Community Development Agency
www.santa-ana.org/cd
Item # 26
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 21, 2026
TOPIC: Fiscal Year 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs
AGENDA TITLE
Public Hearing – Approve the Fiscal Year 2026-27 Annual Action Plan and Budgets for the Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant for Submission to the U.S. Department of Housing and Urban Development
Published in the OC Register, La Opinión, and Nguoi Viet on March 16, 2026.
RECOMMENDED ACTION
1. Approve the Fiscal Year 2026-27 Annual Action Plan for submission to the U.S.
Department of Housing and Urban Development.
2. Approve the Fiscal Year 2026-27 budgets for the Community Development Block Grant Program in the amount of $4,133,909, HOME Investment Partnerships grant in the amount of $1,153,540, and Emergency Solutions Grant in the amount of $368,272.
3. Authorize the City Manager to prepare and approve funding agreements and/or memorandums of understanding with various city departments and nonprofit public service providers awarded funds as part of the approved budget for the Community Development Block Grant program and the Emergency Solutions Grant program for a term beginning July 1, 2026 through June 30, 2027.
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
Community Development Commission
At its Regular Meeting on March 25, 2026, the Community Development Commission (CDC) held a public hearing to receive resident and stakeholder comments on funding priorities and needs for activities funded with the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) grant, and Emergency Solutions Grant (ESG) programs in the Fiscal Year (FY) 2026-27 Annual Action Plan. No comments were received during the meeting.
FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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The CDC recommended approval of the Fiscal Year 2026-27 Annual Action Plan and budgets for the Community Development Block Grant, HOME Investment Partnerships Grant, and Emergency Solutions Grant to the City Council by a vote of 5:0.
Every five years, the City of Santa Ana (City) must submit its Five-Year Consolidated Plan to the U.S. Department of Housing and Urban Development (HUD) to receive funding for the CDBG, HOME, and ESG programs. These federal funds provide for the development of affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement, nonprofit public services, the expansion and retention of businesses, and for the delivery of services for individuals experiencing homelessness. In general, the Five-Year Consolidated Plan describes how the City will invest and allocate these limited federal funds for and on behalf of the community. In June 2025, the Five-Year Consolidated Plan for the period of July 1, 2025 to June 30, 2029 was submitted to HUD.
As part of this five-year strategic planning process, the City is required to submit an Annual Action Plan each year that describes how the City will achieve the goals stated in the Five-Year Consolidated Plan. This document establishes a one-year investment plan that outlines the intended use of resources in the forthcoming fiscal year. The proposed Annual Action Plan covers FY 2026–27 and seeks to allocate funding where programs and resources will have the maximum positive impact (Exhibit1).
The Annual Action Plan describes the planned use of the City’s federal entitlement grants specifically for FY 2026-27. For FY 2026-27, the City will receive $4,133,909 in CDBG program funds, $1,153,540 in HOME program funds, and $368,272 in ESG program funds from HUD:
Program Allocation
CDBG $4,133,909
HOME $1,153,540
ESG $368,272
TOTAL $5,655,721
The various projects and programs covered under the FY 2026-27 Annual Action Plan are designed to serve low-income residents. The FY 2026-27 Annual Action Plan includes the program budgets described in detail below for the CDBG, HOME, and ESG programs respectively.
Community Development Block Grant Program Budget
The CDBG program provides funds to improve low and moderate-income neighborhoods, eliminate blight, and create a more stable economic base. These funds may be used for a diverse range of programs, including affordable housing, street improvements, park and public facilities improvements, economic development, code enforcement, and public services. The City’s anticipated CDBG allocation for FY 2026- 27 is $4,133,909 plus $137,959 in re-allocation of prior years’ CDBG funds for a total of $4,271,868.
FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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The proposed FY 2026-27 CDBG Program Funding Plan consists of the CDC funding recommendations for nonprofit public service programs and staff’s funding recommendations this year for administration and planning, code enforcement, city capital improvements, and housing. The CDBG Program Funding Plan can be summarized in two general categories: 1) Capital Projects/CDBG Program Funding Plan; and 2) Public Services. A summary of the process and allocation for the FY 2026- 27 CDBG Program is provided below for both general categories.
Capital Projects/CDBG Program Funding Plan
The FY 2026-27 CDBG Program Funding Plan includes the funding allocations for administration and planning, code enforcement in low and moderate-income areas of the city to address health and safety violations, economic development to provide small business grants, nonprofit public services, city capital improvement projects, and single- family rehabilitation grants (Exhibit 2).
The CDBG allowable cap of 20% for administration and fair housing services is $826,782 for FY 2026-27. Administration is necessary for staffing, compliance, reporting, fiscal management, studies, and monitoring of the entire program. Fair housing is necessary due to CDBG requirements that the City affirmatively further fair housing.
