Union City City Council
May 26, 2026

EXECUTIVE SUMMARY
Staff recommends that the City Council conduct a public hearing and adopt two resolutions. The first resolution (Attachment 1) is to approve the FY 2026-2027 Community Development Block Grant Annual Action Plan (“Action Plan”) (Exhibit A) and authorize the City Manager to submit the Plan to the U.S. Department of Housing and Urban Development (HUD) and execute all documents and certifications necessary to secure and award funding. Staff also recommends that the City Council adopt a second resolution (Attachment 2) approving the appropriation of $4,215 in Rent Mediation/Eviction Projection Funds for the agreement with ECHO Housing to provide support necessary to maintain the administrative systems of the City’s Residential Landlord and Tenant Relations Ordinance as part of the FY 2026-2027 Public Service Grant Process and updating the FY 2026-2027 City Budget to align with the FY 2026- 2027 CDBG Allocation.

STRATEGIC PLAN ALIGNMENT
This agenda item does not align with a specific goal or strategy but is required to receive Federal Block Grant funds and to allocate public service grants, both of which support the City’s overall mission to create and provide effective, high-quality services that foster a 1068 of 1325
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high quality of life and economic vitality.

BACKGROUND
The City of Union City receives Community Development Block Grant (“CDBG”) funding annually from HUD. As part of the requirements for receiving this funding, the City must prepare and submit a Consolidated Plan (“Con Plan”) to HUD every five years and an Action Plan to HUD every year. The Con Plan and Action Plan assess the City’s housing, community, and economic development needs, identify available resources, and outline a strategy for addressing those needs. The Action Plan also identifies specific programs/non-profits that will be funded in the upcoming year. FY 2026-2027 will be the second year of the City’s current Con Plan.

Typically, the City is required to submit its Action Plan forty-five (45) days prior to the start of the program year on July 1 (i.e., May 15th submission deadline). However, HUD delayed announcing allocations due to the delayed 2026 federal budget appropriation.

Due to this delay, HUD has allowed submission of the FY 2026-2027 Action Plan 60 days from the date HUD announces the allocation amounts, which occurred on April 3, 2026.

The updated deadline date for submission of the Action Plan is June 3, 2026. HUD’s final review and submission deadline for the Action Plan is August 16, 2026.

Due to this delay, the City will be in the program year before executing its funding agreement with HUD. To minimize disruption to grantees and duplication of effort, HUD allows a City to implement a proposed Action Plan prior to executing a funding agreement with HUD to ensure there are no gaps in services for Union City residents.

DISCUSSION
Funding Availability
With HUD's delayed announcement, the City will receive only $438,567 for FY 2026-2027, $36,313 less than originally projected. Staff updated the original estimates in the updated Action Plan (Exhibit A) and proportionally decreased the estimated funding levels based on the new CDBG allocation. Please note that HUD provides an electronic template for jurisdictions to fill in, so please excuse any formatting issues.

Additionally, the City receives an annual allocation of HOME funding from Alameda County as part of its membership in the Alameda County HOME Consortium. The HOME allocation for the upcoming year is $124,703. The City also receives approximately $6,563 in HOME Administrative funds, which can be spent on staffing and supplies to support the program. Alameda County, as the HOME Consortium lead, also receives $6,563 in Administrative funds to support the program. These funds are not counted as a portion of the City’s administrative funds.

The City allocates public service grant funding in two-year cycles. This is to coincide with the City’s two-year budget cycle. The current two-year allocation cycle is FY 2025-2026 through FY 2026-2027. This plan reflects the second year of that budget cycle.

As part of this process, the City also approved a budget allocation of $245,000 (per fiscal year) from the General Fund for public service grants to supplement the CDBG funds 1069 of 1325
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going towards supporting public services. This amount is consistent with what the City has allocated in previous years.

Proposed Activities
CDBG funds can be used for an array of activities, including public/social services, housing rehabilitation, capital projects, microenterprise programs, and administration.

HOME funds can only be used for affordable housing-related activities such as new construction, rehabilitation, and tenant-based rental assistance. See below for an overview of how the funds are proposed to be spent. Included as Attachment 3 is a chart summarizing the proposed activities for FY 2026-2027.
• Administration (Staffing and Supplies) - The City is allowed to use up to 20% of its CDBG allocation plus 20% of FY 2026-2027 program income to pay for administration expenses, which includes staff costs. The City will allocate $87,713 (the maximum allowable amount) in CDBG funds for administrative expenses. The City will also allocate $6,563 of its HOME allocation, as allowed by the HOME Consortium, for HOME administration expenses. Both funds support Housing Division staffing, who administer the CDBG and HOME Programs, and supplies for the Division.
• Public Facilities Improvement Projects – Housing Division staff worked with Public Works staff to identify two public facilities projects that were the best fit with all of the various requirements around CDBG eligibility for public facilities projects.

Staff also wanted to prioritize projects on both the east and west sides of the City to ensure geographic equity in how funds are spent. Previously, CDBG allocations have gone towards park projects on the west side of the City, including upgrades to Old Alvarado and Contempo Parks, and on the east side, with upgrades to Fred Castro Park and Charles F. Kennedy Park.

To utilize CDBG funding for a public facility improvement project, the facility must be located in or adjacent to an area where at least 50 percent of residents are lowincome, or the facility has income-eligibility requirements that serve individuals who meet the low-income requirements. The only exception to this is if the project addresses accessibility issues. Additionally, the related reporting for a CDBGfunded project is more involved than for a typical capital project, and Public Works staff recommended that all funding be allocated to one or two projects to minimize staff time spent on reporting tasks. Lastly, to meet CDBG timely expenditure requirements, it was important to select two projects that could be completed within a year or less, or phased over 2 years, to ensure the City could meet its timely expenditure requirements.

The City will allocate $130,069 toward the Mark Green Sports Center Emergency HVAC repair. This project is eligible to use CDBG funds because it is adjacent to two Low/Moderate Area Benefit (LMA) census tracts. The project will use CDBG funds to undertake emergency rehabilitation of the HVAC system at the Mark Green Sports Center. The HVAC system is in immediate need of replacement, and the funds will cover a portion of the installation costs for the new HVAC system at the Mark Green Sports Center (31224 Union City Boulevard). 1070 of 1325
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Staff also identified the rehabilitation of the Teen Bike Workshop (33623 Mission Boulevard), located in the Decoto neighborhood, and is proposing to allocate $85,000 in CDBG funds for the project. The workshop project is eligible to use CDBG funds because it is located in a Low/Moderate Area Benefit (LMA)- eligible census tract. The funds will be used for the first phase of the project, which includes remediating the building structure to remove asbestos and lead-based paint, on both the inside and outside. Future phases include replacement of the roof and windows; repainting of the building, including renovation of the exterior mural (where needed); electrical, plumbing, and mechanical updates within the facility; IT improvements; and ADA improvements.

Program Income (“PI”) is defined as gross income that is generated from a CDBGFunded activity. Examples of activities that can generate PI are payments of principal and interest on loans made using CDBG funds, proceeds from the sale or lease of property purchased or improved with CDBG funds, or proceeds from the sale of obligations secured by loans made with CDBG funds. This funding source is not received consistently every program year, so it cannot be assumed that PI will be received in the upcoming program year. Should the City receive any PI during the Program Period of FY 2026-2027, those funds will be applied to the two public facilities projects equitably unless one of the projects is more in need of funding, in which case all PI funds can be applied to a singular project. For ease of allocation, the PI should be directed toward Public Facilities projects, since there are no administrative program caps on the amount of CDBG funds that a Public Facilities project can receive. Staff will review and discuss any additional PI funding received during the program year with the Public Works Department and City Manager prior to its allocation to a specific project.
• Housing Rehabilitation Program– The Housing Rehabilitation Program provides home repair grants to extremely-low, very-low-, and low-income homeowners to ensure they can remain living safely in their homes. The City plans to continue to contract with the Alameda County Healthy Homes Department to administer this program. The City will allocate $50,000 in CDBG funding for minor home repair and accessibility grants, the same allocation as the prior-year award. • Public Service Grants - As discussed above, the City issues two-year public service grants, and FY 2026-2027 marks the second year of the grant cycle. The amount of CDBG funds that can be allocated to public services is limited to 15 percent of the program year allocation and any program income received. Due to the decrease in the overall CDBG award, the public service spending limit was reduced to $65,785 to comply with regulatory spending limits for public service providers. This is a $4,215 reduction in available CDBG funds from Year 1 of their award, when the public service spending limit for service providers was set at $70,000.

To maintain the City’s contract with ECHO Housing at the same level for FY 2026- 2027, staff recommend using the Rent Mediation/Eviction Projection fund balance and appropriating $4,215 to account 23442011-54118 [Rent Mediation/Eviction Projection Fund, ECHO Housing Program, Subgrants]. The use of these funds is 1071 of 1325
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appropriate as ECHO Housing provides services necessary to maintain systems of the Residential Landlord and Tenant Relations Ordinance.

The $4,215 from the Rent Mediation/Eviction Fund plus the $245,000 in the General Fund brings the total non-CDBG funding for public services for FY 2026-2027 to $249,215, as presented in Attachment 3.

Per feedback received from the City Council regarding the City’s Public Service Grant process in 2025, ECD staff will be presenting an overview of the current Grant process for review by the City Council in July. The feedback received will inform updates to the Grant process for implementation for the next grant cycle (FY 2027-2028 and FY 2028-2029).
• Microenterprise Assistance Programs – Similar to the last grant cycle, the City has set aside $20,000 in CDBG funds for microenterprise assistance programs (i.e., programs that assist small businesses). Please note that microenterprise assistance programs are not subject to the public service funding cap. The recipient of these funds is the Community Child Care Council (4Cs) of Alameda County, a microenterprise assistance program that helps low-income residents start or maintain in-home childcare programs.
• HOME Programs – The City’s HOME allocation is $118,140 for the FY 2026-2027.

The City is proposing to allocate $88,605 from its HOME allocation to support the multi-jurisdictional State Homekey project with the City of Hayward and non-profit partner Bay Area Community Services (BACS). This program resulted in the purchase and conversion of a single-family residence into supportive housing for people experiencing homelessness. The funding will be used to facilitate tenants' transition from this temporary housing to permanent housing, including funds for rent, security deposit assistance, and utilities. In addition, the City is allocating $29,535 of its HOME funds to support tenant-based rental assistance for Union City residents. Staff is currently talking with various vendors to provide this service.

FISCAL IMPACT
CDBG funding for FY 2026-2027 will be $438,567, which is $36,312 less than the $474,879 originally approved by the City Council for the City’s budget.

Staff is recommending the City Council $4,215 to account 23442011-54118 [Rent Mediation/Eviction Projection Fund, ECHO Housing Program, Subgrants] to fully fund ECHO Housing at their prior year grant allocation for FY 2026-2027. In addition, staff is recommending that the City’s FY 2026-2027 CDBG Budget be updated to match HUD’s CDBG allocations.

There is no additional impact to the General Fund from the recommended actions in this staff report. The FY 2025-2026 and 2026-2027 City Budget allocated $245,000 of General fund monies each year to support the City’s Public Service Grant Program.

RECOMMENDATION
Staff recommends that the City Council hold a public hearing and adopt the attached 1072 of 1325
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Resolution (Attachment 1) approving the 2026-2027 CDBG Action Plan and authorizing the City Manager to submit the Action Plan to HUD and to execute to execute all documents and certifications necessary to secure and award funding for the City and adopt a second Resolution (Attachment 2) approving the allocation of $4,215 in Eviction & Harassment Protection Funds to Support ECHO Housing as part of the FY 2026-2027 Public Service Grant Process and updating the FY 2026-2027 City Budget to align with the FY 2026-2027 CDBG Allocation.

Prepared by: Francisco Gomez, Housing and Community Development Manager Submitted by: Carmela Campbell, Economic and Community Development Director Attachments

1. Attachment 1 – Draft Resolution Approving FY 26-27 CDBG Action Plan a. Exhibit A – FY 26-27 CDBG Annual Action Plan

2. Attachment 2 – Draft Resolution Authorizing a Transfer of Eviction & Harassment Program Funds to FY 2026-2027 Public Service Grant Program and Updating the FY 2026-2027 City Budget to Align with the FY 2026-2027 CDBG Allocation

3. Attachment 3 - Budget Allocation Summary for FY 26-27 CDBG Action Plan 1073 of 1325

RESOLUTION NO. 2026-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY APPROVING THE 2026-2027 COMMUNITY DEVELOPMENT BLOCK

GRANT (CDBG) ANNUAL ACTION PLAN AND AUTHORIZING THE CITY MANAGER TO SUBMIT THE 2026-2027 CDBG ANNUAL ACTION PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT AND TO EXECUTE ALL DOCUMENTS AND

CERTIFICATIONS NECESSARY TO SECURE AND AWARD FUNDING

FOR THE CITY
WHEREAS, the City of Union City receives Community Development Block Grant (“CDBG”) funding on an annual basis from the U.S. Department of Housing and Urban Development (“HUD”), and as part of the requirements to receive this funding, the City must prepare and submit an Annual Action Plan (“Action Plan”) to HUD; and WHEREAS, the Action Plan assesses the City’s housing, community, and economic development needs, identifies available resources, and outlines a strategy for addressing those needs. The Action Plan identifies specific programs and non-profits that will be funded in the upcoming year; and
WHEREAS, the CDBG grant allocation for FY 2026-2027 is expected to be $438,567; and
WHEREAS, the City receives an annual allocation of HOME funding from Alameda County as part of its membership in the Alameda County HOME Consortium, and the HOME allocation for FY 26-27 is expected to be $124,703; and WHEREAS, staff recommends approval of the 2026-2027 CDBG Action Plan, labeled Exhibit A, attached hereto and made a part hereof.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Union City does hereby approve the 2026-2027 CDBG A n n u a l Action Plan, attached hereto as Exhibit A, which is incorporated herein by reference; and BE IT FURTHER RESOLVED that the City Council of the City of Union City does hereby authorize the City Manager, or their designee, to submit the Annual Action Plan to HUD and to execute all documents and certifications necessary to secure and award CDBG and HOME funding for the City.
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Resolution No. 2026-XXX
Approving the FY 2026-2027 CDBG Annual Action Plan

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
Attachment:

1. Exhibit A – CDBG FY 2026-2027, Annual Action Plan
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Executive Summary
AP-05 Executive Summary - 91.200(c), 91.220(b)

1. Introduction
The City of Union City’s Housing and Community Development Division (HCD) under the Economic and Community Development (ECD) Department is the division that prepares the City’s Consolidated Plan and Action Plans. Union City is a member of the Alameda County HOME Consortium (“Consortium”) and the Alameda County Housing and Community Development (HCD) Department is the HOME Consortium’s lead agency. The HOME Consortium consists of Alameda, Fremont, Hayward, Livermore, Pleasanton, San Leandro, Union City, and the Urban County, which includes the cities of Albany, Dublin, Emeryville, Newark, Piedmont, and the unincorporated areas of the County.

The Consortium has adopted a five-year consolidated planning cycle starting July 1, 2025 through June 30, 2030. This FY 2026-2027 Action Plan serves as the second year of the five-year Consolidated Plan. The Consolidated Plan and Action Plan have been prepared for all jurisdictions in the Consortium. Alameda County HCD coordinated the process with the assistance of community development and planning staff from each of the Consortium’s jurisdictions.

The Consolidated Plan and Action Plan are important documents for the City and the HOME Consortium. Built on interagency coordination, consultation, and public participation, the Consolidated Plan and Action Plan focuses attention on housing and community development needs and the resources available to meet these needs.

2. Summarize the objectives and outcomes identified in the Plan The City's and HOME Consortium's Five-Year Strategic Plan has established the following priorities and objectives:

Priority-Housing

1. Increase the availability of affordable rental housing for extremely low-income households. Support the acquisition, rehabilitation and new construction of affordable rental units.

Exhibit A
CDBG FY 2026-2027
Annual Action Plan
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2. Preserve existing affordable rental and ownership housing for households at or below 80% of AMI. Provide assistance to low-and-moderate-income homeowners to maintain and preserve their housing stock. Use all resources available to promote the preservation of existing rental housing stock occupied by low- and moderate-income households and promote its affordability.

3. Assist low and moderate-income first-time homebuyers. Provide assistance, and increase affordability, of homeownership of first time low to moderate income homebuyers.

4. Reduce housing discrimination. Reduce housing discrimination through provision of fair housing and landlord/tenant services.

Priority-Homeless Needs
By December 2026, work to end homelessness as a chronic and on-going condition for any household in our community.

1. Objectives:
• Use resources to rapidly re-house households.
• Reduce by 50% the amount of time spent living in places not fit for human habitation and/or transitional housing or shelter before returning to permanent housing. • Increase the rate at which people exit homelessness to permanent housing to 65%. • Prevent 10% of people requesting shelter from needing shelter by resolving the crisis to enable household to keep permanent housing.
• Utilize resources to acquire single-family homes to provide permanent housing individuals experiencing homelessness, including people with disabilities, special needs, older adults, young adults/TAY, and single adults.
• Create three Regional Housing Resource Centers.

Priority-Supportive Housing

1. Increase the availability of service-enriched housing for persons with special needs. • Promote the production of affordable housing, especially permanent housing with supportive services by supporting the acquisition and rehabilitation and new construction of units by developers.

Priority-Community Development
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1. Senior facilities and services
• Evaluate funding applications for senior services and/or facilities on the basis of low income and moderate-income senior needs and promote provision of these services and/or facilities to the extent feasible.

2. Park and recreations facilities
• Support expansion of existing and/or new development of park and recreation facilities to the extent feasible.

3. Neighborhood facilities
• Support the expansion and/or upgrade of existing or new development of neighborhood facilities to the extent feasible.

4. Childcare facilities and services
• Support the expansion of existing or new development of childcare facilities and/or services to the extent feasible.

3. Evaluation of past performance
During the year, Union City used CDBG funds for various activities that helped to benefit lowmoderate income people throughout the City. Activities funded were included social service programs like Spectrum Community Services, who runs a Senior Nutrition Program, Senior Support program run by the City of Fremont to help Union City Seniors, Eden Council for Hope and Opportunity (ECHO) that provides residents with fair housing and tenant/landlord counseling programs to help residents stay housed. CDBG funds were also allocated to the Union City Family Center who provides wrap around services for low-income families throughout the City. The City also funded the Community Child Care Council (4Cs) of Alameda County to provide micro-enterprise assistance to in-home child care providers. CDBG funding was also allocated to the Alameda County Healthy Homes Department for their Minor Home Repair Grant program that provides repair and rehabilitation grants to low-income homeowners. The use of CDBG funds and funding leveraged from the City's General Fund help to fund services providers for the program year.

The City has completed its capital improvements project at Fred Castro Park. The City replaced park equipment and rehabilitated the surrounding park area, as well as updated lighting around 1078 of 1325
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the park. The project is in the process of being closed out and will be by the end of the program year. The Charles F. Kennedy Park project started work on the rehabilitation of its parking lot and it is scheduled to be completed by August 2026. General rehabilitation around the park has started to take place with some landscaping updates, equipment replacement purchases, and minor rehabilitation around the Teen Center. The City is currently in the process of completing its Parks and Recreation Master Plan so additional updates to the park are on hold until its completion so the City can integrate additional community feedback into the Kennedy Park project.

Accomplishments for FY 2024-2025 activities are discussed in the FY 2024-2025 Consolidated Annual Performance and Evaluation Report (CAPER), which can be found at the following link:
https://www.unioncity.org/293/Community-Development-Block-Grant-Progra The CAPER for FY 2025-2026 will be completed in September 2026.

4. Summary of Citizen Participation Process and consultation process In order to better leverage and utilize existing funding, the City utilized its updated Public Services Needs Assessment Study (“Study”) in 2023. The goal of the Study was to give the City a comprehensive and in-depth understanding of the community’s needs and the tools to make calculated and strategic investments in services and programs that will best meet the community’s needs. The components of the Study include a community survey, stakeholder meetings/interviews, demographic review, and recommendations on what needs the City should be focused on for the community. The Study has been used to inform the development of this Action Plan.

Also there was
The City also took the following actions to solicit further community feedback and input:
• A pre-draft Public Hearing on the Action Plan took place on March 24, 2026, at the Alameda County HOME technical Advisory Committee’s (HTAC) meeting. HTAC currently has a public hearing scheduled for May 13, 2026, where Alameda County Housing & Community Development Advisory Committee(HCDAC) staff will present the staff report regarding the Action Plan.
• The draft Action Plan was made available for a 30-day public comment period from April 17, 2026, through May 18, 2026. A notice was placed in the Argus, a paper with local circulation, notifying the public of the 30-day public comment period. The City received the CDBG HUD allocation on April 3rd, 2026, due to the delay in the release of funding at 1079 of 1325
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the Federal level for the City’s allocation from HUD, the draft Annual Plan utilized the prior year allocation as an estimate for its proposed allocation amount.. Since the release of the City’s allocation, the Plan was adjusted to reflect the funding levels based on the allocation that was received.
• The City of Union City will hold a public hearing on May 26, 2026, to take comments on and approve the City’s Action Plan.

5. Summary of public comments
A summary of public comments is included as part of the Public Services Needs Assessment Study. More information regarding the public input process of the Public Services Needs Assessment Study including the community survey results and the stakeholder meeting minutes can be found at the link below.

Public Services Needs Assessment Study: https://www.unioncity.org/293/CommunityDevelopment-Block-Grant-Progra Once the public comment period ends on the CDBG Annual Action Plan (“Action Plan”), staff will include any emails, letters, or correspondence received on the Action Plan and incorporate them into the Action Plan before its submission to HUD.

6. Summary of comments or views not accepted and the reasons for not accepting them If public comments are received on the Action Plan or during the Public Hearing, those public comments will be incorporated into the Action Plan before submission to HUD.

7. Summary
Please see the discussion above regarding public comments and acceptance of all comments. 1080 of 1325
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PR-05 Lead & Responsible Agencies - 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
Lead Agency UNION CITY
CDBG Administrator UNION CITY ECD/HCD
HOPWA Administrator
HOME Administrator ALAMEDA COUNTY HOME CONSORTIUM HCD
HOPWA-C Administrator
Not applicable
Table 1 – Responsible Agencies
Narrative
Alameda County, specifically the Housing and Community Development Department (HCD), is the lead agency responsible for overseeing the development of the Consolidated Plan and Annual Action Plans for the Alameda County HOME Consortium (“Consortium”). The City of Union City is responsible for developing its component of the Action Plan and administering the specific programs covered by the City’s Consolidated Plan/Action Plan. EveryOne Home is Alameda County’s Continuum of Care Council, which continues to work on addressing homelessness on a county-wide basis. Much of the work of EveryOne Home is discussed in the homeless section and in the annual Continuum of Care funding application.

Housing Opportunities for Persons with AIDS (HOPWA) funds are administered by Alameda County HCD, on behalf of the City of Oakland which is the County’s only HOPWA grantee. HOPWA funds are used to support affordable housing development, short term rental assistance, and housing-related services.
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Consolidated Plan Public Contact Information
Francisco Gomez Jr | Housing & Community Development Manager City of Union City | Housing & Community Development Division 34009 Alvarado-Niles Road | Union City, CA 94587
[email protected]/[email protected] | (510) 675-5322 1082 of 1325
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AP-10 Consultation - 91.100, 91.200(b), 91.215(l)

1. Introduction
The FY 2025-2030 Consolidated Plan was prepared through consultation with several public and private entities. The HOME Consortium Technical Advisory Committee, composed of staff from all jurisdictions in the HOME Consortium, met bi-monthly to provide policy input into the Consolidated Plan planning process. The Alameda County Healthy Homes Department provided valuable information on the number of households at risk of lead poisoning, and the programs currently operating or planned to mitigate lead-based paint hazards. The three public housing authorities operating in the HOME Consortium (City of Alameda, City of Livermore, and Alameda County) were consulted to obtain current data on Public Housing and Section 8 housing needs, public housing improvements, and other activities. Further, many of the local non-profit organizations also produce reports concerning the needs of the demographic they serve; this information is also utilized in the plan development.

Additionally, the City conducted a Public Services Needs Assessment Study in 2023. The goals of the Study were to 1) form a foundation from which the City can make effective and beneficial decisions regarding the funding, provisions, and operations of local public service providers and 2) provide a priority needs map that can guide the City in future decisions about where to obligate public services funding and efforts. By strategically allocating resources, the City’s goals are to not just improve services for those in need but help raise the quality of life for the whole community through a commitment to fiscal responsibility and transparency. The components of the Study include a community survey, stakeholder meetings/interviews, demographic review, and recommendations on what needs the City should be focused on for the community. The Study was finalized in May 2023 and has been used to inform the development of this Action Plan.

Public Services Needs Assessment Study: https://www.unioncity.org/293/CommunityDevelopment-Block-Grant-Progra Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)).

During this Action Plan period, the City will work on enhancing coordination between public and private service providers. Specific efforts include:
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1. Participate in the Alameda County HOME Consortium and provide representation on the County's HOME Consortium Technical Advisory Committee;

2. Work closely with local jurisdictions to continue efforts to work with the State of California's Homekey Program in order to address homelessness in the community;

3. Work closely with non-profit social service providers, the County, other entitlement jurisdictions, the New Haven Unified School District, and other community providers to coordinate delivery of services to residents;

4. Provide funding and technical assistance to non-profit organizations serving low-income residents;

5. Work with EveryOne Home, the County, and service providers to better coordinate homeless services; and

6. Work with non-profit organizations and private developers to build and/or maintain affordable housing.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

EveryOne Home is a community-based organization serving as Alameda County’s Continuum of Care and coordinates local efforts to address homelessness. EveryOne Home representation includes HOME Consortium jurisdictions and CDBG entitlement jurisdictions in the County, service providers and advocates, homeless or formerly homeless persons, faith-based community representatives, business representatives, and education and health care professionals. In 2026, EveryOne Home updated its 5-year strategic plan to end homelessness in Alameda County. The updated plan outlines four major strategies:

1. Prevent Homelessness for Alameda County residents;

2. Connect people to shelter and needed resources;

3. Increase housing solutions; and

4. Strengthen coordination, communication, and capacity.

There are a wide range of efforts being undertaken to meet the needs of homeless persons, particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth.

