Annual Action Plan
2026
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PROGRAM YEAR
2026-2027 ANNUAL
ACTION PLAN for the
COMMUNITY
DEVELOPMENT
BLOCK GRANT
FOR
UNITED STATES
DEPARTMENT OF
HOUSING AND URBAN
DEVELOPMENT
FUNDING PROGRAMS
Draft for Public Review
March 20 – April 22, 2026
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The Draft Program Year 2026-2027 Annual Action Plan is available for public review and comment beginning Friday, March 20, 2026, for a minimum 30-day period. Draft documents are available on the City’s website at https://www.sanmarcosca.gov/CDBG. The public is encouraged to review the documents and provide written comments via email at [email protected].
Revision Number Upload Date
1 March 20, 2026
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Table of Contents
Executive Summary ....................................................................................................................................... 4 AP-05 Executive Summary - 91.200(c), 91.220(b) .................................................................................... 4 PR-05 Lead & Responsible Agencies - 91.200(b) ...................................................................................... 7 AP-10 Consultation - 91.100, 91.200(b), 91.215(l) ................................................................................... 8 AP-12 Participation - 91.401, 91.105, 91.200(c) ..................................................................................... 14 Expected Resources .................................................................................................................................... 16 AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) .......................................................................... 16 Annual Goals and Objectives ...................................................................................................................... 18 AP-35 Projects - 91.420, 91.220(d) ......................................................................................................... 20 AP-38 Project Summary .......................................................................................................................... 22 AP-50 Geographic Distribution - 91.420, 91.220(f) ................................................................................ 26 AP-75 Barriers to affordable housing -91.420, 91.220(j) ........................................................................ 27 AP-85 Other Actions - 91.420, 91.220(k) ................................................................................................ 28 Program Specific Requirements .................................................................................................................. 30
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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)
1. Introduction
The City of San Marcos is an entitlement jurisdiction under the Community Development Block Grant (CDBG) program and receives annual federal funding from the U.S. Department of Housing and Urban Development (HUD) to support housing and community development activities that benefit low- and moderate-income residents. The Program Year 2026-2027 Annual Action Plan (PY 2026) describes how the City will allocate available CDBG resources during the program year in accordance with priorities identified in the 2025-2029 Consolidated Plan.
For PY 2026, the City anticipates approximately $703,648 in annual entitlement funding and an estimated $496,937 in restored repayment funds. These resources will support housing affordability programs, improvements to community facilities, neighborhood infrastructure improvements located within qualifying low- and moderate-income areas, public service programs, and program administration. Restored repayment funds are anticipated to support capital improvements to neighborhood infrastructure located within qualifying low- and moderate-income areas.
The activities described in this Annual Action Plan are intended to improve housing conditions, enhance neighborhood infrastructure and accessibility, and support services that assist low- and moderate- income residents and vulnerable populations. These activities reflect priorities identified through community outreach conducted during preparation of the 2025–2029 Consolidated Plan, along with ongoing coordination with community partners and consideration of City Council priorities identified during the program year.
2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan.
The city’s CDBG program is guided by priorities identified in the 2025–2029 Consolidated Plan. These priorities were informed through analysis of housing and community development needs as well as public outreach conducted during preparation of the Consolidated Plan.
Primary objectives for the PY 2026 program year include:
• preservation and rehabilitation of affordable housing • improvements to community facilities serving low- and moderate-income residents and vulnerable populations
• neighborhood-scale infrastructure improvements in qualifying low- and moderate-income areas • support for nonprofit organizations providing services to vulnerable populations
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• promotion of fair housing education and outreach
Through these activities, the City seeks to improve housing stability, enhance accessibility to community resources, and improve neighborhood conditions for low- and moderate-income residents.
3. Evaluation of past performance
This is an evaluation of past performance that helped lead the grantee to choose its goals or projects.
The city evaluates CDBG performance annually through the Consolidated Annual Performance and Evaluation Report (CAPER), which documents progress toward Consolidated Plan goals. Recent CDBG accomplishments include improvements to community infrastructure and facilities, fair housing education and counseling, and public service activities assisting low- and moderate-income residents and other vulnerable populations. These outcomes, along with experience from program implementation, informed the city’s Program Year 2026 priorities focused on housing affordability programs, community facility improvements, neighborhood infrastructure improvements in qualifying low- and moderate-income areas, and support for eligible public service activities.
Implementation experience has also reinforced the importance of clearly documenting national objective compliance and prioritizing neighborhood-serving infrastructure improvements within qualifying low- and moderate-income areas.