Three new city capital improvement projects are recommended for funding for a total of $1,400,000, which includes the following:
1) $1,000,000 for Logan/Chepa’s Park Construction
2) $300,000 for Rehabilitation of the Carnegie Homeless Shelter (Generator Improvements)
3) $100,000 for ADA Improvements to the Delhi Library
The proposed programs and capital improvement projects have been determined to be of highest priority and need by the Executive Directors of the Parks, Recreation, and Community Services Agency, Public Works Agency, and Community Development Agency. These determinations come subsequent to the City's internal application process, ensuring a thorough assessment and alignment with overarching objectives.
FY 2026-27 CDBG Program Budget
General Activity Funding Amount
CDBG Program Administration & Fair Housing $ 826,782 Code Enforcement - Enforcement of Housing & Municipal Building Codes $ 825,000
Economic Development $ 100,000
Non-Profit Public Services $ 620,086
Public Facility Improvements, Streets & Parks $ 1,400,000 Housing Rehabilitation $ 500,000
FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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TOTAL $ 4,271,868
City Department / Division 2026-27
Award
Community Development Agency – Administration of the CDBG Program.
Proposed funding amount calculated based on 20% administrative cap less Fair Housing amount
$751,782
Orange County Fair Housing Council Inc. – Provides fair housing education, landlord tenant counseling and enforcement services to combat housing discrimination, and city administrative support for the residents of the City of Santa Ana. A commitment to further fair housing is a requirement of CDBG funding. $75,000
Code Enforcement – Community Preservation Services $825,000 Economic Development – New Business Start-Up/Micro Enterprise Grants $100,000 Parks, Recreation, Community Services Agency – Logan/Chepa’s Park Construction $1,000,000
Library Services – ADA Improvements to Delhi Library $100,000 Community Development Agency – Rehabilitation of the Carnegie Homeless Shelter (Generator Improvements) $300,000
Housing – To address rehabilitation of single-family housing with Habitat for Humanity of Orange County (Citywide) $500,000
TOTAL $3,651,782
Nonprofit Public Services
A maximum of 15% of CDBG funding for FY 2026-2027 ($620,086) is allocated for public services. For the FY 2026-27 and 2027-28 allocations ($1,240,164), the City has agreed to provide the entire public service allocation to nonprofit organizations for programs with an emphasis on crime prevention, intervention, and suppression for children, youth, and families, economic development, tenant services assistance and programs, health services, and senior services (Exhibit 3).
Public Service Organizations 2026-28
Award
America on Track – Brighter Futures for Children of Prisoners $78,924 Community Health Initiative Orange County – Community Health Access Program $78,924
Community Legal Aid SoCal – Domestic Violence Prevention Project $78,924 Human Options – Assisting Domestic Violence Victims $174,676 Lutheran Social Services of Southern California – Victims Intervention Program $78,924 Mary’s Shelter DBA Mary’s Path – Expanded Aftercare for Teen Moms $78,924 MOMs OC – Maternal Child Health Coordinator Program $78,924 Mosaic Movement – Mosaic Lifeline Initiative $78,924
Nati's House (dba Neutral Ground) – Summer Night Lights $78,924 Orange County Children's Therapeutic Arts Center – Neighborhood Crime Prevention & Intervention Program $78,924
FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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Project Hope Alliance – On-Site Case Management Program $118,388 Straight Talk Clinic, Inc. – Crisis Intervention & Comprehensive Mental Health Services for Low-Income Santa Ana Residents $78,924
The Cambodian Family – Financial Education and Empowerment for Parents and Seniors $78,924
WISEPlace – Steps to Independence $78,944
TOTAL $1,240,172
HOME Investment Partnerships Grant Program Budget
The HOME program provides funds for a wide range of housing-related activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership, or providing direct tenant-based rental assistance to low-income residents. The program’s flexibility allows HOME funds to be used for grants, direct loans, loan guarantees or other forms of credit enhancements, or tenant-based rental assistance or security deposits.
At least 15% of HOME funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). A CHDO is a private nonprofit, community-based organization that has staff with the capacity to develop affordable housing for the community it serves. In order to qualify for designation as a CHDO, the organization must meet certain requirements pertaining to their legal status, organizational structure, and capacity and experience.
The City’s HOME allocation for FY 2026-27 is $1,153,540. In this Annual Action Plan, funds are proposed for program administration, the required set-aside for CHDOs, and funds for affordable housing development and rehabilitation.
