TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Erik L. Soliván
SUBJECT: See Below DATE: April 17, 2026
Approved
Date:
4/24/2
COUNCIL DISTRICT: Citywide
SUBJECT: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
RE
COMMENDATION
(a) Conduct a final public hearing regarding approval of the City’s Fiscal Year 2026- 2027 Annual Action Plan, as required by the U.S. Department of Housing and Urban Development, to receive federal housing and community development funding.
(b) A dopt a resolution:
(1) Approving the City’s Fiscal Year 2026-2027 Annual Action Plan;
(2) Authorizing the Housing Director, or his designee, to submit the City’s Fiscal Year 2026-2027 Annual Action Plan to the U.S. Department of Housing and Urban Development; and
(3) Authorizing the Housing Director, or his designee, to negotiate and execute agreements with grantees for the activities identified in the Fiscal Year 2026- 2027 Annual Action Plan, including any amendments, extensions, and modifications.
SUMMARY AND OUTCOME
This memorandum presents the City’s Fiscal Year 2026-2027 Annual Action Plan (Action Plan), outlining the City’s proposed use of federal funds to address housing needs, reduce homelessness, and strengthen communities. The purpose of this action COUNCIL AGENDA: 5/5/26
FILE: 26-519
ITEM: 8.1
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
is to provide the final opportunity for the City Council and members of the public to provide input on the draft Action Plan.
In accordance with the City’s Community Participation Plan, the Housing Department (Department) is to conduct three public hearings to ensure community involvement in the development of the Action Plan. The first hearing, held on April 9, 2026, took place before the Housing and Community Development Commission. The second hearing, held on April 16, 2026, was a community meeting that presented the Action Plan and gathered public input. The third and final hearing before the City Council provides the last opportunity for public input and serves as the City Council’s formal consideration and adoption of the Action Plan.
Upon the City Council adoption of the final Action Plan, the Department will submit the final federally mandated document to the U.S. Department of Housing and Urban Development (HUD) by the May 15, 2026 deadline. Meeting this deadline enables the City to remain eligible to receive approximately $13.7 million in federal housing and community development funds in FY 2026-2027.
BACKGROUND
As a HUD entitlement jurisdiction, the City receives federal formula grants from HUD each year for housing and community development activities. The funding is allocated to the City based on several factors, including population, poverty, and housing statistics.
Every five years, HUD requires entitlement jurisdictions to develop a Five-Year Consolidated Plan (Consolidated Plan). The Consolidated Plan assesses San José’s current housing market, analyzes demographic, racial, and socio-economic conditions, and identifies populations within the City that have the greatest community and housing needs. It also defines the City's priority needs, strategies, and objectives for reducing the most prevalent barriers to housing and services in the community.
In March 2025, the City Council adopted the City’s Consolidated Plan for the Five-Year 2025-2030 period. The City participated in a countywide collaboration to analyze data on housing needs and develop this cycle’s Consolidated Plan. Staff then refined and prioritized the identified broad regional objectives to establish three major goals, which meet both regional and local priorities:
1. Reduce Unsheltered Homelessness – Expand housing access and self- sufficiency resources for individuals and families experiencing or at risk of homelessness.
2. Increase Housing Affordability – Develop new affordable housing opportunities and preserve existing affordable housing.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
3. Strengthen Communities – Enhance community well-being and improve residents’ quality of life.
In each of the five years in the Consolidated Plan, HUD requires entitlement jurisdictions to submit an Action Plan which identifies a one-year strategy for meeting the goals contained in the Consolidated Plan.
The City receives four major sources of federal funding annually from HUD:
• Community Development Block Grant (CDBG)
• HOME Investment Partnerships Program (HOME)
• Emergency Solutions Grants (ESG)
• Housing Opportunities for Persons with AIDS (HOPWA)
o Housing Opportunities for Persons with AIDS Permanent Supportive Housing (HOPWA-PSH)
Each of these sources is distinct and supports specific housing and community development needs. It should be noted that the HOPWA-PSH funds represent a subset entitlement of the HOPWA Program, allocated to jurisdictions on a three-year funding cycle, and are tracked separately. The primary use for each fund and the amount that is projected to be allocated for FY 2026-2027 are also listed in Table 1. Note that FY 2026-2027 funding levels used in Table 1 are a general estimate of next year’s allocations, net of any estimated program income from loan repayments. The Department is anticipating a 5% decrease in funding allocations from HUD.
