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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: March 4, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Substantial Amendment Number One to the Fiscal Year 2025-2026 Annual Action Plan, Allocating Community
Development Block Grant (CDBG) and CDBG Cares Act
(CDBG-CV) Funds from previous years to the SB HOPE
Campus (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-015 and:
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Substantial Amendment Number One to the Fiscal Year (FY) 2025-2026 Annual Action Plan (AAP); and
2. Approve the Substantial Amendment Number One to the Fiscal Year 2025- 2026 Annual Action Plan to increase funding for the SB HOPE Campus by $1,979,926.86; and
3. Authorize the City Manager or designee to take any further actions and execute any further agreements or documents, as necessary, to effectuate the submittal of the proposed Substantial Amendment Number One to the Fiscal Year 2025- 2026 Annual Action Plan to HUD; and
4. Authorize the Director of Finance and Management Services to amend the Fiscal Year (FY) 2025–2026 Budget in accordance with the approved Substantial Amendment, allocating a total of $1,979,926.86 from prior-year unspent CDBG funds, including: $64,627.53 from FY 2021–2022, $305,884.60 from FY 2022–2023, $185,642.91 from FY 2023–2024, $58,392.47 from FY 2024–2025, $92,574.29 from FY 2025–2026, and $1,272,805.06 from CDBG- CV FY 2020–2021; and
5. Authorize the Director of Finance and Management Services to amend the Fiscal Year 2025–2026 Budget to reflect a technical correction revising CDBG 3 1
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(FUND 119) unearned revenues to $6,417,546.41 and CDBG-CV (FUND 131 & 139 cumulatively) unearned revenues to $2,163,968.63.
City Manager's Comments
The City Manager concurs with the Community Development Department recommendation.
Executive Summary
The Department of Housing and Urban Development (HUD) requires the preparation of an Annual Action Plan (AAP) to carry out the 5-Year Consolidated Plan. The AAP described specific projects and activities to be undertaken during the program year with federal funds including CDBG and CDBG-CV. The SB HOPE Campus project was originally funded with FY 23-24 and FY 25-26 CDBG funds and requires additional funds. Staff have determined that previous unspent CDBG and CDBG-CV funds are available for reallocation towards the SB HOPE campus. HUD regulations require a substantial amendment to reallocate funding, including a 30-day public notice and Public Hearing. The public will have the opportunity to comment on the proposed Substantial Amendment Number One to FY 2025-2026 AAP for the increased funding for the SB HOPE Campus from $2,975,579 to $4,955,505.86.
Background
The City received CDBG and CDBG-CV funds from HUD. CDBG funds are available to provide decent housing, suitable living environments, and expanded economic opportunities, principally for low- and moderate-income households. CDBG-CV funds are available to support activities resulting from the COVID-19 pandemic. Each year, the City prepares an AAP that describes how it will spend its CDBG and other federal funds it expects to receive from HUD.
In accordance with HUD regulations, the City is required to develop and implement an AAP consistent with the City’s Consolidated Plan. The AAP outlines specific projects and activities to be undertaken during the program year. Periodically, adjustments to the AAP are necessary to address evolving community needs, funding availability, and program priorities. When a proposed change meets the criteria for Substantial Amendment, such as a significant reallocation of funds, changes in project scope, or the addition of new activities, the City must amend the AAP and follow public participation requirements.
As part of the amendment process, the City published public notices and provided opportunities for the public to review and provide comments in accordance with its Citizen Participation Plan. To meet these requirements, the City issued a public notice in English and Spanish on January 29, 2026, in the newspaper, and posted the notice on the City’s website. The notice provided details on the proposed Substantial Amendment, the availability and locations of the draft document for public review, and instructions for submitting comments. A 30-day public comment period was held from January 29, 2026, to February 28, 2026, in compliance with HUD’s public participation guidelines.
