DATE: SEPTEMBER 8, 2026
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: FRANCISCO BRAMBILA, MANAGEMENT ANALYST
ERIC SOTELO, COMMUNITY DEVELOPMENT ANALYST
TITLE: HUD CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT FOR FISCAL YEAR 2025-26 RECOMMENDED MOTION:
A motion for the Housing and Land Use Committee to recommend City Council approve a resolution approving the Fiscal Year (FY) 2025-26 Consolidated Annual Performance and Evaluation Report and authorizing the City Manager to submit the FY 2025-26 CAPER to the United States Department of Housing and Urban Development (HUD) by September 28, 2026.
DISCUSSION:
The Consolidated Annual Performance and Evaluation Report (CAPER) provides a comprehensive summary of expenditures, activities, and accomplishments for each of the City’s HUD programs for the past fiscal year. This document also serves as a mechanism and opportunity for public evaluation regarding the City’s progress in carrying out goals and objectives as stated in its FY 2025-29 Consolidated Plan (Con Plan) and FY 2025-26 Annual Action Plan (AAP).
The City of Salinas (City), as a designated entitlement jurisdiction, is a direct funding recipient of the HUD’s Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), HOME American Rescue Plan (HOME-ARP), and Emergency Solutions Grants (ESG) Programs. As a requirement of the continued receipt of entitlement funding, each year the City must compile and submit a CAPER to HUD. This CAPER would be the first report for the FY 2025-29 Con Plan period. The CAPER is due to HUD no later than ninety (90) days after the end of the City’s FY 2025-26. This year, the CAPER is due to HUD no later than September 28, 2026.
The CAPER provides a one-year evaluation summary which describes all eligible projects, programs and activities funded through CDBG, CDBG-CV, HOME, HOME-ARP, and ESG funds and their relationship to the City’s housing, homelessness, and community development priorities and needs. In accordance with the City’s adopted Citizen Participation Plan (CPP), HUD requires a minimum fifteen (15) day public comment period for the CAPER.
In compliance with this mandate, public notices in English and Spanish were published in The Monterey Herald on August 29, 2026. Along with the public notices, the draft CAPER was also made available to the public on the City’s website; at City libraries, City Hall, and the Community Development Department office building. Additionally, the public notices and draft CAPER were distributed via email to the Community Development Department’s Housing Distribution List and by request through mail or email.
The public comment period for the FY 2026-26 CAPER began on August 29, 2026, and will conclude with the scheduled City Council hearing on September 15, 2026. The City Council public hearing provides an additional opportunity for the public to provide City Council feedback regarding the draft CAPER and provide input on community development needs within the city. A summary of all public comments received during the public comment period will be included in the City’s final CAPER submission to HUD.
This item is also presented and discussed at the Housing and Land Use Committee (HLUC) on September 8, 2026, where the public is encouraged to provide comments. HLUC comments will be announced as part of the presentation to City Council and will be included as part of the final CAPER submission to HUD.
Entitlement Funding & Program Income (PI)
The City of Salinas is an entitlement jurisdiction for CDBG, CDBG-CV, HOME, HOME-ARP, and ESG programs. HUD provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment and by expanding economic opportunities, principally for low- and moderate-income individuals. The City also utilizes program income (PI) related to its various entitlement funds to further fund certain eligible activities on an annual basis. PI is the gross income received by the City that is generated from the use of CDBG and HOME funds. Table 1 below represents total entitlement funding and PI available for FY 2025-26 for CDBG, CDBG-CV, HOME, HOME-ARP, and ESG.
Table 1 -FY 2025-26 Resources & Expenditures
Funding Source
Entitlement Amount
Program Income
Total Funding Available
Total Expenditures
CDBG
$6,544,550
$1,219,588
$7,764,138
$3,767,459
CDBG-CV**
$11,455
$0
$11,455
$11,455
HOME*
$4,604,847
$24,416
$4,629,263
$176,038
HOME-ARP**
$2,742,914
$0
$2,742,914
$79,003
ESG*
$213,316
$0
$213,316
$125,253
Total
$14,117,082
$1,244,004
$15,361,086
$4,159,208
*Includes remaining funds from prior years.