5. Chronically Homeless. Home Stretch, is a community partnership led by EveryOne Home and Alameda County’s Housing and Homelessness Services. Home Stretch prioritizes Permanent Supportive Housing (PSH) opportunities to disabled, homeless people with the 1084 of 1325
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highest needs in order to maximize the impact PSH can have in ending homelessness. Home Stretch utilizes Alameda County’s Coordinated Entry System (CES) for homeless services and shelter along with utilizing Housing Resources Centers (HRCs) that are located throughout the County. The HRCs provide housing prioritization and matching, diversion and prevention services, and housing-centered case management which include shelter referrals, transitional housing, and rapid rehousing.

6. Families with Children. CES utilization allows homeless families to access shelter, rapid rehousing, and diversion/prevention services through a hotline or one of the local HRCs. In June 2016, the City launched the CAREavan Program which provides families and individuals that are living in their vehicles safe places to park overnight. The CAREavan program is a collaborative effort between the City, school district, and faith-and community-based organizations. All participating sites provide safe parking, a facility attendant, and restrooms. Some sites provide showers and toiletries, food, clothing, meal service, free Wi-Fi, computer use, and laundry. This program is funded by the City's General Fund.

7. Veterans. EveryOne Home, Supportive Services for Veteran Families (SSVF) grantee agencies and the U.S. Department of Veteran Affairs (VA) have formed a collaborative whose goal is to end Veteran homelessness. This collaborative is known as Operation Vets Home (OVH). OVH has identified every homeless vet known to Alameda County and updates this information weekly. OVH has also established a toll-free number that can be used by those wishing to make referrals for homeless vets and outreach workers will be responding to the referrals.

8. Youth. The County funds the Supportive Housing for Transition Age Youth (STAY) program which targets transition age youth (16-24 years old) that are homeless or at-risk of homelessness with a serious mental health issue. The County also funds Independent Living Program (ILP), which is a program for transition age youth (16-24 years old) with serious mental health issues currently living with family that may be unstably housed.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City continues to support the EveryOne Home initiative to establish system wide outcomes and to evaluate effectiveness of programs against those outcomes. These outcomes include shortening the period of time homeless and reducing the recidivism rates for homeless people. 1085 of 1325
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Consultation with EveryOne Home on the use of Emergency Solutions Grant (ESG) funds, began in early 2012, when representatives from the City of Berkeley, the City of Oakland, Alameda County Housing and Community Development Department (Urban County grantee), and EveryOne Home worked together to implement the new ESG requirements in a way that would be consistent county-wide and would continue a collaboration which began in 2009 with American Recovery and Reinvestment Act (ARRA) Homelessness Prevention and Rapid Rehousing Program (HPRP) funds. This collaboration resulted in the creation of Priority Home Partnership (PHP), which was a single county-wide program to implement HPRP.

EveryOne Home held a community-wide meeting at which additional consultation and public input into the use of ESG funds was solicited. A series of meetings with EveryOne Home and the ESG grantees continues through the year and a coordinated ESG program was established and began implementation in early 2013. This coordinated program will use this same structure for FY25-FY30 ESG funding.

2. Agencies, groups, organizations and others who participated in the process and consultations
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Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Abode Services, inc.

Agency/Group/Organization Type Housing
Services - Housing
Services-homeless
What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Abode Services participated in the community input process of the Public Services Needs Assessment Study.
2 Agency/Group/Organization Alameda County Healthy Homes Agency/Group/Organization Type Housing
Services - Housing
Other government - County
What section of the Plan was addressed by Consultation? Lead-based Paint Strategy Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
The Alameda County Healthy Homes Department provided
information on the number of households at risk of lead poisoning as part of the Consolidated Plan Development.
3 Agency/Group/Organization Alameda County Housing and Community Development Agency/Group/Organization Type Housing
Other government - County
What section of the Plan was addressed by Consultation? Housing Need Assessment 1087 of 1325
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Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
HCD issued a community survey and engaged a Citizen Advisory Committee as part of the Consolidated Plan Development. 4 Agency/Group/Organization BAY AREA COMMUNITY SERVICES, INC. (BACS) Agency/Group/Organization Type Housing
Services-Elderly Persons
Services-Persons with Disabilities
Services-homeless
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homelessness Strategy
Non-Homeless Special Needs
Public Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
BACS participated in the community input process of the Public Services Needs Assessment Study.
5 Agency/Group/Organization Centro de Servicios
Agency/Group/Organization Type Services-homeless
Services-Employment
Immigration Services
What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Centro de Servicios participated in the community input process of the Public Services Needs Assessment Study.
6 Agency/Group/Organization Community Ambassador Program for Seniors (CAPS) Agency/Group/Organization Type Services-Elderly Persons 1088 of 1325
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What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
CAPS participated in the community input process of the Public Services Needs Assessment Study.
7 Agency/Group/Organization ECHO HOUSING
Agency/Group/Organization Type Services - Housing
Service-Fair Housing
What section of the Plan was addressed by Consultation? Housing Need Assessment Fair Housing
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
ECHO provides quarterly fair housing updates and on an annual basis conducts a fair housing audit.
8 Agency/Group/Organization Eden I&R
Agency/Group/Organization Type 2-1-1 Operator
What section of the Plan was addressed by Consultation? Housing Need Assessment Homeless Needs - Chronically homeless
Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non-Homeless Special Needs
Public Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Eden I&R, the organization that operates Alameda County's 2-1-1 system, participated in the community input process of the Public Services Needs Assessment Study.
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9 Agency/Group/Organization EveryOne Home
Agency/Group/Organization Type Housing
Services-homeless
Regional organization
Planning organization
Continuum of Care
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
The City attends EveryOne Home meetings and utilizes the reports, such as the homeless count, that EveryOne home produces.
10 Agency/Group/Organization Filipino Advocates for Justice Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
FAJ participated in the community input process of the Public Services Needs Assessment Study.
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11 Agency/Group/Organization Fremont Family Resource Center Agency/Group/Organization Type Services - Housing
Services-Children
Services-Elderly Persons
Services-Persons with Disabilities
Services-homeless
Services-Health
Services-Education
Services-Employment
Other government - Local
What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children
Homelessness Needs - Veterans
Homelessness Needs - Unaccompanied youth
Homelessness Strategy
Non-Homeless Special Needs
Public Service
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
The Fremont Family Resource Center participated in the
community input process of the Public Services Needs Assessment Study.
12 Agency/Group/Organization Housing Authority of Alameda County Agency/Group/Organization Type PHA
What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs
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Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Alameda County was the lead for consulting with the Housing Authority of Alameda County to identify need and activities for the five-year Consolidated Plan.
13 Agency/Group/Organization International Institute of the Bay Area Agency/Group/Organization Type Immigration/Citizenship Services What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
International Institute of the Bay Area participated in the community input process of the Public Services Needs Assessment Study.
14 Agency/Group/Organization LIFE ELDERCARE
Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Public Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Life Eldercare participated in the community input process of the Public Services Needs Assessment Study.
15 Agency/Group/Organization Safe Alternatives to Violent Environments, Inc.

Agency/Group/Organization Type Services - Victims
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Public Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
SAVE participated in the community input process of the Public Services Needs Assessment Study.
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16 Agency/Group/Organization Spectrum Community Services Agency/Group/Organization Type Services-Elderly Persons Services-Persons with Disabilities
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Public Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Spectrum Community Services participated in the community input process of the Public Services Needs Assessment Study. 17 Agency/Group/Organization The Village Method
Agency/Group/Organization Type Services-Children
What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
The Village Method participated in the community input process of the Public Services Needs Assessment Study.
18 Agency/Group/Organization TIBURCIO VASQUEZ HEALTH CENTER Agency/Group/Organization Type Services-Health
What section of the Plan was addressed by Consultation? Non-Homeless Special Needs Public Services
Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Tiburcio Vasquez Health Center participated in the community input process of the Public Services Needs Assessment Study. 19 Agency/Group/Organization Timelist Group
Agency/Group/Organization Type Services-Health
Rehabilitation Services
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What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Timelist Group participated in the community input process of the Public Services Needs Assessment Study.
20 Agency/Group/Organization Union City KidZone
Agency/Group/Organization Type Services-Children
Services-homeless
Services-Education
What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
Union City Kids Zone participated in the community input process of the Public Services Needs Assessment Study.
21 Agency/Group/Organization Union City Library
Agency/Group/Organization Type Services-Education
Other government - County
What section of the Plan was addressed by Consultation? Public Services Briefly describe how the Agency/Group/Organization was
consulted. What are the anticipated outcomes of the consultation or areas for improved coordination?
The Union City Library participated in the community input process of the Public Services Needs Assessment Study.

Identify any Agency Types not consulted and provide rationale for not consulting Efforts were made to include as broad a group of community stakeholders as possible. No agency types were excluded from participation.
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Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead
Organization
How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care
Alameda County -
Everyone Home
Drive the development of the homelessness activity goals.

Home Together 2026 – 5-
yr plan to end
homelessness in Alameda
County
EveryOne Home
The City has identified the need for homeless services and has set a goal to provide public services which includes shelters and services for the homeless and those at risk of homelessness. This goal overlaps with the goals of EveryOne Home as EveryOne Home seeks to prevent homelessness, reduce the amount of time spent homeless, and keep people from returning to homelessness.

Public Services Needs
Assessment Study and
Funding
City of Union City
The City has identified the need for public services and has made it a goal to support critical public service activities. In 2023, the City conducted a Public Services Needs Assessment and Funding Strategy to evaluate the current public services available to the Union City community and to analyze the public service needs in the community. The report evaluates the existing service providers to determine how their services meet the needs of the community, the barriers that prevent residents from finding the services they need, and the gaps in services. The Study provides conclusions about the current and future needs of the community, and recommendations on current resident needs in order to help the City most effectively use its available funding.

Alameda Countywide Area
Plan for Older Adults
(CWAP)
County of
Alameda
The City has set an objective to promote the provision of senior services and facilities. The City considered the Alameda County Plan for Older Adults, a comprehensive plan to serve older adults, in the preparation of the Public Services Needs Assessment Study and Funding Strategy (as discussed above).

Table 3 - Other local / regional / federal planning efforts 1095 of 1325
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Narrative
Please see the discussion above on the City’s efforts regarding engagement with the public and other stakeholders and the coordination efforts around the Continuum of Care and work with Alameda County’s EveryOne Home program. 1096 of 1325
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AP-12 Participation - 91.401, 91.105, 91.200(c)

1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting Citizens are encouraged to be involved in the development of programs offered by HCD including making recommendations regarding programs, policies, funding, the five-year Consolidated Plan, Annual Action Plans, Consolidated Annual Performance and Evaluation Report (CAPER), and the Citizen Participation Plan. Community participation was a very important part of the Consolidated and Action Plan development process.

Public Services Needs Assessment Study
As previously mentioned, the City conducted a Public Services Needs Assessment Study and as part of the development of the Study, the City conducted a community survey and held two community stakeholder meetings.

1. Community Survey - The survey was made available from January 3, 2023, to February 7, 2023 in an online and paper copy format. Paper copies were available at the Union City library, City Hall, Kennedy Community Center, Holly Community Center, and Ruggieri Senior Center. Print copies with QR codes were also provided to local services providers to distribute to their clients, staff and volunteers. The survey was available in English, Chinese, Tagalog, Farsi, and Spanish and advertised through social media, the school district, and the City’s websites. A total of 614 completed surveys were received: 605 English surveys, 1 Tagalog surveys, 2 Chinese/Mandarin surveys, and 6 Spanish surveys. The full survey results can be found in the Public Services Needs Assessment Study.

2. Stakeholder Meetings - The City held two stakeholder meetings on February 8 and February 9, 2023, to garner feedback on the current and future public services in Union City. A total of 32 stakeholders were asked to participate and 23% of the stakeholders attended the meetings, representing a range of nonprofit and community services agencies in Union City and Alameda County. Activities included a polling exercise, Jamboard exercises and group discussion.

In addition to the community outreach efforts the City undertook as part of the Study, the City also undertook the following efforts.

Included as Attachment 1 is a summary of the citizen participation process. 1097 of 1325
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• A pre-draft Public Hearing on the Action Plan took place on March 24, 2026, at the Alameda County HOME technical Advisory Committee’s (HTAC) meeting. HTAC currently has a public hearing scheduled for May 13, 2026, where Alameda County Housing & Community Development (HCD) staff will present the staff report regarding the Action Plan. • The draft Action Plan is made available for a 30-day public comment period from April 17, 2026 through May 18, 2026. A notice was placed in the Argus notifying the public of the 30-day public comment period. The City’s allocation was announced by HUD on April 3, 2026.
• The City of Union City plans on holding a public hearing on May 26, 2026, to take comments and approve the City’s Action Plan. If public comments are received during the public hearing, they will be incorporated into the Action Plan prior to submission.
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Citizen Participation Outreach
Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
1 Community
Survey
Minorities
Non-English
Speaking -
Specify other
language:

Spanish, Tagalog,
Chinese/Mandari
n, Farsi
Nontargeted/broad
community
As part of the
development of
the Public Services
Needs Assessment
Study, an online
survey was
conducted January
3rd, 2023 to
February 2nd, 2023
to assess the public
service needs of
the community.

Surveys were
available in English,
Chinese/Mandarin,
Tagalog, Farsi, and
Spanish. A total of
614 completed
surveys were
received: 605
English surveys, 1
Tagalog surveys, 2
Chinese/Mandarin
surveys, and 6
Spanish surveys.

The survey
results can be
found in the
Community
Outreach section
of the Public
Services Needs
Assessment
Study.

All comments were
accepted.
https://www.unioncity.org/293/Co
mmunity-Development-Block-GrantProgra
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2 Community
Stakeholder
Meeting
Non-profit
service providers
and community
service agencies
Part of the
development of
the Public Services
Needs Assessment
Study, the City held
two stakeholder
meetings on
February 8 and
February 9, 2023,
to garner feedback
on the current and
future public
services in Union
City. A total of 32
stakeholders were
asked to
participate, 23% of
stakeholders
attended the
meetings,
representing a
range of nonprofit
and community
services agencies in
Union City and
Alameda County.

Activities included
a polling exercise,
Jamboard session,
and group
discussion.

Complete notes
from the
meetings can be
found in the
Community
Outreach section
of the Public
Services Needs
Assessment
Study.

All comments were
accepted.
https://www.unioncity.org/293/Co
mmunity-Development-Block-GrantProgra
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Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
3 Public Hearing
Nontargeted/broad
community
A pre-draft public
hearing on the
Action Plan was
held on March
24th, 2026, at the
HOME Technical
Advisory
Committee
(HOME-TAC)
meeting. The
purpose of the
meeting is to
present an
overview of the
Action Plan and
review and solicit
input on the
housing and
community
development
needs of the HOME
Consortium.

No Comments
were received.

No Comments were
received.
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Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
4 Newspaper Ad
Nontargeted/broad
community
Newspaper
notice to
advertise 30-day
public comment
period from April
17th, 2026 to
May 18th, 2026
in the Argus.

TBD TBD
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Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
5 Public Hearing
Nontargeted/broad
community
A public hearing
is currently
scheduled for
May 13, 2026, via
conference call
by the County's
Community and
Housing
Development
office to take
comments on the
draft HOME
Consortium
Action Plan.

Public Notices
will be placed in
all Bay Area
Newspaper
Group (BANG)
newspapers in
Alameda County.

TBD TBD
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Sort Ord
er
Mode of Outre
ach
Target of Outre
ach
Summary of
response/attend
ance
Summary of
comments recei
ved
Summary of comm
ents not accepted
and reasons
URL (If applicable)
6 Public Hearing
Nontargeted/broad
community
The City Council
of the City of
Union City is
scheduled to hold
a public hearing
on May 26, 2026,
to take
comments and
adopt the City's
Action Plan.

TBD TBD
Table 4 – Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2)
Introduction
The City will use CDBG, HOME, and the City’s General Fund dollars to accomplish the specific objectives in this Action Plan. Included as Attachment 2 is a more detailed budget for 2026-2027. HUD announced the City’s 2026-2027 grant allocations on April 3rd, 2026. Staff plans to use proposed allocation HUD has provided and will use the allocation to fund activities that will accomplish the specific objectives in the Action Plan.

Anticipated Resources
Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
CDBG public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services 438,567 0 0 438,567 954,129
The City of Union City is an entitlement
jurisdiction and therefore receives an
annual CDBG grant allocation from
HUD.
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Program Source
of Funds
Uses of Funds Expected Amount Available Year 1 Expected Amount
Available
Remainder
of ConPlan
$
Narrative Description
Annual
Allocation:
$
Program
Income:
$
Prior Year
Resources:
$
Total:
$
General
Fund
public -
local
Public Services
250,000 0 0 250,000 0
The City plans to use $250,000 of its
General Fund to support nonprofit
public service providers. This is to
supplement the CDBG funding the City
uses for public services.

Other public -
federal
Housing
124,703 0 0 124,703 0
The City plans to use its HOME funds
allocation to increase the availability of
supportive housing.

Table 5 - Expected Resources – Priority Table
Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied
Leveraging CDBG funds continues to be a challenge due to reduced entitlement allocations and the dissolution of Redevelopment Agencies (RDA) statewide. Therefore, to maximize leveraging of its own funds and increase the funds available for housing and community development activities, the City plans to undertake the following activities:

1. Support applications by organizations or agencies for other public and private sources of financing to leverage City funds.

2. Include leveraging and diversified funding as a goal, to the maximum extent possible, in the City’s funding review processes.

3. Continue to provide support to nonprofit, community-based housing developers and service providers in obtaining other sources of financing.

4. Promote joint development with other governmental or quasi-governmental agencies to implement housing community development programs and combine multiple sources of financing. 1106 of 1325
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If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
The City allows several public service providers to operate programs out of City owned facilities. More specifically, the City owns the Decoto location where Centro de Servicios operates their programs. Legal Assistance for Seniors and Spectrum Community Services both operate programs out of the City’s Ruggieri Senior Center and the City’s Police Department provides office space for SAVE’s COPS advocate, who provides services and resources to residents seeking domestic violence services.

In November 2016, Alameda County voters passed Measure A1, which provides $580 million for affordable rental and ownership housing. In early 2018, the City selected a non-profit developer to help develop a city-owned site into affordable housing. The developer has conducted extensive community outreach for the proposed project and received approval in July 2020. The City utilized its allocation of Measure A1 funding to support this project. The developer was able to apply for and receive Low Income Housing Tax Credits and was able to start construction in December 2025. The project is anticipated to complete construction at the end of 2027/early 2028.

The City of Union City is currently in an Exclusive Negotiating Agreement with a developer to create an affordable housing project on city owned public lands as part of a priority development area within the city. During FY 2026-2027, the City will be working with the developer to advance the development of an affordable housing project within this priority development area.

Discussion
Please see discussion above.
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3)&(e) Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
1 Promote Production,
Rehabilitation, and
Preservation
2025 2030 Affordable
Housing
City-wide Housing Needs CDBG: $50,000 Homeowner Housing Rehabilitated: 20 Household
Housing Unit
2 Reduce Housing
Discrimination
2025 2030 Affordable
Housing
City-wide Housing Needs CDBG: $10,000 Public service activities for Low/Moderate Income Housing
Benefit: 125 Households
Assisted
3 Increase Availability
of Supportive
Housing
2025 2030 Affordable
Housing
City-wide Supportive
Housing Needs
HOME
Consortium:
$118,140
Tenant-based rental assistance /
Rapid Rehousing: 4 Households
Assisted/ Other: 5 Other
4 Improve Public
Facilities
2025 2030 Non-Housing
Community
Development
City-wide Community
Development
Needs
CDBG:
$215,069
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit: 4,585 Persons Assisted
5 Support Public
Service Programs
2025 2030 Non-Housing
Community
Development
City-wide Community
Development
Needs
CDBG: $65,000 Public service activities other
than Low/Moderate Income
Housing Benefit: 815 Persons
Assisted
6 Fund Economic
Development
2025 2030 Non-Housing
Community
Development
City-wide Community
Development
Needs
CDBG: $20,000 Businesses assisted: 8
Businesses Assisted
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Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs Addressed Funding Goal Outcome Indicator
7 Reduce
Homelessness
2025 2030 Homeless City-wide Homeless Needs General Fund:
$10,000
Homelessness Prevention: 10
Persons Assisted
Table 6 – Goals Summary
1 Goal Name Promote Production, Rehabilitation, and Preservation Goal
Description
• Promote the production of affordable rental housing by supporting the acquisition, rehabilitation, and new construction of units.
• Provide assistance to low- and moderate-income homeowners in order to maintain and preserve housing stock at that affordability level.
• Use all resources available to promote the preservation of existing rental housing stock occupied by low- and moderate-income households and promote its affordability. • Provide assistance for, and increase affordability of, homeownership for first time low/moderate-income homebuyers.
2 Goal Name Reduce Housing Discrimination
Goal
Description
Reduce housing discrimination through provision of fair housing and landlord/tenant services. 3 Goal Name Increase Availability of Supportive Housing Goal
Description
• Promote the production of affordable housing, especially permanent housing with supportive services by supporting the acquisition and rehabilitation and new construction of units by developers. • Provide Tenant-Based Rental Assistance (TBRA) subsidies with supportive services. 1109 of 1325
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4 Goal Name Improve Public Facilities
Goal
Description
• Support the expansion of existing and/or new development of park and recreation facilities to the extent feasible.
• Support the expansion and/or upgrade of existing or new development of neighborhood facilities to the extent feasible.
• Support the expansion of existing or new development of child care facilities and/or services to the extent feasible.
• Support the provision of accessibility improvements to the extent feasible. • Support provision of infrastructure improvements to the extent feasible. • Support expansion or improvement of public facilities to the extent feasible. 5 Goal Name Support Public Service Programs
Goal
Description
• Support critical public service activities to the extent feasible. 6 Goal Name Fund Economic Development
Goal
Description
• Support expansion and creation of economic development opportunities to the extent feasible. 7 Goal Name Reduce Homelessness
Goal
Description
• Use Resources to rapidly re-house households.
• Reduce the number of people being homeless.
• Increase the rate at which people exit homelessness to permanent housing. 1110 of 1325
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AP-35 Projects - 91.420, 91.220(d)
Introduction
This section describes the individual activities to be funded with FY 2026-2027 Community Development Block Grant (CDBG) funding and includes a description of other local funding sources being used to further the jurisdiction’s housing and community development goals. CDBG funds can be used for four (4) general types of projects: housing, capital projects, economic development, and public services. All projects must meet at least one of HUD’s national objectives: 1) to benefit low/moderate-income people; 2) to prevent or eliminate slums and blight; and 3) to meet an urgent community development need. Even if a project is suitable for one of the City’s eligible categories, it must also pass the low- and moderate-income benefit test. In general, a project meets this standard if at least 51% of the beneficiaries have low to moderate incomes (i.e., incomes at or below 80% of Area Median Income) or if the project benefits an area (e.g., census tracts, service area, neighborhood, etc.) with a majority of lowand moderate-income people. Funded projects are required to document the income levels of persons and households receiving these services.

After assessing the City's housing and community development priority needs, evaluating the Five-Year Strategic Plan objectives for FY 2025-2030, and analyzing CDBG eligibility criteria, the City is proposing to allocate its available CDBG and HOME funding to the following eligible funding categories: Minor Home Repair, Public Services, Fair Housing, General Administration, and public facility improvements. # Project Name
1 Minor Home Repair Rehabilitation Grant Program
2 Spectrum Community Services
3 Union City Family Center
4 Safe Alternatives to Violent Environments (SAVE)-Crisis Response 5 Community Child Care Council (4Cs) of Alameda County
6 Fair Housing-ECHO Housing
7 CDBG Program Administration
8 Teen Community Workshop
9 Mark Green Sport Center HVAC
10 Abode Services-Sunrise Village Shelter
11 City of Fremont-Senior Support
Table 7 – Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs
After assessing the City's housing and community development priority needs, evaluating the Five-Year Strategic Plan objectives for FY 2025-2030, and analyzing CDBG eligibility criteria, the City is proposing to allocate its available CDBG and HOME funding to the following eligible funding categories: Minor Home 1111 of 1325
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Repair, Public Services, Fair Housing, General Administration, and public facility improvements. 1112 of 1325
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AP-38 Project Summary
Project Summary Information
1 Project Name Minor Home Repair Rehabilitation Grant Program Target Area City-wide
Goals Supported Promote Production, Rehabilitation, and Preservation Needs Addressed Housing Needs
Funding CDBG: $50,000
Description The Minor Home Repair Rehabilitation Grant Program provides home repair grants for owner-occupied, extremely-low, very-low-, and lowincome households. Matrix Code: 14A;14H Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that 20 households will be served in FY 2026-2027 using CDBG funding.

Location Description The Minor Home Repair Rehabilitation Grant Program is available citywide.