Table 1: Summary of FY 2026-2027 Expected Entitlements
Funding Source Primary Use Estimated
Allocations for
FY 2026-2027
CDBG Housing and Community Development
Programs, Services, and Capital
Improvements
$7,445,057
HOME Housing $2,484,924
ESG Homeless Services and Shelter
Operations
$658,211
HOPWA Housing Support for Persons with AIDS $1,869,366
HOPWA-PSH Housing Support for Persons with AIDS
- Permanent Supportive Housing
$1,286,211
TOTAL $13,743,769
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
The FY 2026-2027 Action Plan, discussed herein, presents the projects, activities, and expected outcomes that support and advance one or more of the three priorities identified in the 2025-2030 Consolidated Plan.
ANALYSIS
The City will receive approximately $13.7 million in CDBG, HOME, ESG, HOPWA, and HOPWA-PSH entitlement grants. Congress typically takes final action on the federal budget in June, and the exact amount of federal entitlement funds will be known then.
As shown in Table 2, the City estimates it will invest, with the prior year balances and program income, a total of $36,340,762 across the four federal housing and community development funding programs.
The total funding in each of the four HUD funding programs listed includes: 1) the amount allocated by formula to San José for each program for the coming year; 2) the amount of estimated program income that will be received by the City to be used in the coming year; and 3) the balance of prior year’s funds for each program. For CDBG, the prior year’s balance consists of unused balances from previous year’s projects and/or unanticipated program income in previous years. For HOME, the prior year’s balance consists of funds set aside in anticipation of commitments for rental development projects in the development pipeline.
Table 2: FY 2026-2027 Federal Funding Levels Overview
Program Actual FY
2025-2026
Allocation
Estimated
FY 2026-
2027
Allocation
Prior Year
Fund
Balance
Program
Income
Total
FY 2026-2027
CDBG $7,836,902 $7,445,057 $1,491,779 $150,000 $9,086,836 HOME $2,615,709 $2,484,924 $18,987,885 $1,689,292 $23,162,102 ESG $692,854 $658,211 $19,178 $0 $677,389
HOPWA $1,869,366 $1,869,366 $258,857 $0 $2,128,223
HOPWA-
PSH - $1,286,211 $0 $0 $1,286,211
TOTAL $13,072,930 $13,743,769 $20,757,700 $1,839,292 $36,340,762
FY 2026-2027 Action Plan Development
To implement the priorities outlined in the Consolidated Plan, the Department administers an Action Plan that identifies specific programs and funding allocations.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
In January 2023, the Department invited qualified organizations to submit proposals to oversee various programs funded by CDBG, HOME, ESG, and HOPWA Program funds through a Notice of Funding Availability (NOFA). Programs funded through this NOFA include:
• Neighborhood Engagement (CDBG)
• Fair Housing (CDBG and HOME)
• Legal Services (CDBG)
• Senior Nutrition (CDBG)
• Minor Home Repair (CDBG and HOME)
• Microenterprise Program (CDBG)
• Homeless Outreach (CDBG and ESG)
• Rental Assistance and Support Services (HOPWA)
This is the fourth year of the processed NOFA, extending the duration by one year.
Since the January 2023 NOFA, the Department launched and completed a secondary competitive procurement process to administer the HOPWA (April 2024) and Legal Services (June 2024) programs. A full NOFA will be conducted in 2026.
The FY 2026-2027 Action Plan contains a description of all activities recommended for funding. Each of the activities detailed in the draft Action Plan is aligned with the three goals of the Consolidated Plan and contributes to the City’s five-year objectives. The draft Action Plan aligns the City’s available resources with the planned activities, enabling the City to meet its annual goals and stay on target to meet its five-year goals.
For the City’s HOME Allocation, the Department is exploring the acquisition and rehabilitation of two motels for conversion to Single-Room Occupancy units.
