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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: August 19, 2026
To: Honorable Mayor and City Council Members
From: Cassandra Searcy, Deputy Director of Housing & Homeless Services
Department: Community Development & Housing
Subject: Approve Retroactive Fiscal Year 2025/26 Budget Amendments for Housing and Homelessness Activities in
the Amount of $1,735,179.97 (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-132:
1. Authorizing the Director of Finance and Management Services to make retroactive Fiscal Year 2025-2026 budget amendment to increase expenditure appropriations by a total of $1,735,179.97, consisting of $385,870 in HOME Investment Partnerships Program funds for the Arrowhead Grove Phase 4 Affordable Housing Development Project; $630,580.67 in HOME funds for Jamboree’s 5th and Meridian Affordable Housing Development Project; $551,858.10 in General Fund appropriations for the Rapid Rehousing Services Program; $150,000 in CDBG funds for the Hillside Capital Street Improvements Capital Project; and $16,871.20 in CDBG-CV funds for the Motel Voucher Program.
2. Authorizing the Director of Finance and Management Services to make all necessary budget adjustments and accounting entries required to implement the administrative correction and reappropriate the previously approved funding commitments into the Fiscal Year 2025/26 Operating and Capital Budget.
City Manager's Comments
The City Manager recommends the City Council reappropriate previously committed funds.
Executive Summary
Staff recommends approving the budget amendments and increasing expenditure appropriations by $1,735,179.97. The proposed amendments consist of $385,870 in 3 5
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HOME funds for Arrowhead Grove Phase 4; $630,580.67 in HOME funds for Jamboree’s 5th and Meridian; $551,858.10 in General Fund appropriations for Rapid Rehousing Services; $150,000 in CDBG funds for Hillside Capital Street Improvements; and $16,871.20 in CDBG-CV funds for the Motel Voucher Program.
These funding allocations were previously approved by the Mayor and City Council and remain committed to their respective projects and programs. However, during the Fiscal Year 2024-25 to Fiscal Year 2025-26 carryover process, the Housing and Homelessness Division inadvertently omitted these previously authorized funding commitments from its carryover request. As a result, the corresponding appropriations were not included in the Fiscal Year 2025-26 Operating and Capital Budget.
The proposed action does not authorize any new funding or expenditures. Rather, it corrects an administrative oversight by restoring and properly reappropriating previously approved funding commitments into the Fiscal Year 2025-26 budget. The correction will ensure that the City’s budget accurately reflects prior Council actions and that the funds remain available to support the Arrowhead Grove Phase 4 Affordable Housing Development Project, Jamboree’s 5th and Meridian Affordable Housing Development Project, the Rapid Rehousing Services Program, the Hillside Capital Street Improvements Capital Project, and the Motel Voucher Program.
Approval of the resolution will align the City’s budget with previously authorized funding commitments, provide accurate financial records, and ensure the City can continue to fulfill its existing obligations and implement the approved projects and programs.
Background
On June 2, 2021, the Mayor and City Council adopted the Fiscal Year 2021-22 Annual Action Plan, which allocated $385,870 in HOME Investment Partnerships Program (HOME) funds to the Arrowhead Grove Phase 4 Affordable Housing Development Project.
On May 15, 2024, the Mayor and City Council adopted the Fiscal Year 2024-25 Annual Action Plan, which allocated previously unallocated HOME funds totaling $1,248,411.13 from Fiscal Years 2020-21 through 2023-24, along with $124,187 in Fiscal Year 2024-25 unallocated HOME funds, to Jamboree’s 5th and Meridian Affordable Housing Development Project. The additional $630,580.67 in HOME funds represents the remaining balance necessary to reconcile the documented project allocations with the City’s current budget records and bring the total HOME funding reflected for the project to $2,003,178.80.
On March 19, 2025, the Mayor and City Council approved Resolution No. 2025-265, authorizing an amendment to the Fiscal Year 2024-25 Operating Budget to allocate $600,000 in General Fund resources for the Rapid Rehousing Services Program. The Mayor and City Council also approved a Professional Services Agreement with The Salvation Army in an amount not to exceed $600,000 to provide Rapid Rehousing Services. Following implementation of the program and expenditures incurred during 3 5
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Fiscal Year 2024-25, $551,858.10 of the original $600,000 appropriation remained unspent and was eligible for carryover to continue supporting the approved Rapid Rehousing Services Program.
On April 16, 2025, the Mayor and City Council approved the reallocation of Fiscal Years 2020-21, 2021-22, 2022-23, and 2023-24 HOME funds to the Arrowhead Grove Phase 4 Affordable Housing Development Project, increasing the total HOME allocation from $385,870 to $4,900,000.
