____________________________________________________________________________________
FOR CITY CLERK ONLY
Agenda Item No: 6.a
Meeting Date: April 21, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Micah Hinkle, Director
Alexis Captanian, Housing Manager
City Manager Approval: ____
TOPIC COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
SUBJECT RESOLUTION RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2025-2026 TO THE MARIN
COUNTY BOARD OF SUPERVISORS
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution recommending Community Development Block Grant (CDBG) project funding for Fiscal Year (FY) 2025-26 to the Marin County Board of Supervisors.
BACKGROUND:
The Community Development Block Grant (CDBG) is a federally funded program administered by the U.S. Department of Housing and Urban Development (HUD) designed to enhance local quality of life by supporting essential community-based projects. CDBG funding prioritizes the creation and preservation of affordable housing, improvements to community infrastructure and facilities, and the provision of critical public services benefiting residents in need.
In 2023, the City of San Rafael entered into a cooperative agreement with the County of Marin to coordinate the allocation and management of CDBG funds more effectively. Through this partnership, Marin County is organized into three distinct planning areas: Countywide, the City of San Rafael, and the City of Novato. Funding recommendations across these planning areas are guided by a countywide Priority Setting Committee (PSC), composed of elected City and Town Council representatives, a County Supervisor, and local community members representing federally protected classes—including individuals of diverse races, religions, national origins, genders (including gender identity and sexual orientation), disabilities, and familial statuses—in accordance with fair housing regulations. San Rafael City Councilmember Rachel Kertz currently serves on the PSC. Attachment 3 contains the roster of PSC members for 2025-26.
Under this cooperative arrangement, the City of San Rafael is responsible for reviewing and recommending allocations for CDBG-funded projects specifically benefiting the San Rafael community.
The process consists of the San Rafael City Council forwarding its recommendations to the PSC, which then incorporates San Rafael’s recommendations along with proposals from the other two planning areas into comprehensive recommendations for consideration by the Marin County Board of Supervisors (BOS).
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In June 2025, the BOS will conduct a public hearing to review and formally act on these combined funding recommendations. Following approval by the BOS, the finalized funding plan will be submitted to HUD for authorization, ensuring strategic investment in projects that effectively address community needs and comply with federal guidelines.
The CDBG program has a minimum grant size of $15,000 per project per year, and Countywide projects may receive funding from each planning area to bring their grant amount up to $15,000.
Federal regulation requires that the majority of funds be spent on housing and community infrastructure/capital projects. The funding is allocated formulaically by HUD to entitled cities and counties. Three factors are included in the San Rafael Planning Area allocation formula: population, overcrowding, and poverty. The San Rafael Planning Area is expected to receive approximately $481,541 in CDBG funding.
ANALYSIS:
Evaluation Guidelines
The Priority Setting Committee, County and City staff evaluated all applications received based on the criteria listed below:
HUD National Objective Thresholds:
• Benefit low- and moderate-income persons.
• Prevent or eliminate blight or meet other community development needs for low- and moderateincome persons.
Last year, the PSC established the following additional criteria:
• Support projects that affirmatively further fair housing and have the commitment and capacity to engage in affirmative marketing.
1 • Prioritize projects that serve members of protected classes as defined by HUD. • Prioritize projects that serve low-income persons.
Project Evaluation Criteria:
• Readiness—can awarded funds be completely expended during the grant year? • Sustainability—does the organization have the capacity to sustain a project or program beyond this federal funding period?
• Effectiveness and Accountability—does the organization have the capacity and track record to effectively execute the project and administer federal funds? • Prioritize projects with the greatest impact.
In addition to the criteria set forth by HUD, the PSC approved establishing two additional priorities for funding CDBG and HOME housing projects:
• Family Housing2
1 Affirmative Marketing is targeted outreach about program opportunities to groups of people otherwise least likely to apply for or receive those opportunities. Given Marin’s history of segregation, the protected class populations typically included in Affirmative Marketing are Black/African American, Asian/Pacific Islander, and Latinx.
Programs that do not conduct broad Affirmative Marketing are less competitive in the allocation process. 2 Family Housing is identified as a need in both the County’s Consolidated Plan and Analysis of Impediments. In addition, HUD requires that Marin’s CDBG and HOME grants contribute to the creation of new family housing units.
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• Land trust model in eastern Marin provides homeownership opportunities (in this context, Eastern Marin is defined as all areas in Marin outside West Marin).
