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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: May 6, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Proposed Fiscal Year 2026-27 Annual Action Plan for the Community Development Block Grant, HOME Investment
Partnership and Emergency Solutions Grant Programs (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Fiscal Year 2026-27 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs; and
2. Consider any necessary changes to the proposed Fiscal Year 2026-27 Annual Action Plan and direct staff to return on June 17, 2026, with the final Annual Action Plan for consideration prior to submittal to the United States Department of Housing and Urban Development
3. Authorize the Director of Finance and Management to adjust the Fiscal Year 2026-2027 Budget appropriation to align with the Fiscal Year 2026-27 Annual Action Plan allocation; and
4. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the submittal of the Fiscal Year 2026-2027 Annual Action Plan and certification to the U.S. Department of Housing and Urban Development.
City Manager's Comments
The City Manager defers to the Housing Division recommendation. 3 2
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Executive Summary
The United States Department of Housing and Urban Development (HUD) provides Community Development Block Grant (CDBG), Emergency Solution Grant (ESG), and HOME Investment Partnership Program (HOME) funds annually to the City based on a formula calculation to help develop viable urban communities improve the lives of low- to moderate-income residents. Funds are also used to create economic opportunities, provide assistance to homeless individuals and families, and develop affordable housing. Per HUD regulations, the City seeks to conduct a Public Hearing to assess housing and community development needs of its residents.
Background
The City of San Bernardino (City) is entitled to receive Community Development Block Grant (CDBG), HOME Investment Partnership (HOME), and Emergency Solutions Grant (ESG) funds from the United States Department of Housing and Urban Development (HUD). The funds are made available to provide decent housing, suitable living environments, and expanded economic opportunities, principally for low- and moderate-income persons. Each year, the City prepares an Annual Action Plan (AAP), which describes how the City will spend its federal CDBG, HOME, and ESG funds that it expects to receive from HUD.
The Fiscal Year 2026-27 (FY2026-27) AAP is intended to recognize and accept the new FY 2026-27 HUD allocation of CDBG, HOME, and ESG funding and allocate these funds to activities that will address the strategies and objectives identified in the City’s 2025-29 HUD Consolidated Plan that was approved by the City Council on May 15, 2025.
Discussion
To receive federal funding from HUD, the City must submit an AAP that identifies the proposed activities that will be used to address the priority needs and specific goals identified in the City’s 2025-2029 (Five-Year) Consolidated Plan.
For FY2026-27, the City has been allocated approximately $2,536,177 in CDBG funds, $1,092,341.87 in HOME funds, and $229,279.65 in ESG funds. Subject to federal regulations, CDBG, HOME, and ESG funding may be used to support a range of eligible activities, including homeowner assistance, emergency shelter and homelessness prevention, housing preservation and development, economic development initiatives, capital improvements, public services, fair housing activities, and program administration.
Community Development Block Grant (CDBG)
The allocation for the CDBG FY2026-27 program year is approximately $2,536,177, of which $507,235 is allowed for program administration. The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate-income.
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During the application period for CDBG, the city received 11 applications from the community. Staff reviewed the submissions and recommended awarding funding to the San Bernardino Police Department, Neighborhood Housing Services of the Inland Empire, Family Service Association, and the Inland Fair Housing Mediation Board for their respective programs. A full list of applicants can be found in Attachment 3.
Community Development Block Grant (CDBG) Funds
Proposed Funding Activity Amount
Administration and Loan Repayment
Administration $507,235
Section 108 Payment $652,291
Subtotal $1,159,526
Public Service Programs
Fair Housing $70,000
SB Police Department $195,000
Neighborhood Housing Services of Inland Empire $40,000
Family Services Association $41,000
Subtotal: $346,000
Public Facility Projects
SB Public Works $1,030,651
Subtotal: $1,030,651
Grand Total: $2,536,177
Of the projects listed in Table 1, above, the Section 108 repayment activity is an ongoing CDBG obligation for a 17.43-acre commercial property located on Highland Avenue between Arden Street and Guthrie Street. The City is moving forward with the sale of the property to a developer who will build a multi-tenant commercial shopping center.
