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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: June 17, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Adopt 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. Approve and adopt the Fiscal Year 2026-2027 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs inclusive of all incorporated changes resulting from the public hearing process; and
2. Adopt Resolution No. 2026-067, authorizing the approval, acceptance, and allocation of the Fiscal Year 2026-2027 Annual Action Plan; and
3. Authorize the Director of Finance and Management Services to adjust the Fiscal Year 2026-2027 Budgeted revenues and expenditures, as necessary, to align with the allocations identified in the Fiscal Year 2026-27 Annual Action Plan; and
4. Approve the draft Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) subrecipient agreements, to be utilized for the award and administration of funds to eligible subrecipients consistent with the approved Action Plan, as to form, with authorization for modifications to the form as deemed necessary, subject to review and approval by the City Manager, or the City Manager’s designee, and the City Attorney; and
5. Authorize the City Manager, or the City Manager’s designee, to take any further actions and execute any further agreement or documents as necessary to effectuate the submittal and implementation of the Fiscal Year 2026-2027 Annual Action Plan and certification to the U.S. Department of Housing and Urban Development, and execute all agreements and subrecipient agreements for the use of funds approved in the FY 2026-27 Annual Action Plan. 3 2
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City Manager's Comments
Staff is proposing the 2026-2027 Annual Action Plan for the Community Development Block Grant, HOME investment Partnership and Emergency Solutions Grant Programs.
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 second Public Hearing to approve and adopt the Fiscal Year 2026-2027 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs inclusive of all incorporated changes resulting from the public hearing process held on May 6, 2026.
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.
On May 6, 2026, the City conducted an initial 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. The City Council directed staff to allocate available Community Development Block Grant (CDBG) funding designated for Public Facilities and Infrastructure Improvements toward the installation of prefabricated restroom units, with Perris Hill Park and Wildwood Park identified as priority locations for potential implementation.
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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 FY 2026-27, the City has been allocated $2,746,734 in CDBG funds, $1,161,844.19 in HOME funds, and $238,382 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 FY 2026-27 program year is approximately $2,746,734, of which $549,346.00 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.
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.
Table 1:
Community Development Block Grant (CDBG) Funds
Funding Sources Amount
FY 26/27 Allocation $2,746,734.00
FY 25/26 Reallocation $24,692.40
Total: $2,771,426.40
Proposed Funding Activity Amount
Administration and Loan Repayment
Administration $549,346.00
Section 108 Payment $652,290.90
Subtotal $1,201,636.90
Public Service Programs
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Fair Housing $70,000.00
SB Police Department $195,000.00
Neighborhood Housing Services of Inland Empire $40,000.00 Family Services Association $41,500.00
Subtotal: $346,500.00
Public Facility Projects
Perris Hill Park (FY 26/27 Allocation) $1,198,597.10
Perris Hill Park (FY 25/26 Reallocation) $24,692.40
Subtotal: $1,223,289.50
Grand Total: $2,771,426.40
Table 2:
FY 25/26 CDBG Reallocation Funds
Projects Amount
Cedar House Life Change Center $24,692.40
The FY 2026–27 Annual Action Plan includes the reallocation of $24,692.40 in prior- year unspent CDBG funds resulting from Cedar House Life Change Center’s withdrawal from the CDBG program.
Of the projects listed in Table 1, above, Administration costs consist of expenses related to the overall management and oversight of the Community Development Block Grant (CDBG) program. These costs include activities such as program planning, budgeting, reporting to the U.S. Department of Housing and Urban Development (HUD), monitoring for regulatory compliance, financial management, and coordination of funded projects. Administrative costs also cover staff time and support services necessary to ensure the program is properly implemented in accordance with federal requirements. This includes activities such as preparing and submitting required reports to HUD, maintaining financial and program records, conducting environmental reviews, ensuring compliance with labor standards and fair housing regulations, coordinating citizen participation processes, and responding to monitoring or audit requests. It may also include legal, accounting, and procurement support, as well as staff oversight of subrecipients and contractors to ensure all CDBG-funded activities meet applicable federal guidelines.
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.
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The City funds the Inland Fair Housing Mediation Board (IFHMB) to provide Fair Housing and Landlord/Tenant mediation services. In FY 2025-2026, IFHMB provided fair housing services to over 1,200 persons with landlord/tenant mediation services.