Planned Activities Provide rehabilitation, minor home repair, and accessibility improvement grants to low-income homeowners.
2 Project Name Spectrum Community Services
Target Area City-wide
Goals Supported Support Public Service Programs
Needs Addressed Community Development Needs
Funding CDBG: $10,000
Description Provide meals and health/mental health services to low and extremely low-income seniors. Matrix Code: 05M;05O
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that 87 Union City residents will be served in FY 2026-2027 using CDBG funding.
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Location Description Spectrum Community Services Senior Health Initiative 2621 Barrington Court, Hayward, CA
Planned Activities Provide meals, injury prevention exercise/education programs, wellness coaching sessions for seniors.
3 Project Name Union City Family Center
Target Area City-wide
Goals Supported Support Public Service Programs
Needs Addressed Community Development Needs
Funding CDBG: $20,000
Description Union City Family Center provides emergency food, clothing, health insurance enrollment, on-site social services, referrals, information, referrals for families to the City’s CAREavan program to provide safe overnight parking for families and individuals experiencing homelessness and living in their vehicle. The program also has family liaisons at every school site in the New Haven Unified School District.

Matrix Code:05D;05L;05M;05O
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that UC Family Center will serve 650 Union City residents in FY 26-27.

Location Description The Union City Family Center is located at 725 Whipple Road, Union City CA. However, the program also has family liaisons located at schools throughout the New Haven Unified School District.

Planned Activities The Union City Family Center (UCFC) provides a service hub for struggling families. UCFC operates a thriving Family Resource Center located in the Decoto community that functions as a hub of services.

Families can get emergency food, clothing, and household supplies; as well as sign up for many public benefits, get financial coaching, enroll children in pre-school, sign-up for the CAREavan program for families experiencing homelessness and living out of their vehicle, meet with case managers or Counselors, and get referrals and linkages to other needed services.
4 Project Name Safe Alternatives to Violent Environments (SAVE)-Crisis Response Target Area City-wide
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Goals Supported Support Public Service Programs
Needs Addressed Community Development Needs
Funding CDBG: $10,000
Description Provide services for low-income survivors of intimate partner violence and their children facing domestic violence and in need of crisis intervention services. Matrix Code: 05G;05N
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that SAVE will serve 50 Union City residents in FY 26-27.

Location Description SAVE’s main office is located at 1900 Mowry Ave. #201., Fremont, CA 94538. However, most services provided by SAVE can be conducted via their 24/7 crisis line that also offers 24/7 translation services for residents throughout Union City.

Planned Activities The program will provide services for survivors of domestic violence.

SAVE advocates will provide crisis intervention services, domestic violence education, referrals to the SAVE Housing program for victims of domestic violence, peer counseling, and legal assistance services. 5 Project Name Community Child Care Council (4Cs) of Alameda County Target Area City-wide
Goals Supported Fund Economic Development
Needs Addressed Community Development Needs
Funding CDBG: $20,000
Description Microenterprise assistance program that provides business support, education, technical assistance, and incentives to help Union City residents launch and operate in-home, family child care businesses.

Matrix Code: 18C
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that 4Cs will serve 8 Union City businesses in FY 26-

27. 1115 of 1325
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Location Description Community Child Care Council (4Cs) of Alameda County 22351 City Center Dr, Suite 100, Hayward, CA 94541
39155 Liberty Street, Room D410, Fremont, CA 94538
Planned Activities Microenterprise assistance program that provides business support, education, technical assistance, and incentives to help Union City residents launch and operate in-home, family child care businesses. 1) Recruiting and assisting 4 Union City residents in applying for child care licenses and starting up family child care businesses and 2) Provide training, resources, and consultation to 8 new and existing family child care providers in Union City.
6 Project Name Fair Housing-ECHO Housing
Target Area City-wide
Goals Supported Reduce Housing Discrimination
Needs Addressed Housing Needs
Funding CDBG: $5,785
Description The City has contracted with Eden Council for Hope & Opportunity (ECHO) to provide fair housing services for tenants and landlords including mediation and counseling services, fair housing testing, and education/outreach. Matrix Code: 05J; 05K
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that ECHO will serve 15 Union City residents in FY 26-27.

Location Description Eden Council for Hope & Opportunity (ECHO) Housing 770 A St #310
Hayward, CA 94541
Planned Activities Fair housing services for tenants and landlords including mediation and counseling services, homeless prevention services, fair housing testing, education/outreach, and a Fair housing audit.
7 Project Name CDBG Program Administration
Target Area City-wide
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Goals Supported Promote Production, Rehabilitation, and Preservation Reduce Housing Discrimination
Reduce Homelessness
Increase Availability of Supportive Housing
Improve Public Facilities
Support Public Service Programs
Fund Economic Development
Needs Addressed Housing Needs
Homeless Needs
Supportive Housing Needs
Community Development Needs
Funding CDBG: $87,713
Description General CDBG Program Administration. Matrix Code: 21A Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
Not Applicable
Location Description City-wide
Planned Activities The City will use 20% of its entitlement and 20% of the current year program income to administer the CDBG program.
8 Project Name Teen Community Workshop
Target Area City-wide
Goals Supported Improve Public Facilities
Needs Addressed Community Development Needs
Funding CDBG: $85,000
Description The City will conduct public facilities improvements to the Teen Community Workshop located in the Decoto neighborhood, a LMA qualified area. Matrix Code: 03F; 03K
Target Date 6/30/2027
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Estimate the number
and type of families
that will benefit from
the proposed
activities
1,820 persons
Location Description CDBG LMA eligible area is located at:
33623 Mission Boulevard, Union City, CA 94587
Low Mod percentage of Low-Income Persons: 65.40%; Census Tract 440200, Group 1;
Planned Activities The City plans to use CDBG funds for rehabilitation of the Teen Workshop, which is a community facility. The project will consist of remediation of the building structure to remove asbestos and lead paint both on the inside and outside of the structure.
9 Project Name Mark Green Sports Center HVAC
Target Area City-wide
Goals Supported Improve Public Facilities
Needs Addressed Community Development Needs
Funding CDBG: $130,069
Description The City will utilize CDBG funds to replace the Mark Green Sports Center HVAC system. The Mark Green Center is located next to two LMA qualified areas. Matrix Code: 03F; 03K
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
2,765 Persons
Location Description Two CDBG LMA eligible areas are located next to:
31224 Union City Boulevard, Union City, CA 94587
Low Mod percentage of Low-Income Persons: 61.50%; Census Tract 4403.04, Block Group 1; Low Mod Percentage of Low-Income Persons:

50.70%; Census Tract 4403.31, Block Group 2;
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Planned Activities The City plans to use CDBG funds to undertake emergency rehabilitation of the Mark Green Sports Center HVAC system. The City has identified the Mark Green Sports Center emergency rehabilitation improvements. The project will consist of replacing the HVAC system at the facility and the cost for installation of the HVAC system. 10 Project Name Abode Services – Sunrise Shelter
Target Area Citywide
Goals Supported Reduce Homelessness
Needs Addressed Homeless Needs
Funding CDBG: $10,000
Description Provide homeless shelter and services for individuals and families experiencing homelessness. Matrix Code: 03T, 05U, 05W;
Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that 5 Union City residents will be served in FY 2026-2027 using CDBG funding.

Location Description Sunrise Village Emergency Shelter Services 588 Brown Road, Fremont, CA 94539
Planned Activities Provide shelter, meals, and case management and housing search services to homeless adults and children.
11 Project Name City of Fremont-Senior Support
Target Area City-wide
Goals Supported Support Public Service Programs
Needs Addressed Community Development Needs
Funding CDBG: $10,000
Description Provide comprehensive senior adult services for Union City seniors and their families in the form of comprehensive in-person and video conference assessment, Care planning for direct senior client needs, service coordination to identify home care coordination, financial planning, legal assistance, transportation assistance, entitlement program access, nutrition program, personal care, and protective services. Matrix Code: 05A;
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Target Date 6/30/2027
Estimate the number
and type of families
that will benefit from
the proposed
activities
The City anticipates that 25 Union City residents will be served in FY 2026-2027 using CDBG funding.

Location Description Citywide
3300 Capitol Avenue
PO Box 5006
Fremont, CA 94537
Planned Activities Provide comprehensive assessment, care planning, service coordination, and care monitoring services for seniors. 1120 of 1325
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AP-50 Geographic Distribution - 91.420, 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City of Union City has a richly diverse racial and ethnic population. All the activities identified above are available citywide. However, the City has identified in its Consolidated Plan two geographic priority areas: Old Alvarado (now known as the Alvarado Historic District) and Decoto. These neighborhoods are lower income and have a history of blight. Although services are provided citywide, there is an emphasis to provide support in these neighborhoods. For example, the City is supporting the Union City Family Center and Centro de Servicios (with General Fund dollars) which both have locations in the Decoto neighborhood. Additionally, the City has provided CDBG dollars for public park improvements in the Old Alvarado and Decoto neighborhoods.

Furthermore, there is an identified need for housing rehabilitation in Decoto and Old Alvarado neighborhoods due to the high number of older homes in these areas. While the program is available citywide, the City continues to refer Decoto and Alvarado Historic District residents to the Minor Home Repair Grant Program. Additionally, there is a concentration of housing rehabilitation need and activity in the Tropics, a mobile home park specifically for seniors. All residents of the Tropics are seniors and many of them are extremely low-income. Many of the home repair projects at the Tropics include accessibility modifications and health/safety improvements to ensure the residents can continue to live independently.

Finally, several of the senior-based programs the City supports are based out of the City’s senior center. The concentration of these programs is to ensure that the programs reach their target clientele.

Geographic Distribution
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically Given the City’s diversity and mixed economic base, all the activities listed above are intended and open to all eligible households within Union City. However, the City does fund programs that are located within the Decoto, Old Alvarado, and Tropics neighborhoods as these areas have higher concentrations of lower income households and in the case of the Tropics, the Target Area Percentage of Funds
City-wide 100
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mobile home park is comprised entirely of seniors.

Discussion
Please see discussion above.
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• Continuing to allow mixed use zoning to encourage housing development. • Giving priority to multifamily housing project applications that provide affordable housing on-site to ensure that they are expedited.
• Deferring certain fees on affordable housing developments until issuance of a Certificate of Occupancy (COO), to help offset development costs for affordable housing.
• Continuing to implement the City's Affordable Housing Ordinance which requires developers to set aside 15% of housing units for low- and moderate-income households. Thus far, the ordinance has led to the development of 392 affordable units. The City recently amended this ordinance to maximize its effectiveness to produce affordable housing units. • In 2018, the City established an affordable housing impact fee on expansions/additions that exceed 500 square feet. • Continuing to cooperate with other governmental agencies in seeking solutions to area-wide housing problems. • The City recently further streamlined its Accessory Dwelling Unit (ADU) ordinance to align with State law and promote the development of ADUs. The City also continues to provide ADU information handouts at City Hall and online. • Continuing seeking new funding sources for affordable housing development.

Discussion
Please see discussion above.
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AP-85 Other Actions - 91.420, 91.220(k)
Introduction
The following sections describe the actions and efforts the City will make to address things such as meeting underserved needs, affordable housing, and lead based paint hazards. Many of these actions are based upon the importance of coordinating with other jurisdictions, local service providers, and the private sector. In a time with limited funding available, the City's focus will be on creativity and collaboration in order to meet more needs of the community.

Actions planned to address obstacles to meeting underserved needs The main obstacle the City faces in meeting underserved needs is a lack of funding. With the loss of RDA funds, reduced CDBG entitlement allocations, and a lack of General Fund monies to support affordable housing, the City has limited capabilities in meeting the needs of the community. In order to help address this issue and to develop a funding strategy to ensure the City is utilizing its limited funding in the most effective way, the City conducted the Public Services Needs Assessment Study. As mentioned, the Study 1) assessed the City’s current and projected demographics; 2) identified the public/social service needs of the community which included a community input process; and 3) developed a funding strategy. The public service needs and funding strategy that came out of the Study were used for the 2023 program period public service allocation process and are being used for the 2026 program period. The evaluation criteria prioritized programs that can address some of the Study’s findings such as homeless services, senior services, and youth services while maintaining previously defined prioritization like equal opportunity outreach and marketing, creating more partnerships/collaborations to reduce duplication of services, and improving the collection and reporting of metrics and achievements.

Additionally, the Alameda County Regional Analysis of Impediments to Fair Housing Choice outlines actions to be taken to increase available funding and increase fair housing choice.

These include pursuing federal, state, and local funding and strategizing for the production of additional affordable housing.

Actions planned to foster and maintain affordable housing The barriers to affordable housing in Union City continue to be high housing costs and the lack of sufficient funding for affordable housing and supportive services. Addressing these issues is a high priority for the City. Listed below are actions the City plans to take to foster and maintain 1124 of 1325
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affordable housing:
• In November 2016, Alameda County voters passed Measure A1, which provides $580 million for affordable rental and ownership housing. In early 2018, the City selected a non-profit developer to help develop a city-owned site into affordable housing. The developer has conducted extensive community outreach for the proposed project and received approval in July 2020. The City utilized its allocation of Measure A1 funding to support this affordable housing rental project, which is currently in under construction. • Preserve and maintain existing affordable housing by using federal and local funds (as available) to rehabilitate existing housing units through the City’s Minor Home Repair Rehabilitation Program. In addition, a portion of Measure A1 funds were allocated to Renew Alameda County, a new housing rehabilitation loan program to help low-income homeowner remain safely in their homes. The City will support and promote this program.
• A portion of Measure A1 funds were allocated to AC Boost, a new down payment assistance program to help lower income first time home buyers purchase a home in Alameda County. The City will support and promote this program. • Continue seeking new funding sources for affordable housing development. • The City amended its Affordable Housing Ordinance to maximize its effectiveness to produce affordable housing units. The ordinance requires developers to set aside 15% of housing units (ownership and rental) for low- and moderate-income households or pay an in-lieu fee.
• In 2018, the City established an affordable housing impact fee on expansions/additions that exceed 500 square feet.
• Continue to develop programs and policies which link identified needs with available resources.
• Continue to monitor the City’s existing below market rate (BMR) housing portfolio to ensure the units remain affordable.
• Include leveraging as a goal to the maximum extent possible in City funding application review processes.
• Support the acquisition/rehabilitation and new construction of units by nonprofit housing developers.
• Continue to provide support to nonprofit, community-based housing developers and service providers in obtaining other sources of financing. This would include supporting applications by organizations or agencies for other public and private sources of financing to leverage City funds.
• Promote joint development with other governmental or quasi-governmental agencies to 1125 of 1325
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implement housing community development programs and combine multiple sources of financing.
• Continue to coordinate with the HOME Consortium Technical Advisory Committee.

The City plans to use is 26-27 HOME funds to support its partnership with Bay Area Community Services (BACS) as part of a State Homekey Scattered Sites Project that acquired and rehabilitated one property in Union City. That property provides supportive shared rental housing for people experiencing homelessness. The City is currently providing supportive services for 4 individuals experiencing homelessness.

Actions planned to reduce lead-based paint hazards
The City does not have a lead-based paint (LBP) reduction program but does coordinate with Alameda County Community Development Agency’s Healthy Homes Department (ACHHD).

ACHHD will continue to address LBP hazards and increase access to housing without LBP hazards by conducting outreach and training, providing technical assistance, and completing lead-safe repairs that will also include healthy housing repairs and other rehabilitation services to residents and property owners of Alameda County.

ACHHD will assist low-income households with young children by completing healthy housing assessments and interventions, coordinating with agencies and community-based organizations to bring additional health and safety resources, and strengthening community capacity for addressing and incorporating lead safety compliance and healthy housing principles. ACHHD also keeps a Lead-Safe Housing Listing that informs the renting community of housing units that have been made safe from lead-based paint hazards. Only units completed through the program are eligible for the Lead Registry. These units were determined to be lead-safe following their participation in the Alameda County Affordable Lead-Safe Housing Program funded by the U.S. Department of Housing and Urban Development's Office of Healthy Homes and Lead Hazard Control.

The City will continue to provide lead-based paint testing as a component of its minor home repair program as required by HUD regulations.

Actions planned to reduce the number of poverty-level families According to the 2019-2023 American Community Survey, 15.3% of all Union City households earned under $50,000 which is considered extremely-low to very low-income depending on household size. Additionally, another 9.4% of all Union City households earned between $50,000 and $75,000 which is considered very low- to low-income depending on household 1126 of 1325
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size. Conversely, the 2025 area median income for Alameda County was $159,800. Many lower income families are not keeping pace with this median income even though it increased from the prior year. Low-income families often have difficulty securing and retaining housing and they often times do not have additional income to pay for other needs such as food, child care, health care and dependable transportation. Living from paycheck to paycheck causes families to be in constant danger of becoming homeless or returning to homelessness.

The public services programs that the City funds through the CDBG program and other sources of funding are intended to support the service needs of extremely-low and very low-income families and individuals. For example, the City supports Centro de Servicios and Union City Family Center, which provide a range of safety net services such as food, counseling, referrals, assistance with public assistance applications and legal aid.

The City and other HOME Consortium jurisdictions are also working to implement the EveryOne Home Together 2026 5-year Plan, which addresses the housing-related needs of extremely lowincome persons with serious mental illness, those living with HIV/AIDS, and those who are homeless including homeless veterans. There are also several countywide programs that help extremely low-income families. For example, the Shelter Plus Care and the Supportive Housing Programs serve the homeless through housing rental assistance and supportive services and aim to reduce the number of people living in poverty in the County. Additionally, the Alameda County Self-Sufficiency Program provides employment services, transportation, child care, drug and alcohol abuse treatment and mental health services to help individuals comply with their welfare–to-work plans.

Through this multitude of efforts, in collaboration with nonprofit agencies, the City is continually working to help reduce the number of families living in poverty. With that said, there are significant challenges to accomplishing this long-term goal. The biggest barrier to the provision of services to lower income families and those at risk of becoming homeless is the lack of adequate state, county, and federal funds for affordable housing and social service activities.

Actions planned to develop institutional structure
A primary strength of the housing and community development delivery systems is the coordination of efforts between the jurisdictions and the groups that oversee these efforts on a countywide basis. However, the City’s goal is to continue improving institutional structure; therefore, the City will be making the following efforts:
• Continue to work with the other local jurisdictions as part of the HOME Technical 1127 of 1325
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Advisory Committee (HTAC) which, meets regularly to develop housing programs and policies and to discuss matters relating to federal housing and community development funding sources available. HTAC also works to ensure that projects compliment rather than duplicate efforts and that policies and programs have some consistency throughout the HOME Consortium;
• Continue to build and improve relationships with local service providers; and • Continue to coordinate with EveryOne Home.

Actions planned to enhance coordination between public and private housing and social service agencies
The City’s Housing and Community Development (HCD) Division of the Economic and Community Development Department is charged with implementing the City's housing initiatives and coordinates actively with jurisdictions and public and private organizations. The City plans to take the following actions to enhance coordination in the implementation of the City’s Action Plan:
• Continue to work with the other local jurisdictions as part of the HOME Technical Advisory Committee (HTAC);
• Continue to engage the City’s Human Relations Commission to obtain citizen input on housing and community needs in the City;
• Continue to coordinate with EveryOne Home;
• Continue to collaborate with the Alameda County, private housing developers, lenders, and nonprofit housing developers in order to create more affordable housing; • Continue to fund nonprofit agencies serving low-income residents; and • Encourage collaboration and cooperation amongst local service providers.

Discussion
The City of Union City continues to implement policies and programs that alleviate poverty, address affordable housing needs, reduce LBP hazards, and improve institutional delivery structure and coordination between jurisdictions and service providers. 1128 of 1325
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Program Specific Requirements
AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction
The below section identifies other program specific requirements. The City of Union City plans to use at a minimum 70% of CDBG funds to assist low- and moderate-income persons.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 70.00% Discussion
The City plans to use 70% of the estimated percentage of CDBG funds to be used to benefit persons of low and moderate income for a consecutive period of one, two, or three years to apply the overall benefit to persons of low and moderate income. Overall, the City calculates its benefit to low-and moderate-income persons on an annual, one-year, basis.
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Annual Action Plan
2026
55 OMB Control No: 2506-0117 (exp. 09/30/2021)
Attachments
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Annual Action Plan
2026
56 OMB Control No: 2506-0117 (exp. 09/30/2021)
Citizen Participation Comments
TBD
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Annual Action Plan
2026
57 OMB Control No: 2506-0117 (exp. 09/30/2021)
Grantee SF-424's and Certification(s)
TBD
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RESOLUTION NO. 2026-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY ALLOCATING APPROPRIATING $4,215 FROM THE RENT
MEDIATION/EVICTION PROTECTION FUND IN FY 2026-2027 TO

SUPPORT ECHO HOUSING AS PART OF THE CDBG PUBLIC SERVICE GRANTS FY 2026-2027 BUDGET AND AUTHORIZING THE CITY

MANAGER, OR THEIR DESIGNEE, TO EXECUTE ALL DOCUMENTS

NECESSARY TO SECURE FUNDING AND AWARD THE PUBLIC
SERVICE GRANTS AND AUTHORIZING AN UPDATE TO THE FY 2026- 2027 CITY BUDGET TO ALIGN WITH THE FY 2026-2027 CDBG

ALLOCATION
WHEREAS, the City allocates Community Development Block Grant (“CDBG”) funds and General Fund monies towards its Public Services Grants process, which allocates funding to social service providers who provide support services to Union City residents; and
WHEREAS, the City is completing its CDBG FY 2026-2027 Annual Action Plan that it will be submitting to the U.S. Department of Housing and Urban Development (“HUD”) and is utilizing this process to also allocate General Fund monies as part of its Public Services Grants process; and
WHEREAS, the City’s FY 2026-2027 CDBG annual allocation was reduced from $474,879 to $438,567, a reduction of $36,312; and
WHEREAS, pursuant to CDBG regulations, the City can only allocate 15% of its CDBG grant plus 15% of any program income earned in the prior year towards service activities, which limits how many public service organizations the City can support with CDBG funding; and
WHEREAS, the reduction of the City’s FY 2026-2027 CDBG allocation has capped available funding for public services awards at $65,785 (i.e., 15% of the annual CDBG allocation for FY 2026-2027), resulting in a shortfall of $4,215 in available CDBG funds for service providers from the prior program year; and
WHEREAS, the City’s adopted FY 2026-2027 Budget authorized the award of $245,000 from the General Fund to various public service providers as part of the City’s Public Services Grants Process for FY 2025-2026 and FY 2026-2027; and WHEREAS, the public service provider Eden Council for Hope and Opportunity (“ECHO”) received a CDBG award in the amount of $10,000 per year; and WHEREAS, the appropriation of $4,215 to account 23442011-54118 [Rent Mediation/Eviction Projection Fund, ECHO Housing Program, Subgrants] for FY 2026- 2027 will allow the ECHO Housing service provider to maintain its original award amount of $10,000 for the final year of the two-year grant cycle; and 1133 of 1325
Resolution No.2026-XXX
ECHO Housing Allocation for FY 2026-2027

WHEREAS, this CDBG grantee will be the only grantee to receive funding from the Eviction & Harassment Protection Program Fund, as all other CDBG grantees were able to maintain the same funding amount for public service from their year one award, despite the reduction in the City’s Annual CDBG allocation; and WHEREAS, staff recommends an appropriation of $4,215 to account 23442011- 54118 [Rent Mediation/Eviction Projection Fund, ECHO Housing Program, Subgrants] in FY 2026-2027 to support ECHO Housing as part of the Public Service Grant process for FY 2026-2027; and
WHEREAS, the City’s current Budget reflects the same yearly CDBG allocation for FY 2025-2026 and FY 2026-2027 as this was the most up-to-date information the City had at the time the budget was adopted in June 2025; and WHEREAS, staff recommends the City Council update the FY 2026-2027 City Budget to align with the FY 2026-2027 CDBG Allocation.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Union City does hereby approve an appropriation of $4,215 from the Rent Mediation/Eviction Projection Fund in FY 2026-2027 to support ECHO Housing.

BE IT FURTHER RESOLVED that the total non-CDBG funds being allocated by the City to support its Public Service Grant Program will be $249,215.

BE IT FURTHER RESOLVED that the City Council of the City of Union City does hereby authorize the City Manager, or their designee, to execute all documents necessary to secure funding and award the public services grants.

