FY 2026-2027 Annual Action Plan
DRAFT
FY 2026-2027 Annual Action Plan i
OMB Control No: 2506-0117 (exp. 09/30/2021)
Table of Contents
Executive Summary ................................................................................................................. 1 AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) .......................................................... 1 PR-05 Lead & Responsible Agencies – 91.200(b) ....................................................................... 5 AP-10 Consultation – 91.100, 91.200(b), 91.215(l) .................................................................... 5 AP-12 Participation – 91.105, 91.200(c) .................................................................................. 12 Expected Resources ............................................................................................................... 14 AP-15 Expected Resources – 91.220(c)(1,2) ............................................................................ 14 Annual Goals and Objectives ................................................................................................. 18 Projects .................................................................................................................................... 20 AP-35 Projects – 91.220(d) ...................................................................................................... 20 AP-38 Project Summary ........................................................................................................... 21 AP-50 Geographic Distribution – 91.220(f) .............................................................................. 25 Affordable Housing ................................................................................................................ 27 AP-55 Affordable Housing – 91.220(g) .................................................................................... 27 AP-60 Public Housing – 91.220(h) ............................................................................................ 27 AP-65 Homeless and Other Special Needs Activities – 91.220(i) ............................................. 28 AP-75 Barriers to affordable housing – 91.220(j) .................................................................... 29 AP-85 Other Actions – 91.220(k) ............................................................................................. 32 Program Specific Requirements ............................................................................................. 37 AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ........................................................ 37 Appendix A: Public Outreach ................................................................................................. 42 Appendix B: Monitoring ........................................................................................................ 43 Appendix C: SF 424 and Certifications .................................................................................... 44
List of Tables
Table 1 - Responsible Agencies ..................................................................................................... 5 Table 2 - Agencies, groups, organizations who participated ....................................................... 10 Table 3 - Other local / regional / federal planning efforts ........................................................... 11 Table 4 - Citizen Participation Outreach ...................................................................................... 13 Table 5 - Expected Resources - Priority Table ............................................................................. 15 Table 6 - Goals Summary ............................................................................................................. 18 Table 7 - Goals Descriptions ........................................................................................................ 19 Table 8 - Project Information ...................................................................................................... 20 Table 9 - Project Summary Information ...................................................................................... 25 Table 10 - Geographic Distribution ............................................................................................. 25 Table 11 - One Year Goals for Affordable Housing by Support Requirement .............................. 27 Table 12 - One Year Goals for Affordable Housing by Support Type ........................................... 27
DRAFT
FY 2026-2027 Annual Action Plan 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
Salinas is a compact urban community within a unique agricultural setting. Unlike the vaguely defined boundaries and sprawl that characterize so much of urban California, the highly productive agricultural lands surrounding Salinas create a distinct urban -agricultural edge that serves as a reminder of the source of the area's economic well -being. The City lies at the north end of the Salinas Valley, known as "The Salad Bowl of the World," and is the processing and shipping point for lettuce, broccoli, mushrooms, and strawberries, along with numerous other crops. With its mild climate and fertile soil, Salinas has become the processing and shipping point for one of the world's largest agricultural centers. Although agriculture forms its economic base, the economy has diversified substantially over the last 20 to 30 years.
This Fiscal Year (FY) 2026-2027 Action Plan (AP) serves as the official application to the United States Department of Ho using and Urban Development (HUD) for Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME), and Emergency Solutions Grants (ESG) funds for the City of Salinas (City). The AP identifies expected resources, annual goals and objectives, and affordable housing opportunities to address needs in the City. It also satisfies the minimum statutory requirements of the CDBG, HOME, and ESG programs.
The City of Salinas agrees that its compliance in all respects with all applicable Federal anti - discrimination laws is material to the U.S. Government’s payment decisions for purposes of section 3729(b)(4) of title 31, United States Code.
The City of Salinas will not operate any programs that violate any applicable Federal anti - discrimination laws, including Title VI of the Civil Rights Act of 1964.
2. Summarize the objectives and outcomes identified in the Plan This AP incorporates the following Performance Measure Objectives/ Outcomes to be associated with each activity funded:
General Objective Categories- Activities will meet one of the following:
• Decent Housing (DH)
• A Suitable Living Environment (SL)
• Economic Opportunity (EO) General
Outcome Categories- Activities will meet one of the following:
• Availability/Accessibility (1)
• Affordability (2)
• Sustainability (3)
DRAFT
FY 2026-2027 Annual Action Plan 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
The strategies in this AP are intended to coordinate with and build upon other established City plans and policies, particularly those set forth in the Salinas General Plan Housing Element (HE); Economic Development Element (EDE); Alisal Vibrancy Plan (AVP); Chinatown Revitalization Plan (CRP); Salinas Broadband Master Plan (SBMP); and Parks, Recreation and Libraries Master Plan (PRLMP). Strategies also reflect input from residents, service providers, community stakeholders, staff and City officials. Ranking of needs is based upon multiple factors, including:
• Goals, policies and objectives from the City’s HE, EDE, AVP, CRP, SBMP and PRLMP; • Findings from the assessment of demographic and housing market conditions (detailed analyses contained in the ANRSA);
• Staffing resources, both for the City and for relevant providers; • The severity of need among the identified groups and subgroups, including relative needs between income groups;
• Input received from the community via Community Workshops, public outreach and Needs Survey;
• Likely availability of funds over the coming five years for various housing and community development activities, combined with consideration for the most effective use of the limited funds that fall under the purview of the City’s CP.
The City’s goals and priorities for the FY 2025-2029 CP are identified below:
• Increased Decent and Affordable Housing
• Affordable Rental Housing Opportunities
• Assistance to Homeowners for Rehabilitation
• Homeownership Opportunities
• Enhanced Homeless Prevention, Services and Facilities • Enhanced Neighborhood Conditions
• Public Services
• Economic Development
• Planning and Program Administration
3. Evaluation of past performance
The City has achieved the following accomplishments related to Consolidated and Action Planning. These accomplishments cover FY 2024 -25. At the time of the drafting of this Action Plan, FY 2025-26 has not concluded. Accomplishments for FY 2025 -26 will not be finalized until the completion of the FY at the end of June. Staff continue to work diligently in implementing the 2025-26 Action Plan and will report accomplishments in the upcoming CAPER. • The Allocation Plan (AP) for the HOME American Rescue Plan (ARP) was approved, and the City was awarded a total of $2,918,774 in January 2023. The City is proposing to fund supportive services at two Homekey sites. These sites will collectively create 101 affordable rental housing units to house persons experiencing homelessness. It is anticipated that the financial allocation for these supportive services will be sustained for approximately two years with an estimated annual budget of at least $1,2 00,000. In FY 2023-24, there was a change in ownership in both Homekey projects . T he City DRAFT
FY 2026-2027 Annual Action Plan 3
OMB Control No: 2506-0117 (exp. 09/30/2021)
collaborates with the new owners to keep these projects within the intended use and purpose.
• The Salinas Outreach and Response Team (SORT) provides linkage and referrals to supportive programs. A total of 232 persons were served in FY 24-25. A total of 15 people were placed in Emergency Shelter, 8 people were placed in transitional housing, and 36 people were placed in permanent housing. Of those, a total of 125 persons were enrolled and engaged in street outreach services through ESG in FY 24 -25. In addition, the SORT team engaged 46 persons using CDBG funds.
• The City enrolled 72 persons in the Rapid Rehousing program, including 2 veterans. The CNC permanently housed 27 individuals.
• Eden Council for Hope and Opportunity (ECHO) implements the City’s Fair Housing and Tenant/Landlord Services Program. ECHO assisted 180 households during this fiscal year. • The Hebbron Family Center Project , located at 683 Fremont Street, is managed by the City’s Public Works and Library and Community Services Departments. On December 5, 2023, the City Council also approved a substantial amendment to FY 2017 -18, FY 2019 - 20, FY 2020 -21, FY 2021 -22, FY 2022 -23, and FY 2023 -24 to allocate an additional $600,000 in CDBG program funds. In total, the project ha d been allocated $3,057,115.
The Center was completed and had its grand opening on January 31, 2026. • The City allocated additional CDBG funds to the Sherwood Recreation Center Project (Phase IV) during FY 2024-25. The design process was completed and submitted to the City for plan review in July 2024. The environmental review phase of the project was completed in March 2025. Construction is expected to be completed by October 2026. • The City continues to allocate funds toward the Chinatown Neighborhood Improvements project. In FY 2023 -24, the Community Development Department started collaborating with the Public Works Department to refine the project scope. This project will focus on ADA curb cuts, sidewalk repairs, street repairs, and lighting improvements throughout the neighborhood. The project is divided into multiple phases. ERR Phase I will be completed in FY 2025-26, focusing on sidewalk and ADA curb cut improvements. • The First United Methodist Church (FUMC) was awarded $561,182 of CDBG funds to rehabilitate its existing kitchen and bring the parking lot to ADA standards to continue providing meals and essential services to the unhoused population. All construction activities were completed on June 10, 2024.
• The City completed the development of the Early Childhood Development Center (ECDC) at 1018 Buckhorn Drive in January 2025. The grand opening was held February 3, 2025. • The Natividad Creek Park Restroom Rehabilitation project was awarded $442,070 in CDBG funds for ADA upgrades inside and outside the restroom as well as new ADA parking stalls. The project was completed in December 2025.
