City Council and Authorities Concurrent
May 5, 2026

May 5, 2026 Item #9
1 City Council MeetingItem # 9 – RTC# 26-136Public Hearing #2: FY26/27 DRAFT Annual Action Plan for the Use of Federal Housing and Urban Development Grant FundsMay 5, 2026 Background•The City receives approximately $1.3M in federal “entitlement funds” •Community Development Block Grant Program (CDBG)•HOME Program•The purpose of these funds is to assist lower income residents•Every five years the City must create a five year “Consolidated Plan” to identify overall needs and goals•In 2025, the City conducted a grant application process covering the first 3 years of the funding cycle•We are currently planning year 2 of the 2025-2030 funding cycle2 1 2
May 5, 2026 Item #9
2 Background•HUD requires two public hearings; tonight is the second hearing•A 30-day public comment period on the FINAL version of the Annual Action Plan began on April 2ndand ends this evening on May 5th•The Annual Action Plan allocates funding from several sources:•HUD Community Development Block Grants•HUD HOME•HUD HOME ARP•Local funds •The City received its actual funding allocations on April 3, 20263 2026-2027 Annual Action Plan Actual Resources HOME Actual Resources$761,000 $351,30126/27 Allocation$399,698Funds from prior years$10,000Program IncomeCDBG Actual Resources$1,500,000 $975,10626/27 Allocation$475,000Funds from prior years$49,894Program Income4 3 4
May 5, 2026 Item #9
3 2026-2027 Annual Action Plan Estimated Resources Local Funds Actual Resources$771,239 $120,542General Funds$290,697CAHF$360,000CHSFHOME-ARP*Actual Resources$30,000 $30,000Next Door Solutions*These funds were previously programmed in the FY21/2022 AAP5 CDBG Funding for Public Service Activities6Funding Source# ServedProposed FundingCDBG100$ 30,000 Heart of the Valley - Support & Transportation ServicesCDBG100$ 30,000 Hope Services - Educational ServicesCDBG20$ 30,000 Loaves and Fishes – Meals on WheelsCDBG100$ 30,000 Senior Adult Legal Assistance - SALACDBG70$ 30,000 Silicon Valley Independent Living Center - Housing for persons with Disabilities390$ 150,000 Total5 6 May 5, 2026 Item #9
4 Local Funding for Public Service Activities7Funding Source#ServedProposed FundingGF100$ 70,542 Project Sentinel - Landlord/Tenant Mediation ServicesGF380$ 15,000 Catholic Charities Long-Term Care OmbudsmanGF100 $ 30,000Bill Wilson Center – Family Therapy/School Outreach/Grief CounselingGF500$ 5,000 United Way 211 ServicesCAHFCHSF20$160,697$140,000ABODE - Case Management Services for TBRA participantsCHSF20$220,000*County Intensive Case Management ServicesCAHF20$ 30,000*County Intensive Case Management ServicesCAHF175$100,000*County Homeless Prevention Program1,215$ 771,239 Total* Year one of a two-year agreement HUD Funding for Capital Improvements & Other8Funding Source# servedProposed FundingCDBG20$200,000Rebuilding Together Silicon Valley - (RTSV) Minor Home Repair ProgramCDBG6$671,000Neighborhood Conservation & Improvement Program (NCIP)CDBGN/A$122,000NCIP Project Delivery CostsCDBGN/A$205,000CDBG AdministrationCDBG4$152,000Silicon Valley Independent Living Center Rehabilitation, Phase 2HOMEN/A$ 22,933HOME AdministrationHOME50$ 22,197Project Sentinel - Fair Housing ServicesHOME19$663,174ABODE - Tenant Based Rental Assistance HOMEHOME1$ 52,696Community Housing Development Organization (CHDO) Set-aside100$2,170,000Total 7 8
May 5, 2026 Item #9
5 9Neighborhood Conservation &Improvement Program (NCIP)Major Repair LoanMinor Repair Grant• Administered by City Staff• Low interest deferred payment loans• Re-roofing, plumbing, heating/cooling, electrical, full kitchen/bath rehab, foundation, accessibility, energy/water efficiency, lead and mold remediation, etc.• Administered by Rebuilding Together• Grants up to $25,000• Ramps, grab bars, weatherization, termite damage, accessibility, and other minor repairs$671,000 (FY 26/27 Entitlement)$200,000 (FY 26/27 Entitlement) Council ActionRecommendation1. Note and File Public Comment on FY 2026/27 Annual Action Plan for U.S. Department of Housing and Urban Development Funds; 2. Approve the 2026/27 Annual Action Plan in the forms presented in Attachment 2, 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 for supportive services in the HOME ARP Plan, but additional action is needed to award these funds to Nextdoor Solutions;10 9 10
May 5, 2026 Item #9
6 Council ActionRecommendation (Continued)5. 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 6. Delegate authority to the City Manager or designee to execute all agreements and amendments that exceed the City’s $250,000 threshold 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.11 City Council MeetingItem # 6 – RTC# 26-136Public Hearing #2: FY26/27 DRAFT Annual Action Plan for the Use of Federal Housing and Urban Development Grant FundsMay 5, 2026 11 12