COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Chenin Dow, Community Development Director
DATE: September 15, 2026
SUBJECT: Adoption of a Resolution Approving the Fiscal Year 2027-2028 Proposed Community Development Block Grant Funding Priorities
Description:
The City Council will c onduct a public hearing to receive comments on the Community Development Block Grant (CDBG) priorities for Fiscal Year 2027-2028 funding and consider adoption of a Resolution approving proposed priorities.
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution approving the Community Development Block Grant (CDBG) priorities for Fiscal Year 2027-2028; and
2. Approve the use of Fiscal Year 2027 -28, CDBG Capita l funding for City -related projects.
BACKGROUND:
On an annual basis, the Block Grants Advisory Committee (BGAC) reviews the priorities outlined in the City’s Five -Year Consolidated Plan and decides whether they should be modified based on community needs. The priorities are one of the tools used by the BGAC and the City Council in determining what activities and projects should receive funding to maximize the impact the City’s Community Development Block Grant (CDBG) funds will have on City residents . This is a required process under the U.S. Housing and Urban Development’s (HUD’s) adopted Citizen Participation Plan.
DISCUSSION:
As part of the required CDBG funding process, staff conducted a Community Needs Workshop on Monday, July 13, 2026. The workshop was designed to obtain information from residents and non-profit agencies concerning the unmet needs in the community. In addition, for those who were unable to attend the workshop, a survey was sent out to the Community Program Division’s contacts to obtain additional thoughts related to the city’s unmet needs. Collectively, the unmet needs expressed include:
2 Accessibility for people with disabilities
Addressing food insecurity
Financial assistance for utilities
LGBTQIA+ services
Mental health support
Multilingual community outreach
Open space/recreational amenities
Resources to prevent housing instability
Senior services
Youth services
The needs expressed are reflected in the existing CDBG funding priorities; therefore, the BGAC recommends no changes be made to the current priorities. It should be noted that while all the needs expressed may be valid, some may not be eligible activities under the City’s CDBG program based on HUD’s current regulations. This was taken into consideration when approving the current priorities presented.
These funding priorities are one of several tools used by the BGAC and the City Council to determine how the funding is distributed. The City also has discretion as to how the funding should be allocated based on ot her program/project factors, such as immediate need, timeliness, the applicant’s administrative capacity, financial sustainability after the grant funding is expended, and long-term goals identified by the City in its five-year CDBG Consolidated Plan.
The adoption of these funding priorities by the City Council will initiate the funding process for Fiscal Year 2027 -28. The Notice of Funding Availability (NOFA) is scheduled to be released on Thursday, September 17, 2026, notifying potential applicants that the application process has begun. For this application process, staff recommends that non- profits be eligible to apply for public service activities only. Due to pressing needs involving the City’s public facilities, staff recommends setting aside CDBG Capital funding for City -related projects that benefit low - to moderate -income persons and/or areas, consistent with CDBG regulations. Proposed uses include ADA-related improvements to City streets and public facilities, as well as eligible administrative co sts associated with the management of the City’s Tenant-Based Rental Assistance (TBRA) Program.
Alternative(s)
The City Council can amend the priorities with the understanding that it differs from the BGAC’s recommendation, the City’s adopted five-year CDBG Consolidated Plan, and that the changes may not accurately reflect the overall needs expressed by the community.
Delaying the adoption of the funding priorities will also delay the CDBG funding process for FY 2027-28. The City Council can also opt to fund alternative Capital projects.
Fiscal Considerations
HUD has not yet released official figures for FY 2027 -28, but staff anticipates approximately $210,000 towards Public Services activities and over $900,000 for Capital projects.
3 Impact on the Community
The proposed action will have a positive impact on the community by providing the BGAC and potential subrecipients with a decisive outline of the priorities for the upcoming funding cycle.
ATTACHMENT(S)
A. Resolution FY 2027-28 Priorities
B. Proposed FY 2027-28 Priorities