DRAFT
FY 2026-2027 Annual Action Plan 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
• The City of Salinas has been providing housing information, education, and referral services to Salinas residents through the Emergency Rental Assistance Program (ERAP), created in response to the COVID -19 Pandemic. As of end of October 2024, the City of Salinas has assisted 54 households with rental assistance through the United Way Community Impact Grant funds.
• The City of Salinas Business Navigator provided technical support to 166 clients, addressing 53 cases requiring in-person assistance through the Grow Salinas Fund (GSF) /Economic Development Technical Assistance program. In addition, the City hosted two workshops and one networking mixer covering key topics such as the City’s procurement process, marketing strategies, micro -kitchen permits, and business networking.
Significant progress was done for the Alisal Façade Program, including the development of dra ft program guidelines, internal processes, maintenance agreements, and the creation of an online application portal. The program was launched Fall 2025, with the Business Navigator managing the application process.
4. Summary of Citizen Participation Process and consultation process Under the preparation of this FY 2026-2027 AP, the City conducted several community outreach efforts. A summary is provided below. Appendix A includes the outreach materials.
Application Workshop: A virtual application workshop was held in [DATES]. Participants were public service organizations, nonprofits and other interested parties.
Public Noticing: Public noticing of Action Plan outreach activities was done through a variety of formats including the City website, emailing stakeholders, advertisements in The Monterey Herald newspaper, distributing flyers throughout the City and social media posts.
A 30-day public review period of the draft Action Plan occurred from May X, 2026 to June X, 2026.
Copies of the draft AP were made available for the public at the following locations, in conformance with the City’s CDBG Citizen Participation Plan (CPP):
• John Steinbeck Library, 350 Lincoln Avenue, Salinas;
• Cesar Chavez Library, 615 Williams Road, Salinas;
• El Gabilan Library, 1400 North Main Street, Salinas;
• Housing Division, Community Development Department, 65 W. Alisal Street, 2nd Floor, Salinas;
• City Clerk’s Office, City Hall, 200 Lincoln Avenue, Salinas, and • On-line at the City of Salinas website: http://www.cityofsalinas.org/.
5. Summary of public comments
A summary of the public comments received is provided in Appendix A.
6. Summary of comments or views not accepted and the reasons for not accepting them All comments were received.
DRAFT
FY 2026-2027 Annual Action Plan 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
7. Summary
The City has undertaken diligent and good faith efforts in outreaching to all segments of the community that may benefit from the City’s CDBG, HOME, and ESG programs.
PR-05 Lead & Responsible Agencies – 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Action Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator SALINAS Community Development Department Housing Division HOME Administrator SALINAS Community Development Department Housing Division ESG Administrator SALINAS Community Development Department Housing Division Table 1 - Responsible Agencies
Narrative
The City’s Housing and Community Development Division of the City’s Community Development Department is responsible for the implementation and administration of the CP, as well as activities identified in the AAP. In addition, staff also collaborate with other governmental agencies and non-profit organization to facilitate strategic planning and implementation of goal and objectives identified in the CP.
Consolidated Plan Public Contact Information
For matters concerning the City’s Consolidated Plan, and CDBG, HOME and ESG programs, please contact Vincent Montgomery, Planning Manager, City Community Development Department, Housing Division, 65 W. Alisal Street , Salinas, CA 93901, (831) 758 -7334 or [email protected].
AP-10 Consultation – 91.100, 91.200(b), 91.215(l)
1. Introduction
As part of the development of this AP, the City undertook an outreach program to consult and coordinate with non -profit agencies, affordable housing providers, and government agencies regarding the needs of the low- and moderate-income community.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))
To outreach various agencies and organizations, the City compiled an outreach list consisting of more than 200 representatives from agencies and organizations, including:
DRAFT
FY 2026-2027 Annual Action Plan 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Non-profit service providers that cater to the needs of low - and moderate -income households and persons with special needs;
• Local churches and religious groups;
• Groups addressing the needs of individuals exiting institutions; • Schools;
• Affordable housing providers;
• Housing advocates;
• Housing professionals;
• Public agencies (such as school districts, health services, public works); • Economic development and employment organizations; and • Community and neighborhood groups.
These agencies were contacted and notified of the AP development process and community workshops.
On an ongoing basis, City staff communicate with various nonprofits and public agencies that serve the City’s low- and moderate-income residents and special needs groups to identify needs and plans for future activities. The City has established a Housing and Land Use Committee and Technical Advisory Committee for Housing Policies and Programs to provide an additional forum for residents, agencies, and organizations to discuss housing and community development needs and plans.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The City’s Mayor is a member of the Continuum of Care (CoC) Leadership Council and on an ongoing basis, City staff participate in the CoC Leadership Council meeting. Additionally, City staff also attend and participate in the CoC Coalition of Homeless Service Providers (CHSP), Salinas Downtown Community Board (SDCB) for the Chinatown Area, and CoC Ten -Year Plan to End Homelessness (Lead Me Home Plan) meetings, to identify housing and supportive service needs of the homeless and develop solutions.
The City is also the Administrative Entity (AE) for the California Department of Housing and Community Development (H CD) Emergency Solutions Grants (ESG). As the AE City utilizes HCD ESG funding to support the operations of the CNC, and other emergency shelter, street outreach, homeless prevention, rapid re -housing services and the Homeless Management Information System (HMIS) activities.
The City also attends the local CoC Point -in-Time Count (PIT), Lead Me Home Plan, CARS, HMIS and Rapid Rehousing meetings and receives updates on initiatives to end homelessness in Monterey County. The County is the lead agency for coord inating housing, employment, and services for this population.
The City makes an effort to coordinate with the County of Monterey and their work with the City Police Department to address homelessness, including those who have been released from DRAFT
FY 2026-2027 Annual Action Plan 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
correctional programs and institutions. The Salinas Valley State Prison is located in the City of Soledad, but the County Jail is located in Salinas.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The Coalition of Homeless Service Pr oviders (CHSP) is a group of private non -profit and public organizations working together to address the complex issues of homelessness throughout Monterey and San Benito Counties. CHSP is the local lead HMIS agency for the CoC service area (Monterey and S an Benito Counties). In addition, CHSP organizes and coordinates a series of ongoing, highly targeted, HMIS related meetings and trainings designed to enhance data quality, refine policy and streamline activities at an agency and CoC level. The CoC Leaders hip Council approved the City to be the Administrative Entity (AE) for the HCD ESG Program. The HCD ESG program funding is to leverage other federal and local funding.
CHSP updated the Lead Me Home Plan, their regional plan to reduce homelessness in 2021. This update includes priorities for the five-year period between 2021 and 2026. The updated plan has a goal of reducing homelessness by 50 percent utilizing the following overarching strategies:
• Increase participation in homelessness solutions by leaders and key stakeholders from across the region;
• Improve the performance of the homelessness response system; and • Expand service-oriented responses to unsheltered homelessness.
This Action Plan includes a priority to reduce homelessness in Salinas. The City has been working with several agencies to provide outreach, shelter, homeless prevention, and rapid re -housing services to the homeless. These programs have been highly successful, and the City continues to demonstrate a tremendous and continued need for these services.
2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities
As part of the CP, AAP and ANRSA development process, the City developed an outreach list of more than 200 representatives from agencies and organizations, as well as individuals. The outreach list includes County and neighboring cities which were invited to participate in the community workshops and public hearings, or provide comments on the City’s CP , AAP and ANRSA. The list also included hospitals and medical centers that may discharge people into homelessness.
Agencies and organizations attended the Community Workshops and/or public meetings in include:
DRAFT
FY 2026-2027 Annual Action Plan 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
Agency/Group/
Organization
Agency/Group/
Organization
Type
What section of the Plan
was addressed by
Consultation?
Briefly describe how the
Agency/Group/Organization was
consulted. What are the anticipated
outcomes of the consultation or areas
for improved coordination?
Library and
Community
Services
Department
Other –
Government
Non-Homeless Special Needs
Community Facilities
Agency attended various outreach events
conducted for the AP, including
community workshops and/or public
hearings.
Jacana Other – Housing
Development
Housing
East Salinas-
Building Healthy
Communities
Services –
Housing
Services –
Health
Housing Need Assessment
Non-Homeless Special Needs
Franciscan
Workers of
Junipero Serra
Services –
Homeless
Housing Need Assessment
Homelessness Strategy
Homeless Needs -
Chronically homeless
Homeless Needs - Families
with children
Homelessness Needs –
Veterans
Homelessness Needs -
Unaccompanied youth
Housing
Authority of the
County of
Monterey
(HACM)
Housing Public
Housing Agency
Housing Need Assessment
Public Housing Needs
Salinas
Downtown
Community
Board (SDCB)
Other –
Neighborhood
Organization
Housing Need Assessment
Non-Homeless Special Needs
Asian Cultural
Experience
(ACE)
Other –
Neighborhood
Organization
Housing Need Assessment
Non-Homeless Special Needs
Community
Homeless
Solutions (CHS)
Services –
Homeless
Housing Need Assessment
Homelessness Strategy
Homeless Needs -
Chronically homeless
Homeless Needs - Families
with children
Homelessness Needs –
Veterans
Homelessness Needs -
Unaccompanied youth
DRAFT
FY 2026-2027 Annual Action Plan 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
Agency/Group/
Organization
Agency/Group/
Organization
Type
What section of the Plan
was addressed by
Consultation?