**Remaining funds from one time allocation.
Community Development Block Grant (CDBG)
Community Development Block Grant (CDBG) Entitlement funds may be used to support activities that principally benefit low- and moderate-income individuals by providing decent housing, creating suitable living environments, and expanding economic opportunities. During the reporting period, the City utilized CDBG Entitlement and CDBG-CV funds to support a variety of eligible activities, including the acquisition of real property, rehabilitation of residential structures, provision of public services, and the construction, rehabilitation, and improvement of public facilities and infrastructure, including streets and neighborhood facilities.
Following approval of the FY 2025-26 Annual Action Plan, the City processed three substantial amendments to the CDBG program during the fiscal year. The first substantial amendment, approved by the City Council on September 9, 2025, through Resolution No. 23327, provided additional funding necessary to fully fund the Sherwood Recreation Center Building Improvement Project. The second substantial amendment, approved on November 18, 2025, through Resolution No. 23357, allocated CDBG funds to support the rehabilitation of Vista de la Terraza. The third substantial amendment, approved on April 21, 2026, through Resolution No. 2026-048, appropriated CDBG program income generated from the sale of the City's 342 Front Street facility. More than ninety-two percent (92%) of the resulting program income was allocated toward the acquisition of real property in the Salinas Chinatown Neighborhood, supporting the City's ongoing neighborhood revitalization efforts.
Tables 2 & 3 below summarize the activities funded with CDBG Entitlement and CDBG-CV funds during FY 2025-26, including the activities undertaken, funds expended, and accomplishments achieved during the reporting period.
Table 2 -CDBG Program Activities for FY 2025-2026
Agency
Activity Name
Funding Category
Available Funding
Expenditures
Outcome
City of Salinas
Program Planning and Administration
Admin
$522,850
$458,542
N/A
City of Salinas
Natividad Creek Park Restroom Rehabilitation
Public Facility
$109,817
$81,466
One Facility
Complete
City of Salinas
Hebbron Family Center
Public Facility
$409,075
$317,267
One Facility
Complete
City of Salinas
Sherwood Recreation Center
Public Facility
$3,965,276
$2,634,203
One Facility
Ongoing
City of Salinas
Chinatown Neighborhood Improvements
Public Facility
$47,612
$26,675
Streetlights & ADA Curb Ramps
Ongoing
City of Salinas
Salinas Outreach and Response Team (SORT)
Public Services
$221,390
$118,655
171 Households
Eden Council for Hope and Opportunity (ECHO)
Housing Rights and Tenant/Landlord Services
Public Services
$102,300
$102,300
338 Households
City of Salinas
Alisal Neighborhood - Sidewalk Improvements
Public Facility
$1,006,619
$0
Streetlights & ADA Curb Ramps
Ongoing
City of Salinas
Acquisition of Properties in Chinatown Neighborhood
Public Facility
$1,085,000
$0
Buildings
Ongoing
Community Housing Improvement Systems and Planning Association (CHISPA) Vista de la Terraza
Housing
$440,000
$0
Up to 40 Housing Units
Ongoing
Table 3 - CDBG-CV Program Activities for FY 2025-26
Agency
Activity Name
Funding Category
Available Funding
Expenditures
Outcome
City of Salinas
Program Administration
Administration
$4,322
$4,322
N/A
City of Salinas
Economic Development and Technical Assistance
Public Service
$7,133
$7,133
25 Businesses
The CDBG-CV Funds were a one-time award through two separate rounds approved through the CARES Act in 2021 totaling $2,400,157. The City utilized these funds to provide small business support, fair housing activities, and food security at various homeless encampment during the COVID 19 pandemic. All funds were spent as of the end of September 2025.
HOME Investment Partnerships Program
The HOME Investment Partnerships Program supports local housing strategies intended to increase home ownership and affordable housing opportunities for low- and very low-income households. Eligible uses of funds include tenant-based rental assistance, housing rehabilitation, assistance to homebuyers, and new construction of housing. HOME funding may also be used for site acquisition, site improvements, demolition, relocation, and other necessary and reasonable activities related to the development of non-luxury housing.
The City released a Notice of Funding Availability on June 24, 2025, announcing the availability of approximately $8 million, including approximately $4.4 million in HOME funds, to be used as gap financing for affordable housing projects. On November 18, 2025, after the application review period, City Council approved preliminary awards for various proposed affordable multifamily projects listed in Table 4. A substantial amendment was also approved by City Council on the same date to allocate the HOME program funds and conditionally commit to the proposed projects. The table below shows the proposed activities to be funded with HOME grant funds. Projects are in the early stage of development and therefore had zero expenditures in FY 2025-26.
