2026-2027Annual Action PlanPrepared by: City of Santa ClaraHousing and Community Services Division,Community Development DepartmentDRAFTNOTE: Areas highlighted in yellow are subject to change once it is known how much federal funding the City receives.
Housing & Community Services Division1500 Warburton Avenue, Santa Clara, CA 95050(408) 615-2490 2026-2027 Annual Action Plan 1
ContentsAP-05 Executive Summary – 91.200 (c), 91.220(b) 2 PR-05 Lead & responsible Agencies – 91.200 (b) ................................................................................................................... 5 AP-10 Consultation – 91.100,91.200 (b) 91.215 (I) .................................................................................................................. 6 AP-12 Participation – 91.105, 91.200 (c) ................................................................................................................................. 9 AP-15 Expected Resources – 91.220 (c) (1,2) ........................................................................................................................ 10 AP-20 Annual Goals and Objectives – 91.220(c)(3) & (e) ...................................................................................................... 13 AP-35 Projects – 91.220(d) .................................................................................................................................................... 16 AP-38 Project Summary ......................................................................................................................................................... 17 AP-50 Geographic Distribution – 91.220 (f) ........................................................................................................................... 20 AP-55 Affordable Housing – 91.220 (g) ................................................................................................................................. 21 AP-60 Public Housing – 91.220 (h) ......................................................................................................................................... 22 AP-65 Homeless and Other Special Needs Activities – 91.220 (i) .......................................................................................... 23 AP-75 Barriers to Affordable Housing – 91.220 (j) ................................................................................................................ 25 AP-85 Other Actions – 91.220 (k) .......................................................................................................................................... 26 AP-90 Program Specific Requirements – 91.220 (l) (1,2,4) .................................................................................................... 27 2026-2027 Annual Action Plan 2
AP-05 Executive Summary – 91.200 (c), 91.220 (b)1. Introduction The City of Santa Clara (City) is an entitlement city that receives federal funding from the Department of Housing and Urban and Development (HUD). The City receives Community Development Block Grant (CDBG) funds and HOME and Investment Partnerships (HOME) funds. CDBG funds address community development needs through public service activities and capital improvement projects. At least seventy percent (70%) of gross funding is used to serve low- to moderate- income households. Eligible projects and activities must meet one of the following national objectives: 1) Benefit low- and moderate- income persons; 2) Prevention or elimination of slums or blight; or 3) Address community development needs having an urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other funding is not available. HOME funds are used for the development of affordable housing options such as building, and/or rehabilitating affordable rental housing and providing direct Tenant Based Rental Assistance to low-income households. The City is required to develop a 5-Year Consolidated Plan that identifies the goals and needs of the community. During the Consolidated Plan cycle, the City must develop Annual Action Plans (AAPs) which detail projects and activities to be funded during the program year in support of the identified goals and needs. In 2025, the City collaborated with the County of Santa Clara and other entitlement jurisdictions to develop the 5-year Consolidated Plan. The Consolidated Plan identifies and prioritizes public services and housing-related needs across the region and for the City of Santa Clara. The purpose of the Consolidated Plan is to guide the City to: - Assess their affordable housing and community development needs and market conditions, - Make data-driven, place-based investment decisions; and - Conduct community-wide discussions to identify housing and community development priorities that align and focus on eligible activities for HUD funding. The 5-Year Consolidated Plan is supported by the Annual Action Plan (AAP). The AAP documents annually how the City anticipates it will use HUD funding consistent with the goals and needs identified in the Consolidated Plan. This is the second AAP for the 2025-2030 Consolidated Plan cycle. 2. Summarize the objectives and outcomes identified in the Plan The Annual Action Plan supports the goals and needs identified in the Consolidated Plan as stated below: Affordable Housing. Increasing the supply of affordable housing and rehabilitate affordable housing developments. Homelessness. Stabilizing persons at-risk of and experiencing homelessness through housing, and supportive services by facilitating access to mental health and addiction recovery services. Public Facilities. Improve neighborhood safety through the installation of ADA curb cuts, street lighting, enhanced crosswalks and park improvements. Fair Housing. Improve navigation and case management services for residents needing housing, legal services (related to housing) and basic services including documentation assistances. 2026-2027 Annual Action Plan 3
3. Evaluation of past performance The last Consolidated Annual Performance Evaluation Report (CAPER) submitted to HUD was for 2024-2025 (PY2024). The following are the highlights of the accomplishments reported in support of the Consolidated Plan goals: Affordable Housing. The Tenant Based Rental Assistance program assisted 19 households, and between the NCIP program and Rebuilding Together Silicon Valley, there were 18 households assisted. Public Services. There were 569 households that benefited from public services provided by three non-profit agencies and other city funded programs. 1,383 persons received a variety of public services from four non-profit agencies. Homelessness. 583 households benefited from case management services provided by local non-profit agencies. The majority of these households were assisted with local funds. Further, 19 TBRA households, which have already been counted under the Affordable Housing goal, also received case management services. Fair Housing. Project Sentinel assisted 18 households with fair housing services. 4. Summary of Citizen Participation Process and consultation process During the development of the 2026-2027 Annual Action Plan, two public hearings are held to solicit public comment to help identify community needs, and non-profit agencies that could provide services to address those identified needs. One of the hearings is held during the drafting phase of the Plan as required by HUD. 30-day public comment periods for each Public Hearing will occur and all public comments will be noted in the Annual Action Plan. Public Hearing #1. This Public Hearing satisfies the Citizen Participation Plan requirement to hold at least one Public Hearing during the drafting phase of the Annual Action Plan. This Public Hearing gives the public its first opportunity to provide input. The Public Hearing for the 2026-2027 Annual Action Plan (DRAFT) is scheduled for March 24, 2026, at the regularly scheduled City Council Meeting. Public Hearing #2. The second and final Public Hearing is scheduled for May 5, 2026. This Public Hearing will provide a final opportunity for public comment/input. The final version of the 2026-2027 Annual Action Plan (FINAL) will be presented. Any comments will be included in the final version of the Annual Action Plan prior to its submission to HUD. Public Noticing. The noticing follows the Citizen Participation Plan requirements. The following information for the 2026-2027 Annual Action Plan was publicly noticed in The Santa Clara Weekly on February 18, 2026, noticed via email to community non-profits, posted on the City website, and copies were accessible at City Hall: 1) Notice of the start of the 30-day Public Comment Period (February 20, 2026 – March 24, 2026) for the DRAFT version of the 2026-2027 Annual Action Plan. 2) Notice of Public Hearing #1 on March 24, 2026, for the DRAFT version of the 2026-2027 Annual Action Plan. 3) Notice of the start of the 30-day Public Comment Period (April 2, 2026 – May 5, 2026) for the FINAL version of the 2026-2027 Annual Action Plan. 4) Notice of Public Hearing #2 on May 5, 2026, for the FINAL version of the 2026-2027 Annual Action Plan. 2026-2027 Annual Action Plan 4