BE IT FURTHER RESOLVED that the City Council of the City of Union City does hereby authorize an update to the FY 2026-2027 City Budget to align with the FY 2026- 2027 CDBG Allocation.
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Resolution No.2026-XXX
ECHO Housing Allocation for FY 2026-2027

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Resolution No.2026-XXX
ECHO Housing Allocation for FY 2026-2027

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
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CDBG Funding CDBG Public Services
Estimated FY 26-27 CDBG Allocation 438,567 15% of CDBG Allocation 65,785 Estimated Program Income* - 15% of Prior Year (25-26) Program Income* - Total CDBG Funding Available 438,567 Public Services Spending Limit 65,785 Estimated 26-27 HOME Funds** 124,703 CDBG Administration General Fund - Public Service Contracts 249,215 20% of CDBG Allocation 87,713 20% of Current Year (26-27) Program Income -
Total Funds Available 812,485 CDBG Administration Spending Limit 87,713 Activity HOME General Fund Total
Administration
CDBG Administration 87,713 - - 87,713
HOME Administration - 6,563 - 6,563
Administration Subtotal 6,563 94,276
Public Facility Improvement Projects
- - - -
Teen Community Workshop 85,000 - - 85,000
Mark Green Center-Emergency HVAC Repair 130,069 - - 130,069 Public Facilities Subtotal - - 215,069
-
Housing Programs
Minor Home Repair Program 50,000 50,000
Tenant Based Rental Assistance 29,535 29,535
BACS Project Reclamation project - 88,605 - 88,605
- - - -
Housing Programs Subtotal 118,140 - 168,140
Public Services
- - -
Abode Services-Sunrise Village Shelter - 5,000 15,000
- 155,000 155,000
- - 10,000
Community Resources for Independent Living (CRIL) - 15,000 15,000 - 4,215 10,000
- 15,000 15,000
- 10,000 10,000
Safe Alternatives to Violent Environments (SAVE)-Crisis Response - - 10,000 Safe Alternatives to Violent Environments (SAVE)-Youth Program - 10,000 10,000 Service Opportunity for Seniors-Meals on Wheels - 15,000 15,000 Spectrum Community Services-Senior Meals - 5,000 15,000 - 15,000 35,000
Public Services Subtotal 249,215 315,000
Microenterprise
- - 20,000
Microenterprise Subtotal 20,000
Total 438,567 124,703 249,215 812,485
*Estimated FY 26-27 Program Income(PI) = $0; any PI will be allocated to Public Facilities. None added to admin or public services. *** Portion of Eviction & Harassment Protection Fee can be utilized to cover the decrease in available funding. **Portion of Admin for HOME goes to ALCO as HOME Consortium Lead = $6,563; $1 rounding based off allocation provided by ALCO will go towards their administrative portion;
Union City Family Center 20,000
65,785
4Cs of Alameda County - Microenterprise 20,000
20,000
10,000
City of Fremont - Senior Support 10,000
-
ECHO Housing-Fair Housing*** 5,785
Immigration Institute of the Bay Area -
Legal Assistance for Seniors -
10,000
-
-
Centro de Servicios – Decoto Center -
Attachment 3: 2026-2027 Budget
Available Funding CDBG Spending Limits
2026-2027 Budget
CDBG
87,713
215,069
50,000
-
10,000
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Item 5.1 Public Hearing and Adopt Two Resolutions:
1) Approving the Submittal of the FY 2026-2027
Community Development Block Grant (CDBG) Annual
Action Plan to U.S. Department of Housing and Urban
Development (HUD); and
2) Approving the Appropriation of $4,215 in Rent
Mediation/Eviction Protection Funds to Support ECHO
Housing as Part of the FY 2026-2027 Public Service
Grant Process and Updating the FY 2026-2027 City
Budget to Align with the FY 2026-2027 CDBG Allocation
May 26, 2026
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2 Background
• City receives annual allocation of
CDBG funding
• Second year of the Two-Year Grant
cycle
• Required to prepare an Annual Action
Plan: • Assess community need • Identifies resources • Outlines strategy to address needs
• Delayed allocation of CDBG funds • Submission deadline is June 3, 2026
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3 Available Funding – Year 2 of CDBG Grant Cycle
CDBG
FY 26-27 CDBG Allocation $ 438,567
Estimated Program Income $ -
CDBG Subtotal $ 438,567
FY 26-27 HOME Funds
General Fund – Public Service Grants
Eviction Protection & Harassment Fee
$124,703
$245,000
$ 4,215

Total Funds
__________
$ 812,485
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4 Proposed Activities – Year 2 of CDBG Grant Cycle
ACTIVITY CDBG HOME General
Fund/Eviction
Protection Fee
Total
Administration $ 87,713 $ 6,563 - $ 94,276
Teen Bike Workshop $ 85,000 - - $ 85,000
Mark Green Center – Emergency
HVAC Repair
$130,069 $ 130,069
Minor Home Repair Program $ 50,000 - - $ 50,000
Tenant-Based
Rental Assistance Program
- $ 29,535 - $ 29,535
BACS Project Reclamation project - $ 88,605 $ 88,605
Public Services $ 65,785 - $249,215 $ 315,000
Microenterprise Assistance $ 20,000 - - $ 20,000
Total $ 438,567 $124,703 $249,215 $812,485
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5 Teen Bike Workshop - $ 85,000 (CDBG)
• Project located in a Low/Mod Area Benefit (LMA)-Eligible Census Tract • Current Phase of Project includes:
• Remediation of building structure to remove asbestos & lead-based paint • Remediation will take place both inside and outside building 1142 of 1325

6 Mark Green Sports Center-Emergency HVAC Repairs- $130,069 (CDBG)
• Project is adjacent to two Low/Mod Area Benefit (LMA)-Eligible Census Tract • Project Includes:
• Replace and install the HVAC system
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7 Minor Home Repair Program - $50,000 (CDBG)
• City’s Housing Rehabilitation Program
• Minor home repair &
accessibility – CDBG
• Minor Home repair consists of
emergency repairs to plumbing,
electrical, carpentry, shower grab
bars, etc.
• City recommends maintaining its
relationship with the Alameda County
Healthy Homes Department
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8 Tenant Based Rental Assistance (TBRA)- $29,535 (HOME) Tenant-based rental assistance
program for Union City residents
Rental assistance up to 24 months for
low-income families at risk of
homelessness
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9 BACS Project Reclamation project- $88,605 (HOME)
• BACS Project Reclamation project is a
“scattered site model” for individuals facing
homelessness
• BACS acquired single-family home property
in Union City as part of its Homekey award
• BACS is currently serving 4 clients and
providing wrap around support services
• Allocated HOME funds will help clients
transitioning from this temporary housing to
permanent housing in the form of rental
assistance, security deposit assistance, and
utility assistance
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10 Public Service Grants
• City allocates two-year grants to
social service providers
• Aligned with biennial budget
• ECD staff will be bringing an
overview of the City’s current
Public Service Grant process to
City Council in July
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11 CDBG - Funding Recommendations
Public Services/Homeless
Services
Recommended
Funding
Year 2
New Haven Unified School District Union City Family Center $20,000 Spectrum Community Services Senior Services Senior Meals $10,000 Abode Services
City of Fremont
Homeless Shelter Services
Senior Support Services
$10,000
$10,000
Eden Council for Hope and
Opportunity (ECHO)
Fair Housing &
Tenant/Landlord Counseling $ 5,785*
Safe Alternative to Violent
Environments (SAVE)
Crisis Response Program for
Domestic Violence $10,000
Subtotal $65,785
Microenterprise Assistance
Community Child Care Council
(4Cs)
Child Care Initiative Project $20,000
TOTAL $85,785
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12 General Fund - Approved Recommendations
Public Services/Homeless Services
Approved Funding
Year 2
New Haven Unified School District Union City Family Center $ 15,000 Spectrum Community Services
Community Resources for Independent
Living (CRIL)
Senior Services Senior Meals
Services for Persons with
Disabilities
$ 5,000
$ 15,000
Abode Services
Service Opportunity for Seniors
Immigration Institute of the Bay Area
Homeless Shelter Services
Meals on Wheels
Legal Services
$ 5,000
$ 15,000
$ 15,000
Centro De Servicios
Legal Assistance for Seniors
Decoto Street Resource Center
Legal Services
$155,000
$ 10,000
Safe Alternative to Violent Environments
(SAVE) Youth Program $ 10,000
Total $245,000
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13 Fiscal Impact
• CDBG/HOME funded activities do
not impact the General Fund
• Recommendation of the utilization of
$4,215 in Rent Mediation/Eviction &
Harassment Funds to fully fund
ECHO Housing
• City FY 26-27 budget will be updated
to incorporate CDBG allocation
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14 Public Outreach/Next Steps
Public Outreach
• To date, the City has not received public comments on the CDBG Annual Action Plan via email or letter
Next Steps
July 1, 2026
• 2026-2027 grant cycle begins for year 2
June 3, 2026
• Submission of the FY 2026-2027 CDBG Annual Action Plan to HUD August 16, 2026
• Review and approval of FY 2026-2027 CDBG Annual Action Plan by HUD 1151 of 1325

15 Recommendations
• Hear public testimony on the 2026-2027 CDBG Action Plan • Adopt a Resolution approving the FY 2026-2027 Community Development Block Grant (CDBG) Annual Action Plan and
authorizing the City Manager to submit the FY 2026-2027 CDBG Annual Action Plan to the U.S Department of Housing and Urban Development and to execute all documents necessary to secure and award funding for the City
• Adopt a second Resolution approving the allocation of $4,215 in Eviction & Harassment Protection Funds to Support ECHO Housing as part of the FY 2026-2027 Public Service Grant Process and Updating the FY 2026-2027 City Budget to align with the FY 2026- 2027 CDBG Allocation
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housing stabilization retention rates,
or comparative program efficiency evaluations.

Instead, the Council and public are largely presented with generalized descriptions of services and broad statements regarding community benefit. That is not sufficient for evidence based public budgeting. A public funding recommendation without measurable performance analysis is not strategic governance. It is administrative inertia.

2. THE REPORT TREATS PUBLIC SERVICE FUNDING AS A PASS-THROUGH ENTITLEMENT

SYSTEM RATHER THAN A COMPETITIVE ACCOUNTABILITY PROCESS One of the clearest examples is the proposed $4,215 funding adjustment involving ECHO Housing and the Rent Mediation/Eviction Protection category. The staff report frames the adjustment as a technical response to HUD allocation changes. However, the public is never shown:
whether demand exceeded available assistance,
whether alternative programs were evaluated,
whether the funding produces measurable prevention outcomes, whether eviction prevention efforts are succeeding,
or whether the City has established objective prioritization criteria for these allocations.

The report effectively assumes that continuation equals justification, and that is sequentially backwards. Programs should justify continuation through demonstrated outcomes, not through historical participation alone.

3. THE ACTION PLAN FAILS TO CONFRONT THE CITY’S UNDERLYING FISCAL

UNSUSTAINABILITY
The broader issue is that Union City continues expanding expectations for publicly subsidized services without demonstrating how those services remain sustainable as operational costs escalate.

The report repeatedly discusses:
assistance,
services,
outreach,
community support,
and program expansion,
while largely avoiding:
long term cost drivers,
operational liabilities,
staffing sustainability,
pension exposure,
infrastructure burdens,
and realistic revenue limitations.

At some point the City must confront a difficult but unavoidable reality because public services are not self-executing. Every additional subsidy, service expansion, outreach initiative, tenant assistance program, homelessness intervention effort, or administrative compliance obligation requires:
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staffing,
overhead,
enforcement,
reporting,
technology,
legal review,
and ongoing fiscal support.

Yet the Action Plan rarely discusses sustainability in concrete operational terms. Instead, the report reads as though federal dollars exist outside ordinary fiscal gravity when in reality, they do not.

4. THE REPORT COMPLETELY FAILS TO ADDRESS REGIONAL DEMAND PRESSURES AND

NON-RESIDENT SERVICE BURDENS
One of the most glaring omissions in the entire Action Plan is the absence of meaningful discussion regarding regional demand burdens on Union City services and facilities.

Many publicly funded programs increasingly operate in environments where:
non resident usage,
regional displacement pressures,
housing spillover,
transit adjacency,
and broader Bay Area affordability dynamics substantially affect local demand.

Yet the report provides almost no serious discussion regarding:
resident versus non resident utilization,
regional service migration,
proportional taxpayer burden,
or whether Union City residents are effectively subsidizing broader regional pressures.

That omission matters because finite local resources are being allocated within a metropolitan environment where service demand increasingly crosses jurisdictional boundaries. If the City is not measuring those impacts, then the City is not fully evaluating program sustainability.

5. THE REPORT PRESENTS EQUITY LANGUAGE WITHOUT DEFINING WHAT SUCCESS

ACTUALLY LOOKS LIKE
The Action Plan repeatedly invokes concepts such as:
equity,
inclusion,
affordability,
accessibility,
and vulnerable populations.

Those are important goals, but the report rarely translates those concepts into measurable operational standards.

The public is not told:
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what specific outcomes define success,
how success is measured,
when programs are considered ineffective,
whether any programs have underperformed,
whether any applicants were rejected,
or whether any funded organizations failed prior performance expectations.

Without those standards, “equity” risks becoming a procedural justification rather than an evaluative framework. Public policy cannot be measured solely by intent. It must be measured by outcomes.

6. THE CITY’S CDBG PROCESS REMAINS INSUFFICIENTLY TRANSPARENT The report also fails to provide meaningful visibility into the underlying allocation process itself.

The public is not provided:
complete scoring rubrics,
ranking matrices,
evaluation narratives,
reviewer identities,
conflict disclosures,
comparative applicant analysis,
or detailed justification explaining why some organizations were prioritized over others.

This is especially problematic because many nonprofit funding ecosystems become institutionally selfperpetuating over time. Once organizations enter recurring funding pipelines, there is often little structural incentive for rigorous reevaluation unless governments deliberately impose strong accountability frameworks. The City should not assume continuation funding is politically or operationally neutral.

Every recurring allocation represents an ongoing public prioritization decision.

7. THE ACTION PLAN REFLECTS A BROADER GOVERNANCE PATTERN IN WHICH THE CITY

EXPANDS EXPECTATIONS WITHOUT MATCHING STRUCTURAL ACCOUNTABILITY This issue extends beyond CDBG.

Increasingly, Union City public reports:
emphasize aspirations,
emphasize values,
emphasize inclusivity,
emphasize outreach,
emphasize expansion of services,
while comparatively underemphasizing:
enforcement capacity,
operational sustainability,
cost recovery,
fiscal constraints,
measurable outcomes,
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and long-term maintenance obligations.

The result is that public expectations continue expanding while the structural discussion surrounding how the City realistically sustains those expectations remains underdeveloped.

That imbalance is becoming increasingly visible across multiple policy areas.

8. REQUEST FOR SUPPLEMENTAL ANALYSIS AND GREATER PUBLIC DISCLOSURE Before future CDBG allocations are approved, the City should provide:
detailed scoring matrices,
measurable program outcome metrics,
cost effectiveness comparisons,
resident versus non resident utilization analysis,
longitudinal program evaluations,
rejected application summaries,
fiscal sustainability projections,
and clearer standards defining program success or failure.

The public should not be asked to approve recurring federal funding allocations based primarily on generalized descriptions and goodwill assumptions.

9. CONCLUSION
The issue before the Council is not whether community services matter- they do. The issue is whether Union City is building a durable, transparent, performance-based allocation framework capable of surviving escalating fiscal pressures, increasing regional demand, and growing operational complexity.

At present, the Action Plan reads less like a rigorous accountability document and more like a continuation mechanism for existing funding structures.That is not enough. If the City expects public confidence in its allocation decisions, then future reports must move beyond generalized narratives and begin presenting the hard operational, fiscal, demographic, and performance data necessary for meaningful public oversight.

Respectfully Submitted,
Henry Soong
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City Council Staff Report Page 1 of 5 May 26, 2026
Staff Report
Agenda Item No. 6.1
DATE: May 26, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Adopting Amended and Restated Statement of Goals and Policies Regarding Use of the Mello-Roos Community Facilities Act of 1982,
Adopt a Resolution Declaring Intention to Form the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services), Designate an Initial Improvement Area Therein and Establish a Future Annexation Area, and to Levy Special Taxes Therein to Finance Certain Public Services and the Acquisition and Construction of Certain Public Facilities, and
Adopt a Resolution Declaring Intention to Incur a Bonded Indebtedness in and for the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) in an Amount not to Exceed $38,000,000 to Finance the Acquisition and Construction of Certain Public Facilities

EXECUTIVE SUMMARY
Staff recommends that the City Council adopt three resolutions: (1) a resolution adopting Amended and Restated Statement of Goals and Policies Regarding Use of the MelloRoos Community Facilities Act of 1982 (Attachment 1), (2) a resolution declaring intention to form the Community Facilities District No. 2026-1 (Station East Facilities and Services) of the City of Union City, designate an initial improvement area therein and establish a future annexation area, and to levy special taxes therein to finance certain public services and the acquisition and construction of certain public facilities (Attachment 2), and (3) a resolution declaring intention to incur a bonded indebtedness in and for the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) in an amount not to exceed $38,000,000 to finance the acquisition and construction of certain public facilities (Attachment 3).

These three actions will initiate the process to form the new community facilities district for Station East, as anticipated in the Station East Development Agreement. The final steps in forming the proposed community facilities district will occur at the City Council meeting on July 14, 2026.
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Agenda Item No. 6.1
City Council Staff Report Page 2 of 5 May 26, 2026

STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with:
• Goal C. Economic, Community Development and Public Safety - Institute forward-thinking business, land use development, housing, social services, and public safety strategies that promote community growth and innovation. • Strategy 3: Promote housing development for all income levels in the community by implementing the Housing Element, updating the zoning ordinance to include objective standards for new multi-family residential development to streamline the review of applications for housing developments, and other measures.

BACKGROUND
A community facilities district (CFD), also a Mello-Roos District, is a special-purpose district formed to finance specific public infrastructure and services. The property owners within the CFD pay a special tax in addition to their other property taxes, which is used to fund improvements and/or pay off bonds. The City has an existing CFD, CFD 2006-1, formed in 2007 to fund certain public services, including police services, fire protection and suppression services, paramedic services, and park maintenance.

The Station East Development Agreement, approved by Ordinance 886-21, requires the formation of a CFD or equivalent mechanism for the project. The priority for the CFD is to offset any temporary negative fiscal impact resulting from the Project’s location within the former Redevelopment Project Area. This temporary condition will remain in effect until 2038, when the last bond payment related to the Redevelopment Project Area will be made. The CFD also allows the developer to use the CFD mechanism to finance facilities and services. The First Amendment to the Development Agreement, approved by Ordinance 913-23, establishes the following priorities for financing services and facilities:

1. Offset the temporary fiscal imbalance due to the Project’s location in the former Redevelopment Project Area.

2. Capital facilities – remaining capacity may be used for financing capital facilities.

3. Agency Fees – remaining capacity may be used to finance agency fees.

The City has received a petition from the Lennar Corporation, the owner and developer of APN Nos. 087-0023-013-10 and 087-0023-012-00 (the “Property”), requesting the formation of the proposed community facilities district (the “CFD”) encompassing the Property, to finance:
(b) sewer system facilities, including capacity in existing facilities and sewage treatment and disposal capacity; storm drain improvements; transportation improvements, including street and traffic improvements of the City; park improvements; and such other improvements authorized by the Act; and (b) the incidental expenses proposed to be incurred are: (i) the cost of planning and designing the public facilities thereof, (ii) all costs associated with the formation of the proposed community facilities district, the issuance of the bonds thereof, the determination of the amount of and collection of special taxes, the payment of 1159 of 1325
Agenda Item No. 6.1
City Council Staff Report Page 3 of 5 May 26, 2026
special taxes, and costs otherwise incurred to carry out the authorized purposes of the proposed community facilities district, and (iii) any other expenses incidental to the construction, completion, and inspection of the public facilities.

A special tax will be levied upon property owners within the Property to address the items listed above and will be known as the Facilities Special Tax.

In addition to the facilities to be financed, the CFD will also fund additional public services required for the development of the Property. A separate special tax will be levied upon property owners within the Property and will be known as the Services Special Tax.

The City has assembled a team of experts to advise the City on various aspects of the CFD, including:
 NBS Government Finance Group
 Jones Hall, Bond Counsel
 Columbia Capital Management, LLC
 Raymond James Financial, Inc.

DISCUSSION
Approval of the resolutions described above is the first step to establishing the proposed CFD for the Property. The resolutions:
 adopt new and restated goals and policies for use of the Mello-Roos Community Facilities Act of 1982
 approve the boundaries of the proposed community facilities district;  specify the Facilities to be financed;
 specify the Services to be financed;
 specify that special taxes will be levied on all parcels of taxable property in the proposed community facilities district to pay principal of and interest on the bonds of the district, which will be issued to finance the Facilities;  specify that special taxes will be levied on all parcels of taxable property in the proposed community facilities district, which will be issued to finance the Services;  declare the necessity to incur bonded indebtedness; and  Schedule public hearings regarding the formation of the community facilities district and the necessity to incur bonded indebtedness
To use the Mello-Roos Community Facilities Act of 1982, a local jurisdiction must adopt local goals and policies as provided in Government Code Section 53312.7. The City adopted local goals and policies in 1997. The requirements for the content of local goals and policies have changed since 1997, and some provisions of the adopted policies are outdated. A draft resolution to adopt the Amended and Restated Statement of Goals and Policies, in conformance with current requirements, has been prepared for consideration by the City Council (Attachment 1).

A resolution of intention to form the CFD Community Facilities District No. 2026-1 (Station East Facilities and Services) is also attached for the City Council’s consideration (Attachment 2), and includes the following:
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Agenda Item No. 6.1
City Council Staff Report Page 4 of 5 May 26, 2026
 Exhibit A: Rate and Method of Apportionment of Special Tax  Exhibit B: Authorized Facilities and Services
 Exhibit C: Form of Notice of Public Hearing
Adoption of the resolution of intention to form the CFD is required to identify the purpose of the CFD, identify the method of levy and apportionment of the special tax, and set the date for public hearing. See Attachment 4 for the CFD Boundary map on file containing the proposed boundaries. The proposed Improvement Area No. 1, shown on the map, includes the portion of Station East now owned by Lennar, the subject of the first Final Map, which will be before the City Council for approval in the next few weeks. The remaining areas of Station East in the Boundary Map are shown as potential annexation areas that could be added to the CFD at a later date. The portions of the already-entitled Station East (Planning Areas 1, 2, and 3) will be annexed into the CFD before the issuance of a building permit, as required by the Tentative Map conditions of approval and the Development Agreement. The portions of Station East south of Bradford Way have not received entitlements and would be eligible to be annexed into the CFD once entitlements are received.

The resolution declaring intention to incur bonded indebtedness is required to establish the City’s intent to issue and sell bonds, define the maximum debt amount, and set the date for a public hearing (Attachment 3).

The final steps for the formation of the proposed community facilities district are planned to occur at the City Council’s meeting on July 14, 2026. The City Council will conduct a public hearing on such day and, following the public hearing, may adopt resolutions to form the proposed community facilities district, determine the necessity to incur bonded indebtedness, and call a special election of the qualified voters to approve the levy of special taxes and incur bonded indebtedness, conduct a special election, and declare election results.

FISCAL IMPACT
City staff will work with Lennar Corporation, the owner and developer, to issue up to $38,000,000 in bonds to pay for sewer system facilities, storm drain improvements, transportation improvements, park improvements, and incidental expenses within the proposed CFD. The property owners of the proposed CFD will be fully responsible for paying any fees and expenses associated with the Facilities or Services to be financed.

This includes all debt service payments and a separate special tax for services. Any bonds issued will not be obligations of the City but of the CFD.

RECOMMENDATION
Staff recommends that the City Council adopt three resolutions: (1) a resolution adopting Amended and Restated Statement of Goals and Policies Regarding Use of the MelloRoos Community Facilities Act of 1982 (Attachment 1), (2) a resolution declaring intention to form the Community Facilities District No. 2026-1 (Station East Facilities and Services) of the City of Union City, designate an initial improvement area therein and establish a future annexation area, and to levy special taxes therein to finance certain public services 1161 of 1325
Agenda Item No. 6.1
City Council Staff Report Page 5 of 5 May 26, 2026
and the acquisition and construction of certain public facilities (Attachment 2), and (3) a resolution declaring intention to incur a bonded indebtedness in and for the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) in an amount not to exceed $38,000,000 to finance the acquisition and construction of certain public facilities (Attachment 3).

Prepared by: Leslie Carmichael, Consultant Planner
Submitted by: Carmela Campbell, Economic and Community Development Director Attachments

1. Draft Resolution Adopting Amended and Restated Statement of Goals and Policies Regarding Use of the Mello-Roos Community Facilities Act of 1982 a. Exhibit A - City of Union City Amended and Restated Statement of Goals and Policies Regarding Use of the Mello-Roos Community Facilities Act of 1982

2. Draft Resolution Declaring Intention to Form Community Facilities District No. 2026-1 (Station East Facilities and Services), Designate an Initial Improvement Area therein and Establish a Future Annexation Area, and to Levy Special Taxes Therein to Finance Certain Public Services and the Acquisition and Construction of Certain Public Facilities
a. Exhibit A – Rate and Method of Special Tax
b. Exhibit B – Authorized Facilities and Services
c. Exhibit C – Form of Notice of Public Hearing

3. Draft Resolution Declaring Intention to Incur a Bonded Indebtedness in and for City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) in an Amount Not to Exceed $38,000,000 to Finance the Acquisition and Construction of Certain Public Facilities

4. Boundary Map of Community Facilities District 2026-1(Station East Facilities and Services)
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RESOLUTION NO. 2026-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

ADOPTING AMENDED AND RESTATED GOALS AND POLICIES

REGARDING USE OF MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
WHEREAS, the City of Union City (the “City”) desires to assist community and economic development through the establishment of Mello-Roos community facilities districts; and
WHEREAS, the financial soundness of community facilities districts is important for the creditworthiness of the City; and
WHEREAS, Government Code Section 53312.7(a) requires that cities have a standard policy on the formation of Mello-Roos community facilities districts and the issuance of bonds by such districts; and
WHEREAS, the previously adopted goals and policies adopted by Resolution No. 9058-97 are outdated and do not meet the current requirements of Government Code Section 53312.7(a), and the new policies are designed to ensure compliance with all applicable legal standards.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:

1. The above recitals are true and correct, and the City Council so finds and determines.

2. The City Council hereby rescinds Resolution No. 9058-97 in its entirety.

3. The City Council hereby adopts the Amended and Restated Statement of Goals and Policies Regarding Use of the Mello-Roos Community Facilities Act of 1982, attached as Exhibit A.