4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan.
Citizen participation is a critical component of the City’s Consolidated Planning process and ongoing administration of the CDBG program. The City conducts outreach efforts to gather input from residents, community organizations, service providers, and other stakeholders regarding housing and community development priorities.
During preparation of the 2025–2029 Consolidated Plan, the City conducted community outreach that included stakeholder consultations, public workshops, and a community needs survey. Input gathered through this outreach process continues to guide the City’s investment priorities for subsequent Annual Action Plans, including the Program Year 2026 Action Plan. These outreach efforts provided residents and community partners with opportunities to identify local priorities and share feedback regarding housing conditions, infrastructure needs, and service gaps affecting low- and moderate-income residents.
Input received during the outreach process identified several recurring needs, including affordable housing opportunities, housing rehabilitation assistance for homeowners, accessibility improvements, services for seniors and persons with disabilities, and improvements to neighborhood infrastructure such as lighting and pedestrian accessibility.
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These priorities continue to guide the city’s investment decisions under the CDBG program and inform the activities included in this Annual Action Plan.
5. Summary of public comments
This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan.
The draft PY 2026 Annual Action Plan will be made available for public review and comment in accordance with the city’s Citizen Participation Plan. A public hearing will also be conducted to provide residents and stakeholders with an opportunity to comment on proposed activities and funding allocations.
Comments received during the public review period will be summarized and incorporated into the final Annual Action Plan submitted to HUD.
6. Summary of comments or views not accepted and the reasons for not accepting them Any comments received that are not incorporated into the final Action Plan will be documented along with an explanation of the reasons for not accepting them. Reasons may include conflicts with federal eligibility requirements, inconsistency with Consolidated Plan priorities, or funding limitations.
7. Summary
The PY 2026 Annual Action Plan reflects the city’s continued commitment to addressing housing and community development needs identified through community outreach and planning efforts. Through the strategic use of CDBG funding, including the anticipated annual entitlement allocation and restored repayment funds, the city will support housing preservation, community facility improvements, neighborhood infrastructure projects, and public service programs benefiting low- and moderate- income residents.
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator SAN MARCOS Housing & Neighborhood
Services
Table 1 – Responsible Agencies
Narrative
The City of San Marcos is the lead agency responsible for the preparation and administration of the ConPlan, corresponding Annual Plans, CAPERs, and the execution of the CDBG program. The County of San Diego is the lead agency for HOME funding and the city is a member of the County of San Diego’s HOME consortium. The Housing Authority of the County of San Diego (HASCD) serves as the City’s public housing agency and administers the Section 8 rental assistance program for San Marcos residents.
The implementation of activities funded by the CDBG program may include consultation with City Administration, Community Services, Economic Development, and Public Works.
Consolidated Plan Public Contact Information
Quinton Hufferd
Sr. Management Analyst
City of San Marcos
1 Civic Center Drive
San Marcos, CA 92069-2918
(760) 744-1050 x4517
[email protected]
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)
1. Introduction
The City of San Marcos consults with public agencies, nonprofit organizations, housing providers, and community stakeholders regarding housing and community development needs affecting local residents. Many of the consultations reflected in this section occurred during preparation of the 2025– 2029 Consolidated Plan and continue to inform the City’s Annual Action Plans.
Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).
The Housing Authority of the County of San Diego (HACSD) serves as the City’s public housing agency.
The City of San Marcos does not operate its own public housing agency. The HACSD is committed to enhancing coordination among housing providers, private and governmental health agencies, and the business and nonprofit communities. This is evidenced by the many boards, commissions, and committees that serve in an advisory capacity to the County, assist in planning decisions, and often benefit from County representation and resources. County staff participates in and/or supports standing and special citizen boards, commissions, committees and task forces formed to advise the Board of Supervisors on issues and policies and to serve as links to the community. County committees are created as a result of state and federal legislation, agreements with public or private agencies and local needs. Boards, commissions and committees advise the Board of Supervisors on issues related to community needs throughout the county. HACSD is a department within the County’s Health and Human Services Agency (HHSA), which provides vital health and social services to over 3.3 million residents. As matrix organization, the Agency is made up of Service Departments that develop services and policies governing HHSA programs and Regional Operations (Regions) that deploy customer service processes throughout the county and convene community leaders. Service Departments include Aging and Independent Services, Behavioral Health Services, Child Welfare Services, Public Health Services, and Self-Sufficiency Services.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The Housing Authority of the County of San Diego (HACSD) serves as the City’s public housing agency. In January 2017, the Regional Task Force on the Homeless (RTFH) merged with the San Diego Regional Continuum of Care Council (RCCC) to become the region’s Continuum of Care. The retooled RTFH is a major stakeholder in addressing homelessness throughout the region and its relationship with the County and other jurisdictions in the region. The County is an active member of the RTFH, with a Board Supervisor currently serving as the RTFH Governance Board Vice-Chair. The RTFH meets on a monthly basis to identify gaps in homeless services, establish funding priorities, and to pursue an overall
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systematic approach to address homelessness. During these meetings, jurisdictions consult with the RTFH to develop cooperative plans and strategies that leverage resources to provide emergency shelter and rapid re-housing services. The County’s participation in this forum ensures that its efforts to address homelessness using HUD entitlement funds and other resources are aligned with the region’s priorities and respond to the most critical needs.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The Housing Authority of the County of San Diego (HACSD) serves as the City’s public housing agency.