Additionally, the Fiscal Year 2024-25 Annual Action Plan identified $520,000 in unallocated HOME funds for which no specific project had been identified at the time.
Subsequently, on April 16, 2026, the Mayor and City Council approved a substantial amendment to allocate $150,000 of these previously unallocated HOME funds to the Hillside Project.
A remaining balance of $16,871.20 was also identified from a prior fiscal year that had been allocated to the Public Works Department for the 5th Street Senior Center Upgrade Project. At project closeout, the full allocation was not expended, resulting in an unspent balance. Because the funds had previously been allocated to Public Works, the balance was not carried forward into the current fiscal year.
On June 4, 2025, the Mayor and City Council approved Resolution No. 2025-298, authorizing the Fiscal Year 2025-26 Operating Budget to be automatically amended at the close of Fiscal Year 2024-25 to reappropriate outstanding encumbrances and ensure funding for legally committed obligations. The action also authorized unspent appropriations for Council-approved but incomplete projects to be carried forward into Fiscal Year 2025-26 with City Manager approval.
Finance staff subsequently reviewed departmental carryover requests and prepared a recommended list of carryovers for the City Manager’s approval. On September 18, 2025, the Fiscal Year 2025-26 Operating Budget was amended to reappropriate the approved carryovers.
Housing and Homelessness staff identified amounts that were not included in the Fiscal Year 2024/25 year-end carryover submission. For Rapid Rehousing, the record reviewed for this report shows that Housing requested a $551,858.10 budget override on October 22, 2025; Finance approved the override on October 23, 2025 pending Council action; and Housing stated on October 27, 2025 that the item would be presented on December 17, 2025. That did not happen.
The proposed administrative correction will restore these previously authorized funding commitments to the appropriate Fiscal Year 2025-26 budget accounts. This action will ensure that the City’s current budget accurately reflects prior Mayor and City Council actions and that funding remains available for the approved projects and programs.
Discussion
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During the preparation of the Fiscal Year 2025–26 carryover request, the Housing and Homelessness Division inadvertently omitted four previously authorized and eligible funding allocations from its Fiscal Year 2024–25 carryover submission: (1) $385,870 in HOME Investment Partnerships Program (HOME) funds originally allocated to the Arrowhead Grove Phase 4 Affordable Housing Development Project; (2) $630,580.67 in HOME funds representing the remaining balance needed to reconcile the documented funding allocation for Jamboree’s 5th and Meridian Affordable Housing Development Project with the current budget records; (3) $551,858.10 in remaining General Fund appropriations for the Rapid Rehousing Services Program; and (4) $16,871.20 in Community Development Block Grant Coronavirus (CDBG-CV) funds associated with previously approved program activities. Each of these funding allocations was previously authorized by the Mayor and City Council and remains associated with its respective project or program. The proposed administrative correction will restore the omitted carryover amounts to the Fiscal Year 2025–26 budget and align the budget records with the previously authorized funding allocations.
The omission occurred during the departmental submission process and was not identified until after the City Manager approved the Fiscal Year 2025–26 carryover list and the corresponding budget amendment was processed on September 18, 2025.
Upon identifying the omission, Housing and Homelessness Division staff reviewed the funding history, confirmed that the appropriations were valid and eligible for carryover pursuant to Resolution No. 2025-298, and coordinated with Finance staff to determine the appropriate corrective action. Accordingly, staff is requesting City Council approval to appropriate the omitted carryover funds into the current operating budget.
The delay was not attributed to staffing transitions or absences. For Rapid Rehousing, Housing notified Finance on October 22, 2025, Finance approved a temporary budget override on October 23, 2025 pending Council action, and Housing stated on October 27, 2025 that the item would return on December 17, 2025. that did not happen and the item is now before Council on August 19, 2026.
Because the proposed action increases budget authority and includes restricted HOME, CDBG, and CDBG-CV resources, Council approval is required under San Bernardino Municipal Code sections 3.05.020 and 3.05.040.
An administrative correction is necessary to align the Fiscal Year 2025–26 Operating and Capital Budget with prior City Council-approved funding commitments. The HOME funds remain designated for the Arrowhead Grove Phase 4 Affordable Housing Development Project, which continues to advance through predevelopment activities and requires the availability of its full allocation to maintain project timelines. The remaining General Fund appropriation is necessary to support the continued delivery of Rapid Rehousing Services under the Professional Services Agreement with The Salvation Army, as approved by the Mayor and City Council on March 19, 2025. The CDBG-CV carryover will ensure the availability of previously authorized federal funding to complete eligible program activities and fully expend the remaining grant funds in accordance with HUD requirements.
