March 24, 2026 Item #7
City Council
Meeting
Item # 7 - RTC# 26-135
Public Hearing #1: FY26/27
DRAFT Annual Action Plan
for the Use of Federal
1852 Housing and Urban
THE MISSION CIT Development Grant Funds
March 24, 2026
1 Background
• The City receives approximately $1.3M in federal "entitlement funds" • Community Development Block Grant Program (CDBG)
• HOME Program
• The purpose of these funds is to assist lower income residents • Every five years the City must create a five year "Consolidated Plan" to identify overall needs and goals
• We are currently planning year 2 of the 2025-2030 funding cycle • In 2025, the City conducted a grant application process covering the first 3 years of the funding cycle
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2 POST MEETING MATERIAL
1 March 24, 2026 Item #7
Background
• The 2026/2027 HUD Annual Action Plan allocates funds for projects and programs serving lower income residents:
- Capital improvements support
public facilities, accessibility, housing
renovation and more.
- Public services support low or no
cost counseling, legal assistance, senior
services, domestic violence support,
rental assistance and more.
3 Background
• HUD requires two public hearings; this is hearing 1 of 2 • A 30-day public comment period on the FINAL version of the Annual Action Plan will begin on April 2nd and end on May 5th (final hearing) • The Annual Action Plan allocates funding from several sources:
• HUD Community Development Block Grants
• HUD HOME
• HUD HOME ARP
• Local funds
4 2
March 24, 2026 Item #7
2026-2027 Annual Action Plan
Estimated Resources
CDBG HOME
Estimated Resources Estimated Resources
$1,580,000 $770,000
$1,020,000 $350,000
26/27 Allocation 26/27 Allocation
$440,000 $410,000
Funds from prior years Funds from prior years
$120,000 $10,000
Program Income Program Income
5 5
2026-2027 Annual Action Plan
Estimated Resources
HOME-ARP* Local Funds
Estimated Resources Estimated Resources
$30,000 $741,239
$30,000 $90,542
Next Door Solutions General Funds
$290,697
*These funds were previously CAHF
programmed in the FY21/2022
AAP $360,000
CHSF
6 March 24, 2026 Item #7
CDBG Funding for Public Service Activities
Proposed # Funding
Funding Served Source
Loaves & Fishes - Meals on Wheels $ 30,000 30 CDBG
Senior Adult Legal Assistance (SALA) -Legal Assistance $ 30,000 80 CDBG Bill Wilson - Counseling & Family Therapy $ 30,000 120 CDBG Silicon Valley Independent Living Center - Housing for persons $ 30,000 70 CDBG
with Disabilities
Heart of the Valley - Support & Transportation Services $ 30,000 144 CDBG Hope Services - Educational Services $ 30,000 11 CDBG
Total $ 180,000 455
7 Local Funding for Public Service Activities
Proposed # Funding
Funding Served Source
Project Sentinel - Landlord/Tenant Mediation Services $ 70,542 100 GF Catholic Charities Long -Term Care Ombudsman $ 15,000 380 GF United Way 211 Services $ 5,000 500 GF
$160,697 20 CAHF
ABODE - Case Management Services for TBRA participants $140,000 CHSF County Intensive Case Management $220,000* 20 CHSF
County Intensive Case Management $ 30,000* 20 CAHF
County Homeless Prevention Program $100,000* 175 CAHF
Total $ 741,239 1,215
* Year one of a two-year agreement
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4 March 24, 2026 Item #7
HUD Funding for Capital Improvements & Other
Proposed # Funding
Funding served Source
Rebuilding Together Silicon Valley - (RTSV) Minor Home Repair Program $200,000 15 CDBG Neighborhood Conservation & Improvement Program (NCIP) $698,000 5 CDBG NCIP Project Delivery Costs $122,000 N/A CDBG
CDBG Administration $228,000 N/A CDBG
Silicon Valley Independent Living Center Rehab Phase #2 $152,000 4 CDBG HOME Administration $ 22,803 N/A HOME
Project Sentinel - Fair Housing Services $ 22,197 50 HOME ABODE - Tenant Based Rental Assistance HOME $672,500 19 HOME Community Housing Development Organization (CHDO) Set-aside $ 52,500 1 HOME Total $2,170,000 94
9 Neighborhood Conservation &
Improvement Program (NCIP)
Minor Repair Grant Major Repair Loan
• Administered by Rebuilding Together • Administered by City Staff Grants up to $25,000
• Ramps, grab bars, weatherization,
termite damage, accessibility, and
other minor repairs foundation, accessibility, energy/water efficiency, lead and mold remediation,
etc.
$200,000 (FY 26/27 Entitlement) $698,000 (FY 26/27 Entitlement) 10-20 HOMES 5-7 HOMES
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March 24, 2026 Item #7
Annual Action Plan Contingency Language for CDBG
Higher than expected Lower than expected
Additional funds will be programmed for the The Public Service and Administration cap Homeowner Rehab Program (i.e. NCIP) limits will be recalculated and adjusted. If the and/or the Minor Repair Program. The City re-calculation results in a Public Service Cap of series i permited inter the Public
Service Cap.
Repair Program may need to be reduced.
11 11
Annual Action Plan Contingency Language for HOME
Higher than expected Lower than expected
funds will be used for the TBRA program. then be reduced in funding. 12 12
6 March 24, 2026 Item #7
Council Action
Recommendation
• Approve the 2026-2027 DRAFT AAP and direct staff to include public comments in the final version to be presented to the City Council on May 5, 2026.
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City Council
Meeting
Item # 7 - RTC# 26-135
Public Hearing #1: FY26/27
DRAFT Annual Action Plan
for the Use of Federal
1852 Housing and Urban
THE MISSION GIN Development Grant Funds
March 24, 2026
14 March 24, 2026 Item #7
Funding Breakdown
562 562
Agencies Funded CDBG HOME
Funds Funds
Public Services - Nonprofit agencies that provide services Public Service Activities 1 to low-income households. Up to six nonprofit agencies may $ 180,000 be funded under the CD Public Service Cap.
2 NCIP Activity Delivery Costs $ 122,000
INCIP Loans and Grants $ 698,000
Improv. 4 Minor Repair Program $ 200,000
Silicon Valley Independent Living Center Rehab Phase 2 $ 152,000 6 TBRA Administration (S 672,500.00
7 Community Housing, Development Org. (CHDO) Set-aside 52,500.00 CDBG Administration $ 228,000
9 HOME Administration - Fair Housing Services 22,197.00 10 HOME Administration - City Administration 22,803.00
Budget TOTAL CDBG HOME
#
Summary funds funds
Public Service Activities
">
Capital Improvement Projects
Affordable Housing Activities ' $ 725,000.00
/ Program Administration $273,000 $ 228,000
18-2-27 TOTAL ALLOCATION 223000 5222000 8 150000) 15
15 Federal Grant Cycle
Community
Outreach
CAPER
Select Funding
Submission
Priorities
Sept 30)
Annual Process
Grant
Desk & On-Site
Application
Monitoring
Process
Project/Activity Annual Action Plan
Implementation and Submission
Quarteriv Reports (May 15th)
Contract
Processing
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8 March 24, 2026 Item #7
Consolidated Plan
SUMMARY OF CONSOLIDATED ACTION PLAN GOALS
• Affordable Housing: Development, rehabilitation, rental assistance • Homelessness: Affordable housing, case management, connection to services • Public Services: Basic needs services for lower income/special needs households • Fair Housing: Promote fair housing choice through education, testing, mediation • Public Facility Improvements: Sidewalks, traffic calming, and other improvements • Administration & Planning: Management, planning, monitoring 17 17