CITY OF SANTA MARIA
FY 2026-2027 CDBG Process
Community Development
Block Grant (CDBG)
City Council Public Hearing
Funding Priorities & Capital Funding
Tuesday, September 16, 2025
RECOMMENDATION
•Adopt a Resolution approving the FY 2026-2027 Community Development Block Grant (CDBG) funding priorities.
•Approve the use of FY 2026-27 CDBG Capital funding for the City-related public facility project.
BACKGROUND
•These priorities are part of the City’s Five-Year Consolidated Plan.
•Funding priorities are reviewed annually.
•The priorities are one of the tools to assist the Block Grants Advisory Committee (BGAC) and the City Council in
determining what activities and projects should receive federal block grant funding.
DISCUSSION
•Monday, July 14, 2025 – Community Needs Workshop
•Unmet needs expressed:
•Affordable Housing
•At-Risk Youth
•Elderly/Seniors
•Services for the Unhoused
•Based on the information obtained, the BGAC voted to keep the existing priorities and not modify them.
PROPOSED PRIORITIES (Page 1 of 2)
A. Prevent homelessness, address critical needs, and assist at-risk youth, elderly, and underserved populations
i.Assist low to moderate income persons in need of food, shelter, clothing, health care and/or safety.
ii.Prevent juvenile delinquency and divert at-risk youth from gang involvement, crime, substance abuse, family violence, school problems, and out-of-control behavior. iii.Address the housing, health care, accessibility and service needs of underserved populations such as, but not limited to the elderly and persons with mental, physical, emotional and developmental disabilities and/or diseases.
B. Expand educational and development opportunities
i.Support and develop social services and facilities and provide opportunities for youth development that will provide positive experiences needed by youth to achieve success. ii.Encourage programs to improve the academic performance and educational outcomes for those in preschool through grade 12.
iii.Support and encourage programs to provide adult literacy training and encourage life-long learning.
PROPOSED PRIORITIES (Page 2 of 2)
C. Provide affordable housing
i.Develop and support programs and projects to increase the supply of affordable housing for low- to moderate-income persons.
ii.Maintain and upgrade existing low to moderate-income neighborhoods and preserve the affordable housing stock.
iii.Provide services that will assist low- to moderate-income homeowners and renters to continue living in their homes safely.
D. Revitalize existing neighborhoods
i.Revitalize existing neighborhoods in low- to moderate-income areas by increasing services such as supportive social services, and upgrading public infrastructure, such as street lighting, improved sidewalks, parks, and recreational public facilities.
Note: The priorities are not listed in order of importance but itemized for referencing purposes only. Priorities A and B will only be considered for CDBG public services funding.
CDBG CAPITAL FUNDING
•For FY 2026-27, it is recommended that Capital funding only be used for one City-related project that will benefit the entire community. •This recommendation comes as the City faces pressing needs and limited funding.
•The recommended project is the Recreation and Parks Department’s Sports Complex Project. It has received FY 2024-25 and FY 2025-26 CDBG funding. •The City has historically provided approximately 50 percent of its CDBG Capital funding to non-profits; however, it is at the City’s discretion to utilize the funding to meet the community’s needs if the project(s) meet HUD’s regulations.
ALTERNATIVE(S)
•The City Council can amend the priorities with the
understanding that it differs from the BGAC’s recommendations, the City-adopted Consolidated Plan, and that the changes may not accurately reflect the overall expressed needs of the community.
•Delaying the adoption of the funding priorities will also delay the CDBG funding process for FY 2026-27.
•The City Council can also choose not to set aside all the CDBG Capital funding for a City project or set aside a portion solely for non-profit projects.
WHAT’S NEXT
•Thursday, September 18th - Notice of Funding Availability (NOFA) •Thursday, October 2nd - Mandatory Pre-Application Workshop for all Applicants
•Sunday, November 23rd - Application Deadline for Public Services