Briefly describe how the
Agency/Group/Organization was
consulted. What are the anticipated
outcomes of the consultation or areas
for improved coordination?
Downtown
Streets Team
(DST)
Services –
Homeless
Housing Need Assessment
Homelessness Strategy
Homeless Needs -
Chronically homeless
Homeless Needs - Families
with children
Homelessness Needs –
Veterans
Homelessness Needs -
Unaccompanied youth
Eden Council for
Hope and
Opportunity
(ECHO)
Services – Fair
Housing
Services –
Housing
Housing Needs Assessment
Non-Homeless Special Needs
California Rural
Legal
Assistance, Inc.
(CRLA)
Services – Legal Housing Needs Assessment
Non-Homeless Special Needs
Housing Choices Services –
Housing
Services –
Health
Housing Needs Assessment
Non-Homeless Special Needs
Community
Housing
Improvement
Systems and
Planning
Association, Inc.
(CHISPA)
Other –
Nonprofit
Developer
Housing Need Assessment
Services - Housing
Digital Nest Other – Non-
Profit
Organization
Other-Broadband Needs
Alisal Vibrancy
Plan
Implementation
Committee
Civic Leaders -
Neighborhood
Organization
Housing Needs Assessment
Market Analysis
Economic Development
Public Works
Department
Other
Government –
Local
Other – Emergency
Management/ Operations
PG&E
(Power/Gas)
Other – Utility
Company
Other – Emergency
Management/ Operations
ALCO Water Other – Utility
Company
Other – Emergency
Management/ Operations
California Water
Services
Other – Utility
Company
Other – Emergency
Management/ Operations
DRAFT
FY 2026-2027 Annual Action Plan 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
Agency/Group/
Organization
Agency/Group/
Organization
Type
What section of the Plan
was addressed by
Consultation?
Briefly describe how the
Agency/Group/Organization was
consulted. What are the anticipated
outcomes of the consultation or areas
for improved coordination?
Monterey Bay
Air Resources
District
Other
Government –
Federal
Other – Emergency
Management/ Operations
Monterey
County
Resource
Management
Agency
Other
Government –
County
Other – Emergency
Management/ Operations
Monterey
County Health
Department
Other
Government –
County
Other – Emergency
Management/ Operations
Monterey
County
Department of
Social Services
Other
Government –
County
Other – Emergency
Management/ Operations
Table 2 - Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting The City distributed information about the community workshops and public meetings to over 200 agencies and organizations as part of the outreach process for this AP. All applicable agencies and agency-types were consulted.
DRAFT
FY 2026-2027 Annual Action Plan 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
City of Salinas 2023-2031
Housing Element
City Potential funding allocations to address housing
needs in Salinas will be consistent with the
Housing Element programs
Continuum of Care (CoC) The Coalition of
Homeless Services
Providers (CHSP)
Potential funding allocations to address homeless
needs will complement the CoC Strategy.
Salinas Broadband Master
Plan
City Potential funding allocations will be consistent
with the priority areas identified in the Broadband
Master Plan.
Lead Me Home Plan Update
(July 2021-June 2026)
The Coalition of
Homeless Services
Providers (CHSP)
Potential funding allocations to address homeless
needs will be consistent with the Lead Me Home
Plan.
City of Salinas General Plan
Update
City The City is currently updating the General Plan,
including a new Environmental Justice Element.
Potential funding allocations will be consistent
with the General Plan policies and programs,
including those related to environmental justice
and economic development.
Chinatown Revitalization Plan
(CRP)
City Sets forth recommendations and implementation
strategies to address the housing, access, mobility,
and socioeconomic needs of the neighborhood.
Alisal Vibrancy Plan (AVP) City Communicates the collective vision of those who live and work in the Alisal and implement
community-created solutions for strengthening its
neighborhoods.
Active Transportation Plan
(ATP)
City Potential funding allocations for street
improvements will be consistent with the priorities
in the ATP.
Farmworker Housing Study
and Action Plan for Salinas
Valley and Pajaro Valley
California Institute for
Rural Studies
Includes objectives for housing types specifically
for the farmworker community.
Climate Action Plan (CAP) City The City is preparing its first CAP. Potential funding allocations will be consistent with the goals of the
plan.
Parks, Recreation & Libraries
Master Plan (PRLMP)
City This Plan focuses on the system of parks, open
space, and recreational facilities and programs,
which promotes quality of life and healthy
lifestyles.
Table 3 - Other local / regional / federal planning efforts Narrative (optional)
See discussions above.
DRAFT
FY 2026-2027 Annual Action Plan 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-12 Participation – 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting For FY 2026-2027, the City's Citizen Participation process involved the following:
• Publicity: Bilingual (Spanish-English) information about the NOFA Application Workshop was distributed through a public notice posted at all three City libraries, City Hall, and Community Development Department facilities and distributed to community partners via email blasts; publication on the City website; publication of the public notice i n The Monterey County Herald (English & Spanish language) meeting notices posted in City Hall, City Council chambers, and the City’s Permit Center.
• Public Review of Draft Documents: A minimum 30-day public review was held from May 2 through June 2, 2026. Copies of the Draft Action Plan were made available for the public at the following locations: City’s website; Salinas City Hall; Salinas Libraries and Salinas Community Development Department.
• Public Hearing: The City Council conducted a public hearing on June 2, 2026, regarding the City's CDBG, HOME, and ESG allocations. This public hearing was streamed live at https://salinas.legistar.com/Calendar.aspx and televised live on Channel 25 on the date of the regularly scheduled meeting and will be broadcast throughout the week following the meeting. For the most up-to-the-minute Broadcast Schedule for The Salinas Channel on Comcast 25, please visit or subscribe to our Google Calendar locat ed at http://tinyurl.com/salinas25. Recent City Council meetings may also be viewed on the Salinas Channel on YouTube at http://www.youtube.com/thesalinaschannel.
The final Consolidated Plan, Substantial Amendments, Annual Action Plans and Consolidated Annual Performance and Evaluation Reports will be available for five years at the Salinas’ Community Development Department.
DRAFT
FY 2026-2027 Annual Action Plan 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of Outreach Summary of
response/attendance
Summary of comments
received
Summary of comments not
accepted and reasons
URL
(If applicable)
1 Application
Workshop
Regional and local service
providers and nonprofit
organizations
City and County Departments
Comments are summarized
in Appendix A.
All comments were
accepted
2 Public Noticing Minorities
Non-English Speaking:
Spanish
Non-Targeted/ Broad
Community
Comments are summarized
in Appendix A.
All comments were
accepted
3 Public Hearing Non-Targeted/ Broad
Community
Comments are summarized
in Appendix A.
All comments were
accepted
Table 4 - Citizen Participation Outreach
DRAFT
FY 2026-2027 Annual Action Plan 14
OMB Control No: 2506-0117 (exp. 09/30/2021)
Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The City is an entitlement jurisdiction for CDBG, HOME, and ESG funds, and is receiving $2,196,140 in CDBG funds, $844,248 in HOME funds, and $191,548 in ESG funds for FY 2026- 2027. In addition, the CDBG program anticipates Program Income (PI) of $37, 000 (similar to the amount of program income received by the City in FY 2025-2026) and the HOME program anticipates PI of $552,868. Specifically, the City anticipates receiving $94,000 in repayments from its Residential Rehabilitation Loan Program, and a payment of $40,000 from the multi-family Los Padres Apartment’s loan payoff. The CDBG PI and HOME PI will be incorporated into the City's annual budgeting process.
DRAFT
FY 2026-2027 Annual Action Plan 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
Anticipated Resources
Program Source of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder of
ConPlan
$
Narrative Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources: $
Total:
$
CDBG Public -
Federal
Acquisition
Admin and Planning
Economic Development
Housing
Public Improvements
Public Services
2,196,140.00 37,000.00 0.00 2,233,140.00 6,000,000.00 For planning purposes, the City estimates the availability
of approximately $2 million
annually in CDBG funds for
the remaining three years of
the CP period.
HOME Public -
Federal
Acquisition
Homebuyer assistance
Homeowner rehab
Multifamily rental new
construction
Multifamily rental rehab
New construction for
ownership
TBRA
844,248.40 40,000.00 0.00 884,248.40 2,400,000 For planning purposes, the City estimates the availability
of approximately $800,000 in
HOME funds annually for the
remaining three years of the
CP period.
ESG Public -
Federal
Conversion and rehab for
transitional housing
Financial Assistance
Overnight shelter
Rapid rehousing (rental
assistance)
Rental Assistance
Services
Transitional housing
191,548.00 0.00 0.00 191,548.00 510,000.00 For planning purposes, the City estimates the availability
of approximately $170,000 in
ESG funds annually for the
remaining four years of the
CP period.
Table 5 - Expected Resources - Priority Table
DRAFT
FY 2026-2027 Annual Action Plan 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Affordable Housing: In Salinas’ programs, the most frequent example of leveraging occurs in the development of new affordable housing projects. Due to the high cost of developing housing, it is essential for non -profit housing developers to construct new projects by leveragi ng and matching financial resources from a variety of sources. No matter the primary source of funding (e.g., federal Low-income Tax Credits, HUD Section 811 financing, USDA housing programs), none will finance the entire cost to develop housing. Salinas uses both CDBG and HOME funds to leverage the participation of other funders.