CDBG Program
The CDBG Program supports the development of viable urban communities by providing decent housing, encouraging a suitable living environment, and expanding economic opportunities, principally for lower-income households. As the largest and most flexible of the four federal grants, CDBG funds are divided into three categories of eligible uses. These include Public Services, Community Development Investment (CDI), and Administrative activities. This program falls within a subset of CDBG CDI non-construction activities. Public Services are limited to 15% of the annual allocation plus the previous year’s program income, and Administrative activities are limited to 20%. The CDI category includes two types of activities: construction projects and non- construction projects. Construction projects consist of capital projects that directly fund physical improvements, such as facility or infrastructure improvements. Non- construction projects include programs and other services, such as minor home repair, provided to low- and moderate-income (LMI) households. Within CDI non-construction projects, there is a subcategory: Economic Development.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
CDBG Public Services
CDBG funds can be used to support a range of public services benefitting LMI individuals and households. Program regulations limit funding for public services to 15% of the annual CDBG allocation combined with program income from the prior year. The City’s proposed allocations reflect funding priorities, program delivery costs, and the service capacity of contracted organizations. Table 3 details CDBG-funded public service programs and providers currently operating under funding agreements, and existing public service contracts that will be extended for one additional year to maintain service continuity. All grant agreements will be monitored for performance in achieving the stated outcomes and compliance with the contractual agreements. The amounts allocated reflect the actual program delivery and staff costs to deliver eligible programs of the grantee organizations.
Table 3: Proposed CDBG – Public Service Programs
# Public
Services Agency Partner Description
Estimated
FY 2026-
2027
Funding
Proposed Outcome
i. Homeless
Outreach HomeFirst
Citywide
outreach and
shelter
$250,000
• 270 individuals will
receive individualized
outreach services,
with a portion
connected to
temporary or
permanent housing
placements.*
ii.
Neighborhood
Engagement
and
Leadership
Training
SOMOS
Leadership
development
and
engagement
training
$132,214 • 501 individuals will
participate in
leadership training,
education programs,
or receive basic
needs and supportive
services.
• 100 individuals will
participate in
educational classes
and/or receive case
management
services.
VIVO
Neighborhood
engagement –
English as a
second
language,
citizenship
exam
preparation
and civic
awareness
classes
$45,000
iii. Senior
Nutrition POSSO
Meals and
support
programs for
seniors
$348,000
• 160 seniors will
receive nourishing
meals and in-person
health check-ins.**
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
# Public
Services Agency Partner Description
Estimated
FY 2026-
2027
Funding
Proposed Outcome
iv.
Fair
Housing
Services
Law Foundation of
Silicon Valley Fair Housing $54,044
• 145 individuals will
receive legal services,
representation, and
fair housing education
to prevent housing
discrimination and
ensure access to
housing. ***
v. Legal Services
Bay Area
Legal Aid
Citywide legal
services for
low-income
tenants.
$150,000
• 100 low-income
tenants will receive
legal advice and
representation.
• 75 client-facing staff
will receive training
and attorney support
in order to serve as
housing justice
workers.
• 800 tenants and
landlords will receive
education on their
respective rights as
well as responsibilities
and dispute resolution
assistance.
Legal Link
Neutral
tenant-
landlord
counseling
and dispute
resolution
services
(Legal
Training)
$10,000
Project Sentinel
Neutral
tenant-
landlord
counseling
and dispute
resolution
services
$150,000
TOTAL $1,139,258
Notes: * Reflects total individuals served with CDBG funds. This program is also funded by ESG funds. **Reflects individuals served through CDBG funds only; total served with other non-federal funds is 360. ***Reflects total individuals served with both CDBG and HOME funds.
i. Homeless Outreach
HomeFirst’s Homeless Outreach and Engagement Program will provide individualized, light-touch support to unsheltered individuals living on the streets and in encampments throughout San José. Services are participant-centered and include connecting participants to shelter and supportive services, distributing basic needs supplies such as hygiene kits, food, water, and clothing, and conducting housing eligibility assessments to facilitate pathways toward stable housing. All activities align with the Department’s revised Targeted Outreach Engagement Program.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
ii. Neighborhood Engagement and Leadership Training
SOMOS Mayfair will deliver community-building activities through the Eastside Neighborhood Development Program, operated by the Sí Se Puede Collective, a coalition of nonprofits dedicated to uplifting East San José. This program provides leadership development training, case management, financial literacy support, arts education, and workforce development services. These efforts are designed to strengthen resident advocacy, build local leadership capacity, and empower community- driven decision-making.