4. This Resolution shall take effect immediately upon its adoption. 1163 of 1325
Resolution No. 2026-XXX
Amended and Restated Goals and Policies-Mello-Roos

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
ATTACHMENT:

1. Exhibit A – Amended and Restated Goals and Policies Regarding Use of Mello-Roos 1164 of 1325
A-1

EXHIBIT A

CITY OF UNION CITY

AMENDED AND RESTATED

STATEMENT OF GOALS AND POLICIES

REGARDING USE OF THE
MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982
Section 1. Purpose and Scope
This document sets forth the goals and policies of the City of Union City (the “City”) concerning the use of the Mello-Roos Community Facilities Act of 1982, being Section 53311 and following of the California Government Code (the “Act”), with respect to the establishment of community facilities districts (“CFDs”). It has been prepared pursuant to the requirements of Section 53312.7 of the Act, and supersedes in its entirety all prior statements of goals and policies concerning CFDs, including those adopted in 1997.

The purpose of this Statement of Goals and Policies is to guide the financing of public facilities (“Facilities”) and/or public services (“Services”) within the City. The underlying principles behind this policy are the protection of the public interest, assuring fairness in the application of special taxes to property owners, assuring full disclosure of the existence of any special tax liens, ensuring the creditworthiness of any CFD special tax bonds, protecting the City’s credit and financial position, and assuring that applicants for CFD proceedings pay all costs associated with any CFD formation.

Section 2. Compliance with the Act
It is the policy of the City that, except as specifically limited by these goals and policies, the City Council may exercise all rights, powers, and authorities granted to it by the Act. Any inconsistency between these goals and policies and the Act shall be resolved in favor of the Act.

Section 3. Authorized Facilities and Services
Facilities eligible for financing are all authorized facilities outlined in the Act, including, but not limited to, parks and open space, water, sanitary, and storm sewer and related facilities, roads and interchanges, bridges and paseos, and related landscaping and lighting. Services eligible to be financed are any services allowed under the Act, including but not limited to services related to parks and open space, water, sanitary and storm sewer and related facilities, roads and interchanges, bridges and paseos, including related landscaping and lighting.

Section 4. Financing Priorities
The City shall prioritize financing City-owned facilities and funding City-provided services. The financing of facilities to be owned and operated by other public agencies through a Joint Community Facilities Agreement (JCFA) shall be evaluated on a caseby-case basis. In addition, the City shall prioritize the acquisition of developerconstructed facilities over City-constructed facilities, for which the City is responsible for complying with federal tax-exemption timing requirements. 1165 of 1325
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Section 5. Special Tax Requirements
a. Reasonable Basis of Apportionment.

Special taxes must be allocated and apportioned on a reasonable basis to all categories and classes of property (other than exempt property) within the CFD.

Exemptions from the special tax may be given to parcels that are publicly owned, are held by property owners’ associations, are used for a public purpose, such as permanent open space or wetlands, or are affected by public utility easements that make their utilization impractical for any purpose other than those outlined in the easement. b. Equity of Tax Allocation Formulas.

It is a goal that any special tax levied pursuant to the Act be allocated equitably against all similar use parcels within any CFD. Towards this end, the City will engage a qualified special tax consultant to assist in developing the rate and apportionment method for any special tax proposed in connection with a CFD.
c. Rate and Method of Apportionment of Special Taxes.

The rate and method of apportionment of the special tax for any CFD (each, a “Rate and Method”) shall adhere to the following requirements:

1. The Rate and Method must be structured to produce special tax revenues sufficient to (a) pay scheduled debt service on all bonds issued for the Facilities, (b) pay the annual cost of authorized Services, if applicable, (c) pay an amount equal to any anticipated shortfall in special tax revenues and/or bond debt service due to delinquencies or projected delinquencies in the payment of special taxes, (d) fund any amounts required to establish or replenish any reserve fund established for such bonds, (e) to pay for Facilities directly, so long as such levy does not increase the rate on any land use class other than Developed Property, (f) pay the costs of formation of each CFD or reimburse the City for the costs of formation of the district previously paid out of other City funds, and (g) pay annual administrative expenses of the CFD.

2. In any case, the Rate and Method must generally be structured such that the projected maximum special tax that could be levied in any Fiscal Year would produce special tax revenues at least equal to (a) 110% of projected annual debt service on all bonds for the calendar year commencing in such Fiscal Year, plus (b) projected administrative expenses of the CFD for the calendar year commencing in such Fiscal Year.

3. In general, the Rate and Method shall be structured in such a way that for each owner-occupied residential dwelling unit, the projected maximum special taxes plus all other estimated property taxes do not exceed 2% of the estimated value of the unit at the time of formation.

4. The Rate and Method may contain a mechanism by which the Maximum Special Taxes may be lowered without action by the City Council before the issuance of bonds.
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5. The Rate and Method may contain an option allowing the prepayment, in whole or in part, of the special tax obligation for an individual parcel for any portion of the special tax authorized to finance Facilities.

6. At its discretion, the City may permit annual escalation of the maximum special tax authorized to be levied on parcels within a CFD established for financing Facilities, in an amount not to exceed the maximum amount permitted under the Act. The City may permit annual escalation of the maximum special tax authorized to be levied on parcels within a CFD established for financing Services, in an amount determined (in the sole discretion of the City) to most accurately reflect the projected increase in the cost of financing such Services over the project life of the Services.

A special tax authorized to pay for Services shall have no termination date unless otherwise established by the City Council.

Section 6. Credit Quality Requirements for Special Tax Bonds a. Terms and Conditions of Special Tax bonds.

All terms and conditions of any bonds issued by the City for any CFD, including, without limitation, the sizing, timing, term, interest rates, discount, redemption features, flow of funds, investment provisions, and foreclosure covenants, shall be established by the City. Each bond issue shall be structured to protect bond owners adequately and to avoid negatively impacting the City’s access to the municipal bond market. In general, the following shall serve as minimum bond requirements:

1. A reserve fund shall be established for each bond issue to be funded out of the bond proceeds in an amount consistent with federal tax law.

2. Interest shall be capitalized for a bond issue only so long as necessary to place the special tax installments on the County property tax roll; however, interest may be capitalized for a longer term to be established in the sole discretion of the City Council on a case-by-case basis, not to exceed an aggregate of 24 months.

3. In instances where multiple series of bonds are to be issued for a CFD, the City shall determine which facilities shall be financed from the proceeds of each series of such bonds.

4. The term of any bond issue shall not exceed 40 years.

5. The City shall not be required or expected to make any payment of the bonds out of its general funds or other available funds.

Section 7. Minimum Value-to-Debt Ratio
The City shall comply with the provisions of Section 53345.8 of the Act or any other applicable provisions of the Act pertaining to the Minimum Value-to-Debt Ratio applicable to the issuance of the bonds of any CFD. For purposes of this section, “Minimum Valueto-Debt Ratio” means the aggregate value of all of the properties within a CFD that are subject to the levy of special taxes to pay debt service on the proposed issuance of bonds (based on assessed values, appraised values or a combination thereof) will be at least 1167 of 1325
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three times the sum of (a) the proposed principal amount of such bonds and (b) the principal amount of all other bonds outstanding that are secured by a special tax levied on the taxable property within a CFD or a special assessment levied on taxable property within the CFD.

Section 8. Responsible Department
In the formation proceedings for each CFD, the City Council shall set forth the designated official of the City that will serve as the contact person and who is responsible for: (i) preparing the annual roll of special tax obligations with respect to any CFD; (ii) providing information to interested persons regarding the current and estimated future tax liability of owners or purchasers of real property subject to the special tax lien; and (iii) furnishing notices of special tax as required by Section 53340.2 of the Act.

Subject to the policies of the City, and as permitted by applicable law, the City may obtain the assistance of a qualified consultant to perform any of the duties set forth above or pertaining to the City.

Section 9. Transparency and Notification
The City will take the following steps to ensure that prospective property purchasers and others are fully informed about their taxpaying obligations imposed under the Act:
a. The City Council will conduct all proceedings required by the Act in the manner required by the Ralph M. Brown Act (Section 54950 and following of the California Government Code);
b. Staff will cause a map of the boundaries of any proposed CFD and/or future annexation area to be recorded in the Office of the County Recorder within the time periods specified in the Act;
c. Staff will give notice, pursuant to Section 53322 of the Act, prior to holding any public hearing on the establishment of a CFD;
d. Staff will record a notice of special tax lien in the form and manner specified by the Act.
e. Staff will, through the CFD Administrator, furnish a notice to any individual requesting the notice or any owner of property subject to a special tax, in the form set forth in Section 53340.2(c) of the Act, to a special tax levied by the local agency within five working days of a request for such notice. Records of receipt of the notice will be retained for future reference. The City may establish a reasonable fee for this service. f. Staff will annually file the disclosure report required by Section 53359.5(b) of the California Government Code, and, if applicable, the report required by Section 53359.5(c) of the California Government Code.

Section 10. Appraisal.

In general, the definitions, standards, and assumptions to be used in appraisals for CFDs established by the City have considered the provisions set forth in the Appraisal 1168 of 1325
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Standards for Land Secured Financings published by the California Debt and Investment Advisory Commission and originally dated May 1994, as subsequently modified or amended (the “CDIAC Guidelines”). Notwithstanding the foregoing, if there is a conflict between the definitions, standards, or assumptions in the CDIAC Guidelines and the corresponding definitions, standards, or assumptions in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation (“USPAP”), USPAP shall govern.

Section 11. Interpretation, Amendments, and Waivers.

This policy is intended to be general in nature, and the specific details will depend on the nature of each CFD formation and CFD bond financing. Any policy or goal stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that such amendment or supplement is required to ensure compliance with bond underwriting requirements, the Act, or any other laws of the State of California, or federal laws of the United States of America. The City Council’s approval of any CFD formation or CFD bond financing shall be conclusive evidence of the City’s waiver of any conflicting provision herein.
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RESOLUTION NO. 2026-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

DECLARING ITS INTENTION TO FORM THE CITY OF UNION CITY
COMMUNITY FACILITIES DISTRICT NO. 2026-1 (STATION EAST

FACILITIES AND SERVICES), DESIGNATE AN INITIAL IMPROVEMENT

AREA THEREIN AND ESTABLISH A FUTURE ANNEXATION AREA,

AND TO LEVY SPECIAL TAXES THEREIN TO FINANCE CERTAIN

PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF

CERTAIN PUBLIC FACILITIES
WHEREAS, the City Council (the “City Council”) of the City of Union City (the “City”), having received a request from the owner of land proposed to be included in a community facilities district, has duly considered the advisability and necessity of establishing a community facilities district in an area of the City described herein and levying special taxes therein to finance certain public services and the acquisition and construction of certain public facilities in and for such community facilities district under and pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, the City Council desires to proceed with the establishment of a community facilities district to finance costs of public services and public infrastructure necessary or incidental to new development in the City; and WHEREAS, the Act provides that the legislative body of the City may provide that a portion or portions of the district be designated as one or more improvement areas and that after the designation of an improvement area, all proceedings for purposes of the Act, including proceedings for approval of the appropriations limit, the rate and method of apportionment and manner of collection of special taxes, and the authorization to incur bonded indebtedness for the parcel or parcels in such improvement area shall apply only to the improvement area; and
WHEREAS, pursuant to Section 53339.3 of the Act, the City Council further desires to provide for future annexation of territory to the proposed community facilities district; and
WHEREAS, the City Council has determined that the establishment of such community facilities district is consistent with the local goals and policies concerning the use of the Act that have been adopted by the City Council and are now in effect; and WHEREAS, the City Council is fully advised in this matter.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:

1. the City Council intends to establish a community facilities district within the City and to provide that certain territory within the City may be annexed thereto in the future upon the unanimous approval of the owner of each parcel or parcels to be annexed, and to establish improvement areas within the community facilities district, all under the 1170 of 1325
Resolution No. 2026-XXX
Station East Resolution of Intention to Form CFD

terms of the Act for the purpose of financing costs of public services and public infrastructure necessary or incidental to new development in the City.

2. The name for the proposed community facilities district is the “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (the “CFD”). Pursuant to Section 53350 of the Act, all of the territory to be initially included in the CFD (as shown on the map described in Section 3 hereof) is hereby designated as “Improvement Area No. 1 of City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (“Improvement Area No. 1”).

The name proposed for the territory proposed to be annexed into the CFD in the future is “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) (Future Annexation Area) (the “Future Annexation Area”).

3. The proposed boundaries of the CFD, Improvement Area No. 1 and the Future Annexation Area are as shown on the map entitled, “Proposed Boundaries of City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) Improvement Area No. 1 and Future Annexation Area,” on file with the City Clerk, which the City Council approves as the map describing the extent of the territory included in the proposed CFD, Improvement Area No. 1 and the Future Annexation Area.

The City Council finds that the map is in the form and contains the matters prescribed by Section 3110 of the California Streets and Highways Code. The City Council directs the City Clerk to certify the adoption of this resolution on the face of the map, and to file a copy of the map in the office of the City Clerk in accordance with Section 3111 of the California Streets and Highways Code and within 15 days of the date of adoption of this resolution but in no event later than 15 days prior to the public hearing provided for herein, transmit the map to the County Recorder for recording in the Book of Maps of Assessment and Community Facilities Districts in the office of the County Recorder of the County of Alameda.

4. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities (as defined below), and/or the principal and interest as it becomes due on bonds issued by the City for the CFD to construct and/or acquire the Facilities, a facilities special tax (the “Facilities Special Tax”) sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the City Council or its designee shall determine, including direct billing of the affected property owners.

Except to the extent that funds are otherwise available to the CFD to pay for the Services (as defined below), a services special tax (the “Services Special Tax” and together with the Facilities Special Tax, the “Special Tax”) sufficient to pay the costs thereof, secured by recordation of a continuing lien against all non-exempt real property in the CFD, will be levied annually within the CFD, and collected in the same manner as ordinary ad valorem property taxes, or in such other manner as the City Council or its designee shall determine, including direct billing of the affected property owners.

The proposed rate and method of apportionment of the Special Tax among the parcels of real property within the CFD, in sufficient detail to allow each landowner within 1171 of 1325
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Station East Resolution of Intention to Form CFD

the proposed CFD to estimate the maximum amount such owner will have to pay, are described in Exhibit A attached hereto and hereby incorporated herein.

Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.

All or any portions of territory that are annexed into the CFD from the Future Annexation Area or otherwise may be annexed into a separate improvement area (each, a “Future Improvement Area”) then in existence or to be formed at the time of such annexation, and no additional hearings or procedures are required by the City Council.

The designation of a parcel or parcels as a Future Improvement Area shall be specified and approved by the Unanimous Approval executed and delivered to the City by the owner of each parcel or parcels to be annexed, at the time that the parcel or parcels are annexed to the CFD. After the designation of a parcel or parcels as an improvement area, all proceedings for approval of an appropriations limit, the rate and method of apportionment, and the manner of collection of special taxes, and the authorization to incur bonded indebtedness for such improvement area may differ from other areas of the CFD, all as set forth in the Unanimous Approval. They shall apply only to the parcel or parcels within such improvement area.

The City Council hereby finds that the provisions of Section 53313.6, 53313.7, and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD, Improvement Area No. 1, and any Future Improvement Area.

5. The type of public facilities proposed to be financed by the CFD and each improvement area therein pursuant to the Act shall consist of those items listed as facilities, and incidental costs related thereto, on Exhibit B (the “Facilities”), and the type of public services proposed to be financed by the CFD and each improvement area therein pursuant to the Act shall consist of those items listed as services, and incidental costs related thereto, on Exhibit B (the “Services”). The financing of the costs of Facilities may include, without limitation, the payment of principal of and interest on bonds together with all direct, indirect, periodic, and/or other related costs (including, without limitation, costs of administering the CFD, levying the Facilities Special Tax, and administering the bonds, and establishing and replenishing reserve funds). The City Council hereby finds and determines that the public interest will not be served by allowing the property owners in the CFD to enter into a contract in accordance with Section 53329.5(a) of the Act.

Notwithstanding the foregoing, the City Council, on behalf of the CFD, may enter into one or more contracts directly with any of the property owners with respect to the construction and/or acquisition of any portion of the Facilities.

The Council hereby determines that the Services are necessary to meet increased demands for such services placed upon the City as a result of development occurring within the area of the CFD. The Services are in addition to those provided in the territory of the CFD as of the date hereof. They will not supplant services already available within the CFD's territory as of the date hereof.
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Resolution No. 2026-XXX
Station East Resolution of Intention to Form CFD

6. It is the intention of the City Council that, except as may otherwise be provided by law or by the rate and method of apportionment of the Special Tax for the CFD, all lands owned by any public entity, including the United States, the State of California and the City, or any departments or political subdivisions thereof, shall be omitted from the levy of the Special Tax. If a portion of the property within the CFD shall become for any reason exempt, wholly or in part, from the levy of the Special Tax, the City will, on behalf of the CFD, increase the levy to the extent necessary upon the remaining property within the CFD which is not exempt to yield the required debt service payments and other annual expenses of the CFD, if any, subject to the provisions of the rate and method of apportionment of the Special Tax. It is anticipated that the Facilities Special Tax and Services Special Tax will be billed as separate line items on the regular property tax bill. However, the City Council reserves the right, under Section 53340, to utilize any method of collecting the Facilities Special Tax and Services Special Tax which it shall, from time to time, determine to be in the best interests of the City, including, but not limited to, direct billing by the City to the property owners and supplemental billing.

The proposed rate and method of apportionment of the Special Tax among the parcels of real property within a Future Improvement Area, in sufficient detail to allow each landowner within such Future Improvement Area to estimate the maximum amount such owner will have to pay, shall be set forth in the applicable Unanimous Approval. The Special Taxes shall not be levied in a Future Improvement Area after the fiscal year identified in the rate and method for such Future Improvement Area, except that a special tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the special tax levied against any parcel in a Future Improvement Area for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within such Future Improvement Area by more than 10 percent.

For Future Improvement Areas, a different Rate and Method may be adopted than those adopted for Improvement Area No. 1 if the annexed territory is designated as a separate zone or improvement area. No supplements to the Rate and Method for any of the Future Improvement Areas, and no new rate and method will cause the maximum tax rate in the then-existing territory of the CFD (including Improvement Area No. 1) to increase. The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the facilities to be financed, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for such improvement area shall be identified and approved in the Unanimous Approval executed by the applicable property owner(s) in connection with each annexation to the CFD from the Future Annexation Area. The annexation and related matters described in the Unanimous Approval shall be implemented and completed without the need for City Council approval as long as the following conditions are met:
(i) The rate and method of apportionment of special tax for the Future Improvement Area is prepared by a special tax consultant retained by the City. (ii) The rate and method of apportionment of special tax for the Future Improvement Area substantially comply with the City’s local goals and policies concerning the use of the Act.
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Station East Resolution of Intention to Form CFD

(iii) The rate and method of apportionment of special tax for the Future Improvement Area includes a mechanism that protects against revenue loss as a result of land use changes.

The special taxes levied within the annexation territory in the future to pay for Services to be supplied therein shall be equal to any special tax levied to pay for the same Services in the existing CFD, except that a higher or lower tax may be levied within the annexation territory to the extent that the actual cost of providing the Services in that territory is higher or lower than the cost of providing those Services in the existing CFD.

Similarly, the special taxes levied within the annexation territory in the future to pay for Facilities financed with bonds that have already been issued and that are secured by the existing CFD shall be the same as the tax levied in the existing CFD for that purpose, except that a higher special tax may be levied for that purpose within the annexation territory in the future to compensate for the interest and principal previously paid by the existing CFD, less any depreciation allocable to the public facility. This paragraph shall not be construed to limit the levy of a special tax within the territory to be annexed in the future to provide new or additional Services beyond those supplied within the existing territory of the CFD, or to pay for new or additional public facilities, with or without bond financing.

7. The levy of the Special Taxes in Improvement Area No. 1 shall be subject to the approval of the qualified electors within Improvement Area No. 1 at a special election. The proposed voting procedure shall be by mailed or hand-delivered ballot among the landowners in Improvement Area No. 1, with each owner having one vote for each acre, or portion of an acre, that such owner owns in Improvement Area No. 1 that is not exempt from the Special Taxes in Improvement Area No. 1.

The Special Tax shall be levied in a Future Annexation Area only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings. The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the facilities to be financed, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for such improvement area shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD, without the need for any further public hearings or proceedings.

8. To finance the costs of the Facilities, it is necessary to incur bonded indebtedness on behalf of the CFD. It is the intention of this City Council, acting as the legislative body for the CFD, to cause bonds of the City to be issued for the CFD pursuant to the Act to finance in whole or in part the construction and/or acquisition of the Facilities in an amount not to exceed $38,000,000 (the “Authorization”), initially allocated as follows: (i) for Improvement Area No. 1, the bonded indebtedness limit is $20,000,000 and (ii) for the portion of the CFD that is not in Improvement Area No. 1, the bonded indebtedness limit is not to exceed $18,000,000. Indebtedness subject to the Authorization shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act. 1174 of 1325
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Station East Resolution of Intention to Form CFD

9. The City Manager of the City, as the officer having charge and control of the Facilities, or the designee of such official, is hereby directed to cause and direct a study of said proposed CFD and the Facilities and Services, and to cause to be prepared for filing at the public hearing the report required by Section 53321.5 of the Act (the “CFD Report”) presenting at least the following:
(a) A brief description of the Facilities and Services by type, which will be required to meet the needs of the CFD adequately.
(b) An estimate of the fair and reasonable cost of the Facilities, including the cost of acquisition of lands, rights-of-way, and easements, any physical facilities required in conjunction therewith, and incidental expenses in connection therewith, including the costs of the proposed bond financing and all other related costs as provided in Section 53345.3 of the Act.

The CFD Report shall be made a part of the record of the public hearing specified below.

10. The City Council also intends to establish the annual appropriations limit of the CFD in the amount not to exceed the amount of bonds authorized for the CFD.

11. The City Council hereby sets Tuesday, July 14, 2026, at the hour of 7:00 P.M., at the regular meeting place of the City Council, City Council Chambers, Union City City Hall, 34009 Alvarado-Niles Road, Union City, California 94587, as the time and place when and where the City Council, as legislative body for the CFD, will conduct a public hearing on the establishment of the CFD, the designation of Improvement Area No. 1, and the establishment of the Future Annexation Area, and consider and finally determine whether the public interest, convenience and necessity require the formation of the CFD, the designation of Improvement Area No. 1, the establishment of the Future Annexation Area, and the levy of the Special Taxes. At the hearing, testimony concerning the CFD, the extent of the CFD, or the furnishing of the particular types of public facilities and public services will be heard, and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the land subject to special taxation under the proposed CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing. If such protests are directed only against certain elements of the proposed improvements or proposed special tax, and if such protests constitute a majority protest, only those elements shall be deleted from the proceedings.

12. The City Clerk is hereby directed to cause notice of the public hearing, in the form attached hereto as Exhibit C, to be given in the form required by the Act, which requires publication in a newspaper of general circulation circulated within the CFD. Such publication shall be made pursuant to Section 6061 of the Government Code of the State of California. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53322 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved.
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Resolution No. 2026-XXX
Station East Resolution of Intention to Form CFD

13. Section 53314.9 of the Act provides that, either before or after formation of the CFD, the City may accept work in-kind from any source, including, but not limited to, private persons or private entities, may provide, by resolution, for the use of that work inkind for any authorized purpose and the City Council may enter into one or more agreements (each, an “Acquisition Agreement”), by resolution, with the person or entity advancing the work in-kind, to reimburse the person or entity for the value, or cost, whichever is less, of the work in-kind, as determined by the City Council, with or without interest, under the conditions specified in the Act. Any work in-kind must be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City.

Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to this section. The City Manager, the Director of Finance of the City, and each other authorized officer of the City are hereby authorized and directed to enter into such joint community facilities agreements as are needed with respect to any entity other than the City that will own or operate any of the Facilities, as may be necessary to comply with the provisions of Section 53316.2 of the Act. The City Council hereby declares that such joint agreements will be beneficial to owners of property in the area of the CFD.