The PSC also established the following priorities for public service projects:
• Children, Youth, and Parent Support Services – includes services that target low-income families and address disparities in access to early childhood education, high costs of childcare countywide, and family self-sufficiency. Programs and services include but are not limited to supporting childcare scholarships, student extracurricular activities, parent engagement and training, case management, therapeutic services, transportation, home visitations, and family legal support.
• Housing Support Services – includes services that assist individuals in accessing stable housing, prevent discrimination in housing choice, and aid renters in maintaining stable housing.
Programs and services include but are not limited to fair housing counseling, legal support, housing locators, and down payment and rental assistance.
CDBG Funding – City of San Rafael Planning Area
Tables A, B, and C show below on pages 4-6 of this report, provide funding recommendations based on the evaluation criteria outlined above. The San Rafael Planning Area allocations are in bold.
Following each chart is a brief description of the project(s) recommended for funding.
The County of Marin has not yet received formal notification from HUD regarding the final allocation for the 2025–26 CDBG program. Consequently, the recommendations presented in this report are preliminary and have been developed based on an assumption of funding consistent with the prior year's total allocation of $1,559,706.
Once HUD announces the final funding amount, the recommendations will be reviewed and adjusted as necessary. If HUD’s FY 2025-26 allocation is not as anticipated, staff will adjust funding recommendations proportionately, with no award falling under $15,000 per program guidelines.
Based on the HUD funding formula established in the cooperative agreement, the San Rafael Planning Area is expected to receive approximately $481,541 in CDBG funding, distributed across the following categories: (1) $200,500 dedicated specifically for housing projects; (2) an additional $208,525 that may be allocated flexibly between housing or capital/community infrastructure projects; and (3) a maximum of $72,515 available for public service activities. These amounts reflect federal regulatory requirements, ensuring a strategic investment that meets community priorities while adhering to HUD guidelines.
Attachment 2 contains the recommended allocation of San Rafael planning area CDBG funds to applications received for the San Rafael Planning Area and Countywide projects serving the San Rafael Planning Area. The list also indicates the total expected allocation for each application, including funding recommended from the other planning areas. Attachment 4 shows all funding requests received for the 2025-26 cycle.
Housing Projects
A total of four (4) housing projects submitted applications for CDBG funding under the San Rafael Planning Area, with a combined funding request of $1,894,881. • Two projects are located in San Rafael, requesting a total amount of $800,000. • One is a countywide program that benefits San Rafael residents, requesting $94,881.
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• One is a regional development project located in Novato (Redwood Blvd), requesting $1,000,000.
In accordance with CDBG guidelines, a minimum of $200,500 must be allocated to housing projects.
For FY 2025–26, staff recommends a total of $219,026 in housing funding, as outlined in Table A. This higher allocation was made possible by shifting a portion of capital improvement funds into the housing category, prioritizing essential housing preservation and rehabilitation efforts.
Table A: Housing Projects
Funding Applications received CDBG
Request
San Rafael
Recommendation
Expected Total
CDBG Allocation
Canal Alliance – Marin Villas
Rehab* $ 400,000 $ 138,525 $ 138,525
Habitat for Humanity – Home Rehab
Program $ 94,881 $ 13,000 $ 40,000
Habitat for Humanity – Redwood
Blvd $1,000,000 $ 67,501 $ 424,401
Marin Foster Care Association –
158-166A Park Street* $ 400,000 -- --
TOTAL $1,894,881 $ 219,026 $ 602,927
* San Rafael-only request
Marin Villas Rehabilitation Project (Canal Alliance) will complete full renovations for two units and bathroom upgrades for two additional units at a four-unit affordable rental property in San Rafael.
Renovations will improve safety, ventilation, and habitability. Canal Alliance has owned the property for over 20 years and will provide temporary relocation during construction.
Marin County Home Rehabilitation Program (Habitat for Humanity) provides zero-interest deferred loans to rehabilitate approximately 20 low-income, owner-occupied homes countywide. The program supports essential repairs including roofing, plumbing, and ADA accessibility modifications to help homeowners remain safely in their homes.
Redwood Blvd Project (Habitat for Humanity) A proposed 80-unit affordable homeownership development in Novato that includes a mix of two-, three-, and four-bedroom units for families earning between 60%–90% of Area Median Income (AMI). The San Rafael contribution supports predevelopment activities and demonstrates regional collaboration to increase affordable housing options within Marin County.
158–166A Park Street Acquisition (Marin Foster Care Association) will acquire six one-bedroom units in San Rafael to house transition-age foster youth. The project will offer stable housing paired with supportive services to help young adults exiting the foster care system avoid homelessness and achieve independence. Given the administrative complexity associated with federal funding sources and considering the size and capacity of the applicant organization, City and County staff have recommended the project for funding through the City and County Affordable Housing Trust Funds rather than CDBG.