The flexibility of CDBG rules makes it particularly appropriate for pre -development process as critical support for non -profits that often are pressed for pre -development funds. Similarly, HOME guidelines emphasize the importance of using HOME to fill in ‘financing gaps’ that often result when projects face more rigid requirements established either by particular loan regulations, or due to the degree of competition for other financing.
Public Services: For the Public Services subrecipients CDBG funding is often an essential source of funds to access other funds. None of the subrecipients’ essential safety net programs are funded exclusively by CDBG.
Public Facilities and Infrastructure Improvements: There are other more subtle forms of leverage. Public investment in a particular neighborhood (upgrading water mains or installing traffic signals or street lighting) can be an inducement for additional investment by area property owners affected by the improvements.
Home Match Requirements: Pursuant to HUD regulations, all participating jurisdictions (PJs) must contribute or match 25 cents for each dollar of HOME funds spent on affordable housing.
The HOME statute allows for a reduction of the matching contribution requirement under three conditions: 1) fiscal distress, 2) severe fiscal distress, and 3) for Presidentially declared major disasters. When a local jurisdiction meets one of these distress conditions, it is determined to be in fiscal distress and receives a 50 percent reduction on match. If a local jurisdiction satisfies both of the distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent reduction on match. As of FY 202 4, the City is considered fiscally distressed and receives a 50 percent reduction in HOME match requirement, based on the City’s per capita income ($23,707) and poverty level (14.2 4 percent). The City has adequate accrued match from Housing Asset Funds (former redevelopment funds) to be ‘banked’ against its future match requirements.
ESG Match Requirements: The ESG program has a dollar-for-dollar match requirement. Federal (non-ESG), state, local, and private funds may be used as a match. The City’s ESG match requirement is satisfied with a variety of funding sources. Subrecipient s are required to provide their planned ESG match on the funding application, with the actual match reported at the end of the program year.
DRAFT
FY 2026-2027 Annual Action Plan 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan 34-38 Soledad St. and 45 Soledad St.: These City -owned properties are located within the Chinatown area. The Advanced Planning and Project Implementation Division and the Housing Division are collaborating on advancing these projects. Both sites are designated for the development of mixed -use affordable housing. City staff have been working on gathe ring community input for building design as well as needed amenities for the commercial space. As of April 2026, the City is proposing mixed -use developments at 3440 Soledad and 45 Soledad 55, which would include 55 affordable units for families and 30 affordable units for seniors, respectively.
10-12 Soledad St.: This property is currently owned by the City, which also plans to acquire adjacent parcels with the intent to combine them into a larger, contiguous site. These sites will be dedicated to future housing development.
37-39 Soledad St: This City-owned property, known as the Republic Café, has been designated like other sites in Chinatown for mixed -use housing development. In addition, the City is partnering with Asian Cultural Experience (ACE) for the development of a cultural museum on the ground floor.
Division St. Properties: This property consists of seven City -owned parcels designated for housing development. The City is collaborating with the Housing Authority of the County of Monterey on a proposal to develop a minimum of 48 housing units on the site.
El Rey Motel: This City-owned property was formerly a motel, acquired by the City in 2024 with the intention of developing Transitional Housing for individuals experiencing or at risk of homelessness. In the future, the City may consider converting the site into Permanent Supportive Housing, as permitted under the Zoning Code.
Discussion
See discussion above.
DRAFT
FY 2026-2027 Annual Action Plan 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Increase Decent and
Affordable Housing
2026 2027 Affordable
Housing
Alisal Homeownership
and Neighborhood
Revitalization Strategy
Area (ANRSA)
Chinatown Area
Citywide
Affordable Rental
Housing Opportunities
Assistance to
Homeowners for
Rehabilitation
Homeownership
Opportunities
CDBG:
$440,000
HOME:
$795,823.56
Homeowner Housing
Rehabilitated: 5 Housing
Units
Rental units constructed: TBD
Housing Units
2 Enhanced Homeless
Facilities and Services
2026 2027 Homeless Citywide Enhanced Homeless
Prevention, Services, and
Facilities
CDBG:
$200,000
ESG: $177,182
Public service activities other
than Low/Moderate Income
Housing Benefit: 150 Persons
Rapid Rehousing:
25 Households
3 Enhanced Neighborhood
Conditions
2026 2027 Non-Housing
Community
Development
Alisal Homeownership
and Neighborhood
Revitalization Strategy
Area (ANRSA)
Chinatown Area
Citywide
Public Services
Public Facilities and
Infrastructure
Improvements
Economic Development
CDBG:
$1,146,512
Public service activities other
than Low/Moderate Income
Housing Benefit: 100 Persons
Public Facility or
Infrastructure Activities other
than Low/Moderate Income
Housing Benefit: 50,000
Persons
4 Planning and Program
Administration
2026 2027 Planning and
Program
Administration
N/A Planning and Program
Administration
CDBG:
$446,628
HOME:
$88,424.84
ESG: $14,366
N/A
Table 6 - Goals Summary
DRAFT
FY 2026-2027 Annual Action Plan 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
Goal Descriptions
Goal Name Goal Description
Increase Decent and
Affordable Housing
The City will pursue a range of activities to expand affordable housing opportunities for lower- and moderate-income households, including those with special needs (seniors, large households, farmworkers, disabled, homeless, etc.).
Due to funding limitations and urgency of needs, affordable rental housing will be prioritized. The City will continue to provide rehabilitation assistance to homeowners for housing rehabilitation, accessibility improvements, and energy conservation systems installation. In addition, the City will continue to provide assistance to individual homeowners to make necessary repairs, code corrections, energy conservation features, and accessibility improvements.
Enhanced Homeless
Facilities and Services
The City will utilize both ESG and CDBG funds to coordinate services and facilities for the homeless. This is a citywide priority. The City's strategy for addressing homeless needs is three-pronged: 1) homeless prevention; 2) homeless services; and 3) homeless facilities. The intent is to reduce the risk of homelessness and address the needs of those rendered homeless using a continuum of care approach by supporting services and facilities that complement the existing Continuum of Care system.
Enhanced Neighborhood
Conditions
The City will provide a range of community development activities, including community and supportive services, expansion/improvement to community facilities and infrastructure, and economic development activities. The City will coordinate services and improvements in a manner that concentrate investments in specific neighborhoods in order to provide more lasting and impactful improvements.
Planning and Program
Administration
The City will continue to implement the CDBG, HOME, and ESG programs in compliance with all applicable regulations and requirements. The caps for program administration costs (20 percent for CDBG, 10 percent for HOME, and 7.5 percent for ESG) do not provide adequate funds to perform all the general planning, program implementation, reporting, and monitoring functions required by these programs. Therefore, as allowed by HUD, the City allocates a portion of the activity funding to delivery costs that are directly associated with implementation of specific activities or programs.
Table 7 - Goals Descriptions
DRAFT
FY 2026-2027 Annual Action Plan 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
Projects
AP-35 Projects – 91.220(d)
Introduction
During FY 2026-2027, the City will pursue a range of housing and community development activities using CDBG, HOME, and ESG funds. As discussed above, the CDBG program anticipates generating a Program Income (PI) of $ 37,000 (based on PI generated in prior years ) and the HOME program anticipates generating a PI of $40,000.
Projects
# Project Name
1 ECHO Housing Fair Housing and Tenant/Landlord Services 2 Salinas Outreach and Response Team
3 Chinatown Neighborhood Improvements (CIP 9070)
4 Alisal Neighborhood - Streetlights & ADA Ramps
5 Housing Rehabilitation
6 Playground Equipment Replacement
7 Affordable Housing Activity
8 Future CHDO Activity TBD
9 CDBG Program Administration
10 HOME Program Administration
11 ESG Projects and Administration
Table 8 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
Inadequate funding is the most significant obstacle for serving the underserved needs. The extent of needs in Salinas far exceeds the available funding from the CDBG, HOME, and ESG programs.
Most activities to be pursued by the City with CDBG, HOME, and ESG funds will be leveraged with a variety of funding sources, including grants from State, Federal, and local governments; private foundations; capital development funds; general funds; private donations of funds or services; and other various funding sources. For the provision of affordable housing, the City partners with non-profit housing developers such as MidPen, CHISPA, and HDC (Hous ing Authority of the County of Monterey Development Corporation), which all utilize a multi -layer approach to funding affordable housing. The City is looking to expand the number of non -profit housing developers that are operating within the City limits fo r FY 2026-2027. To achieve this, the City launched a Housing Forum to provide information on funding opportunities and disposition.
The HOME program requires that for every HOME dollar spent, the local jurisdiction must provide a 25 percent match with non-federal dollars. However, given the distressed conditions in Salinas, DRAFT
FY 2026-2027 Annual Action Plan 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
the City consistently receives a 50 percent reduction in the match requirements. HUD approved the HOME wavier which includes the CHDO set aside requirement.
Given the limited annual allocations in CDBG funds, the City may pursue the use of the Section 108 loan guarantee within the five-year CP period in order to support large-scale projects.
AP-38 Project Summary
Project Summary Information
1 Project Name ECHO Housing Fair Housing and Tenant/Landlord Services Target Area Citywide
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Services
Funding CDBG: $100,000
Description ECHO Housing conducts a yearly fair housing audit, housing rights counseling and tenant/landlord mediation. Responds to evictions and assists with the additional demand for eviction mitigation.
