PUBLIC HEARING:TO APPROVE AND ADOPT THE 2026-2027 ANNUAL ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS, AND EMERGENCY SOLUTIONS GRANT PROGRAMS Economic Development DepartmentApril 28, 2026Agenda item # 15.1 What’s an Annual Action Plan?•The U.S. Department of Housing and Urban Development (HUD) requires communities to assess community needs and market conditionsto guide the investment of grant funds.•The Annual Action Plan outlines the use of Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) programs. •This Annual Action Plan will cover the period ofJuly 1, 2026 to June 30, 2027.
Housing & community development funds to benefit low to moderate income residents Neighborhoods & Partner OrganizationsFlow of HUD Funding Economic Development Department3
Obtain public feedback on the use of funds
Develop & submit Plan to HUD and administer the funding Programs & projects are funded throughout Stockton
4Community Development Block Grant (CDBG)
2026 Allocation$3,225,850Supports community development activities to build stronger and more resilient communities Eligible Activities•Housing Preservation•Economic Development•Public Facilities•Other Real Property Improvements•Public ServicesNational Objectives•Benefit to Low- and Moderate-income persons•Elimination of slums and blight•Urgent Need
5Home Investment Partnerships (HOME)
2026 Allocation$1,342,709Supports affordable housing
Eligible Activities•Rental Assistance•Housing Rehabilitation•Homebuyer Assistance•Down payment Assistance•Site Acquisition and Preparation•Construction of New Housing for Rent or Homeownership National Objectives•Benefit to Low- and Moderate-income persons•Produce affordable housing•Local matching funds and community development
6Emergency Solutions Grant (ESG)
2026 Allocation$283,814Assist those experiencing a housing crisis or homelessness to quickly regain stability Eligible Activities•Street Outreach•Emergency Shelters•Homelessness Prevention Services•Rapid Rehousing Assistance•Homeless Management Information System (HMIS)National Objectives•Improve number and quality of emergency shelters•Operate shelters and provide essential services•Provide homeless prevention and rapid rehousing
What does Stockton fund with these dollars?
•Affordable HousingCalaveras Quarters (March Ln & I-5 exit), Park Center Apartments (Park St &Center St), The Ruhl Building (Main St & California St), Fairview Terrace(Airport Way & 9thSt), Single-Family Rehabilitation Program•Public InfrastructureSidewalks near Fillmore Elementary, Victory Elementary, MontezumaElementary, and Jane Frederick High School•Public ServicesFair Housing, Youth and Transition Aged Youth Services, Literacy and Papermaking Workshops, Food Assistance Programs•Economic DevelopmentBusiness façades, equipment purchases, entrepreneurship support
2026-2027 Expected AllocationsHOMEESGCDBG$1,342,709$283,814$3,255,850In April 2026, staff received confirmation of HUD’s 2026-2027 final allocations. EDD staff believe the CDBG, ESG, & HOME expected allocations will not change. 2026-2027 ActivitiesOutcomesFundingGoal NameConstruct & Rehabilitate Affordable Housing UnitsHOME: $1,496,423Develop & Rehabilitate Affordable Housing UnitsShelter Operations Homeless PreventionESG: $262,528Provide Services to Prevent & Reduce HomelessnessInfrastructure Improvements Hazardous Site Clean-UpCDBG: $4,932,309Resilient Infrastructure & Public FacilitiesFair Housing ActivitiesPublic Services – June 2026 Council ApprovalCDBG: $518,509Healthy Neighborhoods & ResidentsCommercial FaçadesStocked Full of ProduceBusiness Support ProgramFunded with carryoverSupport BusinessesEntrepreneurship SupportCDBG: $350,000Increase Access to Economic Opportunity
Timeline
Draft Annual Action Plan for Public Comment: March 26, 2026 City Council Meeting on Annual Action Plan: April 28, 2026 Final Annual Action Plan Submitted to HUD: May 2026Draft Annual Action Plan: www.stocktonca.gov/housing Recommendation
It is recommended that after the public hearing, the City Council adopt a resolution to:1)Approve and adopt the 2026-2027 Annual Action Plan with the estimated Sources and Uses of Funds for the CDBG, HOME, and ESG Programs awarded by HUD, authorizing proportional adjustments to funding amounts based on the final HUD allocations;2)Authorize the City Manager, or designee, to coordinate final revisions to the Action Plan to ensure that approved activities and all public comments received during the 30-day public comment period are included in the final Action Plan; and 3)Authorize the City Manager, or designee, to execute all documents and forward them to HUD, and to take whatever actions are necessary and appropriate to carry out the purpose and intent of the resolution.