Agenda Item: 3
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARINGS
CITY MANAGER APPROVAL:
DATE: May 27, 2025
SUBJECT: 2025-26 ANNUAL ACTION PLAN
DEPARTMENT: Community Development
PRESENTER: Tracy Sullivan
RECOMMENDED ACTION
City Council approve the 2025-26 Annual Action Plan for the Community Development Block Grant and Home Investment Partnerships Act Programs.
BACKGROUND
Since 1992, the City of Santa Clarita (City) has received an annual allocation of Community Development Block Grant (CDBG) Entitlement funds from the U.S. Department of Housing and Urban Development (HUD). These funds are intended to benefit low- to moderate-income individuals and families through programs that support housing, public services, and community improvements. The City also participates in the Home Investment Partnerships Act (HOME) Program and receives an annual allocation to support affordable housing development.
Each year, the City develops an Annual Action Plan (AAP) that outlines how CDBG and HOME funds will be used. The AAP is guided by the City’s Consolidated Plan (Con Plan), which identifies local priorities and is updated every five years. The current Con Plan, approved by the City Council in May 2024, covers the period of July 2024 through June 2029 and prioritizes the following areas: affordable housing, improvements to public infrastructure in low-income areas, services addressing homelessness and prevention, supportive human services, impacts of COVID-19 on lower-income residents, and program administration.
For Program Year (PY) 2025-26, the City has been allocated $1,453,594 in CDBG Entitlement funds and $491,349 in HOME Entitlement funds. In addition, the City has identified $205,292 in CDBG Entitlement savings from prior years, which has been incorporated into the AAP.
Community Needs and Application Process
To ensure the AAP reflects current community needs, the City conducted its annual Community
Needs Assessment (CNA) in December 2024. Outreach included online surveys, in-person engagement at community events, and distribution of informational fliers at public facilities. A total of 357 residents participated, and the results were presented to the City Council in February 2025.
In conjunction with the CNA, the City issued a Notice of Funding Availability (NOFA) in November 2024, inviting nonprofit organizations to apply for funding for PY 2025-26. Over 200 organizations were notified of the opportunity. A total of 18 organizations submitted applications for 22 public service programs, requesting a combined total of $838,161 in CDBG funding.
Per HUD requirements, no more than 15 percent of the annual CDBG allocation may be used for public service programs. For PY 2025-26, this equates to $218,039 available for public services.
A panel of City staff evaluated all applications based on eligibility, alignment with Con Plan priorities, and community impact.
Recommended Programs and Use of Funds
Based on the evaluation of applications and estimated funding levels, staff is recommending 17 programs for funding. Nine programs are recommended for funding through the City’s estimated Fiscal Year 2025-26 CDBG allocation, while the remaining eight are recommended to be funded using CDBG-CV (Coronavirus Response) funds. To qualify for CDBG-CV, programs must directly address pandemic-related needs, such as rental assistance, learning loss, and household support. The City received its CDBG-CV allocation in 2020, and has until February 2028 to fully expend the funds, which have supported a variety of successful public service programs helping low-income residents recover from the impacts of the pandemic.
The recommended programs support a range of services, including mental health support for single-parent households, employment training for youth with disabilities, services for individuals experiencing homelessness, and senior outreach. These services are expected to benefit primarily low-income individuals and seniors throughout the City.
In accordance with HUD requirements, a minimum of 65 percent of the City’s CDBG funds must be allocated to capital improvement activities. Staff recommends using this allocation to fund facility improvements at the Newhall Community Center, which serves families in the surrounding low-income neighborhood. Staff also recommends continued support for the Handyworker Program administered by the Santa Clarita Valley Senior Center, which provides minor home repairs and accessibility improvements for low-income residents.
The City’s HOME allocation of $491,349 will be committed to a future affordable housing development, consistent with the priorities identified in the Con Plan and HUD requirements.
Annual Action Plan and Public Comment
All proposed funding allocations are detailed in the attached 2025-26 Funding Recommendations document. As required by HUD, information regarding the proposed funding was available for public review and comment for a 30-day period ending May 27, 2025. All proposed activities will be subject to a National Environmental Policy Act (NEPA) environmental review prior to
funding approval. The 2025-26 AAP can be found in the City Clerk’s Reading File.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
The funding to support the recommended action is provided by HUD, has no impact on the City's General Fund, and will be appropriated as part of the Fiscal Year 2025-26 Annual Budget.
ATTACHMENTS
2025-26 City of Santa Clarita Community Block Grant Public Hearing Notice 2025-26 Funding Recommendations
2025-26 Not Recommended for CDBG Funding
2025-26 Annual Action Plan Draft (available in the City Clerk's Reading File)