Agenda packet — City Council and Authorities Concurrent, May 5, 2026 (part 7 of 7)

Collection:

Duration:

Management:

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Each assessed lodging business located in the boundaries of the SCTID shall be responsible for remitting the assessments to the City in accordance with the Plan.

The City will be responsible for collecting the assessment on a monthly basis (including any interest and overdue charges) from each assessed lodging business located in the boundaries of the SCTID. The City shall take all reasonable efforts to collect the assessments from each assessed lodging business and may charge SCTID its proportionate share of collection costs.

The renewed SCTID will have a five {5) year life, beginning July 1, 2026, or as soon as possible thereafter, and ending five (5) years from its start date. After five {5) years, the SCTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. if assessed lodging business owners support continuing the SCTID programs.

The Silicon Valley/Santa Clara DMO, Inc. dba Discover Santa Clara® shall continue to serve as the SCTID's Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with the Plan and must provide annual reports to the City Council.

D Santa Clara City Limits
TID Boundaries

EXHIBIT A

MAN AG EM ENT DISTRICT PLAN SUM MARY
Boundary Map
-,--,---------------------------_--_---.--.-.--.-.---, ___ _-_--_----.--.---.---~- -~-~~~~~~~~~~~~~~---•-=-- ~~~~~~~~~

PETITION TO THE CITY OF SANTA CLARA

TO RENEW THE SANTA CLARA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Santa Clara Tourism Improvement District {SCTID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Business Establishment(s) & Address(es)
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Business Owner
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The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

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Owner /Owner Representative Name (printed)
G-eN-evcJ) MaJJaq~
Title
Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Christine Lawson, Chief Executive Officer
Discover Santa Clara
5001 Great America Parkway
Santa Clara, CA 95054
(408) 748-7095
Location:

Services:

Budget:

Cost:

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
The renewed SCTID includes all lodging businesses with ten (10) rooms or more, existing and in the future, available for public occupancy located within the boundaries of a portion of the city of Santa Clara, as shown on the map included herein.

The SCTID is designed to provide specific benefits directly to payers by increasing awareness and demand for room night sales. Marketing, communication programs, convention center and partner sales, and other improvements and activities will increase demand for overnight tourism and market payers for tourist, meeting and event destinations, thereby increasing demand for room nights.

The total SCTID annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $4,047,912. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to the Management District Plan ("Plan").

The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the SCTID term, the assessment rate may be increased to a maximum rate of three percent (3%) of gross short-term sleeping room rental revenue for assessed lodging businesses. The Silicon Valley/Santa Clara DMO, Inc. dba Discover Santa Clara® Board of Directors ("Board") shall have the authority to increase the rate to a maximum assessment rate of three percent (3%). If the assessment rate is increased, it may subsequently be decreased, subject to Board approval, but shall not be decreased below a minimum of two percent (2%} of gross short-term sleeping room rental revenue. The maximum assessment increase or decrease permitted in any year shall be one-half percent (0.5%). Increases to the assessment rate shall be subject to the approval of the Board and assessed lodging business owners.

Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; or stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. Additionally, assessments will not be collected on stays by any Federal or State of California officer or employee on official business who shall provide one of the following: a warrant or check drawn on the Treasury of the United States; a copy of the official travel orders indicating the issuing governmental agency and the employee's full name; or, a copy of a letter on the official letterhead of an exempt governmental agency requesting exemption and listing the employee's name and stating that the stay is for official government business. The dates of occupancy must also be included. These requirements must be demonstrated by the guest at the time of registration. Failure to satisfy these requirements will result in no assessment exemption. Copies of the documentation for each exemption claimed must be submitted to the City of Santa Clara ("City") Director of Finance with each remittance of assessments.

Collection:

Duration:

Management:

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Each assessed lodging business located in the boundaries of the SCTID shall be responsible for remitting the assessments to the City in accordance with the Plan.

The renewed SCTID will have a five (5) year life, beginning July 1, 20261 or as soon as possible thereafter, and ending five (5) years from its start date. After five {5) years, the SCTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. if assessed lodging business owners support continuing the SCTID programs.

The Silicon Valley/Santa Clara DMD, lnc. dba Discover Santa Clara® shall continue to serve as the SCTJD's Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with the Plan and must provide annual reports to the City Council.

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Boundary Map
PETITI0-1\fTO THE-CITY OF SANTA CLARA

TO RENEW THE SANTA CLARA TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Santa Clara Tourism Improvement District (SCTID) in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Business Establishment(s) & Address(es) Business Owner
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Christine Lawson, Chief Executive Officer
Discover Santa Clara
5001 Great America Parkway
Santa Clara, CA 95054
(408) 748-7095

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
•• -- -- _ _,,_, •••••••••••• • location: - •••• The renewed SCTID includes all lodging businesses with ten (10) -rooms or rnore, - -- -- Services:

Budget:

Cost:
existing and in the future, available for public occupancy located within the boundaries of a portion of the city of Santa Clara, as shown on the map included herein.

The SCTID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Marketing, communication programs, convention center and partner sales, and other improvements and activities will increase demand for overnight tourism and market payors for tourist, meeting and event destinations, thereby increasing demand for room nights.

The total SCTID annual assessment budget for the initial year of its five (S) year operation is anticipated to be approximately $4,047,912. A similar assessment budget is expected to apply to subsequent years, but this assessment budget is expected to fluctuate as room sales do, as businesses open and close, and if the assessment rate is increased or decreased pursuant to the Management District Plan ("Plan").

The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the SCTID term, the assessment rate may be increased to a maximum rate of three percent (3%) of gross short-term sleeping room rental revenue for assessed lodging businesses. The Silicon Valley/Santa Clara OMO, Inc. dba Discover Santa Clara® Board of Directors ("Board") shall have the authority to increase the rate to a maximum assessment rate of three percent (3%). If the assessment rate is increased, it may subsequently be decreased, subject to Board approval, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum assessment increase or decrease permitted in any year shall be one-half percent (0.5%). Increases to the assessment rate shall be subject to the approval of the Board and assessed lodging business owners.

Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; or stays by any officer or employee of a foreign government who is exempt by reason of express provision of Federal law or international treaty. Additionally, assessments will not be collected on stays by any Federal or State of California officer or employee on official business who shall provide one of the following: a warrant or check drawn on the Treasury of the United States; a copy of the official travel orders indicating the issuing governmental agency and the employee's full name; or, a copy of a letter on the official letterhead of an exempt governmental agency requesting exemption and listing the employee's name and stating that the stay is for official government business. The dates of occupancy must also be included. These requirements must be demonstrated by the guest at the time of registration. Failure to satisfy these requirements will result in no assessment exemption. Copies of the documentation for each exemption claimed must be submitted to the City of Santa Clara ("City'') Director of Finance with each remittance of assessments.

Collection:

Duration:

Management:

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Each assessed lodging business located in the boundaries of the SCTID shall be responsible for remitting the assessments to the City in accordance with the Plan.

The renewed SCTID will have a five (5) year life, beginning July 1, 2026, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SCTID may be ·renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. if assessed lodging business owners support continuing the SCTID programs.

The Silicon Valley/Santa Clara DMO, Inc. dba Discover Santa Clara• shall continue to serve as the SCTID's Owners' Association. The Owners' Association is charged with managing funds and implementing programs in accordance with the Plan and must provide annual reports to the City Council.

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Boundary Map
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PETITION TO THE CITY OF SANTA CLARA

Business Establishment{s) & Address(es) Business Owner
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The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign'this petition. /0 ner Representative Name (printed)
/OwneRef)resentative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests fora complete copy of the Management District Plan should be made to:

Christine Lawson, Chief Executive Officer
Discover Santa Clara
5001 Great America Parkway
Santa Clara, CA 95054
(408) 748-7095
Location:

Services:

Budget:

Cost:

EXHIBIT A

The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue. During the SCTID term, the assessment rate may be increased to a maximum rate of three percent (3%) of gross short-term sleeping room rental revenue for assessed lodging businesses. The Silicon Valley/Santa Clara DMO, Inc. dba Discover Santa Clara® Board of Directors ("Board") shall have the authority to increase the rate to a maximum assessment rate of three percent (3%). If the assessment rate is increased, it may subsequently be decreased, subject to Board approval, but shall not be decreased below a minimum of two percent (2%) of gross short-term sleeping room rental revenue. The maximum assessment increase or decrease permitted in any year shall be one-half percent (0.5%). Increases to the assessment rate shall be subject to the approval of the Board and assessed lodging business owners.

Collection:

Duration:

Management:

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Each assessed lodging business located in the boundaries of the SCTID shall be responsible for remitting the assessments to the City in accordance with the Plan.

The renewed SCTID will have a five (5) year life, beginning July 1, 2026, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SCTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq. if assessed lodging business owners support continuing the SCTID programs.

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Boundary Map
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CIVITAS
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-70 Agenda Date: 5/5/2026

REPORT TO COUNCIL

SUBJECT
Action to Waive First Reading and Introduce an Ordinance Adding Chapter 12.65 Entitled “Encroachments of Private Improvements into Public Rights-of-Way” to the City Code to Establish Procedures for the Administrative Approval of Private Encroachments within the Public Right-of-Way

BACKGROUND
Resolution No. 3899 (Attachment 1), adopted in 1977 and entitled “Policy Regarding the Installation of Private Improvements within Public Rights of Way for Street Purposes” establishes requirements for City Council authorization of certain private encroachments, such as walls and fences, within the public right-of-way. These encroachments have previously included minor private improvements such as decorative fencing, enhanced landscape features, private mailboxes, low retaining walls, pavers, and similar items that may extend into the public right-of-way, but do not interfere with pedestrian usage of the right-of-way.

Under the current practice, requests for private encroachments in the public right-of-way require an application, review of proposed encroachments, discussion with the property owner, preparation of a Report to Council, and scheduling for consideration at a City Council Meeting. While this process allows City Council input regarding the public right-of-way, it can result in extended overall processing timelines and additional staff time for relatively minor and straightforward encroachments.

The proposed ordinance will help to streamline the review and approval process for specifically defined private encroachments in the public right-of-way. This will be accomplished by allowing for administrative approval of such encroachments to reduce the overall timeline for approval and reduce the staff resources utilized for this effort. Administrative approval of minor encroachments in the public right-of-way aligns with the common practices used by other local public agencies such as Palo Alto, Sunnyvale, and Redwood City.

DISCUSSION
Staff continue to support the limited use of, or encroachment into, the public right-of-way for private purposes by property owners where, in the City’s determination, such use or encroachment does not interfere with the public’s use and enjoyment of said rights-of-way. The attached ordinance is being proposed to (1) repeal Resolution No. 3899 in its entirety and (2) add Chapter 12.65 Encroachments of Private Improvements into Public Rights-of-Way to the City Code (Attachment 2) which will help streamline the process to obtain private encroachments in the public right-of-way as well as codify staff’s proposal for administrative approval of such encroachments.

Chapter 12.65, as proposed, would authorize the City Engineer in the Department of Public Works to administratively review and approve eligible private encroachments in the public right-of-way, such as fencing, low retaining walls, and planter boxes. Administrative approval may be granted upon City of Santa Clara Page 1 of 3 Printed on 5/1/2026
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26-70 Agenda Date: 5/5/2026
determining that the encroachment is compatible with its surroundings and does not adversely affect public safety or intended public uses in the public right-of-way. In the event the encroachment request is denied, the property owner may submit an appeal to the City Manager.

If the encroachment is approved by the City Engineer, the encroaching property owner would be required to execute an encroachment agreement with the following general terms: (1) require the property owner to provide for the long-term maintenance of their encroachment and (2) remove the encroachment and restore the area at their sole cost if the City determines at a later date that the encroachment should be removed. Additionally, the agreement includes appropriate insurance and indemnification provisions to protect the City. The encroachment agreement shall be in a form approved by the City Attorney and will be executed by the City Manager.