Matrix Code: 05J
National Objective: LMC
Presumed Benefit: No
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
This project anticipates assisting 100 persons.
Location Description Services are provided citywide. ECHO Housing is located at 22551 2nd Street Suite 200, Hayward, CA 94541
Planned Activities Services include responding to inquiries; conducting investigations of housing rights complaints; conducting a fair housing audit; providing tenant/landlord counseling; facilitating tenant/landlord conciliation and mediations; conducting outreach and quarterly trainings and check-ins with City staff. 2 Project Name Salinas Outreach and Response Team
Target Area Citywide
Goals Supported Enhanced Homeless Facilities and Services Needs Addressed Enhanced Homeless Prevention, Services, and Facilities Public Services
Funding CDBG: $200,000
Description To conduct Streat Outreach to unsheltered residents and provide essential services, including referrals, basic needs gear, and engagement to homeless encampments.
Matrix Code: 03T
National Objective: LMC
Presumed Benefit: Yes
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
This project anticipates assisting 100 persons through SORT outreach efforts.
Location Description Services are provided citywide. City Hall is located at 200 Lincoln Avenue Salinas, CA 93901
DRAFT
FY 2026-2027 Annual Action Plan 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities Activities include engage and case manage a minimum of 100 unsheltered individuals and corresponding entries/updates into HMIS; provide Coordinated Entry Assessments (CARS), conducting trips to distribute supplies, water, and other essentials during to fos ter rapport building and to increase engagement.
3 Project Name Chinatown Neighborhood Improvements (CIP 9070) Target Area Chinatown
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Facilities and Infrastructure Improvements Funding CDBG: $220,000
Description ADA curb cut ramps and streetlights at different locations within the Chinatown area.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
This project would benefit the 1,400 low/moderate income persons in Chinatown Area
Location Description Chinatown Area
Planned Activities Activities include predevelopment, such as environmental assessments and design, installation of ADA sidewalk curb ramps and other sidewalk repairs at different locations.
4 Project Name Alisal Neighborhood - Streetlights & ADA Ramps Target Area Alisal Neighborhood Revitalization Strategy Area (ANRSA) Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Facilities and Infrastructure Improvements Funding CDBG: $460,000
Description ADA curb cut ramps and streetlights at different locations within the ANRSA area. This will increase total funding to $1,420,000 from different FY Annual Action Plans.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
This project would benefit the 14,560 low/moderate income persons in ANRSA area.
Location Description ANRSA
Planned Activities Activities include predevelopment, such as environmental assessments and design, installation of streetlights at Roosevelt St, and installation of ADA curb cut ramps at different locations within the ANSRA.
5 Project Name Housing Rehabilitation
Target Area Citywide
Goals Supported Increase Decent and Affordable Housing
Needs Addressed Assistance to Homeowners for Rehabilitation Funding CDBG: $440,000
Description Grants and/or loans to low income owner -occupied households to rehabilitate and address essential health and safety issues, and correcting code enforcement violations.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The project anticipates assisting five (5) low income owner -occupied households.
DRAFT
FY 2026-2027 Annual Action Plan 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
Location Description Services are provided citywide.
Planned Activities Activities include providing grants and loans to low income owner-occupied households to rehabilitate and address essential health and safety issues .
Grants may also be used to correct code enforcement violations. 6 Project Name Playground Equipment Replacement
Target Area Citywide
Goals Supported Enhanced Neighborhood Conditions
Needs Addressed Public Facilities and Infrastructure Improvements Funding CDBG: 366,512
Description Replace playground equipment at public parks citywide.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
This project would benefit the 21 ,430 low/moderate income house holds in within a ½-mile of the included parks.
Location Description Central Park (420 Central Ave.), Mckinnon Park (1700 Mckinnon St.), Soberanes Park (1140 Paseo Grande), and Jaycee's Tot Lot (1415 Bardin Way).
Planned Activities This project will update playground equipment in need of replacement at four (4) public parks throughout the City.
7 Project Name Affordable Housing Activity
Target Area Citywide
Goals Supported Increase Decent and Affordable Housing
Needs Addressed Affordable Housing Rental Opportunities Assistance to Homeowners for Rehabilitation
Homeownership Opportunities
Funding HOME: $669,185.56
Description Acquisition, development of new construction, and rehabilitation of affordable housing.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Affordable housing units built/lower income households assisted TBD.
Location Description Citywide, TBD
Planned Activities The City will determine an activity to facilitate a cquisition, development of new construction, and/or rehabilitation of affordable housing. 8 Project Name Future CHDO Activity TBD
Target Area Citywide
Goals Supported Increase Decent and Affordable Housing
Needs Addressed Affordable Housing Rental Opportunities Assistance to Homeowners for Rehabilitation
Homeownership Opportunities
Funding HOME: $126,638
Description Acquisition, development of new construction, and rehabilitation of affordable housing.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
Affordable housing units built/lower income households assisted TBD.
Location Description Citywide, TBD
DRAFT
FY 2026-2027 Annual Action Plan 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities The City will determine an activity to facilitate acquisition, development of new construction, and/or rehabilitation of affordable housing conducted by a CHDO certified agency.
9 Project Name CDBG Program Administration
Target Area Citywide
Goals Supported Planning and Program Administration
Needs Addressed Planning and Administration
Funding
Description This line item is to provide for the general program planning and administration of the CDBG program.
Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The delivery of various CDBG-funded programs and activities will benefit low and moderate income persons in the City, along with persons with special needs, such as the youth, homeless, elderly, and disabled.
Location Description The CDBG program is administered by the Housing Division of the Community and Economic Development Department located at 65 West Alisal Street, Salinas.
Planned Activities The City will perform all program planning, administration, monitoring, and review functions in compliance with HUD regulations.
2 Project Name HOME Program Administration
Target Area Citywide
Goals Supported Planning and Program Administration
Needs Addressed Planning and Administration
Funding HOME: $88,424.84
Description The City is allocating 10 percent from the FY 2025 -2026 allocation and program income received. This line item will provide for the planning and administration activities to implement the City's HOME program, Target Date 6/30/2027
Estimate the number and
type of families that will
benefit from the proposed
activities
The delivery of the City's various HOME -funded programs and activities will benefit the City's low and moderate income persons and those with special needs.
Location Description The HOME program is administered by the Housing Division of the Community and Economic Development Department located at 65 West Alisal Street, Salinas.
Planned Activities The City will perform all program planning, administration, monitoring, and review functions in compliance with HUD regulations.
11 Project Name ESG Projects and Administration
Target Area Citywide
Goals Supported Planning and Program Administration
Enhanced Homeless Facilities and Services
Needs Addressed Planning and Administration
Enhanced Homeless Prevention, Services, and Facilities
Funding ESG: $191,548
Description The ESG Program will involve a range of activities to address homelessness.
These include the provision of outreach, shelters, prevention, rapid re - housing, and HMIS services.
Target Date 6/30/2027
Estimate the number and
type of families that will
The agencies funded anticipate providing assistance to homeless and at -risk homeless persons as follows:
DRAFT
FY 2026-2027 Annual Action Plan 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
benefit from the proposed
activities
• Salinas Outreach and Response Team (SORT) – 50 persons with outreach activities
• SORT Rapid Rehousing Assistance – 25 homeless persons with rapid rehousing activities
Location Description The ESG program is administered by the Housing Division of the Community and Economic Development Department and SORT, located at 65 West Alisal Street, Salinas.
Planned Activities The following activities are planned:
• SORT Outreach and Services
• SORT Rapid Rehousing Assistance
• ESG Administration
Table 9 - Project Summary Information
AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed The City's strategy is to focus its investment in a most impactful manner by providing significant investments in two target areas, the ANRSA and Chinatown. Specifically, the City has designated the Alisal as a Neighborhood Revitalization Strategy Area (NRSA). In addition, the Chinatown area is identified as a HUD Slum and Blight designated local target area, as it is currently isolated from the rest of the City and is seeing serious issues of homelessness, unreported violence and a high percentage of low - and moderate -income residents. Most public services are availa ble to residents citywide. However, by nature and/or location of some of the activities/programs, youth from the ANRSA and Chinatown would benefit greatly from many of these programs.
Some programs/projects are not located in any target areas nor are they available Citywide, so the geographic distribution of funds does not add up to 100%. Programs/projects that are not in target areas or available citywide are qualified by LMC, so they are not required to be located in a target
Geographic Distribution
Target Area Percentage of Funds
Alisal Neighborhood Revitalization Strategy Area (ANRSA) 14% Chinatown Area 6%
Table 10 - Geographic Distribution
Rationale for the priorities for allocating investments geographically These two areas represent the most distressed neighborhoods in the City. These areas have the highest concentration of poverty and substandard living conditions. The Alisal area includes some of the most distressed neighborhoods in Salinas. The area faces challenges such as inadequate public infrastructure, high levels of unemployment, high levels of poverty, and violent criminal activity. Within the ANRSA, 23 percent of all residents live in poverty, a higher proportion than the City overall (19 percent).
DRAFT
FY 2026-2027 Annual Action Plan 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
The 12 blocks that form the Chinatown area are located primarily within Census Tract 18.02 Block Group (BG) 2. This BG has a population of about 2,193, with 69.8 percent being low and moderate income.