14. The City Council finds and determines that adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4).

15. This Resolution shall take effect immediately upon its adoption. 1176 of 1325
Resolution No. 2026-XXX
Station East Resolution of Intention to Form CFD

1177 of 1325
Resolution No. 2026-XXX
Station East Resolution of Intention to Form CFD

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
ATTACHMENTS:

1. Exhibit A – Rate and Method of Special Tax

2. Exhibit B – Authorized Facilities and Services

3. Exhibit C – Form of Notice of Public Hearing
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EXHIBIT A

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES

FOR CITY OF UNION CITY
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(STATION EAST FACILITIES AND SERVICES)
IMPROVEMENT AREA NO. 1
A Special Tax, as hereinafter defined, shall be levied and collected within Improvement Area No. 1 of City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) each Fiscal Year commencing in Fiscal Year 2026/27, in an amount determined by the application of the procedures below. All Assessor’s Parcels within Improvement Area No. 1, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” means all Assessor’s Parcels of Residential Property for which a Building Permit(s) has been issued for an “Accessory Dwelling Unit” as defined in California Government Code Section 66313, as may be amended from time to time, that is accessory to a primary Unit.
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map. In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS.
"Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. "Administrative Expenses” means the actual or reasonably estimated costs directly related to the administration of Improvement Area No. 1 including, but not limited to, the following: the costs of any paying agents/fiscal agents/trustees related to Improvement Area No. 1 Bond payments (including the fees and expenses of related counsel); the costs of computing the Annual Facilities Special Tax Requirement, the Annual Services Special Tax Requirement, the Special Taxes and of preparing the collection schedules for the Special Taxes; the costs of collecting the Special Taxes, including any charges levied by the County Auditor’s Office, County Tax Collector’s Office or County Treasurer’s Office; the 1179 of 1325
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costs of the City or designee in complying with the disclosure requirements associated with applicable federal and state securities laws, or otherwise related to Improvement Area No. 1 or Improvement Area No. 1 Bonds; the City’s annual administration fees and third party expenses; costs of responding to public inquiries regarding the Special Taxes; the costs of the City or designee related to an appeal of the Special Tax or interpretation of this Rate and Method of Apportionment; amounts needed to pay any required arbitrage rebate to the federal government related to Improvement Area No. 1 Bonds; the costs associated with the release of funds from any escrow account; and the costs of commencing and pursuing to completion any foreclosure action arising from delinquent Special Taxes in Improvement Area No. 1. Administrative Expenses shall also include amounts estimated or advanced by the City or Improvement Area No. 1 for any other administrative purposes of Improvement Area No. 1. "Annual Facilities Special Tax Requirement" means that amount required in any Fiscal Year for Improvement Area No. 1 to (1) pay Debt Service on all Outstanding Improvement Area No. 1 Bonds due in the Debt Year that commences in such Fiscal Year; (2) pay debt service on bonds expected to be issued by Improvement Area No. 1 due in the Debt Year that commences in such Fiscal Year; (3) Administrative Expenses; (4) provide any amount required to establish or replenish a reserve fund in connection with any Improvement Area No. 1 Bonds; (5) provide an amount equal to reasonably anticipated Facilities Special Tax delinquencies based on the delinquency rate for Special Taxes levied in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (3) or (4); and (6) account for Pay-As-You-Go Expenditures for the Authorized Facilities (so long as such levy does not increase the Special Taxes on Final Map Property or Undeveloped Property). The amounts referred to in clauses (1) through (5) of the preceding sentence may be reduced in any Fiscal Year (in the City's sole discretion) by (i) surplus balances in funds and accounts for Improvement Area No. 1 Bonds to the extent that such balances are available to apply against Debt Service pursuant to the Indenture, (ii) proceeds from the collection of penalties associated with delinquent Special Tax, and (iii) any other revenues available to pay Debt Service on the Outstanding Improvement Area No. 1 Bonds or other indebtedness as determined by the CFD Administrator.
"Annual Services Special Tax Requirement" means that amount required in any Fiscal Year for Improvement Area No. 1 to (1) pay for Authorized Services; (2) Administrative Expenses; (3) provide any amount required to establish or replenish a reserve fund; (4) provide an amount equal to reasonably anticipated Services Special Tax delinquencies based on the delinquency rate for Special Taxes levied 1180 of 1325
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in the previous Fiscal Year as determined by the CFD Administrator, as limited by the Act, and without duplicating any amounts described in clauses (2) or (3). “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, and Units. "Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
"Assessor’s Parcel Map" means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County for purposes of identification.
“Assigned Facilities Special Tax” means the Assigned Facilities Special Tax determined in accordance with Section C below.
“Authorized Facilities” means the facilities authorized to be financed, in whole or in part, by (i) Improvement Area No. 1 Bonds or (ii) Facilities Special Tax revenue dedicated to Pay-As-You-Go Expenditures for Improvement Area No. 1. “Authorized Services” means the public services authorized to be financed, in whole or in part, by Improvement Area No. 1 Services Special Tax revenue. "Backup Facilities Special Tax" means the Backup Facilities Special Tax determined in accordance with Section C below.
“Building Permit” means a permit issued by the City for new construction of a residential or non-residential building on an Assessor’s Parcel. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Annual Facilities Special Tax Requirement and Annual Services Special Tax Requirement, and otherwise providing for the levy and collection of the Special Taxes.
"CFD No. 2026-1" means City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services), established by the City Council pursuant to the Act.
“City” means the City of Union City, California.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2026-1.
"County" means the County of Alameda, California.
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“Debt Service” means for each Debt Year, the total amount of principal and interest due on any Outstanding Improvement Area No. 1 Bonds. “Debt Year” means the twelve (12) month period ending on the second debt service payment date of each calendar year.
"Developed Property" means, in any Fiscal Year, all Taxable Property in Improvement Area No. 1 for which a Building Permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. "Development Class" means, individually, Developed Property, Final Map Property, Taxable Property Owner’s Association Property, Taxable Public Property, and Undeveloped Property.
“Exempt Property” means all Assessor’s Parcels located within the boundaries of Improvement Area No. 1 which are exempt from the Special Tax pursuant to the Act or Section F below.
"Facilities Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within Improvement Area No. 1 to fund the Annual Facilities Special Tax Requirement.
“Final Map Property” means, in any Fiscal Year, all Residential Lots created within a Final Subdivision Map which has recorded prior to June 30 of the preceding Fiscal Year.
"Final Subdivision Map" means a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285, that creates individual lots for which Building Permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June

30. “GIS” means a system designed to capture, store, manipulate, analyze, manage, and present spatial or geographic data.
“Improvement Area No. 1” means Improvement Area No. 1 of CFD No. 2026-1. “Improvement Area No. 1 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the City for Improvement Area No. 1 under the Act, and secured by pledge of the Special Taxes.
“Indenture” means the indenture, fiscal agent agreement, resolution, or other instrument pursuant to which Improvement Area No. 1 Bonds are issued, as 1182 of 1325
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modified, amended, and/or supplemented from time to time, and any instrument replacing or supplementing the same.
“Land Use Class” means any of the classes listed in Table 1 and Table 2 in Section C and Section D, respectively. For purposes of levying the Facilities Special Tax, reference shall be made to Attachment C to the Rate and Method of Apportionment for assigning the appropriate Land Use Class to Residential Property.
"Maximum Facilities Special Tax” means the maximum Facilities Special Tax, determined in accordance with Section C below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Maximum Services Special Tax” means the maximum Services Special Tax, determined in accordance with Section D below, that can be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property.
“Non-Residential Property” means, in any Fiscal Year all Assessor’s Parcels of Developed Property for which a building permit(s) was issued for a structure intended for non-residential use.
“Outstanding Improvement Area No. 1 Bonds” means all Improvement Area No. 1 Bonds which are outstanding under and in accordance with the provisions of the Indenture.
“Pay-As-You-Go Expenditure” means Special Tax revenue, which is used or set aside for Authorized Facilities, including for Authorized Facilities to be constructed or acquired by Improvement Area No. 1. Pay-As-You-Go Expenditures may be included in the Annual Facilities Special Tax Requirement by levying the Facilities Special Tax at one hundred percent (100%) of the Assigned Facilities Special Tax until the earlier of (i) the fifth Fiscal Year following the Fiscal Year in which the first series of Improvement Area No. 1 Bonds are issued, or (ii) if, for any reason, Improvement Area No. 1 Bonds are not issued, until such time as the Authorized Facilities are financed in full.
“Plan Area” means an area, as shown on Attachment C to the Rate and Method of Apportionment, proposed for residential development. “Property Owner’s Association” means any duly constituted property owner’s association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or subassociation or non-residential owner’s association. “Property Owner’s Association Property” means any property within the boundaries of Improvement Area No. 1 which is (a) owned by a Property Owner’s 1183 of 1325
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Association or (b) designated with specific boundaries and acreage on a final subdivision map as Property Owner’s Association Property. "Proportionately" means, for each Development Class, that the ratio of the actual Facilities Special Tax and Services Special Tax levied in any Fiscal Year to the Maximum Facilities Special Tax and Maximum Services Special Tax, respectively, authorized to be levied in that Fiscal Year is equal for all Assessor’s Parcels assigned to such Development Class.
“Public Property” means any property within the boundaries of Improvement Area No. 1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, the City, school districts, or any other governmental agency.
“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Taxes for Improvement Area No. 1. “Residential Lot” means, an individual residential lot within a recorded Final Subdivision Map on which a Building Permit has been or is permitted to be issued for construction of one or more Units.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a Building Permit has been issued for purposes of constructing one or more residential Units.
"Services Special Tax" means the special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property within Improvement Area No. 1 to fund the Annual Services Special Tax Requirement.
"Special Tax" means the Facilities Special Tax and/or the Services Special Tax. "State" means the State of California.
"Taxable Property" means all the Assessor’s Parcels within the boundaries of Improvement Area No. 1 that are not exempt from the Special Tax pursuant to law or Section F below.
“Taxable Property Owner’s Association Property” means all Assessor’s Parcels of Property Owner’s Association Property that are not exempt from the Facilities Special Tax pursuant to Section F herein.
“Taxable Public Property” means all Assessors Parcels of Public Property that are not exempt from the Facilities Special Tax pursuant to Section F herein. 1184 of 1325
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"Trustee" means the trustee or fiscal agent or paying agent acting as such under the applicable Indenture.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, Taxable Property Owner’s Association Property, or Taxable Public Property.
“Unit” means an individual single family detached residential unit or an individual residential unit within a duplex, triplex, fourplex, townhome or condominium structure. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. An Accessory Dwelling Unit shall not be considered a Unit for the purposes of the Facilities Special Tax.
“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of Improvement Area No. 1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act. Pursuant to Section 53340(c) of the Act, after the issuance of the first series of Improvement Area No. 1 Bonds, any Assessor’s Parcels that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

B. ASSIGNMENT TO LAND USE CLASSES
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all property within Improvement Area No. 1 for the then-current Fiscal Year. To the extent an Assessor’s Parcel or Assessor’s Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Facilities Special Tax and Maximum Services Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C and Section D, respectively. The CFD Administrator shall also determine: (i) the appropriate Development Class for each Assessor’s Parcel; (ii) the number of Units or Acreage each Assessor’s Parcel contains; (iii) the Land Use Class for each Assessor’s Parcel, if Developed Property; and (iv) the Annual Facilities Special Tax Requirement and the Annual Services Special Tax Requirement for the Fiscal Year.

C. MAXIMUM FACILITIES SPECIAL TAX

1. Developed Property
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The Maximum Facilities Special Tax for each Assessor’s Parcel of Developed Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax.
a. Assigned Facilities Special Tax
The Assigned Facilities Special Tax rates for each Assessor’s Parcel of Developed Property are shown in Table 1.

TABLE 1

ASSIGNED FACILITIES SPECIAL TAX FOR DEVELOPED PROPERTY
IMPROVEMENT AREA NO. 1
FISCAL YEAR 2026/27
Land
Use
Class
Plan
Area Description
Assigned
Facilities
Special Tax
1 4 Residential Property $2,496 per Unit
2 5, 6, and
11 Residential Property $2,318 per Unit
3 7 and 8 Residential Property $1,737 per Unit
4 9 and 10 Residential Property $1,530 per Unit
5 n/a Accessory Dwelling
Unit $0 per Unit
6 n/a Non-Residential
Property $0 per Acre
b. Backup Facilities Special Tax
The Fiscal Year 2026/27 aggregate Backup Facilities Special Tax attributable to Developed Property will equal the Backup Facilities Special Tax as determined in Section 2.b., below, when such property became Final Map Property.
c. Increase in the Assigned Facilities Special Tax and Backup Facilities Special Tax
On each July 1, commencing on July 1, 2027, through July 1, 2065, the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Developed Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year. 1186 of 1325
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2. Final Map Property
The Maximum Facilities Special Tax for each Assessor’s Parcel of Final Map Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax.
a. Assigned Facilities Special Tax
The Assigned Facilities Special Tax for each Assessor’s Parcel of Final Map Property shall be $2,011 per Residential Lot in Fiscal Year 2026/27. b. Backup Facilities Special Tax
The Fiscal Year 2026/27 aggregate Backup Facilities Special Tax attributable to Taxable Property within a Final Subdivision Map shall be $102,340 per Acre multiplied by the Acreage of all Taxable Property located within such Final Subdivision Map, excluding Acreage associated with current or expected Taxable Public Property and Taxable Property Owner’s Association Property.

The Backup Facilities Special Tax for each Assessor’s Parcel of Residential Property in a Final Subdivision Map shall be computed by dividing the aggregate Backup Facilities Special Tax attributable to all Assessor’s Parcels of Taxable Property for which building permits for residential construction have or may be issued, as determined in the preceding paragraph, by the number of such Assessor’s Parcels (i.e., the number of Residential Lots).

Notwithstanding the foregoing, if all or any portion of a Final Subdivision Map is subsequently changed or modified, then the Backup Facilities Special Tax for each Assessor’s Parcel of Residential Property in the portion of such Final Subdivision Map that is changed or modified, shall be a rate per Acre calculated as follows:

1. Determine the total Backup Facilities Special Taxes anticipated to apply to the changed or modified portion of the Final Subdivision Map prior to the change or modification.

2. Divide the amount determined pursuant to paragraph 1 above by the total Acreage of Residential Property excluding Taxable Public Property and Taxable Property Owner’s Association Property which is ultimately expected to exist in such changed or modified Final Subdivision Map area, as reasonably determined by the CFD Administrator.

The result is the Backup Facilities Special Tax per Acre which shall be applicable to all Assessor's Parcels of Residential Property in such changed 1187 of 1325
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or modified Final Subdivision Map. The Backup Facilities Special Tax for an Assessor’s Parcel of Residential Property that was not changed shall not be increased.
c. Increase in the Assigned Facilities Special Tax and Backup Facilities Special Tax
On each July 1, commencing on July 1, 2027, through July 1, 2065, the Assigned Facilities Special Tax and the Backup Facilities Special Tax for Final Map Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

3. Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property
a. Maximum Facilities Special Tax
The Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property shall be $102,340 per Acre in Fiscal Year 2026/27.
b. Increase in the Maximum Facilities Special Tax
On each July 1, commencing on July 1, 2027, through July 1, 2065, the Maximum Special Tax for Undeveloped Property, Taxable Property Owner’s Association Property, and Taxable Public Property shall be increased by an amount equal to two percent (2%) of the amount in effect for the previous Fiscal Year.

D. MAXIMUM SERVICES SPECIAL TAX
Developed Property
The Maximum Services Special Tax rates for each Assessor’s Parcel of Developed Property are shown in Table 2.

TABLE 2

MAXIMUM SERVICES SPECIAL TAX FOR DEVELOPED PROPERTY
FISCAL YEAR 2026/27
Land
Use
Class Description
Maximum
Services
Special Tax
1 Residential Property $564 per Unit
2 Accessory Dwelling Unit $0 per Unit
3 Non-Residential Property $0 per Acre
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a. Increase in the Maximum Services Special Tax
On each July 1, commencing on July 1, 2027, the Maximum Services Special Tax for Developed Property shall be increased by an amount equal to five percent (5%) of the amount in effect for the previous Fiscal Year.

E. METHOD OF APPORTIONMENT OF THE SPECIAL TAXES

1. Facilities Special Tax
Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Facilities Special Tax Requirement and shall levy the Facilities Special Tax in each Fiscal Year as follows:

First: The Facilities Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the applicable Assigned Facilities Special Tax to satisfy the Annual Facilities Special Tax Requirement.

Second: If additional monies are needed to satisfy the Annual Facilities Special Tax Requirement after the first step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Final Map Property at a rate up to 100% of the Maximum Facilities Special Tax for Final Map Property to satisfy the Annual Facilities Special Tax Requirement.

Third: If additional monies are needed to satisfy the Annual Facilities Special Tax Requirement after the second step has been completed, the Facilities Special Tax shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at a rate up to 100% of the Maximum Facilities Special Tax for Undeveloped Property to satisfy the Annual Facilities Special Tax Requirement.

Fourth: If additional monies are needed to satisfy the Annual Facilities Special Tax Requirement after the first three steps have been completed, then the levy of the Facilities Special Tax on each Assessor’s Parcel of Developed Property whose Maximum Facilities Special Tax is determined through the application of the Backup Facilities Special Tax shall be increased in equal percentages from the applicable Assigned Facilities Special Tax up to 100% of the Maximum Facilities Special Tax for each such Assessor’s Parcel to satisfy the Annual Facilities Special Tax Requirement.

Fifth: If additional monies are needed to satisfy the Annual Facilities Special Tax Requirement after the first four steps have been completed, the Facilities Special Tax shall be levied on each Assessor’s Parcel of Taxable Property Owner’s Association Property at a rate up to 100% of the Maximum Facilities Special Tax 1189 of 1325
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for Taxable Property Owner’s Association Property to satisfy the Annual Facilities Special Tax Requirement.

Sixth: If additional monies are needed to satisfy the Annual Facilities Special Tax Requirement after the first five steps have been completed, then the Facilities Special Tax shall be levied Proportionately on all Taxable Public Property at a rate up to 100% of the Maximum Facilities Special Tax for Taxable Public Property to satisfy the Annual Facilities Special Tax Requirement.

2. Services Special Tax
Commencing with Fiscal Year 2026/27 and for each following Fiscal Year, the CFD Administrator shall determine the Annual Services Special Tax Requirement and shall levy the Services Special Tax until the amount of the Services Special Tax levied equals the Annual Services Special Tax Requirement. The Services Special Tax shall be levied each Fiscal Year as follows:

First: The Services Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the applicable Maximum Services Special Tax to satisfy the Annual Services Special Tax Requirement.

F. EXEMPTIONS

1. No Facilities Special Tax shall be levied on up to 4.98 Acres of Property Owner’s Association Property and/or Public Property. Tax-exempt status will be assigned by the CFD Administrator in the chronological order in which property becomes Property Owner’s Association Property or Public Property. If an Assessor’s Parcel of Taxable Property becomes Property Owner’s Association Property or Public Property after previously being subject to the Facilities Special Tax, such property shall be reclassified as either Taxable Property Owner’s Association Property or Taxable Public Property.

2. Property Owner’s Association Property that is not exempt from the Facilities Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Property Owner’s Association Property. Taxable Property Owner’s Association Property shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the fifth step in Section E.1 above, at up to 100% of the applicable Maximum Facilities Special Tax for Taxable Property Owner’s Association Property.

3. Public Property that is not exempt from the Facilities Special Tax under this section, or pursuant to the Act, shall be classified as Taxable Public Property.

Taxable Public Property shall be subject to the levy of the Facilities Special Tax and shall be taxed Proportionately as part of the sixth step in Section E.1 above, 1190 of 1325
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at up to 100% of the applicable Maximum Facilities Special Tax for Taxable Public Property.

4. Prior to the issuance of the first series of Improvement Area No. 1 Bonds, no Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property; however, pursuant to Section 53340(c) of the Act, after the issuance of the first series of Improvement Area No. 1 Bonds, any Assessor’s Parcel that receives a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code shall not be classified as Welfare Exempt Property and will be subject to the Facilities Special Tax.

G. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct with respect to one or more specific Assessor’s Parcels. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Taxes theretofore levied on the Assessor’s Parcel(s). In addition, during the term of the appeal process, all Special Taxes levied must be paid for the subject Assessor’s Parcel(s) prior to delinquency.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

H. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as once Improvement Area No. 1 Bonds have been issued such correction does not 1191 of 1325
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materially adversely affect the levy and collection of Special Taxes on any Assessor’s Parcel needed to repay the Improvement Area No. 1 Bonds. In addition, the interpretation and application of any section of this document shall be at the CFD Administrator’s discretion.

I. MANNER OF COLLECTION
The Special Taxes shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the CFD Administrator may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of Improvement Area No. 1. The City may covenant to foreclose and may actually foreclose or cause an action for foreclosure to be prosecuted in respect of Assessor's Parcels of Taxable Property that are delinquent in the payment of the Special Tax.

J. PREPAYMENT OF FACILITIES SPECIAL TAX
The following definitions apply to this Section J:
“Authorized Facilities” means the public facilities authorized to be financed, in whole or in part, by Improvement Area No. 1.
“Buildout” means the state of maximum development of Improvement Area No. 1, based on plans and anticipated development.
"CFD Public Facilities Cost" means $12,500,000 for Improvement Area No. 1, expressed in 2026 dollars, which shall increase by the annual percentage change in the Construction Inflation Index on July 1, 2027 and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities to be provided by Improvement Area No. 1 under the authorized bonding program for Improvement Area No. 1 by subtracting out the proceeds of Improvement Area No. 1 Bonds and Special Taxes used to fund Authorized Facilities, or (ii) shall be determined by the City Council concurrently with a covenant that it will not issue any more Bonds to be supported by Facilities Special Tax levied under this Rate and Method of Apportionment as described in Section E.
"Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of San Francisco, measured as of the calendar year which ends in the previous Fiscal Year, but not less than zero percent. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the City that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of San Francisco.
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"Future Facilities Costs" means, as of the date of prepayment, the CFD Public Facilities Costs minus the portion of the CFD Public Facilities Costs previously funded from (a) proceeds of all Previously Issued Improvement Area No. 1 Bonds, which were, at the time of issuance, available to the City for Authorized Facilities, (b) interest earnings on the Improvement Fund actually earned prior to the date of prepayment and available to fund Authorized Facilities, and (c) proceeds of the Special Tax dedicated to Pay-As-You-Go Expenditures. In no case, shall the Future Facilities Costs be less than zero.
"Previously Issued Improvement Area No. 1 Bonds" means all Outstanding Improvement Area No. 1 Bonds that have been issued by Improvement Area No. 1 prior to the date of prepayment.

1. Prepayment in Full
The Facilities Special Tax obligation of an Assessor's Parcel of Developed Property, Taxable Property Owner’s Association Property, Taxable Public Property, Final Map Property, or Undeveloped Property may be prepaid and permanently satisfied as described herein; provided that there are no delinquent installments of the Facilities Special Tax with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Facilities Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 45 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount for such Assessor's Parcel. Prepayment must be made not less than 75 days prior to the next occurring date that notice of redemption of Outstanding Improvement Area No. 1 Bonds, if any.

Proceeds of such prepayment may be given to the Trustee pursuant to the Indenture. If a prepayment is made prior to the issuance of Improvement Area No. 1 Bonds, the Redemption Premium, Interest Amount, Reserve Fund Credit and Capitalized Interest Credit as calculated below, shall be zero. The CFD Administrator may charge the property owner requesting a prepayment calculation fee for providing this service.

The Facilities Special Tax Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
Plus Future Facilities Amount
plus Redemption Premium
plus Interest Amount
plus Administrative Fees and Expenses
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less Reserve Fund Credit
less Capitalized Interest Credit
Total: equals Facilities Special Tax Prepayment Amount
As of the proposed date of prepayment, the Facilities Special Tax Prepayment Amount (defined below) shall be calculated by the CFD Administrator as follows:

Step Number:

1. Confirm that no Facilities Special Tax delinquency apply to such Assessor’s Parcel, and if delinquencies are applicable compute all amounts due, including interest and penalties.

2. a. For Assessor’s Parcels of Developed Property, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax. For Assessor’s Parcels of Final Map Property and Undeveloped Property to be prepaid, compute the Assigned Facilities Special Tax and Backup Facilities Special Tax for that Assessor’s Parcel as though it was already designated as Developed Property, based upon the expected number of Residential Lots expected for such Assessor’s Parcel.
b. For Assessor’s Parcels of Taxable Property Owner’s Association Property, and Taxable Public Property, compute the Maximum Facilities Special Tax.

3. a. For Assessor’s Parcels of Developed Property, Final Map Property, and Undeveloped Property, divide the Assigned Facilities Special Tax computed pursuant to Step 2.a by the total estimated Assigned Facilities Special Tax for Improvement Area No. 1 based on the Developed Property Facilities Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of Improvement Area No. 1. b. For Assessor’s Parcels of Developed Property, Final Map Property, and Undeveloped Property, divide the Backup Facilities Special Tax computed pursuant to Step 2.a by the total estimated Backup Facilities Special Tax for Improvement Area No. 1 based on the Developed Property Facilities Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of Improvement Area No. 1. c. For Assessor’s Parcels of Developed Property, Final Map Property, and Undeveloped Property, determine which quotient computed pursuant to Step 3.a or 3.b is larger (the “Maximum Facilities Special Tax Percentage”). 1194 of 1325
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d. For Assessor’s Parcels of Taxable Property Owner’s Association Property, and Taxable Public Property, divide the Maximum Facilities Special Tax computed pursuant to Step 2.b by the total estimated Maximum Facilities Special Tax for Improvement Area No. 1 based on the Developed Property Facilities Special Tax which could be charged in the current Fiscal Year on all expected development through Buildout of Improvement Area No. 1 (the “Maximum Facilities Special Tax Percentage”).

4. Multiply the Maximum Facilities Special Tax Percentage by the Outstanding Improvement Area No. 1 Bonds to compute the principal amount of Outstanding Improvement Area No. 1 Bonds to be redeemed (the “Bond Redemption Amount”).

5. Compute the Future Facilities Costs.

6. Multiply the Maximum Facilities Special Tax Percentage by the total Future Facilities Costs to compute the Future Facilities amount to be prepaid (the “Future Facilities Amount”).

7. Multiply the Bond Redemption Amount computed pursuant to Step 4 by the applicable redemption premium, if any, on the Outstanding Improvement Area No. 1 Bonds to be redeemed (the "Redemption Premium") determined by reference to the Indenture.

8. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Improvement Area No. 1 Bonds (the “Interest Amount”).

9. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Improvement Area No. 1 Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

10. If reserve funds for the Outstanding Improvement Area No. 1 Bonds held under the Indenture, if any, are at or above 100% of the then reserve requirement (as required by the Indenture) on the prepayment date, a reserve fund credit shall be calculated as a reduction in the applicable reserve requirement for the Outstanding Improvement Area No. 1 Bonds to be redeemed pursuant to the prepayment (the "Reserve Fund Credit"). No Reserve Fund Credit shall be granted if reserve funds are below 100% of the applicable reserve requirement on the prepayment date or if the Reserve Fund is satisfied by a credit instrument rather than cash funded. 1195 of 1325
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11. If any capitalized interest for the Outstanding Improvement Area No. 1 Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the Maximum Facilities Special Tax Percentage by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit").