It is important to note that under the proposed ordinance, frontage landscape improvements, including hardscape and irrigation improvements, and private mailboxes on a simple post installation that are USPS-compliant are exempt and would not require execution of an encroachment agreement, however these improvements may require an encroachment permit. Additionally, any private improvement installed (including exempted items) within the public right-of-way will remain the responsibility of the adjacent property owner. If the City must access the area to repair the sidewalk, curb and gutter, utilities, perform maintenance, or construct capital improvements, the City will not be responsible for repair or replacement of the private improvement located within the public right-ofway.

Adoption of the proposed ordinance would replace an outdated policy resolution with a modern codified regulatory framework that allows for timely administrative review of minor private encroachment requests while preserving City oversight of the public right-of-way. This approach is intended to improve service delivery, reduce overall City processing timelines, and ensure that minor private encroachments are reviewed in a consistent and transparent manner.

ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(2) as a general policy making activity.

FISCAL IMPACT
There is no additional cost to the City other than staff time and expense.

COORDINATION
This report has been coordinated with the City Attorney’s Office, Community Development Department and City Manager’s Office.

PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email [email protected] or at the public information desk at any City of Santa Clara public library.

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26-70 Agenda Date: 5/5/2026

ALTERNATIVES

1. Waive First Reading and Introduce an Ordinance Adding new Chapter 12.65 entitled “Encroachments of Private Improvements into Public Rights-of-Way” to Title 12 (entitled “Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” (“SCCC”).

2. Do not waive the First Reading and Introduce an Ordinance Adding new Chapter 12.65 entitled “Encroachments of Private Improvements into Public Rights-of-Way” to Title 12 (entitled “Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” (“SCCC”) and provide direction to staff on next steps

3. Provide additional and/or alternative direction to staff.

RECOMMENDATION
Alternative 1:

Waive First Reading and Introduce an Ordinance Adding new Chapter 12.65 entitled “Encroachments of Private Improvements into Public Rights-of-Way” to Title 12 (entitled “Streets, Sidewalks and Public Places”) of “The Code of the City of Santa Clara, California” (“SCCC”).

Reviewed by: Craig Mobeck, Director of Public Works
Approved by: Jovan Grogan, City Manager

ATTACHMENTS

1. Resolution No. 3899

2. Ordinance
City of Santa Clara Page 3 of 3 Printed on 5/1/2026
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; <~I~__,, ~~\ RESOLUTION NO. 3899 ~,,, " ---- \~ POLICY REGARDING THE INSTALLATION OF PRIVATE IMPROVE:MENTS

WITHIN PUBLIC RIGHTS OF WAY FOR STREET PURPOSES

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA CLARA, as follows:

SECTION 1:

It is the current policy of the City Council that the owners of lots or portions of lots fronting on any portion of a public street or place, when that street or place is improved or if and when the area between the property line and the street line is maintained as a park or parking strip, shall maintain any sidewalk including park and parking strip in such condition that they will not endanger persons or property and maintain it in a condition which will not interfere with the public convenience in the use of these works or areas save and except as to those conditions created or maintained in, upon, along, or in connection with such sidewalk, park or parking strip by any person other than the owner (examples:

U.S. Post Office mail boxes, franchised bus bench company benches) under and by virtue of any permit or right granted to him by law or by City authorities in charge thereof, any such persons shall be under a like duty in relation thereto.

To assist in the administration of this policy, the City Council finds and declares that each of the following private improvements existing on sidewalks (as that term is defined in Section 25-57 of the City Code) in this City shall be deemed, until approved as otherwise by the City Council, to interfere with the public convenience in the use of those works and areas no matter the state of repair and be abated as such:

Walls or other parts thereof whether brick, concrete,
or of other permanent construction
Fences or parts thereof whether brick, rock, wood, or
of other permanent construction
When such improvements come to the attention of the City, the property owner shall be advised of the City's policy and owner's responsibility with respect thereto, and of his right to apply to the .. C
City for approval of the encroachment upon such terms and conditions that the improvement would not interfere with publ convenience. An encroachment covenant shall be proposed by the Department of Public Works which this department finds most likely to achieve this result, and the owner shall be advised that the improveffi::':!nt may be abated unless the encroachment covenant is executed within 10 calendar days.

Upon execution by O'Wl.1er of the encroachment covenant, and payment by owner of the fees as, from time to time, may be determined by the City Council, the City C k shall set a time and date for a public hearing, and advise the owner thereof. Any action by the City to abate the encroachment shall be stayed pending hearing, including City Council hearing and determination of whether an encroachment covenant could and should be approved, where the condition of the encroachment is maintained in a state so as not to endanger unreasonably persons or property. At the time and date set for the publ hearing before the City Council, the Council may approve said encroachment covenant and direct the recording thereof in the Office of the Recorder in the County of Santa Clara. If the Council fails to approve said encroachment covenant, the owner shall not erect any such proposed improvement, and any such existing encroachment shall be removed promptly by owner, at no cost to the City. If owner fails to remove the existing private improvement to the satisfaction of the Department of Public Works, the private improvement shall be abated in the manner provided for the repair of sidewalks in Division 3 of Chapter 25 of The Code of the City of Santa Clara.

Encroachment covenants granted pursuant to this policy shall be subject to such terms and conditions as are required by the City from time to time. If and when the City determines that any private improvement is in conflict with the above stated purposes, or becomes contrary to the public health, safety and welfare, the City Council shall rescind or terminate the City's approval thereof, and upon notification the covenantee shall remove the improvements at no cost to the Cit_y.

With respect to private improvements not heretofore mentioned (e.g., paving flatwork, landscaping, irrigation systems, private mailboxes), it is the policy of the City Council that it is the obligation -2-
. .
.. ..
of the owner of any lot or a portion of a lot to maintain the abutting sidewalk including park and parking strip, outside of the conventional width and extent City has recently maintained sidewalk, curb and gutter without seeking reimbursement from owner. To the extent the owner of a lot or a portion of a lot fails to meet owner 1 s obligations with respect to such maintenance, City shall connnence assessment procedures pursuant to Division 3 of Chapter 25 of The Code the City of Santa Clara providing for the collection of all costs of correct ion from owner.

SECTION 2:

The policies herein set forth or re renced are subject to further change and modification as the City Council might from time to time see fit in its exercise of discretion.

SECTION 3:

Resolution No. 3853 is hereby repea d.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF SANTA CLARA, this 6th day of SeP.tember ' 1977, by the following vote:

AYES: COUNCILMEN: Hansen, Kiely, Mahan, Stewart, Street and Mayor Gissler
NOES: COUNCILMEN: Texera
ABSENT: COUNCILMEN: None
I, A. S. Belick, City Clerk of the City of Santa
Clara, do hereby certify that the within
Ordinance or Resolution is a correct copy
of the original, and that same has been
published
~-
as required by law,
/ City Clerk
ATTEST: A. S. BELICK -----=-~--=""'-------- City Clerk
City of Santa Clara
-3-
Ordinance/Private Encroachments in the City Right-of-Way Page 1 of 8 Rev: 09/2019
ORDINANCE NO. _____

AN ORDINANCE OF THE CITY OF SANTA CLARA,
CALIFORNIA, ADDING CHAPTER 12.65 TO “THE CODE
OF THE CITY OF SANTA CLARA, CALIFORNIA” TO

ESTABLISH PROCEDURES FOR THE ADMINISTRATIVE

APPROVAL OF PRIVATE ENCROACHMENTS WITHIN

THE PUBLIC RIGHT-OF-WAY
BE IT ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

WHEREAS, Resolution No. 3899, entitled “Policy Regarding the installation of Private Improvements within Public Rights of Way for Street Purposes” establishes requirements for Council authorization of certain private encroachments within the public right-of-way; WHEREAS, since the adoption of Resolution No. 3899 in 1977, the City has experienced substantial growth and development, resulting in an increased number of private encroachments;
WHEREAS, the City wishes to reduce the administrative burden and staff time associated with City Council approval of said encroachments as well as streamline the City’s approval process;
WHEREAS, the City wishes to continue to provide property owners the ability to request limited use of the public right-of-way adjacent or contiguous to their property where such use does not interfere with the public’s use;
WHEREAS, in light of the increased number of encroachments, the City seeks to streamline the review and approval process for certain defined private encroachments, both new and existing, to allow for the administrative approval of such encroachments, which better aligns with the practices commonly used by other local public agencies; WHEREAS, accordingly, this ordinance authorizes the City Engineer to approve eligible Ordinance/Private Encroachments in the City Right-of-Way Page 2 of 8 Rev: 09/2019
private encroachments upon making specific findings that the proposed encroachment is compatible with its surroundings and does not adversely affect public safety or the public right-of-way; and,
WHEREAS, this ordinance further requires that, upon the approval of a proposed encroachment, the encroaching property owner will execute an encroachment agreement, in a form approved by the City Attorney, providing for the maintenance and removal of the encroachment and including appropriate insurance and indemnification provisions to protect the City.

NOW THEREFORE, BE IT FURTHER ORDAINED BY THE CITY OF SANTA CLARA AS FOLLOWS:

SECTION 1: Resolution No. 3899 is hereby repealed in its entirety.

SECTION 2: That a new Chapter 12.65 (entitled “Encroachments of Private Improvements into Public Rights-of-Way”) is added to Title 12 (entitled “Streets, Sidewalks and Public Places) of “The Code of the City of Santa Clara, California” (“SCCC”) to read as follows:
“Chapter 12.65
Encroachments of Private Improvements into Public Rights-of-Way Sections:

12.65.010 Purpose and Intent.

12.65.020 Definitions.

12.65.030 Applicability.

12.65.040 Unauthorized encroachments prohibited.

12.65.050 Exceptions.

12.65.060 Encroachment application process.

12.65.070 Notice of decision.

12.65.080 Terms and conditions of encroachment agreements.

12.65.090 No vested rights.

12.65.100 Unauthorized encroachment - removal.

12.65.110 Penalties.

Ordinance/Private Encroachments in the City Right-of-Way Page 3 of 8 Rev: 09/2019

12.65.120 Liability.

12.65.010 Purpose and Intent.

It is the intent of the City to authorize limited use of, or encroachment into, the public rights-ofway for private purposes by property owners where, in the City’s discretion, such use or encroachment does not interfere with the public’s use and enjoyment of said rights-of-way.

Accordingly, this Chapter is adopted to provide procedures and regulations for the review and approval of encroachment requests so that property owners may make appropriate use of the dedicated public rights-of-way adjacent or contiguous to their private property while preserving public access to and unobstructed use of public property.

12.65.020 Definitions.

As used in this chapter:
(a) “City” means the City of Santa Clara, California.
(b) “City Council” or “Council” means the governing body of the City of Santa Clara, California. (c) “City Engineer” means the City Engineer or designee. (d) “City Manager” means the City Manager or designee.
(e) “Department” means the City of Santa Clara Public Works Department. (f) “Director of Public Works” means the Director of Public Works or designee. (g) “Encroachment” means any structure, improvement, or object of any kind or character installed adjacent to or on private property including fences, walls, trellis work, mailboxes, monitoring wells, private landscaping and associated irrigation systems, flatwork associated with private driveway approaches, or buildings, temporarily or permanently on, under, over or across any public property.
(h) “Property Owner” means the owner of record or contract of any parcel of land fronting public property.
(i) “Public Property” means any right-of-way that has been offered for dedication to the public, whether express or implied, or has been dedicated to the public, whether express or implied, public property law, including below-grade and air space areas.

12.65.030 Applicability.

This Chapter shall not apply to encroachments addressed under other provisions of the City Code, including, without limitation:
(a) Permits for paint advertisements on sidewalks pursuant to Chapter 12.10 (Signs on Streets and Sidewalks).