Discussion
See above.
DRAFT
FY 2026-2027 Annual Action Plan 27
OMB Control No: 2506-0117 (exp. 09/30/2021)
Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
Under the City's Affordable Housing Goal, the City proposes to reserve up to 90 percent of the available HOME funds for affordable housing activities to be determined in the future. For the purpose of this AAP, an estimated five rental units are assumed to be assisted with HOME funds.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 5
Special-Needs 0
Total 5
Table 11 - One Year Goals for Affordable Housing by Support Requirement
One Year Goals for the Number of Households Supported Through Rental Assistance 0
The Production of New Units 5
Rehab of Existing Units 0
Acquisition of Existing Units 0
Total 5
Table 12 - One Year Goals for Affordable Housing by Support Type
Discussion
This summary includes only the uses of CDBG and HOME funds for the improvement and provision of long-term affordable housing.
AP-60 Public Housing – 91.220(h)
Introduction
HACM owns and manages 22 housing developments in Salinas (879 units). These developments have been converted from Public Housing to Project-Based Rental Assistance. Nineteen of the 22 HACM housing complexes in Salinas are concentrated within the ANRSA.
Actions planned during the next year to address the needs to public housing The City is not directly involved in the planning and development of public housing in the City.
Based on the current policy direction of HUD, no new public housing will be developed. However, the City works closely with HACM to create affordable housing in the community.
Actions to encourage public housing residents to become more involved in management and DRAFT
FY 2026-2027 Annual Action Plan 28
OMB Control No: 2506-0117 (exp. 09/30/2021)
participate in homeownership
HACM’s Family Self-Sufficiency (FSS) program is designed to help families with a Housing Choice Voucher (HCV) establish a savings account and find stable employment. FSS is a Federal Government program that offers the opportunity of homeownership and other options to clients that successfully complete the five-year program. Programs and services through FSS may include career counseling, job training, credit counseling and homeownership preparation. The program helps prepare res idents for HACM’s Homeownership Program, allowing first -time homebuyers to use their HCV to help with monthly homeownership expenses.
If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable.
Discussion
See discussions above.
AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City proposes utilizing CDBG and ESG funds to provide assistance to the City's homeless and special needs populations:
Homeless:
• Salinas Outreach and Response Team (SORT) – Outreach and Rapid Rehousing Assistance
Fair Housing:
• ECHO – Housing Rights and Tenant/Landlord Services that benefit many special needs groups such as seniors and disabled.
Describe the jurisdictions one -year goals and actions for reducing and ending homelessness including
Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City implements outreach services with in -house staff through the Salinas Outreach and Response Team (SORT) City of Salinas by providing essential emergency services through outreach, referrals, and service coordination. SORT engages the City of Salinas unhoused population through outreach to build trust and rapport with the unhoused community. In addition, coordinates services with partner outreach agencies through to CoC Outreach Committee which includes agencies such as Downtown Streets Inc. and Interim Inc.
DRAFT
FY 2026-2027 Annual Action Plan 29
OMB Control No: 2506-0117 (exp. 09/30/2021)
Addressing the emergency shelter and transitional housing needs of homeless persons For FY 2026-2027, HUD ESG will not be used to support Emergency Shelter or Transitional Shelter.
However, the City utilizes other sources of funding to support emergency shelter needs through Encampment Resolution Funding and General Fund. The City will be providing suppo rt to rapid re-housing programs.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and th eir families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
ESG funds will support rapid rehousing services by providing rental subsidies and housing referrals for homeless households participating in their program. This program will help homeless households attain permanent housing or shorten the period of time that individuals and families experience homelessness.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and correction s programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
Several agencies, such as the Natividad Medical Center and the Monterey County Family and Children’s Services, provide discharge planning and placement assistance. The Natividad Medical Center Mental Health Unit and Salinas Valley Memorial Hospital work with community agencies to assist in finding the appropriate level of care and housin g. The Monterey County Family and Children’s Services provide discharge planning and placement assistance to youth leaving foster care through a Transitional Independent Living Plan beginning when the youth turn 16 years old and every year thereafter.
Discussion
See above.
AP-75 Barriers to affordable housing – 91.220(j)
Introduction:
The most critical barrier to affordable housing in Salinas is the need for decent and affordable housing far exceeds the City's available resources. The City will continue to aggressively pursue funding available at the local, state, and federal levels to supplement its limited funds.
DRAFT
FY 2026-2027 Annual Action Plan 30
OMB Control No: 2506-0117 (exp. 09/30/2021)
The City values its partnership with non -profit housing developers such as CHISPA, MidPen, HACM, and Interim Inc. in pursuing innovative strategies to address the City affordable housing needs, including providing more permanent housing options for the homeless.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, gr owth limitations, and policies affecting the return on residential investment
The City's Inclusionary Housing Program is an effective strategy for providing affordable housing in the community and to help achieve the goal of de -concentrating affordable housing in the ANRSA, allowing residents other locational choices. The State of California also passed SB 329 in 2019, prohibiting housing discrimination against persons using public assistance (including Housing Choice Vouchers) to pay for housing. This source of income protection could potentially open housing options for many of the City’s low- and moderate-income households. The City has updated its Inclusionary Housing Ordinance to enhance the program's effectiveness. This update was completed in June 2017.
The City’s 2023-2031 Housing Element was adopted by the City in December 2023 and found to be compliant with State law in February 2024. The City is currently updating the General Plan, including the Land Use Element. The City is reimagining i ts land use plan and Zoning Code, switching from traditional land use designations to a place-based system. These draft Place Types would offer greater flexibility and density and place less emphasis on strict classifications. Their focus on place and form will make it easier to implement Objective and Development Design Standards and other changes to state law intended to reduce approval times for housing projects and streamline the review and approval process.
As of April 2026, the City is still in the process of its comprehensive General Plan Update. The City completed two administrative drafts in 2024 and is preparing a public review draft. The City began the selection process for a Zoning Code Update consultant with a Request for Proposal Process in late 2024. The City entered into an agreement with the selected consultant team in June 2025. The City is currently conducting community outreach in tandem with the preparation of the General Plan Update.
The City will implement the following action s identified in its 2023 -2031 Housing Element to remove barriers to affordable housing:
• Program 2 – Financial Assistance and Gap Financing: The City will continue to facilitate the expansion of the City’s affordable housing inventory through new construction, acquisition, and/or rehabilitation.
• Program 3 – Prohousing Designation: The City will maintain its Prohousing Designation Program (PDP) from the California Housing and Community Development Department (HCD). The Prohousing Designation provides incentives, in the form of additional points or preferences in the scoring of competitive applications for housing and infrastructure for City projects.
DRAFT
FY 2026-2027 Annual Action Plan 31
OMB Control No: 2506-0117 (exp. 09/30/2021)
In 2024, the City of Salinas executed a funding agreement with the Housing Authority of the County of Monterey to support the acquisition of a former motel that will be transitioned into a Permanent Supportive Housing Program for individuals facing homelessness.
• Program 4 – Accessory Dwelling Units: The construction of accessory dwelling units (ADUs) will continue to be promoted and facilitated in order to expand the supply of affordable housing stock within city limits. The City of Salinas regularly updates the preapproved ADU plans to reflect changes in building codes, including those from the triennial and intervening code adoption cycles of the California Building Standards (Title 24). Additionally, educational materials, such as the City of Salinas Preapproved ADU Handbook, are revised to align with updates to the building code and modifications to the HCD ADU Handbook.
The City continues to monitor available competitive state and federal funding, as well as other sources that can support the construction and operations of affordable ADUs.
The City is also reviewing strategies to reduce costs and barriers to ADU production, including extending the ordinance that exempts Development Impact Fees for ADUs under 750 square feet, as well as undertaking a comprehensive update to the Zoning Code to address streamlining.
Planning staff are currently working on the City's ADU Ordinance, which was introduced to the City Council in January 2026. As of now, the draft is still in progress as it undergoes necessary revisions, and the City is defaulting to state standards. The Planning staff continues processing ADU building permits and performing final inspections of new ADUs.
• Program 7 – Reduce Housing Production Constraints: The City continues to monitor existing development fees, including in -lieu fees, development impact fees, and processing fees, to ensure they are not a constraint to the feasibility of affordable housing development.
The City is conducting an analysis that covers all the departments to bring the Fee Schedule up to market. A nexus study has been prepared to update the Inclusionary Housing Ordinance. Additionally, $109,460 of General Funds were allocated to cover the cost of an Affordable Housing Nexus Study.
There has not been a reduction in application or development impact fees since the last adjustment to account for unit size/number of bedrooms. As funding allows, the City of Salinas provides gap financing for affordable housing developments led by non- profit organizations. In addition, the Housing Division continues to review affordable housing proposals for projects utilizing the Inclusionary Ordinance or Density Bonus programs.
DRAFT
FY 2026-2027 Annual Action Plan 32
OMB Control No: 2506-0117 (exp. 09/30/2021)
The City is currently working to update the Inclusionary Ordinance to better accommodate emerging development trends. Developers who participate in the Density Bonus program can request specific waivers and concessions, which will be determined based on the percentage of affordable units included in the project. • Program 16 – Local Education Workforce Housing: In 2022 the City adopted an ordinance (ZCA 2022 - 002) amending chapter 37 of the Salinas Municipal code to allow a school district or community college district to acquire, construct rehabilitate, or preserve affordable rental housing for its staff or public consistent with the Teacher Act of 2016.
