This program provides grants to low income homeowners for health and safety repairs and accessibility modifications for moderate income disabled residents.$250,000 $250,000 2026 CDBG EN 14A / LMH
Housing Programs Implementation and Delivery: Delivery for the Affordable Housing and Home Repair Programs. $150,000 $150,000 2026 CDBG
EN 14A / 14B / 14G
Total CDBG Housing Development, Preservation and Homeownership$455,000 $455,000 The following are recommended capital improvements of public or community-based facilities and public rights-of-way to be completed within 18 months. These activities, when

HOUSING DEVELOPMENT, PRESERVATION AND HOMEOWNERSHIP
The following are recommended activities that increase the marketability and livability of neighborhoods.

INFRASTRUCTURE AND PUBLIC FACILITY IMPROVEMENTS
Exhibit A
Activity Name 2026 Proposed
Funding
Total
Funding Source1 CDBG
Criteria2
Meals on Wheels: Provides meals to homebound seniors and to non-homebound seniors.$600,000 $600,000 2026 CDBG EN 05A
CPH Public Services: Operating costs for supportive services at Capital Park Hotel permanent supportive housing facility $75,000 $75,000 2026 CDBG EN 03T
Total CDBG Public Services $675,000 $675,000
Activity Name 2026 Proposed
Funding
Total
Funding Source1 CDBG
Criteria2
Program Administration Support: Technical assistance and administrative systems for Consolidated Plan Administration (Action Plan, Action Plan amendments, CAPER, IDIS, Document Review, and Program/Project Management)
$35,000 $35,000 2026 CDBG
EN 20
Fair Housing Activities: Provide funds to further fair housing, including outreach, referral and other eligible activities to affirmatively further fair housing. Funds are allocated to the Renters Helpine and Project Sentinel.
$200,000 $200,000 2026 CDBG
EN 21D
CDBG Planning and Administration: Administrative and Planning Services for CDBG Programs. $680,000 $680,000 2026 CDBG
EN 21A
Total Grant Planning and Administration $915,000 $915,000

GRANT PLANNING AND ADMINISTRATION
The following are related to immediate/intermediate term program planning, community participation and general program administration. For CDBG, HUD limits

PUBLIC SERVICES
The following are recommended funding allocations to support human assistance programs. For CDBG, HUD limits funding for public services to 15 percent of the Exhibit A
Activity Name Previous Years
Reprogramming
2026
Proposed
Funding
Total Funding Source1 CDBG
Criteria2
Section 108 Loan Repayment - Mirasol Village (formerly Twin Rivers): Annual debt service payment including principal and interest (variable) on Section 108 loan funds.

Payment is for 2025 and 2026. Any unused funds from previous or the current year allocation is is authoriezed to be returned to capital reserve for reallocation. (20 years remaining) $730,488 $1,209,544 $1,940,032
2023, 2024,
2025 CDBG PI
& 2026 CDBG
EN
19F
Total CDBG Section 108 Loan Repayment $1,209,544 $1,940,032 Capital Reserve: Reserve accounts for overruns in capital improvement activities and to fund budgeted activities if CDBG entitlement is less than anticipated. The full amount of the reserve is available to ensure the timely completion of the activities. $145,456 $145,456 2026 CDBG EN
Total CDBG Capital Reserve $145,456 $145,456

CAPITAL RESERVE
The following debt service payments for HUD Section 108 loan and internal SHRA loans for commercial revitalization, job creation, and infrastructure development.

HUD LOAN REPAYMENTS
Exhibit A
HOME Revenue Source
2026
Action Plan Total
Estimated Entitlement $2,200,000 $2,200,000
Reprogrammed Funds $0 $0
Program Income $800,000 $800,000
Total $3,000,000 $3,000,000
The following summarizes proposed activities for 2026:

Activity Name 2026 Proposed
Funding
Total
Funding Source1
HOUSING DEVELOPMENT, PRESERVATION AND HOMEOWNERSHIP (HOME Only) $990,000 $990,000 2026 HOME
EN
$360,000 $360,000 2026 HOME
PI
$1,350,000 $1,350,000
$990,000 $990,000 2026 HOME
EN
$360,000 $360,000 2026 HOME
PI
$1,350,000 $1,350,000
$220,000 $220,000 2026

HOME EN
$80,000 $80,000 2026 HOME
PI
$300,000 $300,000
Total HOME Housing Development, Preservation and Homeownership $3,000,000 $3,000,000 Multi-Family Housing Acquisition and Rehabilitation: Provides loans for the acquisition and rehabilitation of low- and moderate-income multi-family housing.