Ordinance/Private Encroachments in the City Right-of-Way Page 4 of 8 Rev: 09/2019
(b) Permits for cuts, openings, or excavations pursuant to Chapter 12.25 (Excavation and Use of City Rights-of-Way).
(c) Permits for planting of landscaping in the park strip pursuant to Chapter 12.35 (Trees and Shrubs).
(d) Permits for signs pursuant to Chapter 18.42 (Sign Standards) (e) Permits for installation of wireless telecommunication facilities pursuant to Chapter 18.66 (Wireless Telecommunications Facilities).

12.65.040 Unauthorized encroachments prohibited.

Except as otherwise provided, an encroachment placed, installed, constructed, or maintained upon public property without an encroachment agreement authorizing such encroachment is prohibited and must be removed by the property owner.

12.65.050 Exceptions.
(a) Notwithstanding Section 12.65.040, no encroachment agreement will be required for any of the following:
(1) Improvements placed on public property by or on behalf of the City. (2) Installation of mailboxes by the United States Post Office. (3) Installation of landscaping and irrigation, including hardscape improvements and boring irrigation lines under the sidewalk.
(4) Installation of standard, private, United States Post Office-compliant mailboxes on a simple post.
(b) Private improvements described in 12.65.050(a)(3) and (a)(4) shall remain the sole responsibility of the adjacent property owner and are installed at the owner’s risk and expense. In addition, the Department of Public Works may require the owner of such improvements to obtain an encroachment permit.
(c) The City retains the right to access, modify, relocate, or remove exempt private improvements as necessary to repair streets, sidewalk, utilities, curb and gutter, perform maintenance, emergency response, install utilities, or construction of public improvements. The City shall not be responsible for repair, replacement, or compensation associated with the City’s removal or modification of exempt improvements.

12.65.060 Encroachment application process.
(a) All persons seeking to construct, keep, and maintain an encroachment adjacent or contiguous to their property must submit an application for the approval of such encroachment.

The application shall contain information and details as the Department deems necessary to Ordinance/Private Encroachments in the City Right-of-Way Page 5 of 8 Rev: 09/2019
establish the exact location, nature, dimensions, duration, and purpose of the proposed encroachment.
(b) Prior to and as a condition of approval of a proposed encroachment, an applicant shall submit copies of any and all licenses, permits, or approvals required by the City, any other governmental agency, or other private party. Applicant shall be responsible for obtaining approval of other City departments or governmental agencies, if applicable. (c) At the time an applicant submits an encroachment agreement application for review, an applicant shall pay any applicable fees established by Council by resolution.

12.65.070 Notice of decision.
(a) City Engineer will review encroachment applications, and in the exercise of reasonable discretion, the encroachment may be approved if the following findings can be made:
(1) The proposed encroachment is compatible with the surrounding area and will not significantly diminish visual or physical public enjoyment of the public right-of-way upon which the encroachment is proposed.
(2) The encroachment will not adversely affect the usability or enjoyment of adjoining parcels nor create or extend an undesirable land use precedent. (3) The proposed encroachment will not adversely affect the public circulation nor create or constitute a hazard to public safety.
(b) If the proposed encroachment is approved, the applicant shall enter into an encroachment agreement with the City on terms approved by the city attorney. The City Manager or their designee shall be authorized to execute encroachment agreements prepared under this chapter.
(c) If the proposed encroachment is denied, the applicant may appeal the decision made under this Chapter to the City Manager by submitting a written appeal within ten (10) days of the date of notice of such decision. Failure to appeal in writing within the prescribed time constitutes a waiver of the right to appeal. The City Manager will decide on the written appeal within thirty (30) days. The determination of the City Manager shall be a final decision of the City.

12.65.080 Terms and conditions of encroachment agreements. (a) Encroachment agreements issued under this chapter shall be subject, at minimum, to the following terms and conditions, the final form of which will approved by the city attorney:
(1) Property owner shall install and maintain encroachments in a safe and sanitary condition at the sole cost, risk, and responsibility of the property owner, who shall agree to indemnify, defend, and hold the City harmless with respect thereto. (2) The agreement is made for the direct benefit of the property owner’s land described in the agreement, and the covenants therein shall run with the property, shall constitute Ordinance/Private Encroachments in the City Right-of-Way Page 6 of 8 Rev: 09/2019
an obligation and burden upon the property, and shall be binding upon the assigns and successors of the owners.
(3) The property owner shall remove or relocate the encroachment upon demand in writing by the City Engineer. Upon such demand, the property owner must remove or relocate the encroachment within a timeframe approved by the City Engineer, after such notice or within such longer period as may be provided specifically with the demand or agreement. If property owner fails to remove or relocate the encroachment within the period allotted, the City Engineer may cause such work to be done and the cost thereof shall be borne by the property owner as a lien upon the property. (4) Property owner shall secure and maintain general liability, property insurance, or other appropriate insurance as reasonably determined by the city attorney or risk manager.
(b) The encroachment agreement shall be recorded in the Santa Clara County Clerk-Recorder’s Office.

12.65.090 No vested rights.

The issuance of an encroachment agreement pursuant to this Chapter is not a franchise, and does not grant any vested rights in any locations in the public rights-of-way, or in any way, or any particular manner of placement within the rights-of-way. Without limitation, an encroachment agreement to authorize an encroachment may be revoked at any time deemed necessary by the Director of Public Works.

12.65.100 Unauthorized encroachment - removal.
(a) If a property owner maintains an encroachment without an approved encroachment agreement or other City-issued authorization, the City may require the property owner to submit an encroachment agreement application. The application will be evaluated consistent with the procedures established under this Chapter.
(b) If the City denies the application, or the property owner fails to submit an application within sixty (60) days after the City’s request, the City may require the property owner to remove the unauthorized encroachment at the property owner’s sole expense. If the property owner fails to remove an unauthorized encroachment as required, City may remove, or cause such to be removed, the encroachment at the property owner’s expense.

12.65.110 Penalties.
(a) Pursuant to SCCC 1.05.070, the City, in its prosecutorial discretion, may enforce violations(s) of the provisions of this chapter as a criminal, civil, and/or administrative action.

Administrative citations issued under this chapter shall follow the process set forth in Chapter

1.10 SCCC.
(b) Any activities operated, conducted or maintained contrary to the provisions of this chapter shall be unlawful and a public nuisance, and the City Attorney may, in the exercise of discretion, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or Ordinance/Private Encroachments in the City Right-of-Way Page 7 of 8 Rev: 09/2019
actions, proceeding or proceedings, for the abatement, removal and enjoinment thereof, in a manner provided by law.

12.65.120 Liability.

Nothing in this chapter shall be interpreted to impose any liability upon the City, its officers, employees, or agents, nor to relieve the owner of any private property from the duty to keep an authorized private improvement located on City property, City easements, or rights-of-way from becoming a hazard or public nuisance.”
SECTION 3: Ordinances Repealed. With exception of the provisions protected by the savings clause, all ordinances (or parts of ordinances) in conflict with or inconsistent with this ordinance are hereby repealed.

SECTION 4: Savings clause. The changes provided for in this ordinance shall not affect any offense or act committed or done or any penalty or forfeiture incurred or any right established or accruing before the effective date of this ordinance; nor shall it affect any prosecution, suit or proceeding pending or any judgment rendered prior to the effective date of this ordinance. All fee schedules shall remain in force until superseded by the fee schedules adopted by the City Council.

SECTION 5: Effective date. This ordinance shall take effect thirty (30) days after its final adoption; however, prior to its final adoption it shall be published in accordance with the requirements of Section 808 and 812 of “The Charter of the City of Santa Clara, California.”
PASSED FOR THE PURPOSE OF PUBLICATION this XX day of XXXXXX, 2026, by the following vote:

AYES: COUNCILORS:

NOES: COUNCILORS:

ABSENT: COUNCILORS:

Ordinance/Private Encroachments in the City Right-of-Way Page 8 of 8 Rev: 09/2019
ABSTAINED: COUNCILORS:

ATTEST:
___________________________

NORA PIMENTEL, MMC

ASSISTANT CITY CLERK

CITY OF SANTA CLARA
Attachments incorporated by reference: None
City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-136 Agenda Date: 5/5/2026

REPORT TO COUNCIL

SUBJECT
Public Hearing: Opportunity for Public Comment and action on the Final Version of the FY 2026/27 Annual Action Plan for the Use of Federal Housing and Urban Development (HUD) Grant Funds (Hearing 2 of 2)

BACKGROUND
The City of Santa Clara (City) receives annual funding from HUD, including Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds. CDBG funds support public services and capital projects for residents, while HOME funds are used for affordable housing development and rental assistance. The City is allocated these funds yearly based on a federal population formula and the federal budget. Each year, the City must also submit an Annual Action Plan (AAP) detailing funding allocations for CDBG and HOME.

The City must hold two public hearings on the AAP. One of the public hearings must be held during the drafting phase; this occurred at the City Council meeting on March 24, 2026, see Attachment 1 for this report.

This report serves as the second and final opportunity for public comment. HUD requires at least a 30-day public comment period on the final version of the plans prior to submission to HUD. This public comment period began on April 2, 2026, and was extended through tonight’s meeting of May 5, 2026.

The City Council requests are summarized as follows:
· Receive public input on the final version of the FY 2026/27 Annual Action Plan (AAP). · Approve the 2026-2027 Annual Action Plan in the forms presented and submit to HUD. · Approve the allocation of $30,000 for the Family Therapy Counseling Program administered by Bill Wilson from the Housing Division’s annual General Fund appropriation. · Approve appropriation of $60,000 in HOME ARP for Nextdoor Solutions to support domestic violence services using FY 2026/27 and 2027/28 funds.

DISCUSSION
Staff is asking the City Council to receive public input on the final version of the FY 2026/27 AAP.

Staff has made updates to the draft plan, which was presented to the City Council on March 24, 2026. Staff received the actual FY 2026/27 CDBG and HOME allocations after the first public hearing and the actual amount is lower than what was projected in the first draft of the Annual Action Plan.

Staff updated this along with program income and prior year estimates so that the total expected CDBG funds for FY 2026/27 has decreased from $1,580,000 to $1,500,000. Attachment 2 is an City of Santa Clara Page 1 of 4 Printed on 5/1/2026
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26-136 Agenda Date: 5/5/2026
updated plan that replaces estimates with actual numbers, along with the other minor revisions that were made in the public review draft (Attachment 3).

FISCAL YEAR 2026/2027 ALLOCATIONS - HUD FUNDS
Annual Action Plan Breakdown-HUD Funds (FY 2026/27 AAP), Attachment 4, provides a detailed breakdown of HUD Expected Resources for CDBG and HOME, and how the City proposes to spend them. Minor changes were made to reflect the use of the General Fund for Bill Wilson’s Family Therapy Counseling Program, discussed further below.

The FY 2026/27 AAP is a one-year plan that details how HUD and local funds will be spent on projects and activities to address goals and needs identified in the Five-Year Consolidated Plan. The AAP also allocates funds from prior year activities and projects that did not fully spend down, and funds that have come back to the City as Program Income (PI) when loans are repaid.

At the time of this report, the City has not finalized the acceptance nor signed its Federal Grant Agreements with HUD for the funding for FY 2025/26. This delay is due to several factors, including the government shutdown, legal concerns with new terms and conditions set forth in the Federal Grant Agreements, and new federal polices for entitlement funding. The City is working to address these concerns through a lawsuit. Due to this delay in accepting HUD funding, Public Services that were planned for FY 2025/26 were not funded. Very recently, on April 28, 2026, the Court granted a preliminary injunction in favor of the City, which should allow the City at least in the short term to process certain HUD funding requests.

HUD regulations restrict the amount of CDBG funds that can be spent on Public Services each year (i.e., the Public Service Cap), so $150,000 is reprogrammed into the AAP for Capital Improvement Projects, see Budget Summary Row A, Attachment 4.

The AAP also proposes to continue funding Next Door Solutions, a public service agency that provides services to domestic violence survivors. This AAP proposes to use HOME-ARP funding in the amount of $30,000 per year for fiscal years 2026/27 and 2027/28. HOME-ARP funds are managed through a separate plan and not included in the Consolidated Plan.