VIVO will offer English as a Second Language classes, digital literacy workshops, citizenship preparation courses, and cultural awareness programs to promote civic participation among the community. VIVO will also provide case management services to assist residents with applications for public benefits, Department of Motor Vehicles services, and housing resources. Services are open to all residents, with a special focus on supporting the Vietnamese community.
iii. Senior Nutrition
POSSO will provide culturally and linguistically accessible programs for low-income seniors in San José. Services include door-to-door transportation from seniors’ homes to the Portuguese Community Center, where participants engage in daily activities such as nutrition programs, health support services, and other community-based offerings.
Seniors report that participation in these programs helps reduce social isolation and promotes greater independence. In addition to transportation for medical and personal appointments, POSSO also prepares and delivers hot meals to homebound seniors, ensuring that vulnerable residents receive consistent nutrition and support.
iv. Fair Housing Services
The Law Foundation of Silicon Valley will conduct the Fair Housing Legal and Education Services Collaborative, working to build inclusive and sustainable communities free from housing discrimination. The Collaborative provides a range of services, including complaint-based investigations, systematic fair housing testing, counseling and referrals to legal aid and advocacy services, and direct legal representation for individuals experiencing housing discrimination. While the program supports legal and educational services to address unlawful housing practices, it should not engage in any tenant organizing activities. By promoting fair housing access and removing discriminatory barriers, the Collaborative helps residents secure and access or maintain stable housing opportunities.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
v. Legal Services
The Legal Services program will fund two initiatives: Citywide Legal Services for Low- Income Tenants and Neutral Tenant/Landlord Counseling and Dispute Resolution Services.
Bay Area Legal Aid will administer the Citywide Legal Services Program, operating a Legal Advice Line that provides comprehensive support, including client screening, intake, referrals, and legal advice. For clients with more complex issues, the Legal Advice Line will schedule in-person appointments at Bay Area Legal Aid’s San José office. Additional services include limited-scope legal assistance, such as advice and counsel, brief services, as well as full representation. Bay Area Legal Aid will also educate the community through Know Your Rights workshops.
Legal Link and Project Sentinel will administer the Neutral Tenant-Landlord Counseling and Dispute Resolution Services Program. Legal Link focuses on building community capacity by providing Housing Justice Worker training and developing a Housing Justice Worker Toolkit to equip community partners with tools to deliver housing education.
Project Sentinel offers direct services to tenants and landlords, including counseling on rights and responsibilities, conflict resolution support, and mediation and conciliation services. Additional services include conducting community education through workshops, warm referrals, and individualized counseling, helping to prevent evictions, stabilize housing situations, and increase public awareness of tenant and landlord rights and responsibilities across San José.
CDBG CDI Activities
CDI Construction funds are used to support public infrastructure improvements and other capital needs that benefit LMI communities. Unlike public services, there is no federal cap on the amount that can be dedicated to CDI activities. Department staff collaborate with other City departments and nonprofit partners to identify eligible infrastructure and capital projects that align with CDBG requirements and the City’s Consolidated Plan goals. CDI projects are evaluated based on funding availability, project readiness, public input, consistency with Consolidated Plan priorities, and in coordination with the City Manager’s Budget Office.
Project readiness includes the ability to fully expend allocated funds within the fiscal compliance period and the completion of required environmental reviews prior to funding commitment, ensuring the projects can move forward promptly and in compliance with federal regulations. Table 4 details the proposed activities for CDI projects.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
Table 4: Detailed CDI Construction Projects
# Public Services Agency
Partner Description
Estimated
FY 2026-
2027
Funding
Proposed Outcome
i.
Accessible
Pedestrian Signal
Project #2
Department of
Transportation
Installation of
accessibility
devices at
signalized
intersections
$491,199
Improve Americans
with Disabilities Act
access and
pedestrian safety by
providing multi-
sensory crosswalk
signals.
ii. Reserve for Public
Infrastructure/Rehab TBD TBD $3,163,665
Reserve will support
additional eligible
infrastructure or
rehabilitation projects
as identified.
