TO:Andrew P. Powers, City Manager
FROM:Kelvin Parker, Community Development Director
DATE:December 2, 2025
SUBJECT: General Fund Transfer to Community Development Block Grant Fund
RECOMMENDATION:
1. Approve budget appropriation in FY 2025-26 in the amount of $554,919.48 from A/C #001-0000-311-1000 (General Fund – Fund Balance) to A/C #001-9720- 631-9118 (General Fund, Transfer Out – To Federal Grants) and from A/C #120- 0000-561-0100 (CDBG Fund, Transfers In – From General Fund) to A/C# 120- 000-311-1000 (CDGB Fund – Fund Balance).
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
$554,919.48 Increase to the Adopted FY 2025-26 General Fund Budget.
Minimal staff time required to prepare the report is included in the Adopted FY 2025-26 General Fund Budget. The increase to the Adopted FY 2025-26 General Fund supports costs for CDBG Projects and Public/Social Services in the case that they are not reimbursed by the CDBG HUD Grant.
BACKGROUND:
The City receives Community Development Block Grant (CDBG) funds from the US Department of Housing and Urban Development (HUD) on an annual basis based on a specific formula.
City Council approved the 2025-2026 CDBG Action Plan on April 29, 2025, and the City Manager revised the CDBG budget on May 16, 2025, following HUD’s higher allocation. Grantees began their CDBG activities on July 1, 2025, in alignment with the approved plan. On September 22, 2025, the City received the 2025 HUD Federal Award Agreement (Attachment #1) in the amount of $648,249.
General Fund Transfer to CDBG Fund
December 2, 2025
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1 7
The Agreement introduced new administrative and eligibility requirements not previously disclosed during the planning process. The City notified all 2025 CDBG subrecipients on September 25, 2025, of the new requirements, and the potential impacts on their projects and services, and requested subrecipients to pause CDBG-funded activities while staff gathered information about these new grant requirements. Most grantees had already initiated work and submitted reimbursement invoices prior to receiving this information.
DISCUSSION/ANALYSIS:
The City’s 2025-2026 CDBG Action Plan totals $663,329.52, including the 2025 federal CDBG grant of $648,249 and $15,080.52 in reallocated funds from the unused 2023 grant. These funding sources are summarized in Table A.
Table A: 2025-2026 CDBG Grant Resources
2025 CDBG Entitlement Grant $648,249.00
Reallocated Funds from 2023 CDBG Entitlement Grant $15,080.52 Total 2025-2026 CDBG Resources $663,329.52
The CDBG Community Development Project Budget totals $475,000, including $459,919.48 from the 2025 CDBG entitlement grant and $15,080.52 in reallocated funds from the 2023 grant. Funded projects include roof replacement at Many Mansions Shadow Hills Apartments and two mobile home rehabilitation programs in partnership with Habitat for Humanity of Ventura County and Senior Alliance for Empowerment.
The CDBG Public/Social Services Budget totals $95,000. Sub-recipients already awarded are Conejo Valley Senior Concerns, Many Mansions Community Services, St. Vincent de Paul, and Turning Point Foundation. The CDBG Program Administration Budget is $93,329.52, covering City staff costs and the County of Ventura Fair Housing Program contract. These allocations are summarized in Table B.
Table B: 2025-2026 CDBG Action Plan Budget
2023 CDBG
Grant
2025 CDBG
Grant
CDBG Community Development Projects:
2023 CDBG grant of $15,080.52
2025 CDBG grant of $459,919.48
CDBG Public/Social Services: 2025 CDBG grant
of $95,000
$15,080.52 $554,919.48
CDBG Program Administration $0.00 $93,329.52
Total 2025-2026 CDBG Budget $663,329.52 $15,080.52 $648,249.00 General Fund Transfer to CDBG Fund
December 2, 2025
1 4
1 7
Due to uncertainty surrounding the new HUD regulations, General Fund support may be required to temporarily reimburse the CDBG Fund for $554,919.48 in program costs. Administrative staff support for CDBG Program Administration is already included in the City’s Adopted FY 2025-26 General Fund Budget and is reimbursed by CDBG funds. If the City does not receive its CDBG funds, then this cost will not be reimbursed.
Staff continues to gather information and meet with colleagues in an effort to better understand the potential impacts to the City and its subrecipients which could result from the additional HUD requirements. Approving the General Fund transfer budget will ensure that CDBG activities remain adequately funded this fiscal year and allow the City to continue supporting community development projects and public/social services while also giving the City time to make an informed decision about how to move forward. Staff recommends City Council approval for the budget appropriation of $554,919.48 from the General Fund to the CDBG Fund.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
H. Participate in public-private and multi-jurisdictional opportunities to ensure residents have access to high levels of parks, recreation, education and leisure programs and services.
PREPARED BY: Lynn Oshita, Senior Analyst
Attachments:
Attachment #1 – 2025 HUD Federal Award Agreement
CDD:480-10\H:\COMMON\Housing & Redevelopment\2026 CDBG\2026 CITY COUNCIL\2025 GF TRANS\Staff Report.docx