FISCAL YEAR 2026/2027 ALLOCATION - LOCAL FUNDS
Annual Action Plan Breakdown-LOCAL Funds, Attachment 5, provides a more detailed breakdown of FY 2026/27 LOCAL Estimated Expected Resources and how the City proposes to spend them.

The AAP outlines the use of local funding, including a two-year agreement (FY 2026/27 and FY 2027/28) for $350,000 with the County Office of Supportive Housing for Intensive Case Management and Homeless Prevention Program, as shown in Attachment 5.

Due to the pending lawsuit described above and the uncertainty of funds, staff is asking the City Council to allow the allocation of $30,000 from the Housing Division’s annual General Fund appropriation for the Family Therapy Counseling Program, administered by Bill Wilson. The amount of CDBG funding originally set aside for this agency in the first public comment draft of the Annual Action Plan is now proposed to be distributed evenly among the other Public Service Agencies as shown in Attachment 4.

ENVIRONMENTAL REVIEW
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26-136 Agenda Date: 5/5/2026
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.

FISCAL IMPACT
The total HUD Funding for FY 2026/27 is:

CDBG Funds: $ 1,500,00
HOME Funds: $ 761,000
Total amount: $2,261,000
The Community Development Department’s budget includes ongoing appropriations of approximately $90,542 in the General Fund, $240,697 in the City Affordable Housing Fund, and $240,000 in the City Housing Successor Fund to further support these housing programs. These annual amounts are subject to the City’s appropriation of funds. These appropriations will aid in leveraging the new entitlement funds to support the goals set forth in the City’s Five-Year Consolidated Plan.

Secondly, the Housing Division has historically recognized savings at the end of each fiscal year under its annual General Fund appropriation. Staff is requesting City Council approval to allocate $30,000 from the Division’s existing General Fund appropriation to fund one year of services for the Bill Wilson Center’s Family Therapy Counseling Program.

Finally, staff is also recommending two $30,000 appropriations to Nextdoor Solutions for domestic violence support services using HOME ARP funding for fiscal years 2026/27 and 2027/28. These funds were already programmed for supportive services in the HOME ARP Plan, but additional action is needed to award these funds to Nextdoor Solutions.

COORDINATION
This report has been coordinated with the Finance Department and the City Attorney’s Office.

The 30-day public comment period for the final version began April 2, 2026, and is extended through tonight’s hearing. Noticing the 30-day public comment period was published on February 18, 2026, in The Santa Clara Weekly. The final AAP was made available on the City’s website on April 2, 2026, and at public locations including the City Clerk’s Office and the Housing and Community Services Division. Notification of the availability of the AAP was also emailed to interested parties, which include local nonprofit agencies.

RECOMMENDATION

1. Note and File Public Comment on FY 2026/27 Annual Action Plan for U.S. Department of Housing City of Santa Clara Page 3 of 4 Printed on 5/1/2026
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26-136 Agenda Date: 5/5/2026
and Urban Development Funds;

2. Approve the FY 2026/27 Annual Action Plan in substantially the form presented, and direct staff to summarize and include all public comments to be submitted to HUD within sixty (60) days after receiving the allocation notice;

3. Allocate $30,000 from the Housing Division’s annual General Fund budget for the Bill Wilson Center Family Therapy Counseling Program and reallocate $30,000 in HUD public service funding evenly to the other public service agencies;

4. Appropriate a total of $60,000 to Nextdoor Solutions for domestic violence support services using HOME ARP funding for fiscal years 2026/27 and 2027/28. These funds were already programmed for supportive services in the HOME ARP Plan, but additional action is needed to award these funds to Nextdoor Solutions;

4. Delegate authority to the City Manager or designee to negotiate, draft, and execute a two-year agreement with the County Office of Supportive Housing not-to-exceed $350,000, using local funding that is allocated through the City Council’s adoption of the FY 2026/27 Annual Action Plan in final forms approved by the City Attorney; and

5. Delegate authority to the City Manager or designee to execute all agreements and amendments for federal and local funding that is allocated through the City Council’s adoption of the FY 2026/27 Annual Action Plan in final forms approved by the City Attorney.

Reviewed by: Afshan Hamid, Director, Community Development Approved by: Jovan Grogan, City Manager

ATTACHMENTS

1. March 24, 2026, Report to Council

2. 2026-27 Annual Action Plan - Final - Public Comment Version with Actuals

3. 2026-27 Annual Action Plan - Final - Public Comment Version with Estimates

4. 2026-27 Annual Action Plan Breakdown - HUD Funds

5. 2026-27 Annual Action Plan Breakdown - LOCAL Funds
City of Santa Clara Page 4 of 4 Printed on 5/1/2026
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City of Santa Clara
Agenda Report
1500 Warburton Avenue
Santa Clara, CA 95050
santaclaraca.gov
@SantaClaraCity
26-135 Agenda Date: 3/24/2026

REPORT TO COUNCIL

SUBJECT
Public Hearing: Opportunity for Public Comment on the First Version of the DRAFT FY 2026/27 Annual Action Plan for the Use of Federal Housing and Urban Development (HUD) Grant Funds

BACKGROUND
As an entitlement agency, the City of Santa Clara receives annual funding from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds. CDBG funds can be used to provide public services and funding for Capital Improvement projects that serve residents in Santa Clara. HOME funds can be used for the development of affordable housing and for providing rental assistance. The City does not compete for these funds, and the amount awarded each year is based on a population-based formula and the federal budget.

Every five years, HUD requires the City to prepare a Five-Year Consolidated Plan (Consolidated Plan), which identifies broad goals and needs within the community that could be addressed through the use of HUD funding. The City’s current Consolidated Plan covers 2025-2029. HUD also requires the City to submit an Annual Action Plan (AAP) each fiscal year.

The AAP details how CDBG, HOME and local funding allocations will be used in a given year by the City to address the goals and needs identified in the Consolidated Plan. The 2026/27 AAP covers the second year of the 2025-2029 Consolidated Plan cycle. The purpose of this report is to gather public input on the programs the City proposes to fund in the 2026/27 fiscal year (FY).

DISCUSSION
The FY 2026/27 AAP is a one-year Plan that details how HUD funds will be spent on projects and activities to address goals and needs identified in the Consolidated Plan. The AAP also allocates funds from prior year activities and projects that did not fully spend down, and funds that have come back to the City as Program Income (PI) when loans are repaid. This year’s AAP includes $180,000 in prior year funds from FY 2025/26.

At the time of this report, the City has not finalized the acceptance or signed its Federal Grant Agreements with HUD for FY 2025/26 funding. This delay is due to a number of factors including the government shutdown and legal concerns with new terms and conditions set forth in the Federal Grant Agreements and new federal polices for entitlement funding. City staff is continuing to work on these issues, including the initiation of legal remedies, the outcome of which remains pending. Due to this delay in accepting HUD funding, Public Services that were programmed for FY 2025/26 were not funded. HUD regulations restrict the amount of CDBG funds that can be spent on Public Services each year (i.e., the Public Service Cap) so $180,000 must now be reprogrammed into the FY 2026/27 Annual Action Plan for Capital Improvement Projects. HUD typically announces actual City of Santa Clara Page 1 of 3 Printed on 3/21/2026
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Attachment 1: March 24, 2026 Report to Council
26-135 Agenda Date: 3/24/2026
allocations to jurisdictions in the spring of each year once the federal budget is finalized. All numbers in the AAP are subject to change prior to the presentation of the final FY 2026/27 AAP at the second and final public hearing.

HUD requires that the public be provided two opportunities to offer input on the development of the AAP; once during the development of the draft AAP, and once prior to submission of the final version to HUD. This meeting is the first of the two required public hearings. Public comment will be included in the final version of the AAP which is scheduled to be presented to the City Council on May 5, 2026.

The final version of the AAP will be submitted to HUD on or before May 15, 2026.

In early 2025 a Notice of Funding Availability (NOFA) was made available to not-for-profits (NFPs) through a competitive process and was intended to fund NFPs for three years. City Council approved the NFPs through the annual action plan. Since this is year two of the plan, the City will continue to fund the already selected NFPs.

FISCAL IMPACT
The estimated total program resources for FY 2026/27 are $1,580,000 in CDBG funds and $770,000 in HOME funds for a total amount of $2,350,000. In addition to HUD funding, the Community Development Department’s budget includes ongoing appropriations of approximately $89,459 in the General Fund, $223,677 in the City Affordable Housing Fund, and $250,000 in the City Housing Successor Fund. These annual amounts are subject to the appropriation of funds. These appropriations, in conjunction with the estimated new entitlement funds, would be used to support the goals set forth in the City’s Consolidated Plan.

COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.

After tonight’s public hearing is complete, there will be further updates, and a final version of the AAP will be available for public review for a 30-day public comment period before the second and final public hearing scheduled on May 5, 2026.

The Draft AAP was posted February 20, 2026 for the first public hearing. The 30-day public comment period for the final version will be from April 2, 2026 - May 5, 2026. The final AAP will be City of Santa Clara Page 2 of 3 Printed on 3/21/2026
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26-135 Agenda Date: 3/24/2026
made available on the City’s website, and at public locations including the City Clerk’s Office, the Housing and Community Services Division, and City Libraries. Notification of the availability of the Draft AAP was also emailed to interested parties which include local nonprofit agencies.

RECOMMENDATION
Approve the 2026-2027 DRAFT Annual Action Plan and direct staff to include public comments in the final version to be presented to the City Council on May 5, 2026.

Reviewed by: Afshan Hamid, Director of Community Development Approved by: Jovan Grogan, City Manager

ATTACHMENTS

1. 2026-2027 Annual Action Plan DRAFT

2. 2026-2027 Annual Action Plan Breakdown - HUD Funds
City of Santa Clara Page 3 of 3 Printed on 3/21/2026
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2026-2027 Annual Action Plan 1
ATTACHMENT 2
City of Santa Clara
2026-2027
Annual Action Plan
Prepared by:

City of Santa Clara
Housing and Community Services Division
Community Development Department
1500 Warburton Ave,
Santa Clara, CA 95050
(408) 615-2490
2026-2027 Annual Action Plan 2
Contents
Contents...................................................................................................................................................... 2 Summary of edits from the draft version ................................................................................................... 3 AP-05 Executive Summary – 91.200 (c), 91.220(b)..................................................................................... 5 PR-05 Lead & Responsible Agencies – 91.200 (b)....................................................................................... 9 AP-10 Consultation – 91.100, 91.200(b) 91.215 (I) ..................................................................................10 AP-12 Participation – 91.105, 91.200 (c)..................................................................................................14 AP-15 Expected Resources – 91.220 (c) (1,2) ...........................................................................................15 AP-20 Annual Goals and Objectives – 91.220(c)(3)& (e)..........................................................................19 AP-35 Projects – 91.220(d) .......................................................................................................................23 AP-38 Project Summary............................................................................................................................23 AP-50 Geographic Distribution – 91.220 (f)..............................................................................................26 AP-55 Affordable Housing – 91.220 (g) ....................................................................................................27 AP-60 Public Housing – 91.220 (h)............................................................................................................28 AP-65 Homeless and Other Special Needs Activities – 91.220 (i) ............................................................29 AP-75 Barriers to Affordable Housing – 91.220 (j) ...................................................................................31 AP-85 Other Actions – 91.220 (k) .............................................................................................................32 AP-90 Program Specific Requirements – 91.220 (l) (1,2,4) ......................................................................33 2026-2027 Annual Action Plan 3
Summary of edits from the draft version
AP-05: Section 2 – “Public Services” was added to Section 2 as an Objective. “Fair Housing” was changed to Housing Advocacy throughout the document. Section 5 was updated with a summary of public comment at the first Public Hearing.

AP-12: Section 1 – It was noted that no public comment outside the public hearing was received.

AP-15: The total CDBG resources was changed from $1,580,000 to $1,500,000.