The City of San Marcos does not receive ESG funds. According to the County of San Diego, ESG is designed to support the first steps in preventing homelessness and to help people experiencing homelessness move toward safe and healthy living. ESG funds can be used by emergency shelter operators and other service providers for activities such as street outreach, homelessness prevention, rapid re-housing and data collection. Each year, the County receives ESG funding from HUD. There are four types of programs in San Diego County currently funded with ESG funds: Rapid Re-housing, Homeless Prevention, Emergency Shelter, and Street Outreach. The County, as the Administrative Entity for the Continuum of Care Allocation, also receives funding from the State of California to carry out the State ESG program in the San Diego region.
2. Agencies, groups, organizations and others who participated in the process and consultations
1 Agency/Group/Organization SAN MARCOS
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Lead-based Paint Strategy
Public Housing Needs
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with
children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
Non-Homeless Special Needs
Economic Development
Market Analysis
Anti-poverty Strategy
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How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local data on housing needs
and economic development for
ConPlan development.
2 Agency/Group/Organization SAN DIEGO COUNTY
Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Lead-based Paint Strategy
Public Housing Needs
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with
children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
Non-Homeless Special Needs
Economic Development
Market Analysis
Anti-poverty Strategy
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided localized data for needs
assessment, housing needs, broadband
needs and hazard mitigation for
ConPlan development.
3 Agency/Group/Organization San Marcos Mobile Home Resident Association
Agency/Group/Organization Type Housing
Services - Housing
Services-Elderly Persons
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided insights on needs for mobile
and manufactured home residents.
4 Agency/Group/Organization Boys and Girls Club of San Marcos Agency/Group/Organization Type Services-Children
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What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with
children
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided insights on needs for youth
services and childcare.
5 Agency/Group/Organization San Marcos Community Foundation Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with
children
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local data on non-profit needs
related to children and youth,
education, seniors, and health and
well-being.
6 Agency/Group/Organization Upwards
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homeless Needs - Families with
children
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided insights on needs for youth
services and childcare.
7 Agency/Group/Organization TrueCare
Agency/Group/Organization Type Services-Health
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local knowledge on needs for
health care services.
8 Agency/Group/Organization Susan Bower Consulting
Agency/Group/Organization Type Services-homeless
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What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with
children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local knowledge on needs for
unhoused populations.
9 Agency/Group/Organization Project Next
Agency/Group/Organization Type Services-Education
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided insights on educational
attainment needs for youth.
10 Agency/Group/Organization Community Resource Center
Agency/Group/Organization Type Services-homeless
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Homelessness Strategy
Homeless Needs - Chronically homeless
Homeless Needs - Families with
children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied
youth
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local knowledge on needs for
unhoused populations including victims
of domestic violence.
11 Agency/Group/Organization Casa de Amparo
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
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How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local knowledge on needs for
victims of child abuse and neglect.
12 Agency/Group/Organization HOPE THROUGH HOUSING
FOUNDATION
Agency/Group/Organization Type Housing
Services - Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Public Housing Needs
How was the Agency/Group/Organization consulted
and what are the anticipated outcomes of the
consultation or areas for improved coordination?
Provided local insights on housing
needs for low-income households.
Table 2 – Agencies, groups, organizations who participated
Identify any Agency Types not consulted and provide rationale for not consulting All applicable agency types were consulted when possible.
Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of Care San Diego County Regional Taskforce on the Homeless (RTFH) , www.rtfhsd.org, engages stakeholders in a community-
based process that works to:(1) End homelessness for all individuals and families throughout the region (2) Address the underlying causes of homelessness (3) Lessen the
negative impact of homelessness on individuals, families and communities. The RTFH is made up of representatives from the County of San Diego, non-profit service
providers, religious organizations, law enforcement and other interested parties.