5. Summary of public comments Public Hearing #1: TBD30-Day Public Comment Period TBDPublic Hearing #2: TBD30-Day Public Comment Period TBD6. Summary of comments or views not accepted and the reasons for not accepting them All comments received during Public Hearings and the Public Comment Period were noted and considered. The City attempts to incorporate all feedback. 7. Summary CDBG-funded public services continue to be a great asset to the community, with many of the programs focusing on the senior population, persons with disabilities, and unhoused residents. The City will continue to seek out creative solutions to improve its grants management program that are consistent with the City Council direction and the 2025-2030 Consolidated Plan. 2026-2027 Annual Action Plan 5
PR-05 Lead & Responsible Agencies – 24 CFR 91.200(b)1. Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. The City of Santa Clara Housing and Community Services Division is the agency responsible for preparing the Consolidated Plan and administering the CDBG and HOME grants, as shown in Table 1. Table1–ResponsibleAgenciesAgencyRoleNameDepartment/AgencyCDBG Administrator City of Santa Clara Housing & Community Services DivisionHOME AdministratorCity of Santa ClaraHousing & Community ServicesDivisionNarrative Lead and Responsible Agency The City of Santa Clara (City) is the Lead and Responsible Agency for the United States Department of Housing and Urban Development (HUD) entitlement programs in the City of Santa Clara. Housing and Community Services, a division of the Community Development Department, is responsible for administering the HUD entitlement grants, including the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME). Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. By federal law, the City is required to submit a five-year Consolidated Plan and Annual Action Plans to HUD that detail the City’s priorities and strategies for the use of its federal funds. Consolidated Plan Public Contact Information Adam Marcus, Division Manager, Housing and Community Services, [email protected] 408-615-2451 Eric Calleja,Housing Development [email protected] 408-615-2498Website: https://www.santaclaraca.gov/our-city/departments-a-f/community-development/housing- community-services-division 2026-2027 Annual Action Plan 6
AP 10 Consultation – 24 CFR 91.100, 91.200(b) 91.215 (I)Introduction The 2026-2027 Annual Action Plan was prepared by City staff with input from a variety of local and regional stakeholders including public service providers, affordable housing developers, and County partners. Service partners administer projects and activities that align with the goals and objectives of the Consolidated Plan. 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 jurisdiction coordinates housing and supportive services through ongoing collaboration with public and assisted housing providers, local health and behavioral health agencies, and nonprofit service organizations. Coordination is achieved through regular interagency meetings, participation in Continuum of Care planning, and formal and informal referral networks. The Santa Clara Housing Authority (SCHA) administers the Housing Choice Voucher program. The City TBRA administrators and City staff have worked with SCHA in the past to assist long standing clients of the TBRA program to acquire long-term vouchers. Typically, these are previously homeless households that did not initially qualify for permanent supportive housing and were not able to improve their income and housing situation by the end of the TBRA program term. Coordination and case management services resulted in some families receiving 10-year Emergency Housing Vouchers. The City uses CDBG funds for the Bill Wilson Family Therapy/School Outreach/Grief Counseling. This public service provides mental health services to youth and their families to cope with high-risk behavior choices, family conflict, and grief counseling. The City also funds the County Office of Supportive Housing to provide case management services to a portion of the City homeless population. In addition, Abode Services administers the TBRA program and uses local funds to provide case management services for TBRA clients. 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 Santa Clara County Continuum of Care (CoC) is a multi-sector group of stakeholders dedicated to reducing and preventing homelessness in the County of Santa Clara (County). The CoC Board is comprised of the same individuals who serve on the Destination: Home Leadership Board. Destination: Home, a program of The Health Trust, is a public-private partnership implementing collective impact strategies to end homelessness in Santa Clara County. Its mission is to drive and align resources to create permanent housing and sustainable support systems built for the long term. The CoC’s primary responsibilities are to coordinate large-scale implementation efforts to reduce and prevent homelessness. The CoC is governed by the Santa Clara CoC Board (CoC Board), which is committed to supporting and promoting a systems-change approach to preventing and reducing homelessness. The organization is improving how systems work together to end homelessness, as well as protect individuals and families at risk of becoming homeless. The City of Santa Clara, having endorsed the 2020-2025 Santa Clara County Community Plan to End Homelessness, convened a Homelessness Taskforce in April 2022. The Taskforce included stakeholders with a range of perspectives and experience who can help identify priorities and provide recommendations on the development of a City Plan to reduce the impacts of Homelessness. The City partnered with the non-profit, Homebase, to facilitate the taskforce and to develop a City-centric Plan. A draft of this plan was presented in January 2023 at a City Council Study Session and the City Council directed staff to move forward with a new street-based case management and short-term hotel stay program. In addition, City staff meet regularly with the County’s Office of Supportive Housing and participate in a north county homelessness working group. 2026-2027 Annual Action Plan 7
The results of the 2025 Point in Time Homeless Count (“Count”) showed a 72% increase in homelessness since 2023 (461 to 794). By comparison, the Countywide count showed an 8% increase. Of the 794 persons, 464 had completed VI-SPDAT assessments. Of those 464, 325 were single adults and 104 were families with children and 35 were single youth and young adults. The City intends to use HOME funds to continue the focus of reducing homelessness for families with children. The City also intends to use HOME ARP funds to provide supportive services to a variety of HOME ARP qualifying populations. Describe agencies, groups, organizations, and others who participated in the process and describe the jurisdiction’s consultation with housing, social service agencies and other entities. 1 Agency/Group/Organization Bill Wilson Center Agency/Group/Organization TypeHousingServices-Children Services-homelessWhat section of the Plan was addressed by Consultation?Housing Need AssessmentHomelessness Needs - Unaccompanied youthNon-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?Staff is consulted on services needed for transitional aged youth. 