The “Annual Entitlement Funds was changed from $1,020,000 to $975,106 The “Estimated Prior Year Balance” was changed from $440,000 to $475,000.

The “Estimated FY” was changed from FY22/23 to FY26/27, and the total Estimated Program Income was changed from $120,000 to $49,894.

The total expected HOME resources available for FY26/27 changed from $770,00 to $761,000.

Annual Entitlement Funds changed from $350,000 to $351,301.66 Estimated Prior Year Balance changed from $410,000 to $399,698.34 The “Local Funds” amount anticipated was updated from $741,239 to $777,239. The table detailing local funds was updated to add $36,000 for Bill Wilson Family Therapy public service. The “Other Feder Grant Programs” section was updated to note that HOME-ARP funds (approved in the 2021 action plan) were going to be used to fund Next Door Solutions for $30,000 per year over the next two years.

AP-15 Table: The following changes were made to the table:

CDBG: “Annual Allocation” changed from $1,020,000 to $975,106. “Program Income” changed from $120,00 to $49,894.
“Prior Year Resource” changed from $440,00 to $475,000. “Total Expected Year 2” changed from $1,580,000 to $1,500,000.

HOME: “Annual Allocation” changed from $350,000 to $351,301.66. “Prior Year Resource” changed from $440,00 to $475,000. “Total Expected Year 2” changed from $770,000 to $761,000.

LOCAL FUNDS TABLE
Bill Wilson Center (Family Therapy/School Outreach/Grief Counseling was added to be funded with General Fund with $36,000. After receiving actual federal entitlement amounts, the local funding for Bill Wilson Center was reduced to $30,000 to mirror the amounts of other Public Service Agencies. The total amount of local funds is now $771,239.

Other Federal Grant Programs section: The following verbiage was added “2021 HOME-ARP funds will continue to be used to fund services for domestic violence survivors, which is one of the Qualifying Populations under the City’s HOME-ARP Plan. Next Door Solutions will continue to be funded at $30,000 per year over the next two fiscal year cycles from the City’s HOME-ARP funds. 2026-2027 Annual Action Plan 4
AP-23: The Annual Goals Summary table was updated.

CDBG funds allocated for Affordable Housing was changed from $740,000 to $1,145,00. The amount allocated to NCIP Loans and Grants changed from $698,000 to $671,000. The number of Housing Units expected changed from 5 to 6. The SVILC Rehab Phase 2 project was deleted from this section as it is already noted in a later section.

HOME funds allocated for Affordable Housing was changed from $725,000 to $715,869.84. The amount allocated to TBRA changed from $672,500 to $663,174. The amount allocated to CHDO Set-Aside changed from $52,500 to $42,594.84.

CDBG funds allocated to Public Services was changed from $180,000 to $150,000. Bill Wilson Center Counseling activity was deleted and is now being funded with General Funds of $30,000. The remaining five Public Service Activities are now funded at $30,000 each.

CDBG funds allocated to Administration & Planning changed from $228,000 to $205,000.

HOME funds allocated to Administration & Planning changed from $22,803 to $22,933.17.

In the “Estimate 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)” section, the number of households served for homeowner housing rehabilitation changed from 26 to 27. The numbers for Extremely low-income households increased from 5 to 6 and low-income households increased from 15 to 20.

AP-38: The Project “Public Services” was updated. The Bill Wilson Center Counseling activity was deleted and the funding amounts to the remaining five public services are now funded at $30,000 each. The number of persons assisted reduced from 470 to 370 persons.

The Project “Homeowner Housing Rehab and Minor Repair” was updated. CDBG funding changed from $1,020,000 to $993,000. The amount allocated to NCIP changed from $698,000 to $671,000. The number of households assisted increased from 25 to 26. The number of households assisted by NCIP changed from 5 to 6 households.

The Project “Tenant Based Rental Assistance” was updated. HOME funding changed from $672,500 to $663,174.

The Project “Capital Improvements to Affordable Housing” was updated. HOME funding changed from $52,500 to $52,695.84.

The Project “Administration & Planning” was updated. CDBG funding changed from $228,000 to $205,000.

HOME funding changed from $22,803 to $22,933.17.

AP-55A: The number of “Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once” was increased from 26 to 27 and the total number increased from 45 to 46.

AP-55B: The number of “Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once” was increased from 26 to 27 and the total number increased from 45 to 46. The “Discussion” section was updated with the new number of homeowner housing rehabilitated from 25 to 26 and the number of Extremely low-income households changed from 5 to 6. 2026-2027 Annual Action Plan 5
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 moderateincome 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 of 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 rehabilitating affordable housing developments.
- Public Services. Nonprofit partners provide services of need to lower income households - 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 HousingHousing Advocacy. 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 6

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 nonprofit 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.
- Housing Advocacy ServicesFair Housing. Project Sentinel assisted 18 households with fair housing advocacy 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 7

5. Summary of public comments
30-Day Public Comment Period 1
There was no public comment received outside the Public Hearing #1.

Public Hearing #1 (March 24, 2025, Agenda Item 26-135):

Councilmember Cox made a comment regarding the need for more funding for homeless programs. She pointed out the increase in unhoused people during the latest Point In Time Count, and that funding for homeless programs stayed unchanged. City staff stated that the City uses HOME funds for the City’s Tenant Based Rental Program which assists homeless households and those at risk of homelessness with rental subsidies, but that the HOME allocation is smaller than CDBG and typically stay the same year to year. Staff also stated that CDBG funds have a cap for public service activities.

Councilmember Jain made a comment regarding the selection process for public service funding; that many groups were not considered for funding in this Annual Action Plan process. City staff clarified that a Notice of Funding was completed prior to FY24/25 for a three-year period. Staff noted that the next funding cycle would be in the Fall of 2028 for a two-year funding period. Staff also noted that non-profits need to have a certain amount of staff capacity and knowledge to administer federal funds. Councilmember Jain also asked why the “Prior Year” funding amount was so high. Staff stated that was due to the City not spending down FY25/26 funding due to concerns with new executive order requirements.

Councilmember Hardy made a similar comment as Councilmember Jain and asked about the performance of the public service agencies being funded. Staff noted that the Consolidated Annual Performance Report (CAPER) reports on the agencies ability to attain stated goals. If there concerns at the time of the report or during the quarterly reporting the agencies are required to complete, staff addresses those concerns.

Councilmember Hardy also asked when we would know for sure how much funding the City would receive.

Councilmember Park made a comment regarding having workshops/sessions with the public to illicit feedback on public service activities needed and their experiences with the public service agencies we currently fund.

A representative from the Bill Wilson Center, Pilar Furlong, appeared for comment. She stated that the current program year, (PY25/26) has been challenging due to the City not funding public services as stated in the 25/26 Annual Action Plan. It is also difficult for agencies to budget for the upcoming 26/27 program year when there is still uncertainty whether the City will accept federal funding. She also voiced her disappointment that the public service funds that were not spent this year cannot be rolled over and spent in the following year due to HUD’s public service cap.
30-Day Public Comment Period 2
TBD.

Public Hearing #2:

TBD.

6. 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.
2026-2027 Annual Action Plan 8

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 9
PR-05 Lead & Responsible Agencies – 91.200 (b)
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.

Table 1 – Responsible Agencies
Agency Roll Name Department/Agency
CDBG Administrator City of Santa Clara Housing & Community Services Division CDBG Administrator City of Santa Clara Housing & Community Services Division Narrative
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.

Public Contact Information
Adam Marcus, Eric L. Calleja
Division Manager, Housing and Community Services Housing Development Officer [email protected] [email protected]
408-615-2451 408-615-2498
Website: https://www.santaclaraca.gov/our-city/departments-a-f/community-development/housing- communityservices-division 2026-2027 Annual Action Plan 10
AP-10 Consultation – 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 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.
2026-2027 Annual Action Plan 11
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.

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.

Agency/Group/Organization Bill Wilson Center
Agency/Group/Organization Type
Housing
Services – Children
Services – Homeless
What section of the Plan was addressed by Consultation? Housing Need Assessment
Homelessness Needs – Unaccompanied youth
Non-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.

Agency/Group/Organization County of Santa Clara Office of Supportive Housing Agency/Group/Organization Type Publicly Funded Institution/System of Care Other government – County
What section of the Plan was addressed by Consultation? Housing Need Assessment
Homeless 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.

Agency/Group/Organization Abode Services
Agency/Group/Organization Type Services – Housing
What 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 City TBRA program. 2026-2027 Annual Action Plan 12
Agency/Group/Organization Senior Adult Legal Services (SALA) Agency/Group/Organization Type Services – Elderly Persons What section of the Plan was addressed by Consultation? Non-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?
Submitted public comment at both public hearings; highlighting the need for the services they provide.

Agency/Group/Organization Next Door Solutions to Domestic Violence Agency/Group/Organization Type Services – Housing
What section of the Plan was addressed by Consultation? Homelessness Needs – Families with children and domestic violence and human trafficking survivors.

Homelessness Strategy.

Briefly 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.

Agency/Group/Organization Homebase
Agency/Group/Organization Type Regional 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 Activities.

Briefly 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 lowcost options and/or discounts to low-income households. Further, broadband infrastructure is typically a countyled 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. 2026-2027 Annual Action Plan 13
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 14
AP-12 Participation – 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
Outreach
Target of
Outreach
Summary of response/
attendance
Summary of
comments received
Summary of
comments not
accepted and
reasons
URL
(If applicable)
Public 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.

There was no public
comment received
outside the Public
Hearing #1.

All comments
were accepted
and noted.
n/a
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
(Public Comment
Summary).

All comments
were accepted
and noted.
n/a
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)
3) Notice of Public Hearing
#1 for the DRAFT 2026-
2027 Annual Action Plan
on March 24, 2026.
4)
5) Notice of 30-day Public
Comment Period for the
FINAL 2026-2027 Annual
Action Plan.
6)
Notice of Public Hearing
#2 for the FINAL 2026-
2027 Annual Action Plan
on May 5, 2026.

TBD
All comments
were accepted
and noted.
n/a
2026-2027 Annual Action Plan 15
AP-15 Expected Resources – 91.220 (c) (1,2)
Introduction
The City of Santa Clara estimates the following federal resources for the 2026 Program Year (FY26/27):

CDBG Funds: The total CDBG resources expected to be available for FY26/27 is $1,580,000$1,500,000. This total is made up of the annual CDBG entitlement from HUD, Prior Year Resources (i.e., funds that are being reprogrammed 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 $1,020,000975,106
- Estimated Prior Year Balance* $ 440,000
- Estimated FY26/2722/23 Program Income $ 120,00049,894 *$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 $770,000761,000. 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:
- Annual Entitlement Funds $350,000$351,301.66
- Estimated Prior Year Balance $410,000$399,698.34
- 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 for TBRA. 2026-2027 Annual Action Plan 16

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$777,239 of local funds for public services. 2026-2027 Annual Action Plan 17
AP-15 Table – Expected Resources Priority Table
Program
Source
of
Funds
Uses
of
Funds
Annual
Allocation
Expected
Year 2
Program
Income
Expected
Year 2
Prior Year
Resource
Expected
Year 2
Total
Expected
Year 2
Expected
Amount
Available
Remainder
of ConPlan
Narrative Description
CDBG PublicFederal
Acquisition
Housing
Rehab
Capital
Improvement
Projects –
Public
Facilities
Capital
Improvement
Projects –
Affordable
Housing
Public
Services
Admin. &
Planning
$1,020,000
$975,106
$120,000
$49,894
$440,000
$475,000
$1,580,000
$1,500,000
$3,000,000
CDBG funds may be used
for: 1) Land acquisition
for affordable housing; 2)
NCIP program and Minor
Repair Program; 3)
Public Infrastructure 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.

HOME PublicFederal
CHDO and
regular
HOME rental
projects,
such as
property
acquisition,
new const.,
and/or
rehabilitation.