Capital Projects
Two capital projects submitted applications from the San Rafael Planning Area, totaling $721,150 in requested funding.
• One project is located specifically in San Rafael, requesting $150,000.
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• One project serves Marin County residents broadly, including residents of San Rafael, requesting $571,150.
In accordance with CDBG guidelines, up to $208,000 may be allocated to capital or housing projects.
For FY 2025–26, the City of San Rafael recommends $190,000 in capital funding, as outlined in Table B below.
Notably, $18,525 of the capital allocation was strategically shifted to support a housing rehabilitation project (Canal Alliance – Marin Villas), as discussed in the Housing section above. This reflects the City’s prioritization of critical housing preservation needs within the allowable capital funding cap.
Table B: Capital Projects
Funding Applications received CDBG Request San Rafael
Recommendation
Expected Total
CDBG Allocation
Ritter Center – Ritter Builds Hope
Capital Campaign* $ 150,000 $ 125,000 $ 125,000
Homeward Bound – New
Beginnings Shelter Repairs $ 571,150 $ 65,000 $ 219,714 TOTAL $ 721,150 $ 190,000 $ 344,714
* San Rafael-only request
Ritter Builds Hope Capital Campaign (Ritter Center) will renovate and upgrade the Ritter Center facility at 800 A Street, San Rafael, to expand healthcare, behavioral health, and supportive housing services for low-income and homeless residents. Improvements include ADA accessibility enhancements, trauma-informed counseling spaces, energy-efficient system upgrades, and exterior façade improvements.
New Beginnings Center Infrastructure Repairs (Homeward Bound of Marin) involves critical repairs and upgrades to Marin County’s largest emergency shelter in Novato, including roof replacement, interior/exterior painting, bathroom safety improvements, and installation of an emergency backup generator system to ensure continuous operation during power outages.
Public Services
The County anticipates an allocation of approximately $72,515 in CDBG public services funding for the San Rafael Planning Area in the FY 2025–26 program year, based on 15% of the total CDBG entitlement after deducting administrative and required fair housing costs. While the City Council may choose to allocate a lower amount annually, it cannot exceed this 15% cap.
A total of 15 public service applications were received that listed the San Rafael Planning Area in their funding request. Of those, staff recommends four projects for funding. While most applications propose countywide services, the City of San Rafael’s Pickleweed Preschool specifically serves the San Rafael community.
Due to limited funding and based on program priorities, staff recommend allocating the full $72,515 to a targeted set of high-impact projects, shown in Table C below. The Expected Total CDBG Allocation column in Table C represents the total funding recommended from the San Rafael, Novato, and Countywide Planning Areas combined.
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Table C: Public Services
Funding Applications received CDBG
Request
San Rafael
Recommendation
Expected Total
CDBG
Allocation
Legal Aid of Marin – Keeping
Marginalized Marin Tenants Housed $ 135,000 $ 27,515 $ 78,956 Adopt A Family of Marin – Emergency
Rental Assistance for Families at Risk
for Homelessness
$ 25,000
Marin YMCA – Expanding Affordable
Childcare through YMCA ElementaryAged Programs$ 65,000 Front Porch Communities – Home
Match $ 20,000
Marin Housing Authority – Older and
Disabled Adult Service Initiative 2025 $ 230,000
Marin Center for Independent Living –
Residential Access Modification
Program (RAMP)
$ 45,000 $ 10,000 $ 15,000
Community Action Marin –
Community Supports and Emergency
Services
$ 49,680
Vivalon – Nourish by Vivalon $ 67,200
Fair Housing Advocates of Northern
California – Fair Housing Counseling
and Education*
$ 85,000 $ 50,000
ExtraFood – Creating a More
Equitable Food System in Marin
County
$ 52,513
Make It Home – One Cozy Bed $ 25,000 $ 15,000 $ 15,000
Subtotal: Countywide Public Services $ 799,393 $ 52,515 $ 108,956 San Rafael-only requests:
City of San Rafael – Pickleweed
Preschool $ 27,991 $ 20,000 $ 20,000
Center for Employment Opportunities
– CEO Marin’s Rapid Response
Housing & Assistance Program
$ 60,000
WelcomingHome.org – 4 homes in
2025 (San Rafael and Novato) $ 20,000
Road to Empowerment Restorative
Services – Peer Mentor Program (San
Rafael and Novato)
$ 30,000
Subtotal: San Rafael Public Services $ 137,991 $ 20,000 $ 20,000 TOTAL PUBLIC SERVICES $ 937,384 $ 72,515 $ 128,956
*Required Fair Housing Services
Marin Center for Independent Living – Residential Access Modification Program (RAMP) Provides home modifications such as ramps, grab bars, and stair lifts to increase accessibility and housing stability for residents with disabilities.