2 Agency/Group/Organization County of Santa Clara Office of Supportive HousingAgency/Group/Organization TypePublicly Funded Institution/System of Care Other government – County What section of the Plan was addressed by Consultation?Housing Need AssessmentHomeless Needs - Families with children Market Analysis Homeless Needs – Chronically homeless Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Staff met with the Santa Clara County Office of Supportive Housing on several occasions to discuss the City response to homelessness and partnership opportunities.3 Agency/Group/Organization Abode Services Agency/Group/Organization TypeServices - HousingWhat section of the Plan was addressed by Consultation?Homeless Needs - Families with children Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Staff is consulted on improvements to the TBRA program.4Agency/Group/Organization Senior Adult Legal Services (SALA) Agency/Group/Organization TypeServices-Elderly PersonsWhat section of the Plan was addressed by Consultation?Non-Homeless Special NeedsBriefly describe how the Agency/Group/ Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Submitted public comment at both public hearings; highlighting the need for the services they provide. 5 Agency/Group/Organization Next Door Solutions to Domestic ViolenceAgency/Group/Organization TypeServices - HousingWhat section of the Plan was addressed by Consultation?Homelessness Needs – Families with children and domestic violence and human trafficking survivors Homelessness StrategyBriefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Submitted public comment at public hearings; highlighting the need for the services they provide. 2026-2027 Annual Action Plan 8
6 Agency/Group/OrganizationHomebaseAgency/Group/Organization TypeRegional policy consultant that builds capacity to address homelessness systematically.What section of the Plan was addressed by Consultation?AP-65 Homelessness and Other Special Needs ActivitiesBriefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? Helped prepare a set of local strategies to address homelessness and its impacts in the City. Homebase also helped prepare the HOME ARP plan which was approved by HUD.Identify any Agency Types not consulted and provide rationale for not consulting: The City did not reach out to broadband-specific providers/organizations. Local internet providers all provide low-cost options and/or discounts to low-income households. Further, broadband infrastructure is typically a county-led activity if it is shown to be a need. Although the City works with organizations whose primary responsibilities include the management of flood prone areas, public land or water resources, and emergency management agencies on normal public business, these organizations were not specifically consulted for the Annual Action Plan. Issues related to such agencies were not mentioned as an issue in the Consolidated Plan survey. Describe 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 Continuum of Care Council The Continuum of Care works to alleviate the impact of homelessness in the community through the cooperation and collaboration of social service providers. This effort aligns with the Strategic Plan goal to end homelessness including rental assistance, homeless prevention programs, case management, outreach activities and support of facilities.Housing Element City of Santa Clara The actions in the Housing Element are consistent with the Strategic Plan, most notably in the provision of adequate sites appropriate for a range of housing types and in promoting preservation and development of affordable housing including supportive housing for persons with disabilities. The Housing Element was adopted in mid-2023. City of Santa Clara Homelessness Strategic Plan (2023) City of Santa Clara City Council In 2022 the City conducted a six-month Homelessness Taskforce process and worked with nonprofit consultant Homebase to develop a draft strategic plan. The plan was reviewed in January 2023. The draft plan includes strategies to reduce homelessness, connect unhoused residents with basic needs, case management, and housing opportunities. Santa Clara County Seniors Agenda Santa Clara County The City outreach for the 5-year Consolidated Plan showed senior needs and services as a high priority. Seniors Agenda 2024 report speaks to the needs for seniors, and the City uses CDBG funds to support many of the activities and needs noted.Community Plan to End Homelessness in Santa Clara Destination Home The 2020-2025 Community Plan to End Homelessness is a five-year plan to guide governmental, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This Annual Action Plan aligns with the County’s Plan for reducing homelessness with programs such as the City’s TBRA program, homeless prevention programs, case management, outreach activities & support of facilities. 2026-2027 Annual Action Plan 9
AP 12 Participation – 24 CFR 91-105, 91.200(c) 1. Summarize citizen participation process and how it impacted goal setting.The City outreach efforts to obtain community input included two public hearings before City Council (one during the drafting phase of the AAP), noticing the AAP and hearings, and posting the draft AAP on the City website. The table below summarizes the results of the City efforts. Citizen Participation Outreach Mode of OutreachTarget of OutreachSummary ofresponse/attendanceSummary of Comments receivedSummary of comments not accepted and reasons URL(If applicable)1Public Hearing Non-targeted/broad community Public Hearing #1 was noticed in The Santa Clara Weekly on February 18, 2026. City Council Meeting – March 24, 2026, during the drafting phase of the Plan. TBDAll comments were accepted and noted. n/a 2 Public Hearing Non-targeted/broad community Public Hearing #2 was noticed in The Santa Clara Weekly on February 18, 2026. The City Council Meeting on May 5, 2026, presented the final version of the Plan. See AP-05, section 5 for a summary of the public comments given at Public Hearing #2. All comments were accepted and noted. n/a 3 Newspaper Non-targeted/broad community Publicly noticed in The Santa Clara Weekly on February 18, 2026, and also noticed via email to community non-profits, posting on the City website, and having copies accessible at City Hall: 1) Notice of 30-day Public Comment Period for the DRAFT 2026-2027 Annual Action Plan. 2) Notice of Public Hearing #1 for the DRAFT 2026-2027 Annual Action Plan on March 24, 2026. 3) Notice of 30-day Public Comment Period for the FINAL 2026-2027 Annual Action Plan.4) Notice of Public Hearing #2 for the FINAL 2026-2027 Annual Action Plan on May 5, 2026. TBDAll comments were accepted and noted. n/a 2026-2027 Annual Action Plan 10
AP-15 Expected Resources – 91.220 (c) (1,2)Introduction The City of Santa Clara is estimating the following federal resources for the 2026 Program Year: Fiscal Year 26/27: CDBG Funds: The total CDBG resources expected to be available for FY26/27 is $1,580,000. This total is made up of the annual CDBG entitlement from HUD, Prior Year Resources (i.e., funds that are being re-programmed and/or funds that were programmed but not spent), and Program Income (income generated from prior CDBG projects). The breakdown of the Expected Resources is: Annual Entitlement Funds $1,020,000 Estimated Prior Year Balance* $ 440,000 Estimated FY25/26 Program Income $ 120,000 *$180,000 in prior year resources are from 2025 funds allocated to Public Services. The City has yet to accept its 2025/2026 HOME and CDBG funds as of the publishing of this Plan; thus, the funds could not be used for Public Services. Due to HUD regulations that restricts the amount of CDBG funds that can be spent on Public Services each year, those funds will need to be reprogrammed in the new 2026 Program Year to Capital Improvement Projects. CDBG CONTINGENCY LANGUAGE More than expected: If the City receives more CDBG Entitlement funding than expected, funds will be used for the City Homeowner Rehabilitation Program (i.e., NCIP) and/or the Minor Repair Program. The City reserves the option to provide more funding for public services if the Public Service Cap allows for another agency to be funded to at least $30,000. Less than expected: If the City receives less CDBG Entitlement funding than expected, the Public Service and Administration Caps will be recalculated and amounts adjusted. If the re-calculation results in a Public Service Cap of less than $180,00, the City will need to reduce its number of Public Service agencies to come under the newly calculated Public Service Cap. Further, the amount allocated to the Minor Repair Program may need to be reduced. All Program Income is placed in the Revolving Loan Fund for use in the NCIP program. HOME Funds: The total HOME resources expected