Homeowner
Rehabilitation
TBRA
Admin. and
Planning for
HOME
programs
and activities.

Housing
Advocacy
Services Fair
Housing
Services
$350,000
$351,301.66
$10,000 $410,000
$399,698.34
$770,000
$761,000
$1,050,000 HOME funds may be used
for: 1) TBRA; 2) NCIP; 3)
Rental development and/or
rehab; 4) Fair
HousingHousing Advocacy
Services; 5) Admin. &
Planning.

Approx. $125,000 of the
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 18
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 Fund (CHSF) TBRA Case Management Abode Services n/a $220,000* City Housing Successor Fund (CHSF) Intensive Case Management County of Santa Clara 20 households $ 30,000* City Affordable Housing Fund (CAHF) Intensive Case Management County of Santa Clara n/a $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 $ 30,000 General Funds Family Therapy/School
Outreach/Grief Counseling Bill Wilson Center 100 persons $741,239
$771,239 Total amount of local funds committed
*The total amount being funded is for a two-year agreement.

Other Federal Grant Programs
2021 HOME-ARP funds will continue to be used to fund services for domestic violence survivors, which is one of the Qualifying Populations under the City’s HOME-ARP Plan. Next Door Solutions will continue to be funded at $30,000 per year over the next two fiscal year cycles from the City’s HOME-ARP funds.

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 19
AP-20 Annual Goals and Objectives – 91.220(c)(3)& (e)
Goal Descriptions
Goal Name Affordable Housing
Goal Description
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 (i.e., Homeowner Housing Rehabilitation, rental habilitation of units occupied by low-income tenants, TBRA rental subsidies, and new construction.

Goal Name Homelessness
Goal Description
Support activities, consistent with Continuum of Care strategies, to prevent and end homelessness. This includes building affordable housing for people who are homeless or at risk of homelessness as well as the provision of support services.

Goal Name Public Services
Goal 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.

Goal Name Fair Housing Advocacy Services
Goal Description Promote fair housing choiceadvocacy, through the following activities: fair housing education, fair housing testing, housing assistance hotline, and landlord-tenant mediation.

Goal Name Public 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.

Goal Name Planning & Administration
Goal Description Provide management, planning and implementation of the CDBG & HOME programs as well as monitoring of public services and housing projects.
2026-2027 Annual Action Plan 20
AP-23 Annual Goals Summary
Goal Category Needs
Addressed Objective Outcome Start Year
End
Year
Geographic
Area Included
Funding
Allocated Narrative & Goal Outcome Indicators
Affordable
Housing
Affordable
Housing
Affordable
Housing
Provide decent
affordable
housing
Affordability 2026 2027 Citywide
CDBG
$740,000
$1,145,000
HOME
$725,000
$715,869.84
Assist in the creation and preservation of multifamily 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$671,000 NCIP Loans & Grants
Homeowner Housing Rehabilitation
(5 6 Housing Units)
$122,000 NCIP Project Delivery Costs
$152,000 SVILC Rehab (Phase 2)
$200,000 Minor Repair Program –
Rebuilding Together Silicon Valley
Homeowner Housing Rehabilitation
(20 Housing Units)
HOME
$672,500 $663,174 Tenant Based Rental
Assistance
TBRA/Rapid Rehousing
(19 Households)
$52,500$52,594.84 CHDO Set Aside
Rrental units rehabilitated
(1 Housing Unit)
2026-2027 Annual Action Plan 21
AP-23 Annual Goals Summary (continued)
Goal Category Needs
Addressed Objective Outcome Start Year
End
Year
Geographic
Area Included
Funding
Allocated Narrative & Goal Outcome Indicators
Public
Services
NonHomeless
Special
Needs
Non-Homeless
Special Needs
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide
CDBG
$180,000
$150,0000
Support activities that provide basic needs to
lower income households and special needs
populations. Services would be provided to lowincome households, elderly individuals, homeless persons, people with disabilities, and
victims of domestic violence.
$30,000 Bill Wilson Center –
Counseling & Family Therapy
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$30,000$36,000 $30,000 Heart of the Valley
Support & Transportation Services
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$30,000 $36,000 $30,000Hope Services
Educational Services
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$30,000 $36,000 $30,000Loaves and Fishes
Meals on Wheels
Public Service Activities other than low/moderate
income housing benefit
(20 Persons)
$30,000 $36,000 $30,000 Senior Adult Legal
Assistance
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$30,000 $36,000 $30,000 Silicon Valley
Independent Living Ctr.

Housing search and counseling
Public Service Activities other than low/moderate
income housing benefit
(70 Persons)
LOCAL FUNDS (see page 16)
2026-2027 Annual Action Plan 22
AP-23 Annual Goals Summary (continued)
Goal Category Needs
Addressed Objective Outcome Start Year
End
Year
Geographic
Area Included
Funding
Allocated Narrative & Goal Outcome Indicators
Housing
Advocacy Fair
Housing
Services
NonHomeless
Special
Needs
Non-Homeless
Special Needs
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide HOME
$22,197
Promote fair housing choice advocacy 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.
$22,197 Project Sentinel
Housing Advocacy
Public Service Activities other than low/moderate
income housing benefit
(50 Persons)
Public Facility
Improvements
NonHomeless
Special
Needs
Non-Homeless
Special Needs
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide CDBG
$152,000
Making facility improvements to non-profit public
facilities that serve low-income households.
$152,000 Silicon Valley Independent Living Ctr.

Improvements to a non-profit facility that houses
adults with disabilities.

Public Facility or Infrastructure for low/moderate
income housing benefit
(4 Households)
Administration
and Planning Other Administration & Planning
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide
CDBG
$228,000
$205,000
HOME
$22,803
$22,933.17
Provide management, planning and
implementation of the CDBG & HOME programs
as well as monitoring of public services and
housing projects.

Estimate 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 26 Households for homeowner housing rehabilitation (CDBG) 5 6 Extremely low-income households
15 20 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 household
2026-2027 Annual Action Plan 23
AP-35 Projects – 91.220(d)
Introduction
The activities that the City will undertake in FY26/27 using CDBG and HOME funds include: Homeowner Rehabilitation, Tenant Based Rental Assistance, Public Facility Improvements, Public Services and Program Administration and Planning, to benefit 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 16).

AP-38 Project Summary
Project Title #1 – Public Services
Description
Public services provided to the community 13BPublic service activities other than low/mod income housing benefit that primarily benefit low to low-mod income persons and/or households.

Funding CDBG: $180,000$150,000
Annual Goals Supported Homelessness and Public Services Priority Needs Addressed Homelessness and Public Services Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities
470470 370 persons [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 Citywide
Planned 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] Project Title #2 – Homeowner Housing Rehab and Minor Repair Description 32BFinancial assistance for low-income homeowners to make necessary repairs to their homes to address health and safety issues.

Funding CDBG: $1,020,000 $993,000
Annual Goals Supported Affordable Housing
Priority Needs Addressed Affordable Housing
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities
25 26 households [20 low-income less than 50% AMI; 5 6 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 $671,000: 2026 NCIP [LMH/14A/5 6 households]
2026-2027 Annual Action Plan 24
$122,000: 2026 NCIP Project Delivery Costs
Project Title #3 – Tenant Based Rental Assistance
Description Provide financial assistance to low and extremely low-income households through deposit assistance and monthly rental subsidy assistance.

Funding HOME: $672,500 $663,174
Annual Goals Supported Affordable Housing
Priority Needs Addressed Affordable Housing
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities
19 households [2 low-income less than 50% AMI; 17 extremely low-income less than 30% AMI]
Location Description Citywide
Planned Activities
$672,500663,174: 2026 Tenant Based Rental Assistance (Abode Services).

In addition, $300,697 of local funds will be used for case management services for TBRA participants.

Project Title #4 – Capital Improvements to Affordable Housing Description
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.

Funding HOME: $52,500 $52,695.84
Annual Goals Supported Affordable Housing
Priority Needs Addressed Affordable Housing
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities 1 household
Location Description Citywide
Planned Activities Rental housing rehabilitation by non-profit developers.

Project Title #5 – Capital Improvements to Public Facilities 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.

Funding CDBG: $152,000
Annual Goals Supported Public Facility Improvements
Priority Needs Addressed Public Facility Improvements
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities 4 households [4 low-income households less than 50% AMI] Location Description 1597 Market Street
Planned Activities $152,000 Silicon Valley Independent Living Center Rehab 2026-2027 Annual Action Plan 25
Project Title #6 - Fair HousingHousing Advocacy Services (Project Sentinel) Description
Promote fair housing advocacy through the following activities: fair housing education, housing testing, fair housing assistance hotline, and landlord/tenant mediation. These funds are part of the HOME Administration set-aside.

Funding HOME: $22,197
Annual Goals Supported Fair HousingHousing Advocacy Services Priority Needs Addressed Housing Advocacy Fair Housing Services Target Date for Completion 6/30/2027
Estimate 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 Advocacy Services (Project Sentinel) Project Title #7 –Administration & Planning
Description Provide management, planning and implementation of the CDBG & HOME programs as well as monitoring of public services and housing projects.

Funding CDBG: $228,000 $205,000
HOME: $ 22,803 $22,933.17
Annual Goals Supported Administration & Planning
Priority Needs Addressed Administration & Planning
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities n/a
Location Description Citywide
Planned Activities
$228,000 $205,000: 2026 CDBG Administration and Planning $ 22,803 $22,933.17: 2026 HOME Administration and Planning Describe 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 26
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 housinghousing advocacy services, and public services.

AP-50 – Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
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 27
AP-55 Affordable Housing – 91.220 (g)
Introduction
For 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 Year Goals for the Number of Households to be Supported (by Population Type) 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. 0 Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once.
2627
Acquisition of Existing Units – Housing assistance for programs such as down payment assistance. If the unit will be acquired and rehabilitated, report the unit only once. 0 Total 4546
AP-55B – One Year Goals for the Number of Households Supported Through (by Program Type) 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. 0 Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once.
2627
Acquisition of Existing Units – Housing assistance for programs such as down payment assistance. If the unit will be acquired and rehabilitated, report the unit only once.
0 Total 4546
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 the 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 26 Households for homeowner housing rehabilitation (CDBG) 5 6 Extremely low-income households
20 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 household
2026-2027 Annual Action Plan 28
AP-60 Public Housing – 91.220 (h)
Introduction
The 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.

SCCHA plans to serve 16,775 households with MTW Housing Choice Vouchers and 907 with local, nontraditional property-based vouchers. County-wide, there are 3,245 existing project-based vouchers. The majority of voucher holders have a tenant-based voucher which is a type of voucher that 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 planned during the next year to address the needs to public housing The 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 reproposed 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 29
AP-65 Homeless and Other Special Needs Activities – 91.220 (i) Introduction
The 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 personbased 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.
2026-2027 Annual Action Plan 30
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.

Helping low-income individuals and families avoid becoming homeless, especially extremely lowincome 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.

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 31
AP-75 Barriers to Affordable Housing – 91.220 (j)
Introduction
The 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 it 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 limit the allowed density of housing production; • Parking requirements 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 32
AP-85 Other Actions – 91.220 (k)
Introduction
This 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 moderateincome 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.
2026-2027 Annual Action Plan 33
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.

Actions planned to enhance coordination between public and private housing and social service agencies
The 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) 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. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the strategic plan 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any gran funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income 0
Other CDBG Requirements
The amount of urgent need activities. 0
The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100.00%
2026-2027 Annual Action Plan 34
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, if used for homebuyer activities as required in 92.254, are 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.

The City does not plan on using HOME funds to refinance existing debt. 2026-2027 Annual Action Plan 35
Discussion
CHDO set-aside funds. The City of Santa Clara will consider providing assistance to affordable housing developments in contiguous jurisdictions using CHDO set-aside funds.