San Marcos 2021-
2029 Housing
Element
City of San Marcos Provided housing-related data, and policy direction on housing-related issues.
San Marcos Draft
General Plan and
Existing Conditions
City of San Marcos Provided information on hazard management, environmental justice, and other community development
issues.
Table 3 - Other local / regional / federal planning efforts
Narrative
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AP-12 Participation - 91.401, 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting
The city of San Marcos encourages public participation in the planning and implementation of Community Development Block Grant (CDBG) activities. The city’s Citizen Participation Plan establishes procedures to ensure that residents, community organizations, and other stakeholders have opportunities to participate in the development of the Consolidated Plan and Annual Action Plans.
During preparation of the 2025–2029 Consolidated Plan, the city conducted several outreach efforts designed to gather input from residents and community stakeholders. These outreach activities included community workshops, stakeholder consultations, and a community needs survey.
Input received during the Consolidated Plan outreach process identified several priority needs affecting low- and moderate-income residents. Residents and stakeholders emphasized the importance of preserving affordable housing, improving neighborhood infrastructure and accessibility, supporting services for vulnerable populations, and maintaining community facilities that serve low- and moderate- income residents.
These priorities continue to guide the city’s investment decisions under the CDBG program and inform the activities included in the Program Year 2026 Annual Action Plan, including housing affordability programs, neighborhood infrastructure improvements, community facility improvements, and public service programs.
In addition to outreach conducted during preparation of the Consolidated Plan, the city continues to coordinate with local service providers, nonprofit organizations, and regional partners throughout the year to monitor community needs and inform program implementation.
The outreach activities summarized below were conducted during preparation of the 2025–2029 Consolidated Plan and continue to inform the city’s CDBG investment priorities.
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Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of Outr
each
Summary of
response/atte
ndance
Summary of
comments received
Summary of c
omments not
accepted
and reasons
1 Public
Meeting
San Marcos
Residents
9 attendees The most common comment was
regarding a need for more affordable
housing opportunities. Other important
issues included services for persons with
disabilities, assistance for unhoused
populations, home rehabilitation
programs, and fair housing services such
as tenant/landlord mediation.
All comments
accepted.
2 Public
Meeting
San Marcos
Residents
12 attendees Participants emphasized the need for
affordable housing, including housing for
first-time homebuyers, families, and
seniors. Residents also mentioned a need
for improved bicycle infrastructure and
street lighting. Residents indicated there
is a need for a temporary shelter, services
for victims of domestic violence, and
mobility improvements for persons with
disabilities.
All comments
accepted.
3 Public
Meeting
Stakeholders/
Service
Providers
13 attendees New affordable housing opportunities
tended to be the top priority for most
participants. Participants indicated there
is a need for home rehabilitation services
and services for persons experiencing
homelessness in San Marcos. Other needs
included mobility and transportation
improvements and senior services.
All comments
accepted.
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
The City of San Marcos anticipates receiving approximately $703,648 in Community Development Block Grant (CDBG) entitlement funding for Program Year 2026. This estimate is based on the City’s most recent entitlement allocation.
In addition to the annual entitlement allocation, The City anticipates approximately $496,937 in restored CDBG funds following repayment processing through HUD’s Line of Credit Control System (LOCCS).
These funds will be returned to the City’s CDBG line of credit and will be available for eligible activities consistent with the priorities identified in the 2025–2029 Consolidated Plan.
Restored repayment funds will primarily support construction-ready neighborhood infrastructure improvements within qualifying low- and moderate-income areas, including park and public infrastructure projects that advance the City’s CDBG timeliness expenditure plan.
The annual entitlement allocation will support housing affordability programs, community facility improvements, public services, and program administration. Restored repayment funds will support neighborhood infrastructure improvements located within qualifying low- and moderate-income areas.
The City will continue to coordinate CDBG investments with other local, regional, and nonprofit resources to maximize the impact of available funding.
Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative
Description Annual
Allocation: $
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG Federal Housing,
public facility
improvements,
neighborhood
infrastructure
improvements,
public services,
and program
administration
$703,648
Entitlement
$496,937
Anticipated
Repayment
Funds
$0 $0 $1,200,585 $2,110,944 Annual CDBG
entitlement
and
anticipated
repayment
funds
available for
Program Year
2026
activities.
Table 5 - Expected Resources – Priority Table
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Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The City coordinates CDBG investments with other public and private funding sources to maximize the impact of available resources. CDBG funding is often used to complement other local and regional programs supporting housing, infrastructure, and community services.