to be available for FY26/27 is $770,000. This is made up of the annual HOME entitlement from HUD, Prior Year Resources (funds being re-programmed and/or funds that were programmed but not spent), and Program Income (income generated from prior projects). The breakdown of the source of funds is: Entitlement Funds $350,000 Estimated Prior Year Balance $410,000 Estimated FY26/27 Program Income** $ 10,000 **HOME Program Income (PI). The City estimates it will receive $100,000 in PI in the FY26/27. Ten percent; or $10,000 will be programmed in this 2026 Annual Action Plan for administrative costs as allowed by HOME regulations. The other 90% ($90,000) will be programmed next year in the 2027 Annual Action Plan. In accordance with HOME regulations, CHDO set-aside funds not used for the set-aside purpose are allowed to be reprogrammed to non-CHOD activities after two years. The City will reprogram old CHDO dollars to its TBRA program. HOME CONTINGENCY LANGUAGE More than expected: If the City receives more HOME funds than expected, the CHDO set-aside amounts, and the Administration amounts will be recalculated. All remaining funds will be used for the TBRA Program. Less than expected: If the City receives less HOME Entitlement funding than expected, the CHDO set-aside amounts, and the Administration amounts will be recalculated. The TBRA program will then be reduced in funding. LOCAL Funds: The City anticipates it will leverage $741,239 of local funds for public services. 2026-2027 Annual Action Plan 11
AP-15Table–ExpectedResourcesPriorityTableProgramSourceof Funds Uses of FundsExpected Amount Available Year 2 Expected Amount Available for Remainder of Consolidated Plan:NarrativeDescription AnnualAllocationProgramIncomePrior Year ResourceTotal: $ $$$ $ CDBG Public-FederalAcquisitionHousing Rehab.Capital Improvement Projects – PublicFacilities Capital Improvement Projects – Aff.Housing Public Services Admin. & Planning $1,020,000 $120,000$440,000 $1,580,000 $3,000,000 CDBG funds may be used for: 1) Land acquisition for affordable housing; 2) NCIP and Minor Repair Program; 3) Public infrastructure improvements and other public facility improvements; 4) Capital Improvements to Affordable Housing; 5) Public Services; 6) Administration and planning.*$180,000 from 2025 funds, previously committed to Public Services, will be reprogrammed to Capital Improvement Projects.HOMEPublic-FederalCHDO and regular HOME rental projects, such as property acquisition, new construction, and/or rehabilitation. Homeowner Rehabilitation TBRA Admin. and Planning for HOME programs and activities. Fair Housing Services $350,000 $10,000$410,000 $770,000 $1,050,000 HOME funds may be used for: 1) TBRA; 2) NCIP; 3) Rental Development and/or rehab; 4) Fair Housing Services; 5) Admin. & Planning. Approx $125,000 of Prior Year Resources is Program Income received in FY25/26.Approximately $100,000 in Program Income is expected in FY26/27. 10% of that will be programmed in this action plan for administrative activities and drawn during the program year. The remaining estimated $90,000 will be programmed in FY27/28. If Program Income exceeds $100,000, the City will continue using 10% for admin. 2026-2027 Annual Action Plan 12
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied Federal funds will leverage local funds (i.e., General Funds, City Affordable Housing Funds, and City Housing Successor Funds) to increase project efficiencies and benefit from economies of scale. The HOME match requirement will be met through the waiving of property taxes on past HOME-funded multi-family affordable developments. The following details the activities that will be funded with local dollars to provide other non-federally funded Public Services: Funds Funding Source Activity Agency Beneficiaries $160,697 City Affordable Housing Fund (CAHF)TBRA Case Management Abode Services 20 households $140,000 City Housing Successor Funds (CHSF)$220,000* City Housing Successor Funds (CHSF)Intensive Case Management County of Santa Clara 20 households$ 30,000* City Affordable Housing Fund (CAHF)$100,000* City Affordable Housing Fund (CAHF) Homeless Prevention Program County of Santa Clara 175 households$ 70,542 General Fund Landlord/Tenant Mediation Project Sentinel 100 persons$ 15,000 General Fund Ombudsman Program Catholic Charities 380 persons$ 5,000 General Fund Referral Hotline Program United Way 211 500 persons$741,239 Total amount of local funds being committed. *The total amount being funded is for a two-year agreement. Other Federal Grant Programs Additional federal programs that fund community development and affordable housing activities include: Section 8 Housing Choice Voucher Program; Section 202; Section 811; and Affordable Housing Program (AHP) through the Federal Home Loan Bank. These programs are provided by Santa Clara County Housing Authority and affordable housing developers. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City has identified two city-owned sites for potential redevelopment: 3575 De La Cruz: The City Council entered into an Exclusive Negotiation Rights Agreement (ENA) with Habitat for Humanity East Bay/Silicon Valley. The proposed development will be 15 100% affordable, for-sale townhomes. The project is in predevelopment until additional subsidies can be secured. 1031 El Camino Real: The City owns a vacant 0.75-acre site that was previously used for a motel and gas station. The City is exploring next steps for this project in FY 2026/2027. 2026-2027 Annual Action Plan 13
AP-20 Annual Goals and Objectives – 91.220(c)(3) & (e) Goal Description1Goal NameAffordable Housing Goal DescriptionAssist in the creation and preservation of affordable housing for low income and special needs households throughcontinuation of the Neighborhood Conservation and Improvement Program, rental habilitation of units occupied by low-income tenants, TBRA rental subsidies, and new construction. 2GoalNameHomelessnessGoal Description Support activities, consistent with Continuum of Care strategies, to prevent and end homelessness. This includesbuilding affordable housing for people who are homeless or at risk of homelessness as well as the provision of support services. 3GoalNamePublicServicesGoal Description Support activities that provide basic needs to lower income households and special needs populations.Services would be provided to low-income households, elderly individuals, homeless persons, people with disabilities, and victims of domestic violence.4GoalNameFairHousing Goal Description Promote fair housing choice, through the following activities: fair housing education, fair housing testing,housingassistancehotline, andlandlord-tenant mediation.5 Goal NamePublic Facilities Goal Description Improve accessibility for persons with physical disabilities by identifying and repairing intersections for accessibility, mostly through curb cuts. Also providing upgrades and improvements to non-profit facilities that serve low-income households. 6 Goal NamePlanningandAdministration Goal Description Provide management, planning and implementation of the City’s CDBG & HOME programs as well as monitoringof public services and housing projects. 2026-2027 Annual Action Plan 14
AP-23 AnnualGoalsandObjectivesSummaryGoal Category Needs Addressed Needs Addressed Funding Affordable Housing Affordable Housing Affordable HousingCDBG: $740,000HOME: $725,000 Start Year: 2026 End Year: 2027Outcome:AffordabilityObjective:Provide decent affordable housingNarrative: Assist in the creation and preservation of multi-family rental housing for low income and special needs households, rehabilitation of low-income owner-occupied housing through the NCIP, TBRA rental subsidies, and/or new construction. CDBG$698,000 NCIP Loans and Grants (5 households) $122,000 NCIP Project Delivery Costs $152,000 SVILC Rehab (Phase 2) $200,000 Minor Repair Program - Rebuilding Together (20 households) $1,172,000 total (25 households) HOME $672,500 TBRA Administration (19 households) $ 52,500 CHDO Set Aside (1 households) $725,000total (20 households) Goal Outcome Indicator Quantity Unit of MeasureRental Units rehabilitated 1 Household Housing UnitHomeowner housing rehab.25 Household Housing UnitTBRA/Rapid Rehousing 19 Households AssistedGoal Category Needs Addressed Needs Addressed FundingPublic ServicesNon-Homeless Special Needs Public Services CDBG: $180,000Start Year: 2026 End Year: 2027Outcome: Availability and accessibility Objective:Create economic opportunitiesNarrative: Support activities that provide basic needs to lower income households and special needs populations. Services would be provided to low-income households, elderly individuals, homeless persons, people with disabilities, and victims of domestic violence. The following non-profit agencies will be funded: CDBG $30,000 Bill Wilson Center – Counseling & Family Therapy (100 persons) $30,000 Heart of the Valley – Support & Transportation Services (100 persons) $30,000 Hope Services – Educational Services (100 persons) $30,000 Loaves & Fishes – Meals on Wheels (20 persons) $30,000 Senior Adult Legal Assistance (SALA) – Legal Assistance for Seniors (80 persons) $30,000 Silicon Valley Independent Living Center– Housing Search & Counseling (70 persons) LOCAL FUNDS See page 12 for details. Goal Outcome Indicator Quantity Unit of MeasurePublic Services 470 Persons Assisted 2026-2027 Annual Action Plan 15