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City of San Rafael – Pickleweed Preschool Provides affordable early childhood education for 68 children in the Canal neighborhood. Funding helps retain a key staff position after the loss of state funding.
Make It Home – One Cozy Bed Distributes beds and bedding to vulnerable families transitioning into permanent housing, helping to stabilize housing conditions and promote comfort and dignity.
Legal Aid of Marin – Keeping Marginalized Marin Tenants Housed Provides legal advocacy, education, and outreach to prevent eviction and housing discrimination for low-income tenants, including seniors, immigrants, and individuals with disabilities. The program helps prevent displacement and promotes housing stability through free legal services and fair housing enforcement.
FISCAL IMPACT:
There is no direct cost or revenue impact from the recommended action as the City would be recommending CDBG funding for specific projects to be disbursed by the County of Marin. However, allocating federal funds to potential City projects may allow City general and capital funds to be allocated to other priorities.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Approve the recommended CDBG funding allocations as outlined in this report.
2. Modify the CDBG funding allocations by adjusting individual project awards.3
3. Defer to the Countywide Priority Setting Committee to finalize funding recommendations for the San Rafael Planning Area.
4. Provide alternative direction to staff regarding project selection or funding priorities.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution recommending Community Development Block Grant (CDBG) project funding for Fiscal Year (FY) 2025-26 to the Marin County Board of Supervisors.
ATTACHMENTS:
1. Resolution
2. Exhibit A to Resolution: 2025-26 CDBG Project Allocations
3. 2025-26 PSC Roster
4. 2025-26 All Funding Requests Received
3 Note: Funds may be reallocated within categories; however, the Public Services category cannot exceed $72,515, per federal cap guidelines.
RESOLUTION NO.
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2025-2026 TO THE MARIN COUNTY BOARD OF SUPERVISORS BE IT RESOLVED by the Council of the City of San Rafael as follows:
WHEREAS in June 1999, the City Council revised the Cooperation Agreement with the County of Marin for Community Development Block Grant (CDBG) funds whereby the City remained in the County system; and
WHEREAS in December 1999, the City devised a project selection process for CDBG projects; and
WHEREAS on April 21, 2025, in accordance with the adopted project selection process the City Council reviewed the submitted applications; NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council recommends to the Marin County Board of Supervisors that the $481,541.48 in CDBG funds available for allocation by the City of San Rafael be distributed to the projects and in the amounts shown on Exhibit A to this resolution, subject to adjustments necessary to accommodate any changes in the final allocation given to the County of Marin by the federal Department of Housing and Urban Development (HUD).
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the Council of said City held on the 21st day of April 2025, by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
Lindsay Lara, City Clerk
Funding Applications received CDBG Request San Rafael
Recommendation
Expected Total
CDBG Allocation
Canal Alliance – Marin Villas Rehab
(San Rafael) $ 400,000.00 $ 138,525.47 $ 138,525.47
Habitat for Humanity – Home Rehab
Program (Countywide) $ 94,881.00 $ 13,000.00 $ 40,000.00 Habitat for Humanity- Redwood Blvd $ 1,000,000.00 $ 67,500.59 $ 424,401.41 Marin Foster Care Assoc. – 158–166A
Park Street (San Rafael) $ 400,000.00
Housing SubTotal $ 1,894,881.00 $ 219,026.06
* San Rafael-only request $ 721,150.00 $ 190,000.00
Legal Aid of Marin – Keeping
Marginalized Marin Tenants Housed $ 135,000.00 $ 27,515.42 $ 78,955.91 Marin Center for Independent Living –
Residential Access Modification
Program (RAMP)
$ 45,000.00 $ 10,000.00 $ 15,000.00
Make It Home – One Cozy Bed $ 25,000.00 $ 15,000.00 $ 15,000.00 Countywide Public Services subtotal $ 205,000.00 $ 52,515.42 San Rafael-only request