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The proposed budget amendment will increase the Fiscal Year 2025–26 Operating and Capital Budget by a total of $1,735,179.97, consisting of $385,870 in HOME funds, $551,858.10 in General Fund appropriations, $150,000 in Community Development Block Grant (CDBG) funds, and $16,871.20 in Community Development Block Grant Coronavirus (CDBG-CV) funds. This action does not authorize any new spending or create new program commitments; rather, it restores previously approved appropriations that were inadvertently omitted from the original carryover request, ensuring the funds are properly reflected in the current fiscal year budget and remain available for their originally authorized purposes.
Approval of Resolution No. 2026-132 will allow the Director of Finance and Management Services to complete the administrative correction and ensure the budget accurately reflects Council direction and the City’s financial obligations. 2021-2025 Strategic Targets and Goals
The recommended Council action supports financial accountability and the continued implementation of Council-approved housing and homelessness activities. Before publication, staff must confirm that the cited strategic-plan title, period, target numbers, and wording remain current.
Fiscal Impact
The proposed amendments action would increase expenditure appropriations by $1,735,179.97. It would not increase the total funding commitments previously approved by the Mayor and City Council; they are administrative adjustments to align the budget with updated funding allocations and anticipated expenditures.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-132:
1. Authorizing the Director of Finance and Management Services to make an administrative correction to Fiscal Year 2024/25 carryovers by amending the Fiscal Year 2025/26 Operating and Capital Budget in the amount of $1,735,179.97, consisting of $385,870 in HOME Investment Partnerships Program funds for the Arrowhead Grove Phase 4 Affordable Housing Development Project, $630,580.67 in HOME Investment Partnerships Program funds for Jamboree’s 5th and Meridian Affordable Housing Development Project, $551,858.10 in General Fund appropriations for the Rapid Rehousing Services Program, $150,000 in CDBG funds for the Hillside Capital Street Improvements Capital Project, and $16,871.50 in CDBG-CV funds for the Motel Voucher Program.
F unding S ource / P rogramC urrent F Y 2025–26 B udgetY T D A ctualsE ncumbrancesB udget IncreaseR evised T otal B udgetHOME – A rrowhead G rove P hase 4$4,514,130.00$0 $0 $385,870.00$5,000,000.00HOME - J amboree 5th and Meridian$1,372,598.31$0 $0 $630,580.67$2,003,178.98G eneral F und – R apid R ehousing S ervices$0$291,361.99$551,858.10$551,858.10$551,858.10C DB G $0 $0 $0 $150,000.00$150,000.00C DB G -C V $0 $0 $0 $16,871.20$16,871.20T otal $5,886,728.31$291,362$551,858$1,735,179.97$7,721,908.28 3 5
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2. Authorizing the Director of Finance and Management Services to make all necessary budget adjustments and accounting entries required to implement the administrative correction and reappropriate the previously approved funding commitments into the Fiscal Year 2025/26 Operating and Capital Budget.
Attachments
Attachment 1 Resolution 2026-132
Ward:
All Wards
Synopsis of Previous Council Actions:
June 2, 2021 - The City Council conducted a public hearing on the draft FY 2021–2022 Annual Action Plan for the CDBG, HOME, and ESG programs and adopted the plan for submission to HUD. The Council authorized the City Manager to complete all necessary actions and documents for the plan’s submittal, directed the Finance Director to amend the budget for unspent ESG funds, and approved a Substantial Amendment to the FY 2020–2021 Action Plan. Additionally, the Council directed corresponding FY 2020–2021 budget amendments, established new CDBG-CV3 funds and accounts, and authorized the City Manager to execute all documents required to finalize and submit the Substantial Amendment.
March 19, 2025 – The City Council adopted Resolution 2025-265 amending the FY 2024/25 Operating Budget to allocate $600,000 from the General Fund for Rapid Rehousing Services. The Council designated The Salvation Army as the single-source provider for these services and authorized the City Manager to execute a Professional Services Agreement, along with any necessary amendments or extensions.
June 4th, 2025 – The Mayor and City Council approved resolution 2025-298, authorizing upon the close of Fiscal Year 2024/25, the Fiscal Year 2025/26 Operating Budget shall be automatically amended to include and reappropriate any outstanding encumbrances, ensuring adequate funding for legally committed obligations.
Additionally, unexpected appropriations for authorized but uncompleted projects, as approved by the City Council, may be carried forward into the Fiscal Year 2025/26 Operating Budget upon approval of the City Manager.
CC
Eric Levitt, City Manager