12. The Facilities Special Tax prepayment is equal to the sum of the amounts computed pursuant to Steps 4, 6, 7, 8 and 9 less the amount computed pursuant to Steps 10 and 11 (the "Prepayment Amount").

13. From the Prepayment Amount, the amounts computed pursuant to Step 6 shall be used by the City to pay for Authorized Facilities. The amounts computed pursuant to Steps 4, 6, 7 and 8 shall be deposited into the appropriate fund as established under the Indenture and be used to redeem Outstanding Improvement Area No. 1 Bonds or make Debt Service payments. The amount computed pursuant to Step 9 shall be retained by the City for the payment of Administrative Fees and Expenses.

The Facilities Special Tax Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Outstanding Improvement Area No. 1 Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of Outstanding Improvement Area No. 1 Bonds or to make Debt Service payments.

Current year Facilities Special Taxes that are not yet paid will remain outstanding and will be collected in the manner billed. With respect to any Assessor's Parcel that has prepaid its Facilities Special Tax Obligation, the CFD Administrator shall cause a suitable notice to be recorded in compliance with the Act to indicate the prepayment of the Facilities Special Tax and the obligation of such Assessor's Parcel satisfied.

Notwithstanding the foregoing, no prepayment will be allowed unless the Maximum Facilities Special Tax that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the maximum annual Debt Service on all Outstanding Improvement Area No. 1 Bonds plus annual Administrative Expenses, as reasonably estimated by the CFD Administrator.

2. Prepayment in Part
The Facilities Special Tax may be partially prepaid, provided that a partial prepayment may be made only after all authorized Improvement Area No. 1 Bonds have been issued and only if there are no delinquent Facilities Special Taxes with respect to such Assessor's Parcel at the time of partial prepayment. The amount 1196 of 1325
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of the prepayment shall be calculated as in Section J.1; except that a partial prepayment shall be calculated by the CFD Administrator according to the following formula:

PP = PE x F.

These terms have the following meaning:

PP = the partial prepayment
PE = the Facilities Special Tax Prepayment Amount calculated according to Section J.1
F = percentage by which the Facilities Special Tax shall be prepaid The Facilities Special Tax partial prepayment amount must be sufficient to redeem at least a $5,000 increment of Bonds.

The owner of any Assessor’s Parcel who desires such partial prepayment shall notify the CFD Administrator of such owner’s intent to partially prepay the Facilities Special Tax and the percentage by which the Facilities Special Tax shall be prepaid. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Facilities Special Tax for an Assessor’s Parcel within 45 days of the request and may charge a fee for providing this service. With respect to any Assessor’s Parcel that is partially prepaid, the CFD Administrator shall (i) distribute the prepayment funds remitted according to Section J.1, and (ii) indicate in the records of Improvement Area No. 1 that there has been a partial prepayment of the Facilities Special Tax and that a portion of the Facilities Special Tax with respect to such Assessor’s Parcel, equal to the outstanding percentage (1.00 - F) of the remaining Maximum Facilities Special Tax, shall continue to be levied on such Assessor’s Parcel pursuant to Section C.

K. FACILITIES SPECIAL TAX REDUCTION
The following definitions apply to this Section K:
"Appraisal” means an appraisal or a letter updating a previous appraisal prepared by the MAI Appraiser which (a) sets forth the Land Use Classes constructed or expected to be constructed within Improvement Area No. 1, (b) sets forth the estimated number of constructed and expected residential dwelling units for each Land Use Class, (c) sets forth such MAI Appraiser’s estimate of the price point for each Land Use Class and (d) uses a date for establishing such price point that is no earlier than 60 days and no later than 180 days prior to the date the Appraisal is delivered to the CFD Administrator pursuant to this Section K. 1197 of 1325
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"Issuance Date” means the date a bond purchase contract related to the sale of the first series of Improvement Area No. 1 Bonds is entered into between the purchaser of the Improvement Area No. 1 Bonds and CFD No. 2026-1. "MAI Appraiser” means an appraiser licensed or otherwise qualified to do business in the State or firm of such appraisers selected by the City that (a) has substantial experience in performing appraisals for residential units within community facilities districts or otherwise estimating or confirming pricing for residential units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the appraisal of residential units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 2026-1 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 2026-1, (ii) the City, (iii) any owner of real property in CFD No. 2026-1, or (iv) any real property in CFD No. 2026-1, (e) is not connected with CFD No. 2026-1 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2026-1 or the City, and (f) holds an American Institute of Real Estate Appraisers’ MAI designation. “Price Point Consultant” means any consultant or firm of such consultants selected by the City that (a) has substantial experience in performing price point studies for residential units within community facilities districts or otherwise estimating or confirming pricing for residential units in community facilities districts, (b) has recognized expertise in analyzing economic and real estate data that relates to the pricing of residential units in community facilities districts, (c) is in fact independent and not under the control of CFD No. 2026-1 or the City, (d) does not have any substantial interest, direct or indirect, with or in (i) CFD No. 2026-1, (ii) the City, (iii) any owner of real property in CFD No. 2026-1, or (iv) any real property in CFD No. 2026-1, and (e) is not connected with CFD No. 2026-1 or the City as an officer or employee thereof, but who may be regularly retained to make reports to CFD No. 2026-1 or the City.
“Price Point Study” means a price point study or a letter updating a previous price point study prepared by the Price Point Consultant which (a) sets forth the Land Use Classes constructed or expected to be constructed within Improvement Area No. 1, (b) sets forth the estimated number of constructed and expected residential dwelling units for each Land Use Class, (c) sets forth such Price Point Consultant’s estimate of the lowest base price point, excluding concessions, incentives, upgrades, or premiums, for each Land Use Class and (d) uses a date for establishing such price points that is no earlier than 60 days and no later than 180 days prior to the date the Price Point Study is delivered to the CFD Administrator pursuant to this Section K.
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"Total Effective Tax Rate” means, for a Land Use Class, the quotient of (a) the Total Tax Burden for such Land Use Class divided by (b) the lowest base price point, excluding concessions, incentives, upgrades, or premiums, for such Land Use Class, converted to a percentage.
“Total Tax Burden” means, for any Unit of Residential Property, the sum of the Assigned Facilities Special Tax, together with ad valorem property taxes, special assessments, special taxes for any overlapping community facilities district (assigned special taxes, if applicable), and any other taxes, fees and charges, and excluding services charges such as sewer and trash, which are collected by the County via property tax bills and which are payable from and secured by the property and excluding homeowner’s association assessments, assuming such Unit of Residential Property has been completed, sold and subject to such levies and impositions.

Facilities Special Tax Reduction Calculation
Prior to the issuance of the first series of Improvement Area No. 1 Bonds, the following steps shall be taken for each Land Use Class of Residential Property in Improvement Area No. 1:

At least 60 days prior to the expected Issuance Date of the first series of Improvement Area No. 1 Bonds, the City, on behalf of CFD No. 2026-1, shall determine, based on an Appraisal or a Price Point Study, whether or not the Total Effective Tax Rate for each Land Use Class as calculated by the CFD Administrator separately for each Land Use Class of Residential Property is less than or equal to 1.60%.

1. CFD No. 2026-1 shall cause an Appraisal or Price Point Study to be delivered to the CFD Administrator.
a. If the Total Effective Tax Rate for each Land Use Class is less than or equal to 1.60%, then there shall be no change in the Assigned Facilities Special Tax for such Land Use Class.
b. If the Total Effective Tax Rate for any Land Use Class is greater than

1.60%, the CFD Administrator shall calculate a revised Assigned Facilities Special Tax for such Land Use Class which revised Assigned Facilities Special Tax shall be the highest amount (rounded to the nearest whole dollar) that will not cause the Total Effective Tax Rate for any Land Use Class to exceed 1.60%. There shall be no adjustment made to the Special Tax rates of those Land Use Classes that do not have a Total Effective Tax Rate above 1.60% after the Appraisal or Price Point Study; there shall be no requirement to proportionately reduce all Land Use Classes if there is a reduction in some Land Use Classes. 1199 of 1325
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2. If the Assigned Facilities Special Tax for any Land Use Class is revised pursuant to step 1.b. above, the CFD Administrator shall calculate a revised Backup Facilities Special Tax for all property. The revised aggregate Backup Facilities Special Tax per Acre shall be an amount (rounded to the nearest whole dollar) equal to the aggregate Backup Facilities Special Tax per Acre as set forth in Section C above, reduced by a percentage equal to the weighted average percentage reduction in the Assigned Facilities Special Taxes for all Land Use Classes of Residential Property resulting from the calculations in steps 1.a. through 1.b. above. The weighted average percentage will be calculated by taking the sum of the products of the number of units constructed or expected to be constructed in each Land Use Class multiplied by the percentage change in the Assigned Facilities Special Tax (pursuant to step 1.b. above) for each Land Use Class (or 0 for Land Use Classes that are not changing). This amount is then divided by the total number of units constructed or expected to be constructed and converted to a percentage. Under no circumstances may the Backup Facilities Special Tax be increased.

3. If the Assigned Facilities Special Tax for any Land Use Class is revised pursuant to step 1.b. above, the CFD Administrator shall prepare and execute a Certificate of Reduction in Facilities Special Taxes substantially in the form of Attachment A hereto and shall deliver such Certificate of Reduction in Facilities Special Taxes to Improvement Area No. 1. The Certificate of Reduction in Facilities Special Taxes shall be completed for all Land Use Classes and shall set forth, as applicable, either (i) the reduced Assigned Facilities Special Tax for a Land Use Class as calculated pursuant to step 1.b. or (ii) the Assigned Facilities Special Tax as identified in Table 1 in Section C for a Land Use Class that was not revised as determined pursuant to step 1.a.; as well as the revised aggregate Backup Facilities Special Tax rate per Acre as calculated pursuant to step 2.

4. If the Issuance Date of the first series of Improvement Area No. 1 Bonds is within 120 days of the date of receipt of the Appraisal or a Price Point Study by the CFD Administrator, CFD No. 2026-1 shall execute the acknowledgement on such Certificate of Reduction in Special Taxes, dated as of the closing date of such Bonds, and upon the closing of such first series of Bonds, the Assigned Facilities Special Tax for each Land Use Class and the Backup Facilities Special Tax shall be, for all purposes, as set forth in such Certificate of Reduction in Facilities Special Taxes. If the Issuance Date of the first series of Bonds is not within 120 days of the date of receipt of the Appraisal or a Price Point Study by the CFD Administrator, such Certificate of Reduction in Facilities Special Taxes shall not be 1200 of 1325
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acknowledged by CFD No. 2026-1 and shall, as of such date, be void and of no further force and effect. In such case, if subsequently a first series of Improvement Area No. 1 Bonds is expected to be issued, at least 30 days prior to the expected Issuance Date of such first series of Improvement Area No. 1 Bonds, the CFD Administrator shall cause a new Appraisal or a Price Point Study to be delivered to the CFD Administrator and, following such delivery, steps 1 through 6 of this section shall be performed based on such new Appraisal or a Price Point Study.

5. As soon as practicable after the execution by CFD No. 2026-1 of the acknowledgement on the Certificate of Reduction in Facilities Special Taxes, CFD No. 2026-1 shall cause to be recorded in the records of the County Recorder an Amended Notice of Special Tax Lien for Improvement Area No. 1 reflecting the Assigned Facilities Special Taxes and the Backup Facilities Special Tax set forth in such Certificate of Reduction in Facilities Special Taxes.

6. If the Assigned Facilities Special Tax is not required to be changed for any Land Use Class based on the calculations performed under step 1 above, there shall be no reduction in the Facilities Special Tax, and no Certificate of Reduction in Facilities Special Taxes shall be required. However, the CFD Administrator shall prepare and deliver to CFD No. 2026-1 a Certificate of No Reduction in Facilities Special Taxes substantially in the form of Attachment B hereto dated as of the closing date of the first series of Bonds that states that the calculations required pursuant to this Section K have been made and that no changes to the Facilities Special Tax are necessary.

CFD No. 2026-1 and the CFD Administrator shall take no further actions under this Section K upon the earlier to occur of the following: (i) the execution of the acknowledgement by CFD No. 2026-1 on a Certificate of Reduction in Facilities Special Taxes pursuant to step 3; or (ii) the delivery by the CFD Administrator of a Certificate of No Reduction in Facilities Special Taxes pursuant to step 6.

L. TERM
The Facilities Special Tax shall be levied and collected as needed to fund the Annual Facilities Special Tax Requirement for up to 40 years from the initial levy of the Facilities Special Tax. In any event no Facilities Special Tax shall be levied for CFD No. 2026-1 after the 2065/66 Fiscal Year.

The Services Special Tax shall be levied and collected in perpetuity to fund the Annual Services Special Tax Requirement.
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ATTACHMENT A

CERTIFICATE OF REDUCTION IN FACILITIES SPECIAL TAXES
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(STATION EAST FACILITIES AND SERVICES)
IMPROVEMENT AREA NO. 1

1. Pursuant to Section K of the Rate and Method of Apportionment of Special Taxes attached to the Notice of Special Tax Lien recorded in the Official Records of the County of Alameda as Document No. _________ on the ____ day of _________, 20__, the CFD Administrator hereby reduces the Maximum Facilities Special Tax for Developed Property for [certain or all] Land Use Classes within Improvement Area No. 1.
2 . The calculations made pursuant to Section K were based upon an Appraisal or a Price Point Study that was received by the CFD Administrator on __________________.

3. Table A-1 below shows the Assigned Facilities Special Tax for each Land Use Class after such reduction:

Table A-1
Reduced Assigned Facilities Special Taxes for Developed Property Fiscal Year _______
Land
Use
Class
Plan
Area Description
Assigned
Facilities
Special Tax
1 4 Residential Property $_____ per
Unit
2 5, 6, and
11 Residential Property $_____ per Unit
3 7 and 8 Residential Property $_____ per
Unit
4 9 and 10 Residential Property $_____0 per
Unit
5 n/a Accessory Dwelling
Unit $0 per Unit
6 n/a Non-Residential
Property $0 per Acre

4. The Backup Facilities Special Tax for Developed Property will equal Maximum Facilities Special Tax as determined in Section 5, below, when such property became Final Map Property.

5. The Maximum Facilities Special Tax for each Assessor’s Parcel of Final Map Property shall be the greater of (i) the amount derived by application of the Assigned Facilities Special Tax or (ii) the amount derived by application of the Backup Facilities Special Tax.
a. Assigned Facilities Special Tax
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The Assigned Facilities Special Tax for each Assessor’s Parcel of Final Map Property shall be $_____ per Residential Lot.
b. Backup Facilities Special Tax
The aggregate Backup Facilities Special Tax for each Assessor’s Parcel of Final Map Property shall be $_____ per Acre.

6. The Maximum Facilities Special Tax for each Assessor’s Parcel of Undeveloped Property, Taxable Property Owner Association Property, and Taxable Public Property shall be $_____ per Acre.

7. Upon execution of the certificate by the City, the CFD Administrator shall cause an amended notice of special tax lien for Improvement Area No. 1 to be recorded reflecting the modifications set forth herein.

8. By execution hereof, the undersigned acknowledges, on behalf of the City and CFD No. 2026-1, receipt of this certificate and modification of the Rate and Method of Apportionment of Special Taxes as set forth in this certificate.

Submitted

CFD ADMINISTRATOR
By: Date:
___________________
Community Facilities District No. 2026-1 of the City of Union City By: Date as of :
___________________
[closing date of Bonds]
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ATTACHMENT B

CERTIFICATE OF NO REDUCTION IN FACILITIES SPECIAL TAXES COMMUNITY FACILITIES DISTRICT NO. 2026-1
IMPROVEMENT AREA NO. 1

1. All calculations required pursuant to Section K of the Rate and Method of Apportionment have been made based upon an Appraisal or a Price Point Study that was received by the CFD Administrator on __________________.

2. Total Effective Tax Rate for all Land Use Classes is less than or equal to 1.60%.

3. The Maximum Facilities Special Tax for Developed Property within Improvement Area No. 1, including the Assigned Facilities Special Taxes and the Backup Facilities Special Tax set forth in Section C of the Rate and Method of Apportionment, shall remain in effect and not be reduced.

Submitted

CFD ADMINISTRATOR
By: Date as of:
_______
[closing date of Bonds]
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ATTACHMENT C

MAP OF PLAN AREAS
COMMUNITY FACILITIES DISTRICT NO. 2026-1
IMPROVEMENT AREA NO. 1
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EXHIBIT B

AUTHORIZED FACILITIES AND SERVICES

CITY OF UNION CITY
COMMUNITY FACILITIES DISTRICT NO. 2026-1
(STATION EAST FACILITIES AND SERVICES)

AUTHORIZED FACILITIES
The City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services), Improvement Area No. 1, and any Future Improvement Area (collectively, the “CFD”) is authorized to finance all or a portion of the costs of the facilities permitted under the Mello-Roos Community Facilities Act of 1982 (“Act”) and that are provided in connection with the development of the property located in the CFD, including, but not limited to, those described below.

The CFD is authorized to finance the purchase, construction, expansion, improvement, or rehabilitation of any real or other tangible property with an estimated useful life of five years or longer, together with the planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of any real or tangible property (collectively, the “Facilities”), including, but not limited to, roadway and transportation facilities, water, sewer and storm drain facilities, parks, landscape, and open space, and school facilities. Examples of Facilities are described below.

Authorized Facilities include any facilities authorized by the Act that are financed in whole or in part by development impact fees and/or mitigation payments levied or collected in connection with development of the property, whether by the City or any other local agency. By way of example and not limitation, authorized facilities include, but are not limited to, facilities authorized by the Act to be funded by the following:
• City of Union City
• Union Sanitary Sewer District
• Alameda County Water District
• New Haven Unified School District
Roadway and Transportation Improvements
Authorized facilities include any and all on-site and off-site publicly-owned roadway and transportation facilities required to meet the needs of development within the CFD.

Eligible costs of these facilities include, but are not limited to, the following to the extent that they are capital costs of the facilities: Acquisition of land and easements; design; project management; payment and performance bond premiums; clearing, grubbing, and demolition; grading, soil import/export; paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers; bridge crossings and culverts; joint trenches, underground utilities and undergrounding of existing utilities; dry utilities 1211 of 1325
and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and off-site); enhanced fencing, and access ramps; street lights; roundabouts; intersections, signalization, and traffic signal control systems; bus turnouts; signs and striping; winterization and erosion control; median and landscape corridor landscaping and irrigation; bus shelters; retaining walls; masonry walls; implementation and maintenance of Stormwater Pollution Prevention Plan (SWPPP) measures; traffic control and agency fees required as a condition of development within the boundaries of the CFD; and other improvements related thereto where required.

Parks, Landscaping and Open Space
Authorized facilities include any and all on-site and off-site parks, landscaping and open space designed to meet the needs of development within the CFD. Eligible costs of these facilities include, but are not limited to, the following to the extent that they are capital costs of the facilities: Acquisition of land and easements; design; project management; grading; implementation and maintenance of SWPPP measures; potable water storage, groundwater wells, storage tanks, distribution facilities including pipelines and appurtenances and irrigation facilities, gate valves, flow meters, booster pump pressurization system, hardscape improvements (pavement), fencing, lighting at water storage tank sites, booster pumping stations, and groundwater wells; and other improvements related thereto.

Drainage System Improvements
Authorized facilities include any and all on-site and off-site drainage facilities required to meet the storage and conveyance needs of development within the CFD. Eligible costs of these facilities include, but are not limited to, the following to the extent that they are capital costs of the facilities: Acquisition of land and easements; design; project management; grading; implementation and maintenance of SWPPP measures; mains, pipelines and appurtenances; outfalls and water quality measures; temporary drainage facilities; detention/retention basins and drainage pretreatment facilities; drainage ways/channels; pump stations; landscaping and irrigation; stormwater hydromodification (including grading & demolition); access roads, gates, and fencing; striping and signage; and other improvements related thereto where required.

Water System and Irrigation Improvements
Authorized facilities include any and all on-site and off-site potable water system facilities designed to meet the needs of development within the CFD. Eligible costs of these facilities include, but are not limited to, the following to the extent that they are capital costs of the facilities: Acquisition of land and easements; design; project management; grading; implementation and maintenance of SWPPP measures; potable water storage, groundwater wells, storage tanks, distribution facilities including pipelines and appurtenances and irrigation facilities, gate valves, flow meters, booster pump pressurization system, hardscape improvements (pavement), fencing, lighting at water 1212 of 1325
storage tank sites, booster pumping stations, and groundwater wells; and other improvements related thereto.

Recycled Water System Improvements
Authorized facilities include any and all on-site and off-site recycled water system facilities designed to meet the needs of development within the CFD. Eligible costs of these facilities include, but are not limited to, the following to the extent that they are capital costs of the facilities: Acquisition of land and easements; design; project management; grading; implementation and maintenance of SWPPP measures; recycled water storage, treatment and distribution facilities including pipelines and appurtenances, gate valves, storage tanks, flow meters, booster pump pressurization system, hardscape improvements (pavement), fencing, lighting at water storage tank sites, booster pumping stations, and groundwater wells; and other improvements related thereto.

Wastewater System Improvements
Authorized facilities include any and all on-site and off-site publicly-owned facilities required to meet the wastewater conveyance needs of development within the CFD.

Eligible costs of these facilities include, but are not limited to, the following to the extent that they are capital costs of the facilities: Acquisition of land and easements; design; project management; grading; implementation and maintenance of SWPPP measures; pipelines and all appurtenances thereto; manholes; tie-in to existing main line; emergency storage at lift station sites; force mains; lift stations; odor-control facilities; sewer treatment plant improvements; hardscape improvements (pavement), fencing, lighting at lift station sites; and other improvements related thereto where required.

Other
Any other facilities serving substantially the same purpose as the above-described facilities.

The foregoing description of the type of Facilities eligible to be financed is general in nature and includes any appurtenant work and incidental expenses related to the Facilities. The final nature and location of the facilities will be determined upon the preparation of final plans and specifications for such facilities.

AUTHORIZED SERVICES
The authorized services to be funded by the CFD are the services described in Section 53313 of the Act, including but not limited to performance by City employees or contractors of maintenance and operation activities. Maintenance as used herein includes replacement and the creation and funding of a reserve fund to pay for replacement of facilities. The CFD shall only fund authorized services to the extent that they are in addition to those provided to land within the CFD prior to the creation of the CFD. 1213 of 1325
Incidental Expenses
Also included as authorized expenditures for the CFD are: (1) CFD bond-related fees and costs, including but not limited to fees of the City, underwriters/placement agents, financial advisors, appraisals, reserve fund balance, capitalized interest, bond counsel, disclosure counsel, special tax consultant, bond and official statement printing and all other incidental expenses; and (2) CFD administrative fees, including fees of the City, the bond trustee/fiscal agent, and the special tax consultant, related to the CFD. 1214 of 1325
C-1

EXHIBIT C

FORM OF

NOTICE OF PUBLIC HEARING
NOTICE is hereby given that on Tuesday, July 14, 2026, at 7:00 p.m., or as soon thereafter as the matter may be heard, the City Council of the City of Union City will hold a Public Hearing at the Union City City Hall, located at 34009 Alvarado-Niles Road, Union City, California, to consider the following:

PROPOSED FORMATION OF CITY OF UNION CITY COMMUNITY
FACILITIES DISTRICT NO. 2026-1 (STATION EAST FACILITIES AND SERVICES), IMPROVEMENT AREA NO. 1 AND FUTURE ANNEXATION AREA
The purpose of this public hearing is: The City of Union City is considering the formation of a community facilities district (the “CFD”), the designation of Improvement Area No. 1 of the CFD (“Improvement Area No. 1”) and the establishment of a future annexation area for the CFD (the “Future Annexation Area”) under the authority of the Mello-Roos Community Facilities Act of 1982, as amended, to fund certain public facilities related to new development within the City of Union City.

This Notice contains a brief summary of the proposal, but you are referred to the City Council's resolution “Resolution of Intention of the City Council of the City of Union City to Form Community Facilities District No. 2026-1 (Station East Facilities and Services), Designate an Initial Improvement Area Therein and Establish a Future Annexation Area, and to Levy Special Taxes Therein to Finance Certain Public Services and the Acquisition and Construction of Certain Public Facilities in and for Such Community Facilities District” adopted May 26, 2026 and its resolution “A Resolution of the City Council of the City of Union City Declaring Its Intention to Incur a Bonded Indebtedness in and for City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) in an amount not to exceed $38,000,000 to Finance the Acquisition and Construction of Certain Public Facilities” adopted the same day for the definitive description of the proposal.

The proposal is to subject the property within the CFD, initially consisting solely of Improvement Area No. 1, to a special tax which will be used to pay for public services and facilities authorized for the CFD, including paying principal and interest on bonds used to construct and acquire facilities. The proceeds of the bonds will be used to pay for the public services and facilities and other expenses set forth in the resolutions referred to in the preceding paragraph. A map showing the land proposed to be included in the CFD, Improvement Area No. 1 and the Future Annexation Area is on file with the City Clerk.

As set forth above, the City Council will hold a public hearing on the establishment of the CFD, the designation of Improvement Area No. 1, the establishment of the Future 1215 of 1325
C-2
Annexation Area, the extent of the facilities to be financed by the CFD, and the levy of the special taxes within the CFD.

The proposal also includes authority to issue bonds and other debt (as defined in the Act) in a maximum principal amount of $38,000,000, initially allocated as follows: (i) for Improvement Area No. 1, $20,000,000, and (ii) for the portion of the CFD that is not in Improvement Area No. 1, $18,000,000, to be repaid by the facilities special tax as described in the resolutions. Neither the City of Union City nor any person outside the applicable improvement area of the CFD has any liability for the special tax or the bonds.