• Program 17 – Farmworker Housing Production & Financing: The City will pursue the implementation actions suggested by the Farmworker Housing Study and Action Plan for Salinas Valley and Pajaro Valley in order to expand the quantity and diversity of housing available to farmworkers.
Discussion:
See discussions above.
AP-85 Other Actions – 91.220(k)
Introduction:
The extent of housing and community development needs in Salinas far exceeds the City's funding capacity. To utilize its limited funding in the most cost-effective manner, the City targets its investments in the most distressed neighborhoods in the community.
Actions planned to address obstacles to meeting underserved needs Unhoused city residents are among the most underserved groups in Salinas and available ESG funding continues to fall far below what is neede d to address the City's homeless issues. In response, the City continues to take the lead to serve as the Administrative Entity for additional ESG allocations from HCD ESG programs for the CoC service area (Monterey and San Benito Counties). Additionally, the City is an active, collaborative partner with the local CoC on the 2021- 2026 five -year update of the Regional Monterey and San Benito Counties Plan to End Homelessness (Lead Me Home Plan). On April 17, 2025, the Coalition of Homeless Service Providers hosted a Lead Me Home Summit on Homelessness in Salinas to discuss housing solutions, the intersection of health & homelessness, and resources available to service providers.
Two areas in the City – ANRSA and Chinatown – both have concentrated issues relating to disproportionate housing needs and inadequate/aging community facilities and infrastructure.
By establishing these areas as target areas, the City prioritizes allocatin g resources to benefit these neighborhoods.
DRAFT
FY 2026-2027 Annual Action Plan 33
OMB Control No: 2506-0117 (exp. 09/30/2021)
Actions planned to foster and maintain affordable housing CDBG funds will be planned to be used to support the City’s Housing Rehabilitation program.
For FY 2026-2027, the City is setting aside its HOME allocation and program income (except for 10 percent for administration) for affordable housing development, or other affordable housing activities. No specific project has been identified yet. The City will continue to pursue other affordable housing projects with non-profit partners in the County.
Actions planned to reduce lead-based paint hazards
Inspection/assessment of housing units built before 1978 by a HUD certified LBP inspector is required for units participating in the City’s programs. Property owners participating in the City’s programs are also eligible to receive grants to cover the costs of mitigation measures for standard treatment/abatement of any existing lead paint hazards as long as funding is available.
The Lead Hazard Reduction Grant is part of the Housing Services Program in the City’s 2023-2031 Housing Element (Program 10). The City continues to assess processes and methods to finance and reimplement the City of Salinas Housing Services Program.
The City provides public information and facilitates training for building contractors who remodel and rehabilitate Salinas’s housing. Before any project can be awarded, a current LBP certificate must be documented in the contractor file.
Property owners/renters may be relocated using the LBP grant when necessary. During the application stage of a ny of the City Housing programs, property owners/tenants receive EPA’s “Protect Your Family from Lead in your Home” educational pamphlet, which is available in multiple languages.
Actions planned to reduce the number of poverty-level families The following programs, actions and policies to reduce the number of households in poverty align with the City’s General Plan:
• Support the efforts of housing developers providing affordable housing opportunities in Salinas, particularly rental and multi-family housing. • Provide housing rehabilitation programs targeting lower income homeowners and units serving lower income renter-households to correct deficiencies and improve the livability of residential property.
• Provide assistance to lower income homeowners in need of housing modifications to improve accessibility and foster continuing independent living. • Support fair housing services.
• Support community organizations providing services to the disabled community, particularly those that assist with securing and maintaining decent, appropriate housing.
• Support increased community education regarding those with disabilities, both general and with regard to housing needs.
DRAFT
FY 2026-2027 Annual Action Plan 34
OMB Control No: 2506-0117 (exp. 09/30/2021)
• Support homeless service providers in Salinas and the larger community. Continue to support the development of transitional housing, emergency shelters, and supportive services designed to address the needs of homeless and those at -risk of homelessness.
• Support City and community programs focused upon the recreational and educational needs of Salinas’ youth.
• Provide assistance to local businesses through the GSF to create and retain employment for low- and moderate-income persons.
As discussed above, the City is currently in the process of updating it’s General Plan which will include new goals to reduce poverty in the City. The 2023 -2031 Housing Element also includes programs aimed at serving lower income households and reducing poverty:
• Program 8 – Residential Rental Registration & Rent Stabilization: The City adopted a Residential Rental Registration Ordinance on in April of 2023. Staff envision the Residential Rental Registration Program serving initially as a database that the City would use to collect and track data rental related data on units, inc luding those that are affordable units, as well as an opportunity to further expand its Fair Housing Services platform through the dissemination of useful tenant/landlord services and supports, and to disseminate information and expand tenant/landlord services. The City also will explore rent stabilization options under this program. • Program 10 – Housing Services Program: The City continues to pursue funding opportunities to reinstate the Housing Services Program, including rehabilitation loans/grants, accessibility assistance grants, and lead hazard reduction grants. • Program 12 – Housing Vouchers: The City aims to establish a closed-loop referral and navigation support system with service provider for those seeking information about Housing Voucher program and Utilities Assistance Programs to service providers and continue coordinating with nonprofits and landlords to promote and educate the public about Housing Choice Vouchers.
• Program 13 – Homebuyer Resources: On May 2023, the City was awarded $1,650,000 in HCD PIP funds. Of these funds, $500,000 will be utilized to reinstating the First-Time Home Buyer Program. The new program will be established by end of 2023 and it will assist very low, low, and moderate in comes households with ownership opportunities. In 2024, the city allocated PLHA funding to support the FTHBP activity. • Program 15 – Allocate Funding for Housing First Homeless Programs: Through its annual planning process, the City evaluates and allocates funding for services and facilities to support those unhoused or at-risk of homelessness through core program activities such as Street Outreach, Emergency Shelter, Rapid Rehousing HMIS and access to Permanent Supportive Housing. Programs that continue to receive funding to address homelessness and improve performance and capacity include the Share Center, Chinatown Naviga tion Center, Emergency Motel Program, and the Salinas Outreach and Response Team.
DRAFT
FY 2026-2027 Annual Action Plan 35
OMB Control No: 2506-0117 (exp. 09/30/2021)
Additionally, in fiscal year 2023 -2024, the City of Salinas purchased the El Rey Motel located at 443 W. Market Street and is looking to partner with the County of Monterey to operate it as transitional housing for individuals experiencing homelessness who require supportive care.
• Program 21 – Street Outreach Program: The City of Salinas Outreach and Response Team (SORT) engages the City’s unhoused population through outreach to build trust and rapport with the unhoused community. The team includes a collaboration with Peer Leaders with lived homeless experience which i s necessary to reach individuals who are hesitant to work with service providers.
• Program 23 – Housing Navigation and Stabilization Program: The Homeless Housing Stabilization Navigation Program (HHNSP) is a pilot program that started in January 2024. The program aims to serve individuals or households experiencing homelessness, providing rapid rehousing assistance aimed at helping individuals move as quickly as possible into permanent housing and achieve stability.
Actions planned to develop institutional structure
The City collaborates with the County of Monterey to develop a joint funding application process/system to help reduce administrative work associated with its funding application and program reporting. Use of City Data Services allows for more efficient and accurate management of the funds.
The City has established a Housing and Land Use Committee to provide an additional forum for non-profits, stakeholders, and members of the public to communicate directly with the City regarding housing and community development needs and plans for future projects. The Housing and Land Use Committee is tasked with the objective of enhancing coordination and improving the effectiveness and efficiency in the City utilizing its entitlement HUD funds. Specifically, the Housing and Land Use Committee serves as a formal recommenda tion body to the City Council regarding housing related items.
The City has implemented a two-year funding cycle for CDBG and ESG public services along with a competitive funding application that would yield less administration effort by the City and non- profits and allow for funding to assist in serving more clients. The City will also continue to monitor and evaluate the changing needs within the City and how best to fund various agencies to assist the low-moderate income citizens with CDBG and ESG public services funds.
Actions planned to enhance coordination between public and private housing and social service agencies
The City partners with its strong network of public and private housing and social service agencies to provide housing and community dev elopment programs in the City. Coordination efforts are ongoing.
DRAFT
FY 2026-2027 Annual Action Plan 36
OMB Control No: 2506-0117 (exp. 09/30/2021)
Discussion:
See above.