Proposed activities are based on the following estimated revenues:

Home Program Administration: Administrative services for the implementation of HOME- funded activities.

HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME)
Multi-Family Housing New Construction: Provides loans for the construction of low- and moderate-income multi-family housing.

Exhibit A
ESG Revenue Source 2026 Action Plan Total
Estimated Entitlement $400,000 $400,000
Program Income $0 $0
Total $400,000 $400,000
Activity Name 2026 Proposed
Funding
Total
Funding Source1

EMERGENCY SOLUTIONS GRANT (ESG)
Rapid Rehousing/Prevention (Public Services): Funds to provide homeless prevention and rapid re-housing, delivery, operations and maintenance of facilities and essential supportive services per ESG regulations.
$370,000 $370,000 2026 ESG EN
ESG Program Administration: Administrative services for the implementation of ESG- funded activities. $30,000 $30,000 2026 ESG EN
Total Emergency Solutions Grant$400,000 $400,000

EMERGENCY SOLUTIONS GRANT (ESG)
The following summarizes proposed activities for 2026:

Proposed activities are based on the following estimated revenues:

Exhibit A
HOPWA Revenue Source
Previous Years
Revenue Sources
2026 Action
Plan Total
Estimated Entitlement $0 $2,100,000 $2,100,000
Reprogrammed Funds $300,000 $0 $300,000
Total $300,000 $2,100,000 $2,400,000
Activity Name Previous Years
Reprogramming
2026
Proposed
Funding
Total Funding Source1
HOPWA - City and County of Sacramento: Provides for short-term emergency housing and tenant-based rental assistance, housing placement services, supportive services and operations for persons with HIV/AIDS in the City and County of Sacramento. $150,000 $1,800,000 $1,950,000 2026 HOPWA
EN
HOPWA - Yolo County: Provides for short-term emergency housing and tenant-based rental assistance, housing placement services and supportive services for persons with HIV/AIDS in Yolo County.
$50,000 $67,000 $117,000 2026 HOPWA
EN
HOPWA - El Dorado and Placer Counties: Provides for short-term emergency housing and tenant-based rental assistance, housing placement services and supportive services for persons with HIV/AIDS in El Dorado and Placer Counties.
$100,000 $170,000 $270,000 2026 HOPWA
EN
HOPWA Program Administration: Administrative services for the implementation of HOPWA-funded activities. $0 $63,000 $63,000 2026 HOPWA
EN
Total HOPWA $300,000 $2,100,000 $2,400,000
1 Source: Program Income = PI and Entilement = EN
2 CDBG Criteria: Includes activity eligibility, matrix codes, census tracts, and national objectives.

Endnotes:

HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
The following summarizes proposed activities for 2026:

HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA)
Proposed activities are based on the following estimated revenues:

Exhibit B

Revised 8.21.25 Page 1
HRP Program Definitions 2025
Sacramento City/County

Note: The total of all work performed at a property or for a client cannot exceed the grant amount of $10,000.00, including any balance remaining per property/client.

Home Repair Definition

Take corrective action to resolve Program-covered actions for the following: an immediate safety or health hazard, dangerous or hazardous building condition, and fire or health code violation

SHRA shall make the final determination of an eligible Home Repair application.

Home repairs are limited to the following:

Roofing

1. Repair of roof coverings to stop leaks within habitable areas.

2. Repairs of hazardous structural framing.

3. Repair or replacement of roof coatings and or coverings on mobile homes.

Note: No full roof replacements are allowed, except on single-wide mobile homes. Double-wide mobile homes are not eligible for full replacements, as the cost exceeds the grant amount.

Exterior Entry Doors

1. Repair or replacement of doors that are cracked, broken, missing, or holes penetrating through.

2. Repair or rep lacement of defective hardware, jambs, stops, and trim required for proper operation of door.

3. Repair or replacement of defective lock and deadbolt sets.

Exterior Windows

1. Replacement of broken glass in habitable areas.

2. Repair or replacement of deteriorated sashes as required to secure the window panes.

Accessibility (only in the case of an immediate safety or health hazard)

1. Repair and/or modifications to existing steps, handrails, guardrails, and ramps.

2. Repair of existing walkways or driveways if deteriorated to the point of creating a tripping hazard.

3. Installation of a new ramp or mechanical wheelchair lift (if ramp is infeasible), as needed (with a Doctor’s note).

4. Replacement of Bathroom toilet with new high-rise toilet, and grab bars as necessary.

Water Heaters

1. Repair of water heaters that are inoperable or not working effectively.

2. Replacement of water heater due to tank leaking.

3. Replacement of deteriorated or non-code compliant venting systems.

4. Replacement of defective parts, including, but not limited to: thermo-coupler, control valve, gas and water connections/valves, P&T valve, drain line.