Goal Category Needs Addressed Needs Addressed FundingFair Housing Services Non-Homeless Special Needs Fair HousingHOME:$22,197Start Year: 2026 End Year: 2027Outcome: Availability and accessibilityObjective:Create economic opportunitiesNarrative: Promote fair housing choice through the following activities: fair housing education, fair housing testing, housing assistance hotline, and landlord/tenant mediation. These funds are part of the HOME Administration set-aside.Goal Outcome Indicator Quantity Unit of MeasurePublic Services 50 Persons Assisted Goal Category Needs Addressed Needs Addressed Funding Public Facility Improvements Non-Homeless Special Needs Public Facility ImprovementsCDBG: $152,000Start Year: 2026 End Year: 2027 Outcome:Availability and accessibilityObjective: Create economic opportunities Narrative: Improve accessibility for persons with physical disabilities by identifying and repairing intersections for accessibility, mostly through curb cuts. Further, making facility improvements to non-profit public facilities that serve low-income households. CDBG $152,000 Silicon Valley Independent Living Center – Facility Rehabilitation (4 persons). Improvements to a non-profit facility that houses adults with disabilities.Goal Outcome Indicator Quantity Unit of MeasurePublic Services 4 Households Assisted Goal Category Needs Addressed Needs Addressed Funding Administration and Planning Other Administration and Planning CDBG: $228,000HOME: $22,803 Start Year: 2026 End Year: 2027 Outcome:Availability and accessibilityObjective: Create economic opportunities Narrative: Provide management, planning and implementation of the CDBG & HOME programs as well as monitoring of public services and housing projects.Goal Outcome Indicator Quantity Unit of MeasurePublic Services n/a Persons AssistedEstimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.215(b). 25 households for Homeowner housing rehabilitation (CDBG), 5 Extremely low-income households 15 Low-income households 19 households for TBRA (HOME), 16 Extremely low-income households 3 Low-income households 1 household for CHDO Rental Housing (HOME), 1 Extremely low-income households 2026-2027 Annual Action Plan 16
AP-35 Projects – 91.220(d)IntroductionThe activities that the City will undertake in FY26/27 using CDBG and HOME funds include: Homeowner Rehabilitation, Tenant Based Rental Assistance, Program Administration and Planning, and Public Services, for low and moderate-income residents. The activities meet one or more priority needs identified in the 5-Year Consolidated Action Plan. In addition to the projects and activities funded with HUD funds as noted in table “AP-35 – Project Information Summary”, the City also funds other Public Service Activities with local funds (see page 12). 2026-2027 Annual Action Plan 17
AP-38 Project SummaryAP-38 ProjectInformation Summary#ProjectGoals SupportedNeeds AddressedFunding1 Public Services HomelessnessPublic ServicesHomelessnessPublic ServicesCDBG: $180,000 DescriptionPublic services provided to the community that primarily benefit low to low-mod income persons and/or households.Target Date for Completion 6/30/2027Estimate the number and type of families that will benefit from the proposed activities.470persons [180 moderate income at less than 80% AMI; 180 low-income less than 50% AMI; 110 extremely low-income less than 30% AMI]Location Description CitywidePLANNED ACTIVITIES $30,000: 2026 Family Therapy/School Outreach/Grief Counseling (Bill Wilson Center) [LMC/5D/100 persons] $30,000: 2026 Support & Transportation Services for Seniors (Heart of the Valley) [LMC/5A/100 persons] $30,000: 2026 Educational Services (Hope Services) [LMC/5B/100 persons] $30,000: 2026 Meals on Wheels (Loaves & Fishes) [LMC/5A/20 persons] $30,000: 2026 Legal Services Senior Adult Legal Services (SALA) [LMC/5C/80 persons] $30,000: 2026 Silicon Valley Independent Living Center [LMC/5B/70 persons] # ProjectGoals SupportedNeeds AddressedFunding2 Homeowner Housing Rehab and Minor Repair Affordable HousingAffordable HousingCDBG: $1,020,000 DescriptionFinancial assistance for low-income homeowners to make necessary repairs to their homes to address health and safety issues.Target Date for Completion 6/30/2027Estimate the number and type of families that will benefit from the proposed activities.25 households[20 low-income less than 50% AMI; 5 extremely low-income less than 30% AMI] Location Description Citywide PLANNED ACTIVITIES $200,000: 2026 Homeowner Minor Repair Program (Rebuilding Together Silicon Valley) [LMH/14A/20 households] $698,000: 2026 NCIP [LMH/14A/5 households] $122,000: 2026 NCIP Project Delivery Costs 2026-2027 Annual Action Plan 18
AP-38 Project Information Summary (continued) #ProjectGoals SupportedNeeds AddressedFunding3Tenant Based Rental Assistance (TBRA)Affordable HousingAffordable HousingHOME: $672,500 DescriptionProvide financial assistance to low and extremely low-income households through deposit assistance and monthly rental subsidy assistance. Target Date for Completion 6/30/2027Estimate the number and type of families that will benefit from the proposed activities.19households[2low-income less than 50% AMI; 17extremely low-income less than 30% AMI]Location Description CitywidePLANNED ACTIVITIES $672,500: 2026 Tenant Based Rental Assistance (Abode Services). In addition, $300,697 of local funds will be used for case management services for TBRA participants.# ProjectGoals SupportedNeeds AddressedFunding4 Capital Improvements to Affordable Housing Affordable HousingAffordable HousingHOME: $52,500Description Capital Improvements to affordable housing using CHDO set-aside funds. If funds are not used for a CHDO project within two years, these funds will automatically be reprogrammed for TBRA. Target Date for Completion 6/30/2027Estimate the number and type of families that will benefit from the proposed activities.1 householdLocation Description Citywide PLANNED ACTIVITIES TBD # ProjectGoals SupportedNeeds AddressedFunding5Capital Improvements to Public FacilitiesPublic Facility Improvements Public Facility ImprovementsCDBG: $152,000 Description Additional funding for improvements/rehabilitation of the Silicon Valley Independent Living Center. This is a project that was funded to $69,500, but the scope of work expanded and needs more funding. Target Date for Completion6/30/2027Estimate the number and type of families that will benefit from the proposed activities.4 households [4 low-income less than 50% AMI]Location Description 1597 Market Street PLANNED ACTIVITIES $152,000 Silicon Valley Independent Living Center Rehab 2026-2027 Annual Action Plan 19