DRAFT
FY 2026-2027 Annual Action Plan 37
OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction:
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
0 3. The amount of surplus funds from urban renewal settlements 0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0
Other CDBG Requirements
1. The amount of urgent need activities 0
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
No other forms of HOME investments beyond those previously described.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
The City suspended its First -Time Homebuyer Program in 2014. Existing loans will be subject to the City's recapture/resale provisions. Pursuant to HUD’s HOME recapture regulations the City has chosen to recapture the entire principal loan balance (direct homebuyer subsidy) to the extent there are net proceeds after the sale of a home and repayments of the first mortgage and closing costs. This indebtedness is due and payable upon sale or transfer of the property, prior to the expiration of the period of affordability, to the extent there are sufficient “net proceeds”. Net proceeds are defined as the amount of sale proceeds remaining (if any) after payment of any superior loan(s) (Other than HOME funds) and customary closing costs. If upon the voluntary or involuntary sale of a property prior to the expiration of the period of affordability there are insufficient net proceeds to pay the balance DRAFT
FY 2026-2027 Annual Action Plan 38
OMB Control No: 2506-0117 (exp. 09/30/2021)
remaining of the First -Time Homebuyer Program, the homebuyer is relieved from any further obligation to pay the indebtedness.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
The City suspended its First -Time Homebuyer Program in 2014. Existing loans will be subject to the City's recapture/resale provisions. Pursuant to HUD’s HOME recapture regulations the City has chosen to recapture the entire principal loan balance (direct homebuyer subsidy) to the extent there are net proceeds after the sale of the home and repayme nts of the first mortgage and closing costs. This indebtedness is due and payable upon sale or transfer of the property, prior to the expiration of the period of affordability, to the extent there are sufficient “net proceeds”. Net proceeds are defined as the amount of sale proceeds remaining (if any) after payment of any superior loan(s) (Other than HOME funds) and customary closing costs. If upon the voluntary or involuntary sale of a property prior to the expiration of the period of affordability there a re insufficient net proceeds to pay the balance remaining of the First -Time Homebuyer Program, the homebuyer is relieved from any further obligation to pay the indebtedness.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City has no plan to use HOME funds to refinance existing debt.
5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)).
N/A
6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)).
N/A
7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR
92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a)/ N/A
Emergency Solutions Grant (ESG)
Reference 91.220(l)(4)
1. Include written standards for providing ESG assistance (may include as attachment) All subrecipients receiving funding must establish and consistently apply these written standards: An initial evaluation to determine program eligibility of individuals and/or families will be conducted by the agencies/service providers. It will establish the kind, and the amount of assistance needed.
Evaluations will be conducted in accordance with the requirements set forth under §576.400(d) and the written standards estab lished under §576.400(e). Agencies/service providers will reassess the eligibility of individuals and/or families; the kind and amount of assistance needed for program DRAFT
FY 2026-2027 Annual Action Plan 39
OMB Control No: 2506-0117 (exp. 09/30/2021)
participants receiving homelessness prevention services will be reassessed monthly and quarterly for program participants receiving rapid re -housing assistance. Each reassessment of eligibility will ascertain that:
• The program participant does not have an annual income that exceeds 30% of the median family income for the area, as determined by HUD;
• The program participant lacks sufficient resources and support network necessary to retain housing without ESG assistance.
In order to be funded with ESG funds, an agency/service provider is required to be a collaborative member of the CoC. This avoids duplication of services and allows a smooth transition and/ or delivery of services rendered. In addition, the collaborative f urther engages and coordinate resources to improve streamlining of current programs and funding strategies and provide ongoing traini ng as procedures and bylaws are ratified and refined.
The City will allow ESG -funded agencies that provide rapid re -housing and homelessness prevention services to determine the prioritization of eligible families. In addition, CHSP established basic registration and screening processes (intake, referral, eli gibility, documentation verification, case notes, to name a few) that allow all agencies a more consistent determination on the initial risk assessment during the intake process.
ESG-funded agencies tha t provide rapid re -housing and homelessness prevention services may determine the share of rent and utilities costs that each participant must pay. However, if applicants show income, they must pay 30 percent of their adjusted monthly income towards rent.
ESG-funded agencies shall assist individuals and/or families for no more than 24 months, during any 3-year period – this in accordance with the general conditions under §576.103 and §576.104. Program participants receiving rapid re-housing assistance are required to be re-evaluated at least once every year and those receiving homeless prevention assistance must be re -evaluated at least once every three months. As mandated by HUD, all program participants receiving project -based rental assistance must have a lease that is for a period of one year, regardless of the length of rental assistance.
Rental assistance may be provided for short -term (up to 4 months) or medium -term (from 4 to 24 months). Rent in arrears is paid to the owner of the housing at the time the security deposit and 1st month’s rent are paid. After 4 months, if program participants need additional financial assistance to remain housed, they must be evaluated for eligibility to receive up to 20 additional months of medium-term rental assistance. Case Managers will provide ongoing case management to transition program participants to independence.
2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system.
CHSP is in the process of developing an assessment system. Due to geography and other factors, The CoC has elected “coordinated” assessment and referral system as opposed to centralized assessment and referral. The Coordinated Assessment and Referral Syst em (CARS) is intended to offer those seeking services multiple locations from wh ich they can access services; each agency doing intake using the same set of agreed -upon assessment and targeting tools; makes referrals using the same criteria; and has access to the same set of referrals. The CARS is designed to improve service provision and data efficiency and improvement through a standardized access and assessment process for all DRAFT
FY 2026-2027 Annual Action Plan 40
OMB Control No: 2506-0117 (exp. 09/30/2021)
clients and a coordinated referral process for clients to receive prevention, housing, and/or other related services. Key CARS strategies include: 1) Tailor to local needs and systems; 2) Ensure access for all in geographic area; 3) Implement in parts/pie ces; 4) Use HMIS; 5) ID available resources in system; 6) Quality assurance; and 7) Test and adjust.
3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations).
The City is an “Entitlement City” and as such receives a funding allocation relating to population from HUD. The funding, subject to federal budget authorization, is provided on an annual basis and coincides with the City’s July 1 through June 30, fiscal year.
To distribute funds previously mentioned, the City typically conducts an annual Notice of Funding Availability (NOFA). However, for this AAP cycle the City opted to self -direct funding to better meet the needs of the community.
The NOFA process begins with published notices in the local newspapers, both in English and Spanish.
Notifications are sent out to the various non -profit agencies that provide public services to the community. A workshop is held by City staff to assist wit h proposals and to inform applicants of changes and new regulations. The application is available online by visiting www.citydataservices.net.
All proposals must be submitted electronically. A deadline is provided for the submission of proposals.
It is normally a minimum of thirty (30) days from the day the NOFA application notice is published.
Applications that are incomplete, lack required atta chments, or applications submitted after the published deadline are not to be considered for funding. After the closing date, proposals are first reviewed for completeness and then evaluated against applicable HUD regulations, the City’s CP, City Council goals and objectives, and other related City policy (e.g., General Plan).
Funding recommendations are developed be housing staff taking into account total available funds, applicant experience, project readiness and feasibility, leveraging of funds, track record with City (when applicable), and likelihood for timely use of HUD funds. Staff recommendations are forwarded to the Housing and Land Use Committee for a formal recommendation to City Council.
Then recommendations are taken to City Council for final approval. The City Council meets regarding the draft CP and AAP to obtain public and Councilmember comment. Advance notices are published in local newspapers to allow for a minimum thirty (30) day public review and comment period in adherence to the City’s CPP. The City Council if the final local decision -making body over HUD entitlement funding and approves recommendations and authorizes the submittal of the CP and AAP and other required documents to HUD.
4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG.
Under § 576.405(a) of the Interim Rule, all subrecipients are required to meet the homeless participation requirement, which calls for not less than one homeless or formerly homeless individual on the board or other equivalent policymaking entity. All agencies currently receiving ESG funding meet the homeless participation requirement by having a formerly homeless person on its board or policymaking entity. In addition, all potential ESG applica nts for funding are asked to certify meeting the homeless participation requirement under Part 11, #5 of the NOFA application. This is critical DRAFT
FY 2026-2027 Annual Action Plan 41
OMB Control No: 2506-0117 (exp. 09/30/2021)
because part of our standard policies dictate that applicants not meeting this requirement will not be considered for funding.
5. Describe performance standards for evaluating ESG.
The following performance standards for evaluating ESG activities were developed in consultation with the CoC using the format detailed in Section 427(b) of the McKinney -Vento Act (as amended by the Hearth Act). These standards will be used to evaluate eac h ESG subrecipient’s effectiveness in targeting those most in need, lowering the number of homeless persons, reducing the amount of time people are homeless, and mitigating housing barriers for the participants. Staff will work closely with the CoC as well as the subrecipients this first year and over time to determine the reasonableness of these standards.
Barriers faced by individuals and families (participants), or the length of time participants remain homeless:
• Extent to which participants experience repetitive homelessness • Effectiveness of subrecipient in reaching the homeless • Overall reduction in the number of homeless
• Job and income growth
• Success at reducing the number of participants who become homeless Plan of the subrecipient to:
• Reduce the number of participants who become homeless • Reduce the length of time participants remain homeless • Identify participants who become or remain homeless through collaboration with local education agencies
• Fulfill other criteria such as addressing the needs of all relevant subpopulations incorporating comprehensive strategies for reducing homelessness, setting quantifiable performance measures, setting timelines for completion of specific tasks identification of specific funding sources of activities identification of individual/group/agency responsible for overseeing implementation of specific strategies
• Exercise authority to use funds under section
DRAFT
FY 2026-2027 Annual Action Plan 42
OMB Control No: 2506-0117 (exp. 09/30/2021)
Appendix A: Public Outreach
DRAFT
FY 2026-2027 Annual Action Plan 43
OMB Control No: 2506-0117 (exp. 09/30/2021)
Appendix B: Monitoring
DRAFT
FY 2026-2027 Annual Action Plan 44
OMB Control No: 2506-0117 (exp. 09/30/2021)
Appendix C: SF 424 and Certifications
DRAFT