Exhibit B

Revised 8.21.25 Page 2

5. Replacement of complete water heater if repairs are not feasible.

Heating Systems - Cooling Systems (HVAC)

1. Repair of non-working HVAC systems (including floor furnaces, wall furnaces and through-the-wall air conditioning units). Examples of defective parts eligible for potential repair are : venting, cracked heat exchangers, thermostats, thermo-couplers, control valves, gas/electrical connections, compressors, etc.

Plumbing Interior

1. Repair or replacement of broken water lines and connectors concealed within walls, ceilings and floors.

2. Repair or rep lacement of broken sewer drain lines, connectors, clean -outs and vent piping that are concealed within walls, ceilings and floors.

3. Replacement of complete toilet if broken and /or leaking through the porcelain. Replacement shall include seat and lid, angle stop and supply line, new wax seal, new bolts, and caps.

Plumbing Exterior

1. Sewer line repairs. Owner must provide a report from a licensed plumbing contractor that describes the damage to the existing sewer line and location of the damaged line prior to HRP assistance.

2. Main water line repairs. Deteriorated and leaking main water lines, and main water supply valves are eligible for assistance. Irrigation piping, valves, and timers are not eligible.

Electrical

1. Main service panel:
a. Replacement of main service, if not repairable and posing a hazard. b. Replacement of missing deadfront panel, exterior cover panel, knockout covers and inspection covers.
c. Securing main service to structure.
d. Replacement of broken, non-working, or missing breakers or connections. e. Replacement of any damaged wiring or connections.
f. Point of attachment and service risers per local codes and SMUD regulations.

2. Replacement of wiring that is severely damaged, burned, insulation deteriorated, or bare wires exposed.

3. Replacement of hazardous pigtails:
a. Attached to stationary appliances.
b. Mobile Home sub panel to Mobile Home Park pedestal.

4. Cap off/disconnect exposed wiring or connections, and/or non-code compliant installations.

5. Install additional circuits, breakers and receptacles:
a. To meet additional heating and or cooling system needs. b. Installation of doctor approved medical equipment , including o xygen concentrators, medical beds, and other approved equipment.

6. The following listed electrical items may be r epaired only in conjunction with any other Program eligible repair item.
a. Replacement / repair of existing non -working, defective receptacles, switches, exterior light fixtures.

Gas Lines - Natural Gas, CNG, Propane.

1. Repair or replacement of leaking or broken supply lines, connectors, and valves.

Exhibit B

Revised 8.21.25 Page 3
Floors

1. Repair or replac ement of deteriorated sub-flooring and/or underlayment where a hazardous or a potentially hazardous condition exists.
 Finish flooring to repair area's kitchens, bathrooms & laundry a reas ( where r equired by Building Code)
 Bathroom—Sheet vinyl (with no seams wherever possible).  Kitchen and Laundry areas--- patching of defective portions only

Miscellaneous

1. Smoke detectors and carbon monoxide detectors: (if in conjunction with other work.)  At the close of construction all structures receiving HRP assistance will comply with Current Fire and Building Codes relating to working smoke detectors and CO detectors.
 New battery-operated detectors will be installed as directed by current codes.  Replacement of batteries in existing detectors
 Replacement of existing defective detectors.

RESOLUTION 2025-

Adopted by the Sacramento City Council

October 7, 2025

Establishing / Transferring Revenue and Expenditure Budget for Various Community Development Block Grant Funded Projects

BACKGROUND

A. The Sacramento Housing and Redevelopment Agency’s (SHRA) Community Development Block Grant (CDBG) 2025 Action Plan included an allocation of a) $700,000 for the Robla Park Project; b) $450,000 for the Earl Warren Park Project, c) $150,000 for the Mangan Park Project. In order to transfer the funds, the City of Sacramento will enter into an Individual Project Agreement with SHRA.