able 61 – AP-38 Project Information Summary (continued)AP-38 ProjectInformation Summary (continued)# ProjectGoals SupportedNeeds AddressedFunding6Fair Housing Fair Housing Fair HousingHOME: $22,197DescriptionPromote fair housing choice through the following activities: fair housing education, fair housing testing, housing assistance hotline, and landlord/tenant mediation. These funds are part of the HOME Administration set-aside.Target Date for Completion6/30/2027Estimate the number and type of families that will benefit from the proposed activities.50 households [40 low-income less than 50% AMI; 10 extremely low-income less than 30% AMI] Location Description Citywide PLANNED ACTIVITIES$22,197: 2026 Fair Housing Services (Project Sentinel) # ProjectGoals SupportedNeeds AddressedFunding7 Administration & Planning Administration Administration CDBG: $228,000HOME: $ 22,803Description Provide management, planning and implementation of the CDBG & HOME programs as well as monitoring of public services and housing projects. Target Date for Completion 6/30/2027Estimate the number and type of families that will benefit from the proposed activities.n/aLocation Description Citywide PLANNED ACTIVITIES $228,000: 2026 CDBG Administration and Planning $ 22,803: 2026 HOME Administration and PlanningDescribe the reasons for allocation priorities and any obstacles to addressing underserved needs: The allocation of funds is based on the needs and priorities identified in the 2025-2029 Consolidated Plan. The City prioritizes allocations of its CDBG and HOME funds to projects that serve the lowest income households, from 0-50% of Area Median Income (AMI). In addition, public services are an identified funding priority in the Consolidated Plan, and funding is recommended to organizations that provide needed services in the community. 2026-2027 Annual Action Plan 20
AP-50 Geographic Distribution – 91.220 (f)Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed. Investments will be allocated citywide for affordable housing services, capital projects, fair housing services, and public services. AP-50– GeographicDistribution TargetAreaPercentageof fundsCitywide100%Rationale for the priorities for allocating investments geographically The City does not have plans to prioritize investments geographically. HOME CHDO set-aside funds may be spent in a contiguous jurisdiction if a CHDO development cannot be identified within the City limits. 2026-2027 Annual Action Plan 21
AP-55 Affordable Housing – 91.220 (g)IntroductionFor the purpose of this section, the term “affordable housing” is defined in the HOME regulations at 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership. The City of Santa Clara has identified the production and maintenance of affordable housing as the primary objective for the expenditure of federal funds in the Consolidated Plan. While CDBG and HOME funds are limited, the City will continue to allocate funding to affordable housing projects, including owner-occupied rehabilitation. The City has non-federal funding sources that it will use toward the development of affordable housing. AP-55A -One YearGoalsfortheNumberofHouseholdstobe Supported (by Population Type)Rental Assistance – Housing assistance for programs such as tenant-based rental assistance (TBRA) and one-time payments toprevent homelessness19The Production of New Units – New units, including the conversion of non-residential properties. 0Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated,report the unit only once.26Acquisition of Existing Units – Housing assistance for programs such as down payment assistance. If the unit will be acquiredand rehabilitated, report the unit only once.0TOTAL45 AP-55B –One YearGoalsfortheNumberof Households Supported Through (byProgramType) Rental Assistance – Housing assistance for programs such as tenant-based rental assistance (TBRA) and one-time payments to prevent homelessness 19 The Production of New Units – New units, including the conversion of non-residential properties. 0Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once.26 Acquisition of Existing Units – Housing assistance for programs such as down payment assistance. If the unit will be acquiredand rehabilitated, report the unit only once. 0TOTAL45 Discussion The goal, as it relates to Affordable Housing, is to assist in the creation and preservation of affordable housing for low income and special needs households through continuation of the Neighborhood Conservation and Improvement Program (NCIP), rental habilitation of units occupied by low-income tenants, TBRA rental subsidies, and new construction. 25 households for Homeowner housing rehabilitation (CDBG), 5 Extremely low-income households 20 Low-income households 19 households for TBRA (HOME), 16 Extremely low-income households 3 Low-income households 01 households for CHDO Rental Housing (HOME), 1 Low-income households 2026-2027 Annual Action Plan 22
AP-60 Public Housing – 91.220 (h)IntroductionThe Santa Clara County Housing Authority (SCCHA) is the regional entity that manages and maintains housing units and administers Housing Choice Voucher programs across the County. SCCHA operates four public housing units located in City of Santa Clara. The housing authority is a HUD-designated Moving to Work (MTW) agency which allows it greater flexibility to design and implement more innovative approaches to providing housing assistance. For program year 2025, SCCHA plans to serve 18,299 households with MTW Housing Choice Vouchers, 1,270 with local, non-traditional property-based and tenant-based vouchers, and 4 MTW Public Housing units leased for a total of 19,605 households served. The majority of voucher holders have a tenant-based voucher which allows the holder to use the voucher at any housing unit where the landlord will accept the voucher. Data on the number of vouchers in use within the City is unavailable. Actions to encourage public housing residents to become more involved in management and participate in homeownership The SCCHA MTW Plan for 2025 states that 377 tenant-based vouchers that the MTW PHA anticipates project -basing for the first time (county-wide); there are 3,599 currently. The City will continue to work closely with the SCCHA to address any needs identified during the program year. The most immediate need is finding housing units and owners that will accept vouchers. Stakeholder interviews also identified the need for assisting families moving into affordable units with basic necessities. SCCHA re-proposed allocating project-based vouchers to SCCHA-owned projects without competition. This activity was originally proposed and approved by HUD to allow SCCHA to issue Project Based Vouchers (PBVs) to projects owned by SCCHA or a SCCHA affiliate entity without needing to go through a competitive selection process. The re-proposal of this activity would leave the original activity in place and in addition SCCHA is adopting a Housing Opportunities Through Modernization Act (HOTMA) provision that has not yet been implemented by HUD. A modification to Activity 2016-2 will allow SCCHA, at its discretion, to enter into a HAP contract for housing to be rehabilitated or newly constructed even if construction had begun without an AHAP in place. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance Not applicable. 2026-2027 Annual Action Plan 23
AP-65 Homeless and Other Special Needs Activities – 91.220 (i)IntroductionThe 2025 Point-in-Time Count identified 10,711 homeless individuals county-wide, which was higher than the 2023 count of 9,903. Of 10,711 persons counted, 7,472 are unsheltered and 3,239 are sheltered. It is estimated that 43% (4,650) of the 10,711 homeless people are chronically homeless with 69% of those chronically homeless being unsheltered. 378 are veterans (4%) with 79% of those being unsheltered. 16% of households are “Families” with 16% of those being unsheltered. The City of Santa Clara saw a 72% increase in its homeless population up from 461 in 2023 to 794 persons in 2025. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs. The City will continue its efforts of housing homeless families through its TBRA program. The goal is to house/keep housed approximately 20 households in its TBRA program. The City will renew its agreement with the County of Santa Clara for FY26/27 to provide intensive case management to approximately 20 chronically homeless individuals referred by the police department. This program is funded with local funds. The County provides housing subsidies for the participants in this program while the City uses its Successor Housing Agency funds to provide the case management and services for the program. HOME-ARP funds will be used to provide TBRA and other supportive services to Qualifying Populations under the HOME-ARP regulations. The City will also continue to offer mobile shower/laundry and case management services on a weekly basis through a partnership with WeHope Dignity on Wheels. Addressing the emergency shelter and transitional housing needs of homeless persons. The City does not currently have an emergency shelter or transitional housing facility located within its boundaries. Individuals and families experiencing homelessness are referred to emergency shelter and interim housing programs operated by nonprofit providers in neighboring jurisdictions and administered at the County and Continuum of Care level. The City participates in regional coordination efforts, including Coordinated Entry, to support access to shelter, services, and permanent housing resources. At this time, the City does not anticipate using federal funds to develop or operate an emergency shelter. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again. Particularly for chronically homeless, it is preferable for individuals to receive intensive case management rather than simple information and referral services. Case managers work to assist homeless individuals find housing, connect with resources, and receive services to maintain housing. The provision of case management is person-based rather than shelter-based with the goal of rapid re-housing. The goals of the County 2020-2025 Community Plan to End Homelessness establish a target of creating 6,000 housing opportunities for persons who are homeless. An additional goal is for each of the 6,000 new tenants to have access to the services that will allow them to maintain that housing. The City will continue to use HOME funds for our TBRA program. The TBRA program is a short-term solution to homelessness (unlike permanent supportive housing for the chronically homeless). The Homeless Survey has shown that families with children are not only a special need population but tend to be underrepresented in Homeless Surveys. The TBRA program will continue to focus on assisting the homeless and at-risk of homelessness population; however, preferences towards families with children, and individuals and/or families exiting housing exclusively designated for domestic violence survivors will be given. 2026-2027 Annual Action Plan 24
Helping low-income individuals and families avoid becoming homeless, especially extremely low- income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. Although the City does not fund programs or activities that specifically help low-income individuals and families avoid becoming homeless who are being discharged from publicly funded institutions or who receive assistance from public or private agencies that address housing, health, social services, employment or youth needs, many of the programs and activities that the City does fund help to prevent homelessness. Tenant Based Rental Assistance Program (TBRA). Many of the beneficiaries of the TBRA program also receive SNAP (i.e., food assistance), and all receive case management services. The program also allows for assistance to those that are housed, but on the verge of homelessness. Homeless Prevention Program and Intensive Case Management. The City uses local funds to match county funds for a program that houses up to twenty (20) homeless individuals that are identified by the police department as high users of community resources; some of which had been discharged from facilities and/or jails. This population is also provided case management services. The City also funds the Homelessness Prevention System which provides temporary financial assistance, legal support, and case management to families or individuals who are at risk of losing their housing. Landlord/Tenant Mediation. This program can indirectly help households stay housed through the mediation of eviction related issues. Next Door Solutions to Domestic Violence. This program provides a safety net of housing and services to either help victims avoid homelessness or make their homeless situation shorter. Youth needs. The City provides CDBG funding for family and individual counseling needs through the Bill Wilson Center which focuses on the needs of foster children. By administering these programs, it provides The Bill Wilson Center the unique resources to identify homeless families, foster youth in their own system, and households with children in the school system that may be in need of critical needs such as housing, health, employment, education, and other social services. The City is currently working to complete a City-specific homeless needs assessment and strategic plan. The results of this process will direct future funding for homeless activities and programs. 2026-2027 Annual Action Plan 25
AP-75 Barriers to Affordable Housing – 91.220 (j)IntroductionThe City faces barriers to affordable housing that are common throughout the Bay Area. High on the list is the lack of developable land, which increases the cost of available lands and increases housing development costs. Local opposition is another common obstacle as many neighbors have strong reactions to infill and affordable housing developments. Opposition is often based on misconceptions, such as an anticipated increase in crime; erosion of property values; increase in parking and traffic congestion; and overwhelmed schools. However, to ensure a healthy economy, the region must focus on strategies and investment that provide housing for much of the workforce in the region – retail salesclerks, firefighters and police, teachers and health service workers – whose incomes significantly limit their housing choices. Actions 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 has identified multiple constraints or barriers to the affordable housing and residential investment in its 2023-2031 Housing Element Update, including: Land use controls that limit the density of housing production; Parking requirements that increase the cost of housing; Income and wages are not consistent with the rising cost of housing; A competitive rental and housing market; and/or Diminishing public funds. The adopted 2023-2031 Housing Element includes the following actions to remove or ameliorate barriers: Continue to invest in new 100% affordable housing developments, work with nonprofits to acquire and rehabilitate distressed multi- family housing and convert it to low-income housing, update the City zoning ordinance to comply with state laws on reasonable accommodations, the siting of emergency shelters, transitional and supportive housing. Reduce parking requirements for housing development near transit, work with religious institutions to identify possible sites for affordable housing development, encourage ADU development, analyze impact fees, promote construction of accessary units and low-income housing such as shared housing and Single Room Occupancy units, continue to require developers of 10 or more units to provide Below Market Rate units, identifying new sources of affordable housing funding, and more. 2026-2027 Annual Action Plan 26
AP-85 Other Actions – 91.220 (k) IntroductionThis section discusses efforts in addressing the underserved needs, expanding and preserving affordable housing, reducing lead-based paint hazards, and developing institutional structure for delivering housing and community development activities. Actions planned to address obstacles to meeting underserved needs A major obstacle to meeting the needs of the underserved is the limited funding available for public services. The City contributes general funds to fund the tenant/landlord mediation program and the United Way 211 information line. Actions planned to foster and maintain affordable housing The City funds Rebuilding Together Silicon Valley to administer a portion of its Homeowner Housing Rehabilitation program. The program addresses building/housing code deficiencies, repair/rehabilitation of deteriorated conditions, and accessibility for persons with disabilities, all to improve the habitability, use and occupancy of owner-occupied housing. Financial assistance is provided in the form of grants. The City also administers its Neighborhood Conservation Improvement Program (i.e., Homeowner Housing Rehabilitation Program). These projects are typically larger in scope than the projects performed by Rebuilding Together Silicon Valley. Financial assistance is provided in the form of loans with flexible terms and below market rates. The City has a Below Market Purchase Program (BMP). This program requires developers to set aside 15% of newly constructed units for housing affordable to low- and moderate-income homebuyers. The City is in the process of updating the BMP program so that initial buyers will be required to sell to qualified low- and moderate-income buyers keeping these homes affordable for at least 30 years. Actions planned to reduce lead-based paint hazards The City undertakes