TBRA assistance. 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 will research the Multiple Listings Service (MLS) to determine the number of single-family and multi-family home sales in compliance with 24.92.254(a)(iii). There were less than 250 sales per months; thus, per 24.92.254 (a)(iii), we were required to compile 3 months of sales figures. The following details the home sales in Santa Clara over the most recent three (3) months for single-family homes and multi-family homes at the time of publication. The numbers below are subject to change prior to submission of the AAP to HUD. 2026-2027 Annual Action Plan 1
City of Santa Clara
2026-2027
Annual Action Plan
Prepared by:

City of Santa Clara
Housing and Community Services Division
Community Development Department
1500 Warburton Ave,
Santa Clara, CA 95050
(408) 615-2490
Attachment 3: 2026-27 Annual Action Plan Final - Public Comment Version with Estimates 2026-2027 Annual Action Plan 2
Contents
Contents...................................................................................................................................................... 2 Summary of edits from the draft version ................................................................................................... 3 AP-05 Executive Summary – 91.200 (c), 91.220(b)..................................................................................... 4 PR-05 Lead & Responsible Agencies – 91.200 (b)....................................................................................... 8 AP-10 Consultation – 91.100, 91.200(b) 91.215 (I) .................................................................................... 9 AP-12 Participation – 91.105, 91.200 (c)..................................................................................................13 AP-15 Expected Resources – 91.220 (c) (1,2) ...........................................................................................14 AP-20 Annual Goals and Objectives – 91.220(c)(3)& (e)..........................................................................18 AP-35 Projects – 91.220(d) .......................................................................................................................22 AP-38 Project Summary............................................................................................................................22 AP-50 Geographic Distribution – 91.220 (f)..............................................................................................25 AP-55 Affordable Housing – 91.220 (g) ....................................................................................................26 AP-60 Public Housing – 91.220 (h)............................................................................................................27 AP-65 Homeless and Other Special Needs Activities – 91.220 (i) ............................................................28 AP-75 Barriers to Affordable Housing – 91.220 (j) ...................................................................................30 AP-85 Other Actions – 91.220 (k) .............................................................................................................31 AP-90 Program Specific Requirements – 91.220 (l) (1,2,4) ......................................................................32 2026-2027 Annual Action Plan 3
Summary of edits from the draft version
AP-05: Section 2 – The objective “Public Services” was added to Section 2. “Fair Housing” was changed to Housing Advocacy throughout the document. Section 5 was updated with a summary of public comment at the first Public Hearing.

AP-12: Section 1 – It was noted that no public comment outside the public hearing was received.

AP-15: The “Local Funds” amount anticipated was updated from $741,239 to $777,239. The table detailing local funds was updated to add $36,000 for Bill Wilson Family Therapy public service. The “Other Feder Grant Programs” section was updated to note that HOME-ARP funds (approved in the 2021 action plan) were going to be used to fund Next Door Solutions for $30,000 per year over the next two years.

AP-23: The Annual Goals Summary table was updated. CDBG funds for Affordable Housing was updated from $740,000 to $1,020,000. The SVILC Rehab Phase 2 project was deleted from this section as it is already noted in a later section.

Public Services goal was updated, deleting the Bill Wilson Center Counseling activity and updating the funding amounts to the remaining five public services from $30,000 to $36,000.

AP-38: The Project “Public Services” was updated. The Bill Wilson Center Counseling activity was deleted and the funding amounts to the remaining five public services increased from $30,000 to $36,000. The number of persons assisted reduced from 470 to 370 persons.

The Project “Homeowner Housing Rehab and Minor Repair” was updated. The number of households assisted increased from 25 to 26.

AP-55B: The number of “Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once” was increased from 26 to 27 and the total number increased from 45 to 46. The “Discussion” section was updated with the new number of homeowner housing rehabilitated from 25 to 26 and the number of Extremely low-income households changed from 5 to 6. 2026-2027 Annual Action Plan 4
AP-05 Executive Summary – 91.200 (c), 91.220(b)

Housing Advocacy. 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 5

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 nonprofit 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.
- Housing Advocacy Services. Project Sentinel assisted 18 households with housing advocacy services.

5. Summary of public comments
30-Day Public Comment Period 1
There was no public comment received outside the Public Hearing #1.

Public Hearing #1 (March 24, 2025, Agenda Item 26-135):

Councilmember Hardy also asked when we would know for sure how much funding the City would receive.

Public Hearing #2:

TBD.

6. 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.
2026-2027 Annual Action Plan 7

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 8
PR-05 Lead & Responsible Agencies – 91.200 (b)
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.

Public Contact Information
Adam Marcus, Eric L. Calleja
Division Manager, Housing and Community Services Housing Development Officer [email protected] [email protected]
408-615-2451 408-615-2498
Website: https://www.santaclaraca.gov/our-city/departments-a-f/community-development/housing- communityservices-division 2026-2027 Annual Action Plan 9
AP-10 Consultation – 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.

Coordination is achieved through regular interagency meetings, participation in Continuum of Care planning, and formal and informal referral networks.

The CoC 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.
2026-2027 Annual Action Plan 10
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.

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.

Agency/Group/Organization Abode Services
Agency/Group/Organization Type Services – Housing
What 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 City TBRA program. 2026-2027 Annual Action Plan 11
Agency/Group/Organization Senior Adult Legal Services (SALA) Agency/Group/Organization Type Services – Elderly Persons What section of the Plan was addressed by Consultation? Non-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?
Submitted public comment at both public hearings; highlighting the need for the services they provide.

Homelessness Strategy.

Identify any Agency Types not consulted and provide rationale for not consulting:

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. 2026-2027 Annual Action Plan 12
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.

1. Summarize citizen participation process and how it impacted goal setting.

There was no public
comment received
outside the Public
Hearing #1.

See AP-05, section 5
(Public Comment
Summary).

Notice of 30-day Public
Comment Period for the
DRAFT 2026-2027
Annual Action Plan.

Notice of Public Hearing
#1 for the DRAFT 2026-
2027 Annual Action Plan
on March 24, 2026.

Notice of 30-day Public
Comment Period for the
FINAL 2026-2027 Annual
Action Plan.

Notice of Public Hearing
#2 for the FINAL 2026-
2027 Annual Action Plan
on May 5, 2026.

TBD
All comments
were accepted
and noted.
n/a
2026-2027 Annual Action Plan 14
AP-15 Expected Resources – 91.220 (c) (1,2)
Introduction
The City of Santa Clara estimates the following federal resources for the 2026 Program Year (FY26/27):

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 FY22/23 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.

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:
- Annual 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.

LOCAL Funds: The City anticipates it will leverage $777,239 of local funds for public services. 2026-2027 Annual Action Plan 16
AP-15 Table – Expected Resources Priority Table
Program Source
of Funds
Uses
of
Funds
Annual
Allocation
Expected
Year 2
Program
Income
Expected
Year 2
Prior Year
Resource
Expected
Year 2
Total
Expected
Year 2
Expected
Amount
Available
Remainder
of ConPlan
Narrative Description
CDBG PublicFederal
Acquisition
Housing Rehab
Capital
Improvement
Projects – Public
Facilities
Capital
Improvement
Projects –
Affordable
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 program and
Minor Repair
Program; 3) Public
Infrastructure 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.

HOME PublicFederal
CHDO and
regular HOME
rental projects,
such as property
acquisition, new
const., and/or
rehabilitation.

Homeowner
Rehabilitation
TBRA
Admin. and
Planning for
HOME programs
and activities.

Housing
Advocacy
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) Housing
Advocacy Services; 5)
Admin. & Planning.

Approx. $125,000 of
the 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 17
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 Fund (CHSF) TBRA Case Management Abode Services n/a $220,000* City Housing Successor Fund (CHSF) Intensive Case Management County of Santa Clara 20 households $ 30,000* City Affordable Housing Fund (CAHF) Intensive Case Management County of Santa Clara n/a $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 $ 36,000 General Funds Family Therapy/School
Outreach/Grief Counseling Bill Wilson Center 100 persons $777,239 Total amount of local funds committed
*The total amount being funded is for a two-year agreement.

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 18
AP-20 Annual Goals and Objectives – 91.220(c)(3)& (e)
Goal Descriptions
Goal Name Affordable Housing
Goal Description
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 (i.e., Homeowner Housing Rehabilitation, rental habilitation of units occupied by low-income tenants, TBRA rental subsidies, and new construction.

Goal Name Housing Advocacy Services
Goal Description Promote housing advocacy, through the following activities: housing education, housing testing, housing assistance hotline, and landlord-tenant mediation.

Goal Name Planning & Administration
Goal Description Provide management, planning and implementation of the CDBG & HOME programs as well as monitoring of public services and housing projects.
2026-2027 Annual Action Plan 19
AP-23 Annual Goals Summary
Goal Category Needs
Addressed Objective Outcome Start Year
End
Year
Geographic
Area Included
Funding
Allocated Narrative & Goal Outcome Indicators
Affordable
Housing
Affordable
Housing
Affordable
Housing
Provide decent
affordable
housing
Affordability 2026 2027 Citywide
CDBG
$1,020,000
HOME
$725,000
Assist in the creation and preservation of multifamily 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 & Grants
Homeowner Housing Rehabilitation
(6 Housing Units)
$122,000 NCIP Project Delivery Costs
$200,000 Minor Repair Program –
Rebuilding Together Silicon Valley
Homeowner Housing Rehabilitation
(20 Housing Units)
HOME
$672,500 Tenant Based Rental Assistance
TBRA/Rapid Rehousing
(19 Households)
$52,500 CHDO Set Aside
Rental units rehabilitated
(1 Housing Unit)
2026-2027 Annual Action Plan 20
AP-23 Annual Goals Summary (continued)
Goal Category Needs
Addressed Objective Outcome Start Year
End
Year
Geographic
Area Included
Funding
Allocated Narrative & Goal Outcome Indicators
Public
Services
NonHomeless
Special
Needs
Non-Homeless
Special Needs
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide CDBG
$180,000
Support activities that provide basic needs to
lower income households and special needs
populations. Services would be provided to lowincome households, elderly individuals, homeless persons, people with disabilities, and
victims of domestic violence.
$36,000 Heart of the Valley
Support & Transportation Services
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$36,000 Hope Services
Educational Services
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$36,000 Loaves and Fishes
Meals on Wheels
Public Service Activities other than low/moderate
income housing benefit
(20 Persons)
$36,000 Senior Adult Legal Assistance
Public Service Activities other than low/moderate
income housing benefit
(100 Persons)
$36,000 Silicon Valley Independent Living Ctr.

Housing search and counseling
Public Service Activities other than low/moderate
income housing benefit
(70 Persons)
LOCAL FUNDS (see page 17)
2026-2027 Annual Action Plan 21
AP-23 Annual Goals Summary (continued)
Goal Category Needs
Addressed Objective Outcome Start Year
End
Year
Geographic
Area Included
Funding
Allocated Narrative & Goal Outcome Indicators
Housing
Advocacy
Services
NonHomeless
Special
Needs
Non-Homeless
Special Needs
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide HOME
$22,197
Promote housing advocacy through the following
activities: education, housing testing, housing
assistance hotline, and landlord/tenant
mediation. These funds are part of the HOME
Administration set-aside.
$22,197 Project Sentinel
Housing Advocacy
Public Service Activities other than low/moderate
income housing benefit
(50 Persons)
Public Facility
Improvements
NonHomeless
Special
Needs
Non-Homeless
Special Needs
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide CDBG
$152,000
Also, making facility improvements to non-profit
public facilities that serve low-income
households.
$152,000 Silicon Valley Independent Living Ctr.

Improvements to a non-profit facility that houses
adults with disabilities.

Public Facility or Infrastructure for low/moderate
income housing benefit
(4 Households)
Administration
and Planning Other Administration & Planning
Create
economic
opportunities
Availability/
Accessibility 2026 2027 Citywide
CDBG
$228,000
HOME
$22,803
Provide management, planning and
implementation of the CDBG & HOME programs
as well as monitoring of public services and
housing projects.