The City collaborates with nonprofit organizations, regional service providers, and public agencies to leverage additional resources and expand service delivery to low- and moderate- income residents. These partnerships help ensure that CDBG funding supports broader community development efforts and enhances the effectiveness of other housing and social service programs.
If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City periodically evaluates publicly owned facilities and properties to determine whether improvements or rehabilitation projects may support housing or community development objectives identified in the Consolidated Plan.
Public facilities serving low- and moderate-income residents, including community centers, parks, and other public buildings, may be considered for improvements using CDBG funding when such improvements enhance accessibility, safety, or service delivery to eligible populations.
Discussion
The City anticipates that a combination of annual entitlement funding and restored repayment funds will provide additional opportunities to support capital improvements and housing- related activities benefiting low- and moderate-income residents.
Because repayment funds may be restored to the City’s CDBG line of credit at various times during the program year, the City structures its CDBG program to maintain flexibility in allocating resources among eligible activities consistent with Consolidated Plan priorities.
This approach allows the City to respond to emerging opportunities for eligible projects while maintaining compliance with federal program requirements and the City’s Citizen Participation Plan.
The City prioritizes implementation of construction-ready infrastructure projects to support timely expenditure of CDBG funds and maintain compliance with HUD timeliness requirements.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome
Indicator
1 Housing
Affordability
Programs
2026 2027 Housing Citywide Housing rehabilitation,
assistance, and
accessibility improvements
for low- and moderate-
income homeowners
CDBG:
$100,000
Housing Units
Rehabilitated:
4-6
2 Public Facility
Improvements
2026 2027 Non-Housing
Community
Development
Citywide /
LMI Areas
Improvements to
community facilities
serving low- and
moderate-income
residents and vulnerable
populations
CDBG:
$365,000
Public Facility
Improvements:
1 3 Neighborhood
Infrastructure
Improvements
2026 2027 Non-Housing
Community
Development
LMI Areas Neighborhood-scale
infrastructure
improvements located
within qualifying low- and
moderate-income areas,
including park
improvements, pedestrian
lighting, accessibility
upgrades, and related
neighborhood
infrastructure
improvements.
CDBG:
$480,000
Public
Infrastructure
Improvements:
2 4 Public Services 2026 2027 Public Services Citywide Services benefiting low- and moderate-income
residents and vulnerable
populations
CDBG:
$105,500
Persons
Assisted:
500-700
5 Program
Administration
2026 2027 Administration Citywide Administration and
oversight of the City’s
CDBG program
CDBG:
$140,700
N/A
Table 6 – Goals Summary
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Goal Descriptions
1 Goal Name Affordable Housing Preservation
Goal
Description
The City supports the preservation and improvement of the existing housing stock through programs that assist low- and moderate-income homeowners with rehabilitation and accessibility improvements. Activities may include health and safety repairs, accessibility modifications, and other improvements that help maintain safe and habitable housing conditions.
2 Goal Name Public Facility Improvements
Goal
Description
The City supports improvements to public facilities serving low- and moderate- income residents and vulnerable populations. Eligible activities may include accessibility upgrades, building system improvements, resiliency upgrades, and other improvements that enhance the ability of public facilities to provide services to eligible populations.
3 Goal Name Neighborhood Infrastructure Improvements
Goal
Description
The City supports neighborhood-scale infrastructure improvements located within qualifying low- and moderate-income areas. These projects may include park improvements, pedestrian lighting, accessibility improvements, sidewalks, and other infrastructure projects that improve safety, accessibility, and quality of life for neighborhood residents.
4 Goal Name Public Services
Goal
Description
The City allocates a portion of its CDBG funding to nonprofit organizations providing services that benefit low- and moderate-income residents and vulnerable populations. Public service programs may include services for seniors, persons with disabilities, youth programs, housing stability services, and other supportive services that address community needs.
5 Goal Name Program Administration
Goal
Description
The City uses a portion of CDBG funding for planning and administrative activities necessary to effectively administer the CDBG program. These activities include program oversight, financial management, monitoring of funded activities, and preparation of required reports to HUD.
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AP-35 Projects - 91.420, 91.220(d)
Introduction
The following projects represent the City of San Marcos’ planned use of Community Development Block Grant (CDBG) funds for Program Year 2026. These projects are designed to address priority needs identified in the 2025–2029 Consolidated Plan and to benefit low- and moderate-income residents.
Funding allocations shown in this Annual Action Plan represent programmatic funding categories.