TOTAL $3,654,864
i. Accessible Pedestrian Signal Project #2
The City’s Transportation Department will continue its multi-year initiative to install Accessible Pedestrian Signals at signalized intersections to improve accessibility and safety, particularly for visually impaired and other vulnerable pedestrians. Accessible Pedestrian Signals devices provide audible and vibrotactile cues that indicate traffic signals, offering multimodal feedback to help pedestrians safely navigate intersections.
ii. Reserve for Public Infrastructure/Rehab
The remaining $3.1 million within the CDI category will support additional eligible projects in the future. The Department and the City Manager’s Budget Office will work with City departments in the coming months to identify additional suitable projects that fund new or rehabilitation of existing public infrastructure and will be able to disburse within CDBG timelines. Once additional projects are identified, an amended Annual Action Plan will be presented for City Council’s consideration.
CDBG – CDI Non-Construction Activities
Non-construction CDI projects fund programs and services that benefit LMI individuals and households. These activities support community stabilization and quality of life improvements without involving physical infrastructure development. Table 5 outlines the proposed non-construction CDI activity, including code enforcement services aimed at improving housing conditions in targeted neighborhoods.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
Table 5: Detailed CDI Non-Construction
CDBG Activities Department /
Agency Partner Description
Estimated
FY 2026-2027
Funding
Proposed
Outcome
Code
Enforcement
Planning, Building,
and Code
Enforcement
Code Enforcement in
Targeted
Neighborhood
$1,273,703
500 housing
units will be
inspected for
compliance
with housing
and blight
codes,
preventing
deterioration of
neighborhoods
TOTAL $1,273,703
CDBG Economic Development Activities
The City will use CDBG funding to provide for a microenterprise program. This program falls within a subset of CDBG CDI non-construction activities. Under CDBG guidelines, a microenterprise is defined as a business with five or fewer employees, including the owner. All part-time and full-time employees on the business payroll at the time of assistance must be counted. Eligible microenterprise activities include providing technical assistance and general support services to LMI business owners, helping to establish new businesses, or expanding existing businesses by increasing employment, sales, or revenue.
Table 6 outlines the proposed microenterprise activity, which provides business and technical assistance to support LMI childcare providers in San José.
Table 6: Detailed Economic Development
CDBG Activities Agency
Partner Description
Estimated
FY 2026-2027
Funding
Proposed
Outcome
Microenterprise
Program
Upwards
(WeeCare)
Child Care Providers
Business/Technical
Training
$1,500,000
195 home daycare
providers will
receive technical
assistance and
business to support
to grow and sustain
their business.
TOTAL $1,500,000
Upwards, a network of licensed home-based childcare providers, will implement the Business Operation and Optimization Support Tools (BOOST) program to support
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
microenterprise childcare providers. BOOST offers comprehensive business and technical assistance aimed at helping LMI providers stabilize operations, maximize revenue, and sustain their businesses over time.
By strengthening the business capacity of childcare providers, the BOOST program contributes to the creation of a more robust, sustainable local childcare ecosystem.
Supporting childcare businesses in turn improves economic stability for families across San José. Through this program, Upwards will help ensure that LMI childcare businesses have the tools and resources they need to succeed and continue providing essential services to the community.
CDBG Administration
Recognizing the significant requirements involved in administering CDBG funds, HUD permits jurisdictions to use up to 20% of the annual entitlement plus current-year program income for administrative planning and oversight activities. In addition to general grant administration, fair housing services are the only programmatic activities that may also be funded from the Administrative category, as well as through CDBG Public Services or the HOME program. Table 7 details the CDBG Administration budget.
Table 7: Detailed Administration
CDBG Activities Department / Agency
Partner Description
Estimated
FY 2026-2027
Funding
Administration Housing
20% is designated by
HUD for Program
Administration
$1,274,544
Administration
Planning, Building,
and Code
Enforcement
Support services from
Environmental Planner $33,860
Administration City Attorney’s Office
Support services from
the City Attorney’s
Office
$64,651
Fair Housing
Law Foundation of
Silicon Valley-
Consortium
Fair Housing $145,956
TOTAL $1,519,011
In FY 2026-2027, administrative funds will support fair housing programs and reimburse City departments for their work on CDBG-related activities. These activities include legal reviews of federal contracts performed by the City Attorney’s Office, environmental review services provided by the Planning, Building, and Code Enforcement Department, and Department staff work related to the Assessment of Fair Housing and Housing Element planning. The Department administration activities also include contract
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
negotiation and development, monthly invoice review, spending trend analysis, contract monitoring, and coordination of HUD audits.