HUD-funded projects in accordance with the Lead-Based Paint Regulations. These regulations most commonly affect residential structures rehabilitated through NCIP. When identified, lead paint will be controlled or abated and disposed of properly to eliminate or reduce the hazard of environmental or human contamination. The City has adopted a written plan to implement the regulations in its NCIP Program and other housing rehabilitation activities. Actions planned to reduce the number of poverty-level families On August 22, 2017, the Santa Clara City Council approved a plan establishing the local minimum wage. As of January 1, 2020, the City of Santa Clara minimum wage is adjusted annually based on the regional Consumer Price Index (CPI). The minimum wage as of January 1, 2026, is $18.70 per hour. The Worker Retention Ordinance that took effect on May 4, 2017, provides much-needed job security to some of the most vulnerable workers. This law protects food and building service workers from mass layoffs when companies switch contractors. It requires that if a company with an office or venue in Santa Clara hires a new contractor or brings services in-house, the workers who currently work at that location must be kept on for a 90-day transition period. The Santa Clara Unified School District (SCUSD) Adult Education Center has a CalWORKs Site Representative who acts as a liaison for participating CalWORKs students and Santa Clara County Social Services Agency. Some of these responsibilities include ensuring that all participants on campus are remaining in compliance with federal regulations, developing a welfare to work plan, reporting monthly attendance to the County for each participant, and reporting progress reports on a quarterly basis for each participant CalWORKs student to the County. The Adult Education Center also has a Career Advisor for CalWORKs students to help with job placement, resume development, and interviewing skills. Actions planned to develop institutional structure The City will continue its participation in the countywide CDBG Coordinators Committee, which increasingly has become a forum for discussion and active planning of common strategies to address the housing and community needs in Santa Clara County. The City also works closely with Cloudburst, a HUD approved TA provider. 2026-2027 Annual Action Plan 27
Actions planned to enhance coordination between public and private housing and social service agenciesThe City will continue its efforts to encourage consortium-building among housing developers, public service providers, and governmental and non-governmental entities. The City has achieved proven results in using federal funds to leverage private funds. The City participates in the quarterly meetings of the Supportive Housing Roundtable, which includes government agencies, housing developers, service providers, legal services and private funders. Discussion AP-90 Program Specific Requirements – 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.Thetotalamountofprogramincomethatwillhavebeenreceivedbeforethestartofthenextprogram year and that has not yet been reprogrammed 02.The amount of proceeds fromsection 108loanguarantees thatwill be usedduringthe year to address the priority needs and specific objectives identified in the strategic plan. 0 3.The amount ofsurplusfunds fromurban renewalsettlements.0 4.The amountofany grantfunds returned to thelineof credit forwhich theplanneduse has not been included in a prior statement or plan. 0 5.The amount ofincomefromfloat-funded activities0 Total ProgramIncome0 Other CDBG Requirements 1.Theamountof urgentneedactivities. 02.TheestimatedpercentageofCDBGfunds that will beused for activitiesthat benefitpersons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may beused to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit personsof low and moderate income. Specify the years covered that include this Annual Action Plan.100% 2026-2027 Annual Action Plan 28
HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l) (2) A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: 1. The City does not use HOME funds beyond those identified in Section 92.205. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: Homeowner Equity – for purposes of this policy, it is defined as the sum of the down-payment, principal paid, and homeowner improvements. HOME Equity – for purposes of this policy, it is defined as the amount of HOME investment, adjusted as follows: (1) The HOME investment amount would be reduced if, at the time of the homeowner purchase, the market price is less than the cost of construction, by the amount of that difference; and (2) Beginning after six years of residency by the original buyer, the City would reduce its share of excess proceeds by a maximum of 10% for each additional full year the original buyer resides in the home. After the completion of 15 years of residency by the original buyer, the City would have no interest in recapturing any portion of its original HOME investment. In the event of a sale of a HOME-assisted house during the 15-year HOME affordability period, sales proceeds would be distributed in the following order of priority: a. Closing costs. b. Primary mortgage loan (City or private lender). c. Other loans superior to the HOME investment lien (if any have been approved by the City). The remaining funds are considered Shared Net Proceeds under the HOME regulations and would be distributed in the following order of priority: d. Homeowner Equity, or the amount of Shared Net Proceeds, whichever is less. e. Homeowner Shared Net Proceeds. This amount will be the greater of: (1) Homeowner Equity that was paid as described above; or (2) proportionately of the Shared Net Proceeds, according to the formula - Homeowner Equity, divided by the sum of Homeowner Equity plus HOME Equity. f. HOME investment. The remainder of the Shared Net Proceeds. If the remaining Shared Net Proceeds are insufficient to repay the full amount of the HOME investment, the City would forgive any of the HOME investment that could not be repaid from the remaining Shared Net Proceeds. 2. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds. See 24 CFR 92.254(a)(4) are as follows: The City secures its HOME funds by recording Deeds of Trust on the title of the property that received the funding. The period of affordability would be a minimum of 15 years. 3. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City does not have any plans to use HOME funds to refinance existing debt on multi-family. 4. HOME funds may be allocated to affordable housing capital projects in contiguous jurisdictions. 2026-2027 Annual Action Plan 29
Discussion The following guidelines will apply to the TBRA program: The program will serve homeless and at-risk of becoming homeless households, with preference given to families with children. The household income must be at, or below 60% AMI as published by HUD. Households must reside in or have proof of a last permanent address in the City of Santa Clara, or who are currently working or have a bonafide job offer in the City of Santa Clara, or be homeless in the City of Santa Clara, or have children attending a school in the Santa Clara Unified School District. Participants go through the Coordinated Assessment system and be placed in the Community Queue (a separate, confidential process is available within the system for domestic violence survivors). A Vulnerability Index-Service Prioritization Decision Assistance Tool 2.0 (VI-SPDAT) will assess the vulnerability and placement of the participant in the Queue. Further, the program-specific filters (e.g., families with children) will result in referrals to the TBRA program from the Queue. While it would be ideal for participants to locate housing within the City limits, the program will allow participants to find housing located anywhere within the County of Santa Clara. 95% After Rehab Valuation The City of Santa Clara may use HOME funds for acquisition purposes. Per CFR 24 92.254 (a)(iii), the City has chosen to determine separate limits for existing housing than the given median purchase price issued by HUD. City staff researched the Multiple Listings Service (MLS) to determine the number of single-family and multi-family home sales. There were less than 250 sales per months; thus, per 24.92.254 (a)(iii), the City of Santa Clara is required to compile three months of sales figures.