Estimate 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).
26 Households for homeowner housing rehabilitation (CDBG) 6 Extremely low-income households and 20 Low-income households 19 households for TBRA (HOME)
16 Extremely low-income households and 3 Low-income households 1 household for CHDO Rental Housing (HOME)
1 Extremely low-income household
2026-2027 Annual Action Plan 22
AP-35 Projects – 91.220(d)
Introduction
The activities that the City will undertake in FY26/27 using CDBG and HOME funds include: Homeowner Rehabilitation, Tenant Based Rental Assistance, Public Facility Improvements, Public Services and Program Administration and Planning, to benefit 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 17).

AP-38 Project Summary
Project Title #1 – Public Services
Description 13BPublic service activities other than low/mod income housing benefit that primarily benefit low to low-mod income persons and/or households.

Funding CDBG: $180,000
Annual Goals Supported Public Services
Priority Needs Addressed Public Services
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities
370 persons [180 moderate income at less than 80% AMI; 80 low-income less than 50% AMI; 110 extremely low-income less than 30% AMI]
Location Description Citywide
Planned Activities
$36,000: 2026 Support & Transportation Services for Seniors (Heart of the Valley) [LMC/5A/100 persons]
$36,000: 2026 Educational Services (Hope Services) [LMC/5B/100 persons] $36,000: 2026 Meals on Wheels (Loaves & Fishes) [LMC/5A/20 persons] $36,000: 2026 Legal Services Senior Adult Legal Services (SALA) [LMC/5C/80 persons]
$36,000: 2026 Silicon Valley Independent Living Center [LMC/5B/70 persons] Project Title #2 – Homeowner Housing Rehab and Minor Repair Description 32BFinancial assistance for low-income homeowners to make necessary repairs to their homes to address health and safety issues.

Funding CDBG: $1,020,000
Annual Goals Supported Affordable Housing
Priority Needs Addressed Affordable Housing
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities
26 households [20 low-income less than 50% AMI; 6 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/6 households]
$122,000: 2026 NCIP Project Delivery Costs
2026-2027 Annual Action Plan 23
Project Title #3 – Tenant Based Rental Assistance
Description Provide financial assistance to low and extremely low-income households through deposit assistance and monthly rental subsidy assistance.

Funding HOME: $672,500
Annual Goals Supported Affordable Housing
Priority Needs Addressed Affordable Housing
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities
19 households [2 low-income less than 50% AMI; 17 extremely low-income less than 30% AMI]
Location Description Citywide
Planned 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.

Funding HOME: $52,500
Annual Goals Supported Affordable Housing
Priority Needs Addressed Affordable Housing
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities 1 household
Location Description Citywide
Planned Activities Rental housing rehabilitation by non-profit developers.

Funding CDBG: $152,000
Annual Goals Supported Public Facility Improvements
Priority Needs Addressed Public Facility Improvements
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities 4 households [4 low-income households less than 50% AMI] Location Description 1597 Market Street
Planned Activities $152,000 Silicon Valley Independent Living Center Rehab 2026-2027 Annual Action Plan 24
Project Title #6 - Housing Advocacy Services (Project Sentinel) Description
Promote housing advocacy through the following activities: housing education, housing testing, housing assistance hotline, and landlord/tenant mediation. These funds are part of the HOME Administration set-aside.

Funding HOME: $22,197
Annual Goals Supported Housing Advocacy Services
Priority Needs Addressed Housing Advocacy Services
Target Date for Completion 6/30/2027
Estimate 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 Housing Advocacy Services (Project Sentinel) Project Title #7 –Administration & Planning
Description Provide management, planning and implementation of the CDBG & HOME programs as well as monitoring of public services and housing projects.

Funding CDBG: $228,000
HOME: $ 22,803
Annual Goals Supported Administration & Planning
Priority Needs Addressed Administration & Planning
Target Date for Completion 6/30/2027
Estimate the number and type of families that
will benefit from the proposed activities n/a
Location Description Citywide
Planned Activities
$228,000: 2026 CDBG Administration and Planning
$ 22,803: 2026 HOME Administration and Planning
Describe 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 25
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, housing advocacy services, and public services.

AP-50 – Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
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 26
AP-55 Affordable Housing – 91.220 (g)
Introduction
For 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 has non-federal funding sources that it will use toward the development of affordable housing.

AP-55A – One Year Goals for the Number of Households to be Supported (by Population Type) 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. 0 Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once. 27
Acquisition of Existing Units – Housing assistance for programs such as down payment assistance. If the unit will be acquired and rehabilitated, report the unit only once. 0 Total 46
AP-55B – One Year Goals for the Number of Households Supported Through (by Program Type) 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. 0 Rehab of Existing Units – Rehabilitation of existing units, including reconstruction. If unit will be acquired and rehabilitated, report the unit only once. 27
Acquisition of Existing Units – Housing assistance for programs such as down payment assistance. If the unit will be acquired and rehabilitated, report the unit only once. 0 Total 46
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 the continuation of the Neighborhood Conservation and Improvement Program (NCIP), rental habilitation of units occupied by low income tenants, TBRA rental subsidies, and new construction.
26 Households for homeowner housing rehabilitation (CDBG) 6 Extremely low-income households
20 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 household
2026-2027 Annual Action Plan 27
AP-60 Public Housing – 91.220 (h)
Introduction
The 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.

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 28
AP-65 Homeless and Other Special Needs Activities – 91.220 (i) Introduction
The 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.

Addressing the emergency shelter and transitional housing needs of homeless persons.

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 personbased 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.
2026-2027 Annual Action Plan 29
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.

Landlord/Tenant Mediation. This program can indirectly help households stay housed through the mediation of eviction related issues.

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 30
AP-75 Barriers to Affordable Housing – 91.220 (j)
Introduction
The 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.

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 31
AP-85 Other Actions – 91.220 (k)
Introduction
This 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.

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.
2026-2027 Annual Action Plan 32
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.

The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the strategic plan 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any gran funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income 0
Other CDBG Requirements
The amount of urgent need activities. 0
The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100.00%
2026-2027 Annual Action Plan 33
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:

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.

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.

The City does not plan on using HOME funds to refinance existing debt. 2026-2027 Annual Action Plan 34
Discussion
CHDO set-aside funds. The City of Santa Clara will consider providing assistance to affordable housing developments in contiguous jurisdictions using CHDO set-aside funds.

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), we were required to compile 3 months of sales figures. The following details the home sales in Santa Clara over the most recent three (3) months for single-family homes and multi-family homes at the time of publication. The numbers below are subject to change prior to submission of the AAP to HUD.

FY26-27
Estimated
Entitlement
Prior
Year
Balance
Estimated PI
CDBG FY26-27
HOME FY25-26
FY26-27
Total
Expected
$975,106 $475,000 $49,894 $1,500,000
$351,301.66 $399,698.34 $10,000 $761,000.00
n/a $30,000.00 n/a $30,000.00
$2,291,000
Estimate
Prog. Income
% Admin
Allowable
Staff
Recomm.

CDBG Administration (from allocation) max 20% $195,021.20 CDBG Administration (from est. FY26/27 PI) $49,894 max 20% $9,978.80 $205,000
HOME Administration (from allocation) max 10% $35,130
HOME Administration - 10% of 2025/2026 estimated PI of... $100,000 max 10% $10,000 $45,130.17
Est. Funds
Available
max 15% $146,265
$27,033 max 15% $4,054
max 15% $150,319
# Agencies Funded
562
CDBG
Funds
562
HOME
Funds
562

HOME-ARP
Funds
1 $ 30,000
2 $ 30,000
3 $ 30,000
4 $ 30,000
5 $ 30,000
6 $ 30,000
7 $ 122,000
8 $ 671,000
9 $ 200,000
10 $ 152,000
11 $ 663,174.00
12 $ 52,695.84
13 $ 205,000
14 $ 22,197.00
15 $ 22,933.17
#
Budget
Summary
TOTAL

FUNDING
CDBG
funds
HOME
funds

HOME-ARP
funds
A Public Service Activities $150,000 $ 150,000 $ - $ 30,000 B Capital Improvement Projects $1,145,000 $ 1,145,000 $ - $ - C Affordable Housing Activities $715,870 $ - $ 715,869.84 $ - D Program Administration $250,130 $ 205,000 $ 45,130.17 $ - FY 26-27 TOTAL ALLOCATION $2,261,000 $ 1,500,000 $ 761,000.00 $ 30,000.00 Captial Improv.

Proj.

NCIP Activity Delivery Costs
Minor Repair Program
Silicon Valley Independent Living Center Rehab Phase 2
TBRA Administration
Community Housing Development Org. (CHDO) Set-aside
HOME Administration - Housing Advocacy Services
ADMIN.

CDBG Administration
HOME Administration - City Administration
Aff.

Hsg.

Act.

NCIP Loans and Grants
Silicon Valley Independent Living Center - Housing Search Assistance for disabled adults
CDBG Funds Available for
Public Services (i.e., Public Service CAP)
Public Service
Activities
Next Door Solutions to Domestic Violence
Home Investment Partnership Program (HOME)
Program
Administration

TOTAL AMOUNT OF EXPECTED RESOURCES AVAILABLE

HOME-ARP
CDBG Funds Available for Public Services (Publice Service CAP) Heart of the Valley - Senior Support & Transportation
Hope Services - Educational Services
Loaves & Fishes - Meals on Wheels
Senior Adult Legal Assistance (SALA) - Legal Aid
ATTACHMENT 4 - 2026-27 Annual Action Plan Breakdown - HUD Funds CDBG Funds Available for Program Administration (20%)
HOME Funds Available for Program Administration (10%)
FY26/27 CDBG Entitlement Funds
FY25/26 Prior Year Program Income

CITY OF SANTA CLARA
FISCAL YEAR 2026/2027 ALLOCATIONS - HUD FUNDS
Annual Action Plan Funding Breakdown (FINAL 5.5.26)v3

TOTAL EXPECTED

RESOURCES
Community Development Block Grant (CDBG)
FY26-27
Total
Expected
$290,697
$360,000
$120,542
$771,239
#
LOCAL
FUNDS
1 $ 70,542
2 $ 15,000
3 $ 30,000
4 $ 5,000
5 $ 160,697
6 $ 30,000
7 $ 100,000
8 $ 140,000
9 $ 220,000
#
LOCAL
FUNDS
A $ 120,542
B $ 290,697
C $ 360,000
$ 771,239
ATTACHMENT 5 - 2026-27 Annual Action Plan Breakdown - LOCAL Funds

CITY OF SANTA CLARA
FISCAL YEAR 2026/2027 ALLOCATIONS - LOCAL FUNDS
Annual Action Plan Funding Breakdown (FINAL 5.5.26)v3

TOTAL EXPECTED

RESOURCES
City Affordable Housing Fund (CAHF)

CITY AFFORDABLE HOUSING FUND

CITY HOUSING SUCCESSOR FUNDS
FY 26-27 TOTAL ALLOCATION

GENERAL FUNDS
City Housing Successor Fund (CHSF)
General Fund
County of Santa Clara -Intensive Case Management Services ($100k for 26/27 & $100k for 27/28)
Budget
Summary
CAHF
Abode Services - TBRA Case Mangement Services
County of Santa Clara -Intensive Case Management Services ($15k for 26/27 & $15k for 27/28)
County of Santa Clara - Homless Prevention Program
($50k for 26/27 & $50k for 27/28)
Abode Services - TBRA Case Mangement Services

CHSF GENERAL FUNDS

TOTAL AMOUNT OF EXPECTED RESOURCES AVAILABLE
Agencies Funded
Project Sentinel - Landlord/Tenant Mediation
Catholic Charities - Ombudsman Program
Bill Wilson Center - Family Therapy/School Outreach/Grief Counseling United Way - 211 Hotline

City Council and Authorities ConcurrentMay 5, 2026

City Council and Authorities Concurrent
May 5, 2026