HOME Program
The HOME program provides financial assistance to expand the supply of affordable rental and homeownership opportunities for LMI households. Eligible activities include the acquisition, rehabilitation, and construction of affordable housing, the provision of tenant-based rental assistance, and home repair programs. Table 8 details the proposed uses of HOME funds.
Table 8: Detailed Proposed HOME Activities
# HOME Activities Agency
Partner Description
Estimated
FY 2026-2027
Funding
Proposed Outcome
i.
New Affordable
Housing
Development
Housing
Community
Housing
Development
Organization
(CHDO)
CHDO Set
Aside
(15% HOME Set
Aside) for
Development of
Affordable
Housing
$372,738
New affordable
housing
development.
Motel Acquisition,
Rehabilitation, and
New Affordable
Housing
Development
Project(s)
Housing
CHDO
Reserve for
Motel
Acquisition,
Rehabilitation,
and New
Affordable
Housing
Development
Project(s)
$22,371,942
New affordable
housing
development(s).
ii. Fair Housing
Fair Housing
Law
Foundation of
Silicon Valley
- Consortium
Fair Housing* $200,000
145 individuals will
receive legal
services,
representation, and
fair housing
education to prevent
housing
discrimination and
ensure access to
housing.*
iii. Administration and
Planning Housing
10% is
designated by
HUD for
Program
Administration
$217,422 -
TOTAL $23,162,102
*Fair Housing services and proposed outcomes will be funded through CDBG Administrative funds, CDBG Public Services funds, and HOME funds.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
i. New Affordable Housing Development and Motel Acquisition, Rehabilitation, and New Affordable Housing Development Project(s) - TBD
Staff will seek to identify appropriate forthcoming new affordable housing development and motel acquisition, rehabilitation, and new affordable housing development project(s) that meet HOME requirements, including obtaining environmental reviews, construction readiness, and ability to disburse funds in a timely manner. If program compliance proves to be a challenge, the funding will be reprogrammed for other eligible activities such as unit preservation.
ii. Fair Housing
The Law Foundation’s sole focus will be on the administration of Fair Housing requirements of federal fair housing program law by responding to complaints with a target of servicing 145 cases. It is noted that much of the federal fair housing law is under review by HUD.
iii. Administration
The Department will utilize the additional resources up to the 10% statutory cap for the administration of the program.
Emergency Solutions Grant Program
The Emergency Solutions Grant (ESG) program focuses on helping individuals and families quickly regain stability in permanent housing after experiencing a housing crisis or homelessness. Table 9 outlines the proposed uses of ESG funds, including homeless outreach, Homeless Management Information System database support, rapid rehousing, and administrative costs aligned with HUD’s priorities for ending homelessness.
Table 9: Detailed Proposed ESG Activities
# ESG
Activities
Department /
Agency Partner Description FY 2026-2027
Funding Proposed Outcome
i. Homeless
Outreach HomeFirst
Citywide
outreach and
shelter (60% of
ESG Allocation)
$394,926
430 individuals will
receive
individualized
support through
street outreach
interactions, and # of
those individuals
exited to permanent
or temporary
housing placements.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
# ESG
Activities
Department /
Agency Partner Description FY 2026-2027
Funding Proposed Outcome
ii.
Homeless
Management
Information
System
County of Santa
Clara
Operation of the
Homeless
Management
Information
System (secure
web-based
database) in
compliance with
HUD and the
state
$49,365
Access will be
provided to 240
users to maintain
standardized data
collection,
coordination, and
analysis in a
centralized database
system.
iii.
Mabury
Emergency
Interim
Housing
HomeFirst
Oversee
operations of
congregate
Emergency
Shelter at
Mabury
$183,731 TBD
iv. Administration Housing
7.5% is
designated by
HUD for
Program
Administration
$49,365 -
TOTAL $677,389
i. Homeless Outreach
HomeFirst’s Homeless Outreach and Engagement Program will provide individualized, light-touch support to high-needs individuals and households living on the streets and in encampments across San José. Services will include connecting individuals to shelter and services, distributing basic needs supplies such as hygiene items, food, water, and clothing, and conducting housing eligibility assessments to support pathways to permanent housing.
ii. Homeless Management Information System
The County of Santa Clara oversees Homeless Management Information System, a secure, web-based data system used to collect, manage, and report client-level data across the homelessness services network. ESG funding supports a portion of the overall system costs, including software licensing, user training, data quality monitoring, reporting, system maintenance, and necessary upgrades to ensure ongoing compliance with HUD and State requirements.
iii. Mabury Emergency Interim Housing
HomeFirst provides 24/7 on-site oversight, staffing, program operations, and supportive services at the City’s Emergency Interim Housing program at 1410 Mabury Road.