FY 2026-27 HOME Program Budget
General Activity Funding Amount
HOME Program Administration $115,354
HOME CHDO Set-Aside $173,030
Affordable Housing Development and Rehabilitation $865,156 Prior Year Resources $12,076,988
TOTAL $13,230,528
The FY 2026-27 HOME Program Funding will be allocated through a Request for Proposal for Affordable Housing Development. These recommendations will be presented to City Council at a later date.
Emergency Solutions Grant
The ESG program provides funds to assist both sheltered and unsheltered homeless individuals, as well as those on the brink of homelessness, enabling them to swiftly regain stability in permanent housing after experiencing a housing crisis and/or homelessness.
Recipients of ESG funding in Orange County include the following entitlement jurisdictions:
the County of Orange, City of Anaheim, City of Irvine, City of Santa Ana, and City of FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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Garden Grove. Collectively, this group is referred to as the Orange County ESG Collaborative that was formed over ten years ago.
The City's ESG allocation for FY 2026-27 is $368,272. The proposed FY 2026-27 ESG Program Funding Plan includes a list of homeless service providers recommended for funding for FY 2026-27 (Exhibit 4). These funding recommendations are based upon applications received during the 2024 RFP process, taking into account performance metrics and current needs as identified by staff. The budget below is broken down by category to provide more detail on funds allocated to eligible ESG activities:
FY 2026-27 ESG Program Budget
General Activity Funding Amount
ESG Program Administration $27,620
Homeless Street Outreach $63,209
Homeless Emergency Shelter $86,324
Rapid Re-Housing $126,648
ESG Data Collection Management (HMIS) $64,471
TOTAL $368,272
Next Steps
In accordance with the regulations at 24 CFR Part 91, the City’s Citizen Participation Plan requires two public hearings to be conducted annually for the development of the Annual Action Plan. The first public hearing was held before the CDC on March 25, 2026 to accept public comments on the funding priorities for the upcoming year that would be included in the draft Annual Action Plan; and the second public hearing will be held before the City Council on April 21, 2026 to accept public comments on the draft Annual Action Plan.
HUD regulations require a 30-day public review and comment period for the draft FY 2026-27 Annual Action Plan. On March 16, 2026, the drafts were posted to the City’s webpage and a public notice was published in the Orange County Register in English, La Opinión in Spanish, and Nguoi Viet in Vietnamese, that the draft Annual Action Plan was available for review and comment beginning March 16, 2026, and that two public hearings would be held on March 25, 2026 and April 21, 2026. The 30-day public comment period will conclude on April 16, 2026.
All comments received, including all funding recommendations made by the City Council, will be included in the final Annual Action Plan document. The deadline for submission of the FY 2026-27 Annual Action Plan to HUD is no later than May 15, 2026, 45-days before the end of the City’s Fiscal Year.
FISCAL IMPACT
FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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Funds will be included as part of the FY 2026-27 budget process for City Council review and consideration. They will be budgeted and available in the following grant account (nos. 13518780, 13518782, 13518783, 13518785, and 13018780) upon execution of a grant agreement between the City and HUD and adoption of the FY 2026-27 annual budget.
Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2027-28.
Fiscal
Year
Grant
Year
Accounting
Unit-Account
Fund
Description
Accounting Unit,
Account Description Amount
FY
2026-27 2026 13518780-
various
Community
Development
Block Grant
CDBG
Administration $826,782
FY
2026-27 2026 13518782-
various
Community
Development
Block Grant
CDBG Housing $500,000
FY
2026-27
2019-
2026
13518783-
various
Community
Development
Block Grant
CDBG Programs $2,325,000
FY
2026-27 2026 13518783-
69135
Community
Development
Block Grant
CDBG Programs,
Payment to Subagent $620,086
Total for FY 2026-27 $ 4,271,868
Fiscal
Year
Grant
Year
Accounting
Unit-Account
Fund
Description
Accounting Unit,
Account Description Amount
FY
2026-27 2026 13018780-
various
HOME
Investment
Partnerships
Grant
HOME Program $1,153,540
Total for FY 2026-27 $1,153,540
Fiscal
Year
Grant
Year
Accounting
Unit-Account
Fund
Description
Accounting Unit,
Account Description Amount
FY
2026-27 2026 13518785-
various
Emergency
Solutions
Grant
ESG Grant $368,272
Total for FY 2026-27 $368,272
EXHIBIT(S)
1. FY 2026-27 Annual Action Plan
FY 2026-27 Annual Action Plan and Budgets for CDBG, HOME and ESG Programs April 21, 2026
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2. FY 2026-27 CDBG Program Funding Plan
3. FY 2026-27 CDBG Program Summaries
4. FY 2026-27 ESG Program Funding Plan
5. FY 2026-27 ESG Program Summaries
6. Proofs of Publication
Submitted By: Michael L. Garcia, Executive Director, Community Development Agency Approved By: Alvaro Nuñez, City Manager