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 includes improvements at Perris Hill Park through the installation of prefabricated, ADA-compliant restroom facilities and accessible paths of travel as required. Housing and Homeless Services staff met with Parks and Recreation and Public Works staff to evaluate project feasibility and identify the most suitable location for the allocation of these funds. Based on the assessment and feedback received, Perris Hill Park was determined to be the preferred project site due to the demonstrated need for additional restroom facilities at the park.
Selection of the Perris Hill Park location also provides administrative efficiencies, as the proposed restroom improvements are located within the same park, allowing for more streamlined project management, implementation, and oversight. In addition, a third restroom facility at Perris Hill Park is planned for improvement through non-CDBG funding sources. Concentrating these investments at a single location will result in a more comprehensive enhancement of restroom infrastructure and improve accessibility and service levels for park users.
These improvements are intended to expand access to clean, safe, and accessible public restrooms amenities within City parks. The park improvement is anticipated to enhance public accessibility, park usage, community health and safety and overall quality of life for residents.
HOME Grant
The allocation for HOME for FY2026-27 is $1,161,844.19 with $116,184.00 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 3 2
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based on the HUD allocation and the City Council direction:
HOME Investment Partnership (HOME) Funds
Proposed Funding Activity Amount
Administration
Administration $116,184.00
Subtotal $116,184.00
Affordable Housing Projects/Programs
Affordable Housing Projects $1,045,660.19
Subtotal: $1,045,660.19
Grand Total: $1,161,844.19
HOME funds will be used to support an affordable housing programs and projects. At this time, no specific affordable housing project has been selected for the use of HOME funds. Once a project is identified and recommended for funding, it will be brought before the City Council for review and approval in accordance with HUD requirements and the City’s Consolidated Plan.
Emergency Solutions Grant (ESG)
The City’s total allocation for FY2026-27 ESG is $238,382.00 of which $17,878.65 is allowed for administration. The remaining $220,503.35 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
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Administration $17,878.65
Subtotal $17,878.65
Public Service Programs
Salvation Army $220,503.35
Subtotal: $220,503.35
Grand Total: $238,382.00
The Salvation Army will utilize Emergency Solutions Grant (ESG) funds to support emergency shelter operations and essential services for approximately 150 individuals experiencing homelessness. Funding will address housing instability, homelessness, and long-term housing stability by supporting operational and essential service costs associated with the provision of emergency shelter, including Homeless Management Information System (HMIS) data entry and administration. In addition, ESG funds will support rapid re-housing assistance, street outreach services, and homelessness prevention activities designed to help individuals and families obtain and maintain stable housing and avoid future episodes of homelessness.
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 FY 2026-2027 Annual Action Plan will authorize the allocation and administration of approximately $4.15 million in federal HUD funding, including approximately $2.75 million in Community Development Block Grant (CDBG) funds, $1.16 million in HOME Investment Partnership (HOME) funds, and $238,000 in Emergency Solutions Grant (ESG) funds. There is no direct impact to the General Fund, and all recommended activities will be funded through federal grant revenues.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Approve and adopt the Fiscal Year 2026-2027 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs inclusive of all incorporated changes resulting from the public hearing process; and
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2. Adopt Resolution No. 2026-067, authorizing the approval, acceptance, and allocation of the Fiscal Year 2026-2027 Annual Action Plan; and
3. Authorize the Director of Finance and Management Services to adjust the Fiscal Year 2026-2027 Budgeted revenues and expenditures, as necessary, to align with the allocations identified in the Fiscal Year 2026-27 Annual Action Plan; and
4. Approve the draft Community Development Block Grant (CDBG) and Emergency Solutions Grant (ESG) subrecipient agreements, to be utilized for the award and administration of funds to eligible subrecipients consistent with the approved Action Plan, subject to review and approval by the City Manager, or the City Manager’s designee, and the City Attorney; and
5. Authorize the City Manager, or the City Manager’s designee, to take any further actions and execute any further agreements or documents as necessary to effectuate the submittal and implementation of the Fiscal Year 2026-2027 Annual Action Plan and certification to the U.S. Department of Housing and Urban Development, and execute all agreements and subrecipient agreements for the use of funds approved in the FY 2026-27 Annual Action Plan.
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
Attachment 5 CDBG Subrecipient Agreement
Attachment 6 ESG Subrecipient Agreement
Attachment 7 Resolution 2026-067
Ward:
All Wards
Synopsis of Previous Council Actions:
June 18, 2025, Mayor and City Council approved the City’s Consolidated Plan for 2025-2029.
May 6, 2026, First 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
CC: Eric Levitt, City Manager