Responsibilities include day-to-day management of the 38 shelter units, provision of
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
essential services such as intake and assessment, case management, housing navigation, and connections to healthcare, and the exit of clients from the program into permanent housing destinations. ESG funding is paired with state and local funds to support the continuity of operations and services through FY 2026-2027. HomeFirst was competitively procured by the Department through a Request for Proposals completed in 2024.
iv. Administration
The Department will utilize the 7.5% statutory cap for staff administration, oversight, and monitoring of the projects described above.
HOPWA and HOPWA PSH Program
The HOPWA / HOPWA-PSH program is the only federal program dedicated to addressing the housing needs of low-income people living with HIV/AIDS and their families. In April 2024, Bay Area Community Health was selected through a competitive Request for Proposals process to administer the Rental Assistance and Supportive Housing program using HOPWA and HOPWA-PSH funds, following the closure of The Health Trust’s services at the end of FY 2023–2024. Tables 10 and 11 outline the City’s proposed HOPWA and HOPWA-PSH expenditures by category and activity.
Table 10: Detailed Proposed HOPWA Activities
# HOPWA
Activities
Department /
Agency Partner Description
Estimated
FY 2026-
2027
Funding
Proposed Outcome
i.
Rental
Assistance
and
Supportive
Housing
Bay Area
Community
Health
Rental assistance
and supportive
housing
$1,772,142
60 households with
HIV/AIDS will remain
stably housed and
receive supportive
health services.
Rental
Assistance
and
Supportive
Housing
San Benito
County
Rental assistance
and supportive
housing for
HOPWA
participants
$300,000
10 households with
HIV/AIDS will remain
stably housed and
receive supportive
health services.
ii. Administration Housing
3% is designated
by HUD for
Program
Administration
$56,080 -
TOTAL $2,128,223
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
Table 11: Detailed Proposed HOPWA-PSH Activities
# HOPWA-PSH
Activities
Department /
Agency
Partner
Description
Estimated
FY 2026-
2027
Funding
Proposed Outcome
i.
Rental
Assistance
and
Supportive
Housing
Bay Area
Community
Health
Rental assistance
and supportive
housing for
HOPWA
participants
$1,273,349*
40 households with
HIV/AIDS will remain
stably housed and
receive supportive
health services.
ii. Administration Housing
3% is designated
by HUD for
Program
Administration
$12,862 -
TOTAL $1,286,211
*The HOPWA-PSH grant award for the Rental Assistance and Supportive Housing Program of $1,273,349 will be spread across three Fiscal Years. Bay Area Community Health is expected to utilize $424,450 during FY 2026-2027.
i. Rental Assistance and Supportive Services [HOPWA / HOPWA – PSH]
Bay Area Community Health will provide rental assistance and supportive services for low-income individuals living with HIV/AIDS and their families through both HOPWA and HOPWA-PSH funding. HOPWA-PSH specifically provides eligible households with permanent supportive housing, which includes a continuous legal right to remain in the housing unit through a renewable lease or legally binding occupancy agreement after the first year of residency. In addition to housing assistance, participants must have ongoing access to supportive services provided by qualified service providers.
San Benito County partners with the City, which is a major entitlement jurisdiction in the Metropolitan Statistical Area. Department staff coordinates with San Benito County staff to administer approximately $300,000 annually in rental assistance for eligible residents.
Under HUD regulations, the City may use up to 3% of the annual HOPWA allocation for administrative costs related to program management and compliance.
ii. Administration [HOPWA / HOPWA – PSH]
The Department will utilize the additional resources up to the combined 6% statutory cap for the administration of the two programs, HOPWA and HOPWA-PSH.