Specific project activities may be refined during the program year consistent with Consolidated Plan priorities and CDBG eligibility requirements.
Projects included in this Annual Action Plan are structured as programmatic funding categories that allow the City to implement multiple eligible activities consistent with Consolidated Plan priorities.
Specific project locations and activities may be refined during program implementation as eligibility is confirmed and funding availability evolves.
Specific activities implemented under each project may include, but are not limited to, housing affordability programs, public facility improvements, park improvements, neighborhood infrastructure projects, and public service programs benefiting low- and moderate-income residents. # Project Name
1 Housing Affordability Programs
2 Community Facility Improvements
3 Neighborhood Infrastructure Improvements
4 Public Services – Community Assistance Programs
5 Program Administration
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
The City of San Marcos allocates CDBG funds based on priorities identified in the 2025–2029 Consolidated Plan and community outreach conducted during the planning process. Funding priorities for Program Year 2026 include housing affordability programs, community facility improvements, neighborhood infrastructure improvements in qualifying low- and moderate-income areas, and public service programs that support vulnerable populations. These allocations are intended to improve housing conditions, enhance accessibility and safety in neighborhoods, and support services for low- income residents.
The primary obstacle to addressing underserved needs is the limited level of CDBG funding available relative to the scale of community needs. Federal eligibility requirements and national objective criteria also influence which activities may be funded.
Annual Action Plan
2026
21 OMB Control No: 2506-0117 (exp. 09/30/2021)
Because funding availability and project readiness may evolve during the program year, the City maintains flexibility within these project categories to support eligible activities that address priority needs while remaining consistent with Consolidated Plan objectives and HUD program requirements.
Annual Action Plan
2026
22 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-38 Project Summary
Project Summary Information
1 Project Name Housing Affordability Programs
Target Area Citywide
Goals Supported Affordable Housing Preservation
Needs Addressed Preservation of safe and habitable housing for low- and moderate- income homeowners.
Funding CDBG: $100,000
Description Housing Affordability Programs provide financial assistance to low- and moderate-income homeowners for rehabilitation, assistance, and accessibility improvements that address health, safety, and code compliance issues. Eligible activities may include repairs to building systems, accessibility modifications, rental assistance, energy efficiency improvements, and other activities necessary to maintain safe and livable housing conditions.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
Approximately 4–6 low- and moderate-income households are expected to benefit from housing assistance.
Location Description Housing affordability activities may occur throughout the City of San Marcos at owner-occupied housing units occupied by low- and moderate-income households.
Planned Activities Provide financial assistance to eligible homeowners for housing rehabilitation, assistance, and accessibility improvements that address health and safety issues and preserve the City’s existing housing stock. 2 Project Name Community Facility Improvements
Target Area Citywide / LMI Areas
Goals Supported Public Facility Improvements
Needs Addressed Improvements to community facilities serving low- and moderate- income residents and vulnerable populations.
Funding CDBG: $365,000
Annual Action Plan
2026
23 OMB Control No: 2506-0117 (exp. 09/30/2021)
Description This project supports improvements to public facilities that provide services to low- and moderate-income residents. Eligible activities may include building rehabilitation, accessibility improvements, equipment installation, and resiliency upgrades. Planned improvements may include upgrades to the City’s Senior Center facility, such as HVAC system improvements, installation of an emergency generator, and other facility improvements that enhance the safety, accessibility, and functionality of the facility.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
Approximately 1,200–1,400 low- and moderate-income seniors and community facility users are expected to benefit from improvements to community facilities.
Location Description Community facility improvements may occur at public facilities serving low- and moderate-income residents, including the City’s Senior Center located at 111 Richmar Avenue, San Marcos, CA.
Planned Activities Facility rehabilitation and equipment installation including HVAC upgrades, resiliency improvements such as emergency generator installation, accessibility improvements, and related facility upgrades. 3 Project Name Neighborhood Infrastructure Improvements Target Area Low- and Moderate-Income Areas
Goals Supported Neighborhood Infrastructure Improvements Needs Addressed Infrastructure and public facility improvements that enhance safety, accessibility, and quality of life for residents of qualifying low- and moderate-income areas.
Funding CDBG: $480,000
Description This project supports improvements to public facilities and neighborhood infrastructure located within or primarily serving qualifying low- and moderate-income areas. Eligible activities may include park and recreational facility improvements, replacement of playground equipment, accessibility and ADA upgrades, pedestrian access improvements, lighting installation or rehabilitation, restroom or building system improvements, and other similar infrastructure improvements that enhance safety, accessibility, and usability of public spaces serving low- and moderate-income residents.
