TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: July 8, 2026
SUBJECT: APPROVAL OF RESOLUTION R-26-18 ADOPTING THE
REVISION TO THE COMMUNITY DEVELOPMENT GRANT
(CDBG) ACTION PLAN FOR FISCAL YEAR 2025-26 AND
FISCAL YEAR 2026-27
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Fiscally Responsible and Transparent City Government
BACKGROUND
The Community Development Block Grant (CDBG) is one of the longest standing federal grant programs and is administered by the U.S. Department of Housing and Urban Development (HUD). CDBG funds are intended to support local community development activities that primarily benefit low-tomoderate income people, eliminate blight, or address urgent community needs. Eligible activities include, but are not limited to, affordable housing, public services, and infrastructure improvement such as the removal of accessibility barriers. The CDBG program provides participating cities with flexibility to identify and fund projects that address locally identified community needs while meeting HUD’s national program objectives.
The City of San Marino has participated in the CDBG program for several years. As a condition of participation, the City is required to annually identify eligible projects, conduct a public hearing with appropriate public noticing, and adopt an authorizing resolution approving the proposed use of funds for the upcoming fiscal year (FY). Eligible CDBG activities include acquisition of real property, demolition, relocation, public services, and the construction or improvement of public facilities and infrastructure.
Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
For the FY 2025-26, the City Council approved of the projected use of funds on January 8, 2025. The total CDBG allocation to be used for the senior outreach program was $12,000. The Senior Outreach Program is administered by the Community Services Department.
For FY 2026-27, the City Council approved of the projected use of funds on January 15, 2026. The total CDBG allocation for the Senior Outreach Program is $9,579.
The total amount allocated for the Senior Outreach Program over two Fiscal Years is $21,579.
DISCUSSION
In December 2025, staff was informed of Executive Order 14218. It states that as of July 1, 2025, any CDBG-funded programs providing direct benefits to individuals or households, including housing rehabilitation, public services, and job-creation activities, must verify the citizenship / legal status of all participants, except when services are delivered by eligible nonprofit subrecipients. Due to the sensitive nature of this information and the desire to avoid uncomfortable interactions between staff and patrons, staff discontinued the use of CDBG funds for senior outreach programs.
As citizenship / legal status documents have not been collected since Executive Order 14218 went into place, and the City does not want to collect this information in the future, the City will be cancelling the senior outreach projects with HUD for both FY 2025-26 and FY 2026-27. As such, the CDBG funds allocated to this program will be returned and rolled into the City’s CDBG revolving fund.
Note: the senior outreach programs previously funded by CDBG funds include weekly exercise classes and quarterly Happy Hour events (social opportunities). Due to low enrollment in FY 2025-26, the Happy Hour events will not be offered moving forward. However, to maintain the in-demand exercise classes, staff recommend that these programs be funded by the General Fund.
FISCAL IMPACT & PROCUREMENT REVIEW
The table below shows the amounts allocated and spent for senior outreach programs for FY 2025-26 and FY 2026-27.
Fiscal Year Allocated
Amount
YTD Spent
2025-26 $12,000 $4,475
2026-27 $9,579 N/A
For FY 2025-26, the General Fund can absorb the expenses that would have been covered by CDBG funds. For FY 2026-27, funds to continue offering the exercise classes have been included in the Department’s General Fund operating budget. Thus, no budget amendments are necessary.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve Resolution No. R-26-18 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 2025-26 and FY 2026-27.
If City Council concurs, an appropriate motion would be “I approve Resolution No. R-26-18 Resolution No. R-26-18 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 2025-26 and FY 2026-27. “
ATTACHMENTS
1. CDBG Bulletin # 25-0020
2. Resolution No. R-26-18 adopting the revision to the Community Development Grant (CDBG) Action Plan for Fiscal Year 2025-26 and FY 2026- 27 3. Public Notice