City of San Rafael – Pickleweed
Preschool $ 27,991.00 $ 20,000.00 $ 20,000.00
* San Rafael-only request $ 27,991.00 $ 20,000.00
$ 481,541.48
$ 125,000.00 $ 125,000.00
Homeward Bound – New Beginnings
Shelter Repairs (Countywide) $ 571,150.00 $ 65,000.00 $ 219,713.88
PUBLIC SERVICE
Total San Rafael Funding Recommendation
Ritter Center – Ritter Builds Hope
Capital Campaign (San Rafael) $ 150,000.00
HOUSING CAPITAL HOUSING
Exhibit A to Resolution: 2025-26 CDBG Project Allocations 2025-26 PSC Roster
CM - Countywide Nancy Johnson
CM - Lower Ross Tracie Palmer
CM - Novato Crystal Lewis
CM - San Rafael Craig Yates
CM - Southern Marin Ida Green
CM - Upper Ross Philip "PJ" Feffer
CM - West Marin Hal Russek
EM - BOS Supervisor Eric Lucan
EM - Belvedere Peter Mark
EM - Corte Madera Rosa Thomas
EM - Fairfax Barbara Coler
EM - Larkspur Sarah Margulies
EM - Mill Valley Stephen Burke
EM - Novato Mark Milberg
EM - San Anselmo Chantel Walker
EM - San Rafael Rachel Kertz
EM - Sausalito Melissa Blaustein
EM- Tiburon Holli Their
PROJECT SPONSOR PROJECT NAME Planning Area CDBG Request Canal Alliance
Canal Alliance - Marin Villas
Affordable Housing
Renovations, Phase II San Rafael
$ 400,000.00
Abode Housing Development
519 4th Street Community
Apartments (official name has
not been selected yet)
San Rafael
Eden Housing, Inc. Oak Hill Eden
Habitat for Humanity Greater San
Francisco Habitat Redwood Blvd. Novato $ 1,000,000.00
Habitat for Humanity Greater San
Francisco
Habitat Marin County
Rehabilitation Program County Wide $ 94,881.00
EAH Riviera and Turina Scattered
Site Renovation San Rafael
Marin Foster Care Association 158-166 Park Street San Rafael $ 400,000.00 Housing Request Subtotal $ 1,894,881.00
North Marin Community Services
680 Wilson Siding
Replacement; Northern
Facade and Upper Roof
Novato $ 110,000.00
Ritter Center Ritter Builds Hope Capital
Campaign Project San Rafael $ 110,000.00
Two Valleys Community Land Trust Forest Knolls Mobile Home Park Common Building County Other $ 59,000.00
Homeward Bound of Marin
New Beginnings Center
Infrastructure Repairs and
Improvements
County Wide $ 571,150.00
North Bay Children's Center Outdoor Classrooms, Learning Lab Novato $ 75,000.00
Capital Request Subtotal $ 850,150.00
Marin Center For Independent Living Residential Access
Modification Program County Wide $ 45,000.00
Fair Housing Advocates of Northern
California
Fair Housing Counseling and
Education County Wide $ 85,000.00
Community Action Marin Community Supports and
Emergency Services County Wide $ 49,680.00
ExtraFood Creating a More Equitable
Food System in Marin County County Wide $ 52,512.50
Legal Aid of Marin Keeping Marginalized Marin
Tenants Housed County Wide $ 135,000.00
Fairfax-San Anselmo Children's Center After School Transportation Project County Other $ 20,000.00
Vivalon Nourish by Vivalon County Wide $ 67,200.00
Adopt A Family of Marin
Emergency Rental Assistance
for Families at Risk for
Homelessness
County Wide $ 25,000.00
City of San Rafael Pickleweed Preschool San Rafael $ 27,991.00 Marin YMCA
Expanding Affordable
Childcare through YMCA
Elementary-Aged Programs
County Wide $ 65,000.00
Planned Parenthood Shasta Diablo Inc. Increasing Equitable Access to Care in Marin County County Other $ 30,000.00
North Marin Community Services Nourishing North Marin Novato $ 25,000.00 Make It Home One Cozy Bed County Wide $ 25,000.00
San Geronimo Valley Community Center Child and Family Food Access County Other $ 30,000.00 Center for Employment Opportunities, Inc.
CEO Marin’s Rapid Response
Housing & Assistance
Program
San Rafael $ 60,000.00
Front Porch Communities Home Match County Wide $ 20,000.00 Marin Housing Authority Older and Disabled Adult
Service Initiative 2025 County Wide $ 230,000.00
2025-26 Marin County NOFA - All Applications Received
Housing Capital Public Services
Performing Stars of Marin
Youth Afterschool and
Summer Enrichment
Programming
County Other $ 20,000.00
WelcomingHome.org 4 homes in 2025 San Rafael, Novato $ 20,000.00 North Bay Children's Center, Inc. Childcare Scholarship Novato $ 20,000.00 Road to Empowerment Restorative
Services Peer Mentor Program San Rafael, Novato $ 30,000.00 Public Services Request Subtotal $ 1,082,383.50