Target Date 6/30/2027
Annual Action Plan
2026
24 OMB Control No: 2506-0117 (exp. 09/30/2021)
Estimate the number
and type of families
that will benefit from
the proposed activities
Approximately 2,000–3,000 low- and moderate-income residents living within or served by qualifying low- and moderate-income areas are expected to benefit from these infrastructure improvements.
Location Description Infrastructure improvements may occur within or serving qualifying low- and moderate-income census tracts throughout the City of San Marcos, including neighborhood parks and other public infrastructure located within these areas.
Planned Activities Activities may include park improvements within qualifying low- and moderate-income areas, pedestrian lighting rehabilitation, accessibility upgrades, sidewalk improvements, and other neighborhood infrastructure improvements that enhance safety and accessibility for residents.
4 Project Name Public Services – Community Assistance Programs Target Area Citywide
Goals Supported Public Services
Needs Addressed Support for programs that address basic needs and provide supportive services for low- and moderate-income residents and vulnerable populations, including seniors, persons with disabilities, and households experiencing housing instability.
Funding CDBG: $105,500
Description This project provides CDBG funding for eligible public service activities delivered by qualified nonprofit organizations and community-based service providers serving low- and moderate-income residents. Services may include housing stability support, case management, food assistance, services for seniors and persons with disabilities, and other supportive services.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
Approximately 500–700 low- and moderate-income residents are expected to benefit from public service programs.
Location Description Services may be provided throughout the City of San Marcos.
Annual Action Plan
2026
25 OMB Control No: 2506-0117 (exp. 09/30/2021)
Planned Activities CDBG funding will support public service programs provided by nonprofit organizations serving low- and moderate-income residents, with eligibility verified in accordance with HUD income guidelines.
Public service providers will be selected through the City’s competitive application process, with funding recommendations presented to City Council during the adoption hearing for the Annual Action Plan. 5 Project Name Program Administration
Target Area Citywide
Goals Supported Program Administration
Needs Addressed Administration and oversight of the City’s CDBG program.
Funding CDBG: $140,700
Description Administrative activities necessary to manage the City’s CDBG program in compliance with federal regulations.
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed activities
Not applicable
Location Description Citywide
Planned Activities Program administration, financial management, reporting, monitoring, and compliance activities.
Annual Action Plan
2026
26 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed Low- and moderate-income areas in San Marcos are generally concentrated in the central and northern portions of the city, as identified through HUD census tract data and shown in Figure 1. These areas include neighborhoods surrounding Richmar Avenue and other areas meeting HUD’s Low- and Moderate-Income Area (LMA) thresholds.
CDBG investments are directed toward activities that primarily benefit low- and moderate-income residents. Neighborhood infrastructure improvements are generally prioritized within qualifying LMA areas, while housing affordability programs and public service activities may be implemented citywide but are restricted to households that meet HUD low- and moderate-income eligibility requirements.
Geographic Distribution
Target Area Percentage of Funds
CDBG Low- and Moderate-Income Target Areas 100%
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically The City prioritizes investments that primarily benefit low- and moderate-income residents consistent with HUD national objective requirements. Infrastructure improvements are generally targeted toward qualifying low- and moderate-income areas where neighborhood conditions can be improved through park improvements, accessibility upgrades, lighting improvements, and other safety enhancements.
Other activities, including housing affordability programs and public service programs, are implemented citywide but are limited to eligible low- and moderate-income households.
This geographic approach allows the city to prioritize investments in areas with higher concentrations of low- and moderate-income households while ensuring that eligible residents throughout the community may benefit from housing and public service programs.
Discussion
See above.
Annual Action Plan
2026
27 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction
The city of San Marcos recognizes that a variety of public and private factors can affect the availability and affordability of housing. These factors may include land use regulations, development costs, market conditions, and limited availability of land suitable for residential development. The city evaluates these factors through its Consolidated Plan, Housing Element, and other housing planning efforts to identify potential barriers to the production and preservation of affordable housing.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment
The city works to reduce barriers to affordable housing through ongoing evaluation of local policies and coordination with state and regional housing programs. Efforts include maintaining development standards that support a range of housing types, implementing programs identified in the Housing Element, and coordinating with regional agencies to expand housing opportunities for low- and moderate-income households. The city also supports housing preservation efforts through programs such as housing affordability programs funded through the Community Development Block Grant program.