B. Environmental review for all projects with the potential to significantly affect the environment will be completed prior to taking any choice -limiting action. The recommended actions are not considered a “project” pursuant to Cal. Code Regs., tit. 14, sect ion 15378 subds. (b)(2) and (5) as they constitute administrative activities and policymaking of government entities that will not result in direct or indirect changes to the environment. Alternatively, if a determination is made that the plans and policie s do constitute a project subject to the California Environmental Quality Act (CEQA), the recommended actions are exempt pursuant to Cal. Code Regs., tit. 14, section 15061(b)(3) as they do not have the potential to cause a significant effect on the environment. The recommended actions are considered the development of plans and administrative and management activities exempt from review under the National Environmental Policy Act (NEPA) pursuant to 24 CFR 58.34(a)(1) and (3) (2025), and with respect to the laws and authorities specified in 58.6, the recommended actions do not involve activity that would require compliance with 24 C.F.R. section 51.300- 305, 16 U.S.C. section 3501 (Coastal Barrier Resources Act), or 42 U.S.C. sections 4001 - 4128, and 5154(a) (Flood Disaster Protection Act and National Flood Insurance Reform Act).

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

SECTION 1.

All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved adopted.

SECTION 2.

The City Manager or the City Manager designee is authorized to increase t he following revenue and expenditure budgets:

a) $700,000 in Robla Community Park - Phase 4 Project ( L19155600) from the CDBG Fund (Fund 2700);

b) $450,000 in Earl Warren Park Restroom Project ( L19913200) from the CDBG Fund (Fund 2700).

SECTION 3.

The City Manager or the City Manager designee is authorized to transfer t he following revenue and expenditure budget in the amount of $150,000, CDBG Fund (Fund 2700), from Argonaut Park Improvements (L19913100) to Mangan Park Improvements (L19913700).

2026 Action Plan2026 Action Plan
October 7, 2025
Updated 09.30.2025
Consolidated Plan and
Action Plan Overview
Consolidated Plan
• 5-Year Plan (2025-2029)
• Establish fair housing goals and objectives
• Identify housing & community development priorities that align and focus funding with goals and objectives
• Developed through extensive consultation with community, service providers, and other stakeholders
Action Plan
• Identifies specific activities that will be undertaken to meet objectives in Consolidated Plan
• CDBG, HOME, ESG, HOPWA
2025 Accomplishments
Infrastructure and Public Facility Projects
Mama Marks Park Splashpad
Wood Park Community Garden
Ninos Park Improvements
North Pointe Park Picnic Tables
• Meals on Wheels
• 260,000 meals served to over 1,000 seniors
• Homeless & Housing Assistance
• 368 households
• Home Repair Program
• 25 households assisted
• Rebuilding Together
• 90 assisted
4 2025 Accomplishments
Public Service Activities
Federal Programs
2026 Estimated Funding
Source Estimate
CDBG* $5,480,488
HOME* $3,000,000
ESG* $400,000
HOPWA* $2,400,000
Total $11,280,488
*Includes Entitlement, reprogrammed funds, and Program Income Federal Programs
2026 CDBG Allocations
CDBG Activity
Infrastructure and Public Facility Improvements $1,350,000 Housing Development, Preservation and Homeownership $455,000 Public Services $675,000
Grant Planning and Administration $915,000
HUD Loan Repayments $1,940,032
Capital Reserve $145,456
Total $5,480,488
Proposed 2026 Infrastructure and
Public Improvements Projects
District Project Description Amount
2 Robla Community Park Restroom – Install prefabricate restroom facility at existing park. $700,000
6 Earl Warren Park Restroom – Install prefabricate restroom facility at existing park. $450,000
5 Mangan Park – Install ADA accessible walkways around park perimeter . $150,000
Capital Improvement Project Environmental Review-
Environmental review for CDBG projects. $50,000
Total $1,350,000
Proposed 2026 County Housing and
Public Service Programs
• CDBG
• Meals on Wheels
• Home Repair & Minor Repair Programs
• Fair Housing Activities
• Capital Park Hotel Supportive Services
• ESG: Rapid Re-Housing
• HOME: Multi-Family Housing Rehabilitation and Construction • HOPWA: Housing assistance and operations, case
management, and supportive services
Home Repair Program
• Purpose:
• Address urgent health and safety hazards, including immediate safety concerns, hazardous conditions, fire/health code violations • Outcomes:
• In 2025, 65 grants out of 113 applications
• In 2024, 86 grants out of 161applications
• Requested Changes:
• Increase the maximum grant amount from $5,000 to $10,000; • Expand eligible accessibility improvements
• year-round application availability, as funding permits.