Table 4 - HOME Program Activities for FY 2025-26
Agency
Activity Name
Description
Available Funding*
Expenditures
Outcome
City of Salinas
Program Administration
Administration
$176,038
$176,038
N/A
CHISPA
Vista de la Terraza
Rehabilitation of Multifamily Housing
$610,000
$0
Up to 40 Units
Ongoing
CHISPA
Saint George Apartments
New Senior Housing
$435,789
$0
Up to 36 Units
Ongoing
Milestone Housing
200 Casentini Street Apartments
New Multifamily Housing
$3,387,768
$0
Up to 88 Units
Ongoing
* Includes funding from previous fiscal years.
HOME American Rescue Plan
The City’s HOME-ARP Allocation Plan was developed and submitted to HUD on March 21, 2023, and approved on May 26, 2023. Under the approved Plan, the City allocated fifteen percent (15%) of its HOME-ARP allocation, totaling $438,472 for eligible program administration and planning activities. The remaining $2,484,680, or eighty-five percent (85%) of the allocation, was designated for supportive services associated with two Homekey permanent supportive housing sites.
On February 24, 2026, through Resolution No. 2026-023, the City Council approved the allocation of HOME-ARP funds to support rental assistance services at the Fairview Homekey Project (Fairview), a permanent supportive housing development consisting of 45 studio units and a manager’s unit located at 1030 Fairview Avenue. The property is owned by the Housing Authority of Monterey County, which intends to utilize Project-Based Vouchers (PBVs) to provide rental assistance for the units for a period of 20 years.
Following consultation with HUD representatives, City staff confirmed that HOME-ARP funds could not be used to support ongoing operating costs at Fairview because federal requirements prohibit HOME-ARP funds and PBVs from being layered to pay for the same eligible rental assistance costs. As a result, on May 12, 2026, through Resolution No. 2026-061, the City Council authorized the reallocation of HOME-ARP funds to support the Salinas Outreach and Resource Team (SORT), while authorizing National Opioid Settlement Funds to support Fairview operations. Expenditure of HOME-ARP funds for SORT is not anticipated to occur until Fiscal Year 2026-27. Table 5 below summarizes the HOME-ARP activities funded during Fiscal Year 2025-26, including expenditures and associated outcomes.
Table 5 - HOME-ARP Program Activities for FY 2025-26
Agency
Activity Name
Funding Category
Available Funding
Expenditures
Outcome
City of Salinas
Program Administration
Administration
$257,577
$79,003
N/A
City of Salinas
SORT
Supportive Services
$1,190,337
$0
0 Persons
TBD
TBD
Supportive Services
$1,297,343
$0
TBD
Emergency Solutions Grant (ESG)
The ESG programs utilize federal funds to support communities in providing street outreach, emergency shelter, rental assistance, and related services. These programs provide resources for adults and families with children experiencing or are at-risk of homelessness. The street outreach and emergency shelter program components are capped at sixty percent (60%) of the ESG total funding. Additional ESG uses are to provide homelessness prevention assistance to households who are at risk of homelessness, and assistance to rapidly re-house persons who are experiencing homelessness. ESG funds also provide short-term or medium-term rental assistance, housing navigation and placement, and housing stability case management.
The City’s ESG allocation for FY 2025-26 was $188,399, however the City had $24,916 of unexpended funds from the prior fiscal year for a total of $213,315 of available funds for FY 2025-26. The following table shows the agency name, program funded, total number of unduplicated persons served, available funding, and total FY 2025-26 expenditures.
Table 6 - ESG Program Activities for FY 2025-26
Agency
Activity Name
Funding Category
Available Funding
Expenditures
Outcome
City of Salinas
Program Administration
Administration
$26,279
$12,150
N/A
City of Salinas
SORT
Street Outreach
Public Service
$12,767
$12,767
49 Persons
Rapid Re-Housing
$95,308
$21,374
Community Homeless Solutions
Rapid Re-Housing
Public Service
$78,962
$78,962
177 Persons
ATTACHMENTS:
FY 2025-26 CAPER – Draft
Presentation – FY 2025-26 CAPER
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CITY OF SALINAS
HOUSING AND LAND USE COMMITTEE