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Discussion
The Substantial Amendment proposes modifications to the City’s FY 2025-2026 AAP by using unallocated CDBG funds and CDBG-CV for the SB HOPE Campus. The SB HOPE Campus is a city project transforming the former School of Hope site at 796 E 6th Street into a navigation center to support people experiencing homelessness. The SB HOPE campus will provide interim housing, supportive services, recuperative care, treatment for substance use disorders, a pathway to stable housing, and integrated services to connect housing with treatment and health services. The tables below show the existing CDBG funding for the SB HOPE Campus and the proposed reallocation of additional CDBG and CDBG-CV funding through the Substantial Amendment:
Existing SB HOPE Campus Activity Summary:
Previously approved SB Hope Campus CDBG allocations include:
FY Funding Activity Action Amount
23-24 CDBG SB Hope Campus Open Activity $1,901,365
25-26 CDBG SB Hope Campus Open Activity $1,074,214
Total Allocation: $2,975,579
Substantial Amendment Summary:
A summary of the substantial amendment actions are as follows:
FY Funding Activity Action Amount
20-21 CDBG-CV Unallocated Funds Reallocation $1,272,805.06 21-22 CDBG Unallocated Funds Reallocation $ 64,627.53 22-23 CDBG Unallocated Funds Reallocation $ 305,884.60 23-24 CDBG Unallocated Funds Reallocation $ 185,642.91 24-25 CDBG Unallocated Funds Reallocation $ 58,392.47 25-26 CDBG Pearl Transit Cancel Activity $ 59,262.00 25-26 CDBG WPCC Partial Reallocation $ 33,312.29
Total Amount for Reallocation: $1,979,926.86
Upon approval of the FY 25-26 Substantial Amendment Number One to reallocate $1,979,926.86 to the SB HOPE campus, the total funding available to the SB HOPE Campus will be $4,955,505.86.
2021-2025 Strategic Targets and Goals
The request for the Substantial Amendment Number One to the 2025-2026 AAP aligns with Key Target No.3 – Improved Quality of Life, and the 2025-2029 Consolidated Plan goal to strengthen Homeless Prevention Services. The SB Hope Campus will provide homeless and homeless prevention services, help expand interim and emergency housing capacity, reduce unsheltered homelessness, and improve stabilization outcomes.
Fiscal Impact
Approval of this item increases commitments in the CDBG and CDBG-CV budget by 3 1
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$1,979,926.86 which is exceeding the amount already previously approved by the Mayor and City Council. However, there is no fiscal impact to the General Fund as these are Federal grant funds.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-015 of the Mayor and City Council of the City of San Bernardino, California, approving substantial Amendment Number One to the Fiscal Year 2025-2026 Annual Action Plan, allocating Community Development Block Grant (CDBG) and CDBG Cares Act (CDBG-CV) funds from previous years to the SB Hope Campus (All Wards):
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Substantial Amendment Number One to the Fiscal Year (FY) 2025-2026 Annual Action Plan (AAP); and
2. Approve the Substantial Amendment Number One to the Fiscal Year 2025- 2026 Annual Action Plan to increase funding for the SB HOPE Campus by $1,979,926.86; and
3. Authorize the City Manager or designee to take any further actions and execute any further agreements or documents, as necessary, to effectuate the submittal of the proposed Substantial Amendment Number One to the Fiscal Year 2025- 2026 Annual Action Plan to HUD; and
4. Authorize the Director of Finance and Management Services to amend the Fiscal Year (FY) 2025–2026 Budget in accordance with the approved Substantial Amendment, allocating a total of $1,979,926.86 from prior-year unspent CDBG funds, including: $64,627.53 from FY 2021–2022, $305,884.60 from FY 2022–2023, $185,642.91 from FY 2023–2024, $58,392.47 from FY 2024–2025, $92,574.29 from FY 2025–2026, and $1,272,805.06 from CDBG- CV FY 2020–2021; and
5. Authorize the Director of Finance and Management Services to amend the Fiscal Year 2025–2026 Budget to reflect a technical correction revising CDBG (FUND 119) unearned revenues to $6,417,546.41 and CDBG-CV (FUND 131 & 139 cumulatively) unearned revenues to $2,163,968.63.
Attachments
Attachment 1 Substantial Amendment One to the Fiscal Year 2025- 2026 Annual Action Plan
Attachment 2 Resolution No. 2026-015
Attachment 3 Proof of Publication English
Attachment 4 Proof of Publication Spanish
Ward:
All Wards
Synopsis of Previous Council Actions:
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On June 18, 2025, the Mayor and City Council adopted Resolution No. 2025-308 approving the 2025-2026 Annual Action Plan.
CC: Eric Levitt, City Manager