Discussion
The city continues to implement policies and programs intended to reduce barriers to affordable housing and support the preservation of existing housing opportunities for low- and moderate-income households. Actions may include maintaining development standards that support a range of housing types, coordinating housing planning efforts with regional and state housing requirements, and supporting programs that assist low- and moderate-income homeowners.
Through the Community Development Block Grant program, the city supports housing affordability programs that help preserve existing housing stock and improve housing conditions for low- and moderate-income households. The city will continue to evaluate public policies and programs to ensure they do not unduly constrain the availability of affordable housing while maintaining health, safety, and community development objectives.
Annual Action Plan
2026
28 OMB Control No: 2506-0117 (exp. 09/30/2021)
AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The city will continue to work with private developers, nonprofit organizations, regional partners, and other public agencies to address underserved needs among low- and moderate-income residents.
Through these partnerships, the city seeks to improve housing opportunities, expand access to supportive services, and coordinate community development efforts throughout the region.
Actions planned to address obstacles to meeting underserved needs The city will continue to support programs and partnerships that address the needs of low- and moderate-income residents, including affordable housing development, housing preservation, public services, and improvements to community facilities. The city coordinates with regional partners, including the Alliance for Regional Solutions and other service providers, to support programs addressing homelessness and housing instability.
The city also works with nonprofit organizations and community partners to provide services addressing basic needs such as housing stability, food assistance, and supportive services for vulnerable populations. Limited federal, state, and local funding remains a primary obstacle to meeting the full range of community development and housing needs.
The city will continue to convene meetings with local social service providers to discuss community needs and improve coordination among agencies serving San Marcos residents.
Actions planned to foster and maintain affordable housing The city supports policies and programs intended to preserve and expand affordable housing opportunities. The Inclusionary Housing Ordinance requires residential developers to provide affordable housing units or contribute in-lieu fees to support affordable housing development.
The city also monitors income-restricted affordable housing units developed through regulatory agreements to ensure compliance with affordability requirements and maintain safe housing conditions.
The city’s Housing Element provides long-range policy direction to support housing production, housing preservation, and affordability for residents of varying income levels.
Actions planned to reduce lead-based paint hazards
The city is committed to reducing hazards associated with lead-based paint in accordance with the Residential Lead-Based Paint Hazard Reduction Act and HUD’s Lead Safe Housing Rule (24 CFR Part 35).
Housing activities funded through the CDBG program include procedures to identify and address lead- based paint hazards in homes constructed prior to 1978.
City building inspectors review properties undergoing rehabilitation or construction to ensure compliance with applicable health and safety standards. When lead hazards are identified, appropriate
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2026
29 OMB Control No: 2506-0117 (exp. 09/30/2021)
mitigation or abatement measures are implemented in accordance with federal requirements.
Actions planned to reduce the number of poverty-level families The city supports efforts to reduce poverty by promoting access to safe and affordable housing and supporting programs that assist low- and moderate-income households in achieving housing stability.
Affordable housing developments and supportive service programs may provide services such as case management, financial education, and other resources that help households maintain stable housing and improve economic opportunity.
Actions planned to develop institutional structure
The city participates in regional partnerships and working groups to coordinate housing and community development efforts. These include the Alliance for Regional Solutions, the San Diego Regional Alliance for Fair Housing, the San Diego Regional Continuum of Care Council, and other regional planning and coordination groups.
City staff also participate in regional meetings with other CDBG entitlement jurisdictions and attend HUD training opportunities to remain current with program requirements. These efforts support effective administration of the CDBG program and improve coordination among agencies serving low- and moderate-income residents.
Actions planned to enhance coordination between public and private housing and social service agencies
The County of San Diego Housing and Community Development Services Department serves as the public housing agency for the city and plays an important role in addressing regional housing and homelessness issues. The city coordinates with the County and other regional partners through participation in the Continuum of Care and other regional initiatives addressing housing stability and homelessness.
The city also works closely with nonprofit organizations and social service providers that deliver services to low- and moderate-income residents. Staff regularly engage with these organizations to share information, coordinate programs, and identify opportunities to improve service delivery.
Discussion
See above.
Annual Action Plan
2026
30 OMB Control No: 2506-0117 (exp. 09/30/2021)
Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed $0
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
$0
3. The amount of surplus funds from urban renewal settlements $0
4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. $0
5. The amount of income from float-funded activities $0 Total Program Income $0
Other CDBG Requirements
1. The amount of urgent need activities $0
Discussion
The City does not anticipate receiving program income or other special funding sources identified in this section during Program Year 2026. Activities funded under the Annual Action Plan will primarily address low- and moderate-income national objectives consistent with HUD CDBG requirements.