EVALUATION AND FOLLOW-UP
The priorities, programs, and funding allocations outlined in the FY 2026-2027 Annual Action Plan reflect a strategic, data-informed approach to addressing the most pressing housing and community development needs in San José. By refining the City's goals
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
and emphasizing measurable outcomes, the Action Plan aims to maximize the impact of limited federal resources. The public service programs are scheduled for competitive rebidding in 2026 through the release of a NOFA.
Following the City Council approval of the FY 2026-2027 Action Plan, Department staff will review and confirm proper procurement and then finalize funding agreements with service providers. These agreements will include detailed scopes of service, contract budgets, performance measures, and outcome targets aligned with the priorities outlined in the Plan. The Annual Action Plan will be submitted to HUD by the required deadline of May 15, 2025.
Once approved by HUD, the final version of the Action Plan will be posted on the Department’s website at www.sanjoseca.gov/housingconplan and will be made available by mail upon request.
In addition, capital projects identified in the FY 2026-2027 Action Plan will require further development and interdepartmental coordination. Upon the City Council adoption of the Action Plan, the Department, in collaboration with the City Manager’s Budget Office and relevant City departments, will work to finalize project scopes and ensure all program and regulatory requirements are met. Prior to the execution of any contracts for capital projects, staff will complete all applicable environmental reviews in accordance with the National Environmental Policy Act and the California Environmental Quality Act.
At the close of each program year, the City is required to submit a Consolidated Annual Performance and Evaluation Report to HUD, which summarizes progress toward the goals identified in the previous year’s Action Plan. The Department will present the FY 2025–2026 Consolidated Annual Performance and Evaluation Report to the City Council in September 2026.
FISCAL IMPACTS
This report summarizes the expenditure plan for the City's federal formula funds received from HUD, which includes a new FY 2026-2027 funding of $13,743,769, along with $22,596,992 from previous years’ funding and program income for a combined total of $36,340,762. These amounts will be programmed in the 2026-2027 Proposed and Adopted Operating Budgets within the HOME Investment Partnership Program Fund ($23.1 million), the Community Development Block Grant Fund ($9.1 million), and the Multi-Source Housing Fund ($4.1 million).
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
COORDINATION
This memorandum was coordinated with the City Attorney’s Office and the City Manager’s Budget Office.
PUBLIC OUTREACH
This memorandum will be posted on the City Council Agenda website for the May 5, 2026 City Council meeting.
Federal regulations require that jurisdictions hold at least two public hearings to receive public comment for the FY 2026-2027 Action Plan and funding priorities. In accordance with the City’s Community Participation Plan, the Department holds three public hearings during the development and finalization of federally required documents. The Department presented the draft Action Plan to the Housing and Community Development Commission on April 9, 2026 to solicit the Commission’s feedback and public comment. The second public hearing was held as a community meeting on April 16, 2026, conducted both in person at City Hall and virtually via Zoom. The City Council will hold the final public hearing on May 5, 2026, at which time the City Council must adopt the final FY 2026-2027 Action Plan. The Department will then submit the FY 2026-2027 Action Plan to HUD in time to meet its deadline.
All public comments provided to the City, both verbally and in writing, will be included in the appendices of the FY 2026-2027 Action Plan, together with staff's responses when the plan is submitted to HUD.
BOARD, COMMISSION, COMMITTEE RECOMMENDATION AND INPUT
Staff presented the draft FY 2026-2027 Action Plan to the Housing and Community Development Commission at its meeting on April 9, 2026.
HCDC Commissioner questions and input mainly concerned the following topics:
• Clarification of the scope and service expectations of the CDBG Legal Services programs;
• Clarification of the scope and service expectations of the Law Foundation’s Fair Housing program; and
• The ability to use federal entitlements toward programs providing community services around immigration issues.
HONORABLE MAYOR AND CITY COUNCIL
April 17, 2026
Subject: Final Public Hearing and Approval of the Fiscal Year 2026-2027 Annual Action Plan for the U.S. Department of Housing and Urban Development
CEQA
Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment; and File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.
PUBLIC SUBSIDY REPORTING
This item does not include a public subsidy as defined in section 53083 or 53083.1 of the California Government Code or the City’s Open Government Resolution.
/s/
Erik L. Soliván
Housing Director
For questions, please contact Sarah Fields, Deputy Director, Housing Department at [email protected] or (669) 369-8999.