The City funds the Inland Fair Housing Mediation Board (IFHMB) to provide Fair Housing and Landlord/Tenant mediation services. In FY 2024-2025, IFHMB provided fair housing services to over 1,200 persons with landlord/tenant mediation services. 3 2
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Public service provided by the San Bernardino Police Department includes outreach and service delivery initiatives focused on assisting the unhoused population in the City of San Bernardino. This program focuses on those experiencing homelessness, those at risk of becoming homeless, and individuals facing challenges to housing stability. Its goal is to enhance access to services for the unhoused community by expanding outreach efforts and ensuring that individuals receive the necessary support and referrals.
The public facility project will enhance community accessibility, safety, and quality of life, and overall Improvement to neighborhood conditions for residents.
HOME Grant
The allocation for HOME for FY2026-27 is $1,092,342 with $109,234 allowed for program administration. The objectives of the program are:
To strengthen the ability of state and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing.
To provide assistance to participating jurisdictions for the development of affordable housing.
To strengthen partnerships among all levels of government and the private sector.
This table shows the proposed fund activities and the final recommendations for HOME based on the HUD allocation and the City Council direction:
HOME Investment Partnership (HOME) Funds
Proposed Funding Activity Amount
Administration
Administration $109,234
Subtotal $109,234
Affordable Housing Projects/Programs
Affordable Housing Projects $983,108
Subtotal: $983,108
Grand Total: $1,092,342
HOME funds will be used to support an affordable housing program.
Emergency Solutions Grant (ESG)
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The City’s total allocation for FY2026-27 ESG is $229,280, of which $17,196 is allowed for administration. The remaining $212,084 can be directed towards programs that provide:
1. Engagement of individuals and families living on the streets.
2. Improvement of homeless shelters and operation of shelters.
3. Rapid re-housing of homeless persons, and;
4. Homelessness prevention for families and individuals at risk of becoming homeless.
This table shows the proposed fund activities and the final recommendations for ESG based on the HUD allocation and the City Council direction:
Emergency Solutions Grant (ESG) Funds
Proposed Funding Activity Amount
Administration and Loan Repayment
Administration $17,196
Subtotal $17,196
Public Service Programs
Salvation Army $212,084
Subtotal: $212,084
Grand Total: $229,280
Once approved by City Council, the Housing staff will return at a future council meeting, for execution of the subrecipient agreements, effective as of July 1, 2026, which is the beginning of the program year. The attached AAP has outlined all vendors and amounts to be allocated for services.
Strategic Targets and Goals
The funding recommendations will meet Key Target No. 2: Focused, Aligned Leadership and Unified Community by developing and implementing a community engagement plan and building a culture that attracts, retains, and motivates the highest quality talent; Key Target No. 3: Improved Quality of Life by reducing the burden of homelessness through engagement, collaboration, and alignment with other entities.
Fiscal Impact
Approval of the draft AAP will not impact the General Fund. Recommended activities will be funded with federal funds.
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Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Fiscal Year 2026-27 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs; and
2. Consider any necessary changes to the proposed Fiscal Year 2026-27 Annual Action Plan and direct staff to return on June 17, 2026, with the final Annual Action Plan for consideration prior to submittal to the United States Department of Housing and Urban Development.
3. Authorize the Director of Finance and Management to adjust the Fiscal Year 2026-2027 Budget appropriation to align with the Fiscal Year 2026-27 Annual Action Plan allocation; and
4. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the submittal of the Fiscal Year 2026-2027 Annual Action Plan and certification to the U.S. Department of Housing and Urban Development.
Attachments
Attachment 1 FY 2026-2027 Annual Action Plan
Attachment 2 AAP 26-27 Presentation
Attachment 3 PSA Applications
Attachment 4 Public Hearing Proof of Publication
Ward:
All Wards
Synopsis of Previous Council Actions:
June 18, 2025 Mayor and City Council approved the City’s Consolidated Plan for 2025-2029.
CC: Eric Levitt, City Manager