The security for the bonds is limited to the property subject to the facilities special tax within the applicable improvement area of the CFD.

In order to confer the authority upon the City Council of the City of Union City to levy the special taxes and to issue the bonds, a public hearing must be held on the proposal, then the City Council will decide whether to form the CFD, designate Improvement Area No. 1 of the CFD, establish the Future Annexation Area for the CFD, and finally the qualified electors within Improvement Area No. 1 must approve the proposal by a two-thirds vote.

Where land within an improvement area is uninhabited (as is the case here) the qualified electors are, pursuant to law, the owners of property within the improvement area of the CFD.

Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings.

The land in the CFD is undeveloped and voting will be by the owners of land in the CFD.

If written protests against the proposed CFD are delivered to the City Council at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed CFD, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within the CFD or by the owners of a majority of the land area within the CFD which is or will be subject to the special tax, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, will require the proposed CFD to be eliminated from immediate consideration, and prevent its being included in a subsequent proceeding for at least one year.

If written protests against the establishment of the proposed Future Annexation Area are delivered to the City Council at or before the time set for the hearing by either registered voters residing within, or the owners of property within, the proposed Future Annexation Area, they will be counted toward a possible majority protest. Such protests by a majority of the registered voters residing within the proposed Future Annexation Area or by the owners of a majority of the land area within the proposed Future Annexation Area which is or will be subject to the special tax when annexed to the CFD, if not withdrawn prior to the close of the hearing so as to reduce the value of the protests to less than a majority, 1216 of 1325
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the City Council shall take no further action to create the Future Annexation Area for a period of one year from the date of decision of the City Council.

The City of Union City encourages interested parties to attend public meetings and comment on the issues being discussed. If you wish to provide testimony and are unable to attend the meeting, written comments that are delivered to the City Clerk’s office prior to the time of the hearing will be made a part of the public record. Questions regarding this matter should be directed to the City Clerk of the City of Union City at (510) 675- 5448.
_________________________________________________________

NOTICE REGARDING CHALLENGES TO DECISIONS
Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and/or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, this public hearing.

ADA COMPLIANCE STATEMENT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Department at (510) 675-5448.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Printed in the [newspaper] on ___________, 2026
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RESOLUTION NO. 2026-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

DECLARING ITS INTENTION TO INCUR A BONDED INDEBTEDNESS

IN AND FOR THE CITY OF UNION CITY COMMUNITY FACILITIES
DISTRICT NO. 2026-1 (STATION EAST FACILITIES AND SERVICES) IN AN AMOUNT NOT TO EXCEED $38,000,000 TO FINANCE THE

ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES WHEREAS, on the date hereof, the City Council (the “City Council”) of the City of Union City (the “City”) has duly adopted “RESOLUTION OF INTENTION OF THE CITY

COUNCIL OF THE CITY OF UNION CITY TO FORM CITY OF UNION CITY COMMUNITY FACILITIES DISTRICT NO. 2026-1 (STATION EAST FACILITIES AND

SERVICES), DESIGNATE AN INITIAL IMPROVEMENT AREA THEREIN AND

ESTABLISH A FUTURE ANNEXATION AREA, AND TO LEVY SPECIAL TAXES

THEREIN TO FINANCE CERTAIN PUBLIC SERVICES AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES” (the “Resolution of Intention”), wherein it declared its intention to establish a community facilities district under and pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”), to be known and designated as the “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (the “CFD”), designate therein “Improvement Area No. 1 of the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (“Improvement Area No. 1”), form a future annexation area for the CFD (the “Future Annexation Area”), to levy a services special tax within the CFD, and to levy a facilities special tax within the CFD to finance the acquisition and construction of certain public facilities (collectively, the “Facilities”) listed in Exhibit B to the Resolution of Intention and incorporated therein and made a part hereof; and
WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the City declares its official intent to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities, the expenditures related to the Facilities with the proceeds of bonded indebtedness and other debt issued by the City for the CFD; and WHEREAS, in order to finance the costs of the Facilities, it is necessary to incur bonded indebtedness in and for the CFD in an amount not to exceed $38,000,000; and WHEREAS, the City Council is fully advised in this matter.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:
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Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness

1. The above recitals are true and correct, and the City Council so finds and determines.

2. The City Council hereby declares that the public convenience and necessity require that a bonded indebtedness in the principal amount of not to exceed $38,000,000 be incurred in one or more series to finance the acquisition and construction of the Facilities, which amount includes all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which such bonded indebtedness is proposed to be incurred in and for the CFD (the “Authorization”), initially allocated as follows: (i) for land within Improvement Area No. 1, $20,000,000 and (ii) for the portion of the CFD that is not in Improvement Area No. 1, $18,000,000 (the “Future Improvement Area Indebtedness Limit”). Indebtedness subject to this limit shall only include indebtedness evidenced by bonds or notes and shall not include bonds described in Section 53364.2(e) of the Act.

Upon designation of a parcel or parcels annexed into the CFD from the Future Annexation Area as a future improvement area of the CFD (each, a “Future Improvement Area”), the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels to be annexed shall include an authorization to incur bonded indebtedness for such Future Improvement Area in a maximum amount which does not exceed the Future Improvement Area Indebtedness Limit, net of the amount of the Future Improvement Area Indebtedness Limit previously used to establish an indebtedness limit for any other Future Improvement Area in connection with a prior annexation from the Future Annexation Area. Such allocation may be made without any requirement for further public hearings, City Council action, or other proceedings, and the City shall include each Unanimous Consent in the CFD records.

3. This City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds and other debt in and for Improvement Area No. 1 in one or more series in the maximum aggregate principal amount not to exceed the Improvement Area No. 1 bonded indebtedness limit described above, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of such bonds and other debt, and maturing not to exceed 40 years from the date of the issuance of each series of the bonds and other debt.

This City Council, acting as legislative body for the CFD, intends to authorize the issuance and sale of bonds and other debt in and for each Future Improvement Area in one or more series in the maximum aggregate principal amount not to exceed the Future Improvement Area Indebtedness Limit in the aggregate, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a rate not to exceed the maximum rate of interest as may be authorized by applicable law at the time of sale of each series of bonds and other debt, and maturing not to exceed 40 years from the date of the issuance of the respective series of bonds and other debt. 1219 of 1325
Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness

4. Notice is given that Tuesday, July 14, 2026, at the hour of 7:00 P.M., at the regular meeting place of the City Council, City Council Chambers, Union City City Hall, 34009 Alvarado-Niles Road, Union City, California 94587, has been fixed by the City Council as the time and place for a public hearing to be held by the City Council to consider the incurring of such bonded indebtedness to finance the acquisition and construction of the Facilities in and for the CFD. At the hearing, testimony concerning the incurring of such bonded indebtedness, secured by the facilities special tax to be levied within the CFD to finance the acquisition and construction of the Facilities, will be heard, and protests will be considered from registered voters residing within the CFD and persons owning real property within the CFD. Written protests by the owners of a majority of the land which would be subject to special taxation within the proposed CFD will require the suspension of proceedings for at least one year. Written protests must be filed with the City Clerk at or before the time fixed for the hearing.

5. The City Clerk is hereby directed to cause notice of the public hearing to be given in the form required by the Act, which requires publication in a newspaper of general circulation circulated within the CFD, and such publication shall be made pursuant to Section 6061 of the Government Code of the State of California. The publication shall be completed at least 7 days before the date of the public hearing referenced above. The notice shall be substantially in the form specified in Section 53346 of the Act and attached hereto, with the form summarizing the provisions hereof hereby specifically approved.

6. The City hereby declares its intention to reimburse itself and/or other local agencies constructing and/or acquiring the Facilities certain expenditures for the Facilities from the proceeds of the bonded indebtedness and other debt described in this Resolution, including costs of the Facilities paid by the City and/or other local agencies prior to the date of issuance of such bonded indebtedness and other debt not in excess of the amount described herein.

7. This Resolution shall in no way obligate the City Council to form the CFD or to issue bonds or other debt for the CFD. Issuance of the bonds and other debt shall be subject to the approval of this City Council by resolution following the holding of the public hearing referred to above.

8. This Resolution shall take effect immediately upon its adoption. 1220 of 1325
Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness

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Resolution No. 2026-XXX
Station East Resolution of Intention to Incur Indebtedness

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
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City Council Staff Report Page 1 of 3 May 26, 2026
Staff Report
Agenda Item No. 6.2
DATE: May 26, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Kris Kokotaylo, City Attorney
SUBJECT: Adopt a Resolution of the City Council of the City of Union City Reaffirming and Proclaiming the City of Union City as a Compassionate City

EXECUTIVE SUMMARY
At the May 12, 2026 meeting of the City Council, the City Council considered an ordinance to prohibit civil immigration enforcement operations on City-owned and City-controlled properties. Staff prepared a draft ordinance for consideration and presented several examples of actions taken in neighboring jurisdictions, including the City of Pinole, City of South San Francisco, and County of Alameda. Copies of these examples are attached to this report.

Following consideration and deliberation, the City Council voted 3-2 to not proceed with the introduction of the proposed ordinance and for staff to return with a resolution reaffirming and proclaiming Union City as a compassionate city and including the words “or City properties” to locations that the City strongly urges ICE not to engage in enforcement activities. The proposed resolution is attached for Council consideration.

STRATEGIC PLAN ALIGNMENT
This item is not directly related to the Strategic Plan.

BACKGROUND
Over the past year, there has been growing concern about immigration enforcement activities in the Bay Area. In response to potential local impacts of national immigration enforcement activities, the Legislation and Policy Committee (the “Committee”) requested that staff present options to limit civil immigration enforcement on City property and ultimately directed staff to present an ordinance prohibiting civil immigration enforcement operations on City-owned and City-controlled properties.

Staff presented the proposed ordinance to the City Council on May 12, 2026. The City Council voted 3-2 to not proceed with the introduction of the proposed ordinance and for staff to return with a resolution reaffirming and proclaiming Union City as a compassionate 1224 of 1325
Agenda Item No. 6.2
City Council Staff Report Page 2 of 3 May 26, 2026
city and including the words “or City properties” to locations that the City strongly urges ICE not to engage in enforcement activities.

DISCUSSION
In May 2017, in response to community concerns, the City Council adopted a resolution declaring the City of Union City a Compassionate City (the “Compassionate City Resolution”). The purpose of the Compassionate City Resolution was to demonstrate Union City's commitment to enhancing its cultural fabric by supporting and celebrating its multi-ethnic diversity, including newcomers and immigrants. The Compassionate City Resolution also affirmed that the City would not actively enforce federal immigration laws.

A copy of the Compassionate City Resolution is attached to this report.

Following the City Council's adoption of the Compassionate City Resolution, Governor Brown signed SB 54, also known as the “Values Act,” into law. Under the Values Act, the City of Union City, as well as all law enforcement agencies in the State, are prohibited from engaging in nearly all immigration related activities. This includes utilizing law enforcement resources (including investigating, interrogating, detaining or arresting persons) for immigration enforcement purposes, inquiring into an individual’s immigration status or detaining an individual based on a hold request from immigration authorities, providing immigration authorities with information regarding an individual’s release date unless such information is publicly available, and making or participating in arrests based on civil immigration warrants or transferring an individual to immigration authorities unless authorized by judicial warrant upon a finding of probable cause by a judge or if the individual has been convicted of certain crimes.

Adopting a resolution reaffirming Union City as a Compassionate City would further the City’s commitment to enhancing its cultural fabric by supporting and celebrating its multiethnic diversity, which is critical to the City’s overall prosperity. The proposed resolution includes the words “or City properties” in locations that the City strongly urges ICE not to engage in enforcement activities.

FISCAL IMPACT
There is no direct impact associated with adopting the proposed resolution.

RECOMMENDATION
Staff recommends that the City Council consider adopting a resolution reaffirming Union City as a Compassionate City.

Attachments

1. Draft Resolution

2. Union City Resolution No. 5069-17 – Compassionate City Resolution

3. City of South San Francisco Resolution

4. Alameda County Resolution

5. City of Pinole Ordinance
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Agenda Item No. 6.2
City Council Staff Report Page 3 of 3 May 26, 2026
Prepared by: Juliet Vaughn, Associate
Submitted by: Kristopher Kokotaylo, City Attorney
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RESOLUTION NO. 2026-XXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

REAFFIRMING AND PROCLAIMING THE CITY OF UNION CITY AS A

COMPASSIONATE CITY
WHEREAS, the City of Union City (“City”) is committed to building a neighborly community that is inclusive, hospitable, and compassionate; and WHEREAS, the City Council recognizes that federal immigration policies continue to generate fear and anxiety among residents; and
WHEREAS, it is the intent of the City that no person be denied the equal protection of the laws, nor shall any person be denied the enjoyment of his/her civil or political rights or be discriminated against because of age, race, physical ability, religion, sexual orientation, or citizenship status; and
WHEREAS, the City recognizes that such discrimination poses a threat to the health, safety, and general welfare of the citizens of Union City and menaces the institutions and foundations of our community; and
WHEREAS, the City of Union City promotes inclusiveness, mutual respect, and cooperation throughout the community and continues to uphold its commitment to be a community free of prejudice, bigotry, and hate; and
WHEREAS, the City of Union recognizes that the United States Immigration and Customs Enforcement is responsible for enforcing federal civil immigration laws, thus the City has no authority or jurisdiction for such enforcement; and WHEREAS, a relationship of trust between California’s immigrant residents and our local agencies, including law enforcement, schools, and healthcare providers, is essential to carrying out basic local functions; and
WHEREAS, the City of Union City recognizes the authority and jurisdiction of United States Immigration and Customs Enforcement (“ICE”) to conduct sweeps, but strongly urges them not to: break up families, deport those that are here illegally, but have not broken other laws; detain or deport anyone that is a victim or witness in an ongoing investigation, court proceeding or trail; conduct sweeps at schools, places of worship or City buildings or City properties; and
WHEREAS, in light of the above recitals, the City Council previously adopted Resolution No. 5069-017 declaring the City of Union City a Compassionate City; and WHEREAS, the City Council desires to reaffirm that the City of Union City is a Compassionate City.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby reaffirms that the City of Union City is a Compassionate City. 1227 of 1325
Resolution No. 2026-XXX
Reaffirming and Proclaiming Union City as a Compassionate City

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on May 26, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:

THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
Gov. Code § 54957.5 (SB 343):

Resolution of the City Council of the City of South San Francisco’s Commitment to diversity and inclusion; expressing grave concern over recent Federal immigration enforcement actions and their impact on civil liberties; calling for accountability, transparency, and respect for due process; and clarifying existing laws and policies and the City’s response to immigration enforcement actions that do not comply with those laws and policies.

WHEREAS, due to recent federal immigration enforcement actions in Minneapolis, Minnesota, including multiple fatal shootings by federal immigration agents and federal agents’ resistance to local/state investigations, serious concerns have been raised nationwide regarding the protection and preservation of constitutional rights, the use of excessive force, and local autonomy in law enforcement oversight between municipalities and counties; and
WHEREAS, federal immigration enforcement can escalate fear and pose an immediate chilling effect on cities, including but not limited to, inhibiting local residents from freely enjoying public facilities, attending schools, accessing medical services, and engaging in the basic civil liberties of life, as entitled in the United States Constitution; and
WHEREAS, the United States Constitution guarantees fundamental civil liberties, including due process, equal protection under law, freedom of speech, and freedom from unreasonable seizure with the understanding that these rights belong to every person, regardless of citizenship status, in the United States; and
WHEREAS, the City of South San Francisco (“City”) is a welcoming, inclusive city that will protect the rights and privileges of everyone in South San Francisco, regardless of immigration status, and will oppose any attempts to undermine the safety, security, and rights of members of our community, as stated in Resolution 17-2017 which affirms the City’s commitment to diversity and inclusion; and WHEREAS, the City has a long-standing commitment to ensuring residents feel safe contacting public safety services, as affirmed by Resolution 25-543 which authorized a data-sharing agreement with other San Mateo County law enforcement agencies, yet explicitly states that the City prohibits data use for immigration enforcement; and
WHEREAS, the South San Francisco Police Department (SSFPD) has a long and proud history of building strong relationships of mutual respect and trust with community members, regardless of their immigration status, and SSFPD policies state that the department does not directly investigate or enforce immigration laws, File #: 26-1417, Version: 1
City of South San Francisco Page 1 of 5 Printed on 2/7/2026 powered by Legistar™
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as their primary function is to enforce the laws of the state of California; and WHEREAS, the City has and is actively sharing information with the community about their constitutional rights, partnered with county and local organizations in support of all residents, held numerous Know Your Rights Workshops, and shared resources, such as Immigrant Legal Resource Center-developed “red cards” to provide information, support, and solidarity with all community members, no matter their immigration status; and
WHEREAS, the City Council of the City of South San Francisco reaffirms that all government actions, local, state, or federal, must adhere to constitutional principles and that local democratic institutions play a vital role in upholding the rule of law and community trust.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of South San Francisco as follows:

SECTION 1. CITY RESPONSE TO USE OF CITY PROPERTY OR FACILITIES BY AN

IMMIGRATION AUTHORITY
A. Supervision of all City property and facilities is vested in the City Manager. (South San Francisco Municipal Code (“SSFMC”) § 2.20.060.) Any use of City property or facilities must be expressly authorized by the SSFMC or other valid law, an ordinance or resolution of the City Council, a valid contract with the City, or the City Manager through a permit or policy. Any use of City property or facilities not expressly authorized is prohibited.

B. It is the existing practice and policy of the City to respond to any unauthorized use of City property or facilities to inform the user or users that their use is not authorized and that they must cease and desist immediately, and to demand that they depart the City property or facility without delay.

C. Use of City property or facilities by Immigration Authorities is not expressly allowed and is therefore already prohibited.

D. In the event that an Immigration Authority attempts to use a City property or facility, the City Manager or delegee will inform the Immigration Authority that their use is not authorized and that they must cease and desist immediately and will demand that they depart the City property or facility without delay.

E. If the Immigration Authority refuses a lawful demand to immediately cease and desist in its unauthorized use of City property or facilities and to depart without delay, the City will take the following steps:

1. Document, to the extent feasible under the circumstances, that the City provided the Immigration Authority with a lawful demand to cease and desist in the use of City property or facilities and demanded that the Immigration Authority depart without delay.

2. Document, to the extent feasible under the circumstances, that the Immigration Authority refused the City’s lawful demand, including but not limited to in writing, video, and City of South San Francisco Page 2 of 5 Printed on 2/7/2026 powered by Legistar™
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photographs.

3. Immediately inform all City departments of the demand and refusal and the location and nature of the Immigration Authority’s use of City property or facilities.

4. Immediately inform the South San Francisco community, through all available means of communication, of the demand and refusal and the location and nature of the Immigration Authority’s use of City property or facilities.

5. Immediately inform the press of the demand and refusal and the location and nature of the Immigration Authority’s use of City property or facilities.

SECTION 2. CONTINUING RESTRICTIONS ON ACCESS TO CITY FACILITIES AND CITY

RESPONSE TO VIOLATIONS OF RESTRICTIONS BY AN IMMIGRATION

AUTHORITY
A. Consistent with the City Manager’s authority described in Section 1(A) of this Resolution, access to some City facilities or portions of facilities is restricted to City employees and officials and individuals with express permission to enter. Anyone without express authorization is prohibited from entering restricted facilities or areas of facilities.

B. Entrance into restricted City facilities or restricted areas of City facilities by Immigration Authorities is not expressly allowed and is therefore already prohibited, unless the Immigration Authority is acting pursuant to a lawfully issued judicial warrant.

C. Restricted City facilities or portions of facilities have appropriate signage providing notice of the restrictions. Some restricted facilities or portions of facilities have locked doors or gates in addition to or lieu of signage. The City will continue to maintain and supplement signage and will continue to keep restricted facilities and restricted areas locked and gated, as deemed appropriate by the City Manager.

D. It is the existing practice and policy of the City to respond to any attempt at unauthorized entry into a restricted City facility or restricted area in a City facility to inform the person attempting entry or who has already entered that they are not authorized to enter and that they must immediately cease and desist any attempt to enter, or exit the restricted facility or area without delay.

E. In the event that an Immigration Authority attempts to enter into a restricted City facility or restricted area in a City facility, the City Manager or delegee will inform the Immigration Authority that their entrance is not authorized, unless they can produce a valid judicial warrant to enter the facility or area of a facility, and that they must cease and desist immediately the attempt to enter or depart the restricted City facility or restricted area without delay.

F. If the Immigration Authority refuses a lawful demand to immediately cease and desist in its attempt to enter a restricted City facility or restricted area in a City facility or to depart without delay, the City will take the following steps:

1. Document, to the extent feasible under the circumstances, that the City provided the Immigration Authority with a lawful demand to cease and desist in its entrance into a restricted City facility or restricted area of a City facility or demanded that the City of South San Francisco Page 3 of 5 Printed on 2/7/2026 powered by Legistar™
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Immigration Authority depart without delay.

2. Document, to the extent feasible under the circumstances, that the Immigration Authority refused the City’s lawful demand, including but not limited to in writing, video, and photographs.

3. Immediately inform all City departments of the demand and refusal and the location and nature of the Immigration Authority’s unauthorized attempt to enter or actual entrance into a restricted City facility or restricted area in a City facility.

4. Immediately inform the South San Francisco community, through all available means of communication, of the demand and refusal and the location and nature of the Immigration Authority’s unauthorized attempt to enter or actual entrance into a restricted City facility or restricted area in a City facility.

5. Immediately inform the press of the demand and refusal and the location and nature of the Immigration Authority’s unauthorized attempt to enter or actual entrance into a restricted City facility or restricted area in a City facility.

G. If the Immigration Agency produces a valid judicial warrant to enter the facility or area, the City will nevertheless document the interaction and follow the steps in paragraphs (F)(3) through (F) (5), above.

SECTION 3. CITY RESPONSE TO IMMIGRATION AUTHORITY REFUSAL TO COMPLY WITH

CALIFORNIA LAW REQUIRING THEM TO IDENTIFY THEMSELVES AND

UNCOVER THEIR FACES
A. In 2025, the California Legislature enacted and the Governor signed SB 627 and SB 805, the No Vigilantes Act. SB 627 prohibits a law enforcement officer from wearing a facial covering that conceals or obscures their facial identity in the performance of their duties, unless an exception applies. SB 805 requires a law enforcement officer that is not uniformed to visibly display identification that includes their agency and either a name or badge number to the public when performing their enforcement duties, unless an exception applies. Under both laws, law enforcement officers includes any officer or agent of an Immigration Agency or a person acting on behalf of an Immigration Agency.

B. In any interaction between City staff and an Immigration Authority, if City staff reasonably believe the Immigration Authority is not complying with SB 627 or SB 805, City staff will request that the Immigration Authority comply. If the Immigration Authority refuses to comply with SB 627 or SB 805, City staff will:

1. Document, to the extent feasible under the circumstances, that the City provided the Immigration Authority with a lawful request to comply with SB 627 or SB 805.

2. Document, to the extent feasible under the circumstances, that the Immigration Authority refused the City’s lawful request, including but not limited to in writing, video, and photographs.

3. Immediately inform all City departments of the request and refusal and the location and City of South San Francisco Page 4 of 5 Printed on 2/7/2026 powered by Legistar™
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3. Immediately inform all City departments of the request and refusal and the location and nature of the Immigration Authority’s activities that violate SB 627 or SB 805.

4. Immediately inform the South San Francisco community, through all available means of communication, of the request and refusal and the location and nature of the Immigration Authority’s activities that violate SB 627 and SB 805.

5. Immediately inform the press of the request and refusal and the location and nature of the Immigration Authority’s activities that violate SB 627 and SB 805.

SECTION 4. DEFINITIONS
For the purposes of this Resolution:

A. “Immigration Authority” means any person or agency engaging in efforts to investigate, enforce, or assist in the enforcement of federal civil immigration law, including, but not limited to, U.S.

Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP), the Department of Homeland Security (DHS), the Drug Enforcement Agency (DEA), and the Federal Bureau of Investigations (FBI).

B. “Judicial warrant” means a warrant based on probable cause and signed by a federal or state judge. It does not include administrative warrants, such as ICE Form I-200 or I-205, issued by immigration officers.
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1 ORDINANCE NO. 2025-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PINOLE
ADDING CHAPTER 2.68 TO TITLE 2 OF THE PINOLE MUNICIPAL CODE

RESTRICTING THE USE OF CITY-OWNED OR CITY-CONTROLLED PROPERTY FOR

FEDERAL CIVIL IMMIGRATION ENFORCEMENT ACTIVITIES
WHEREAS, the City of Pinole is home to people of diverse racial, ethnic, and national backgrounds, including a large immigrant population; and
WHEREAS, immigrants are valuable and essential members of the City of Pinole community who contribute to the City’s economic, civic, and cultural vitality; and WHEREAS, a strong and trusting relationship between the City’s immigrant communities and the City of Pinole, including its departments, programs, and personnel, is essential to the public safety and wellbeing of all residents; and WHEREAS, this trust is undermined when state and local agencies become entangled with federal civil immigration enforcement, causing immigrant community members to fear reporting crimes, seeking health services, accessing City facilities, or engaging in civic life, which detracts from the safety and welfare of the entire community; and
WHEREAS, entanglement with federal civil immigration enforcement diverts limited City resources and blurs lines of accountability among local, state, and federal governments; and WHEREAS, the federal government, through U.S. Immigration and Customs Enforcement (ICE), has undertaken broad civil immigration enforcement operations involving personnel from multiple federal agencies in ways that have generated concern among local communities; and WHEREAS, state and local governments bear primary responsibility for ensuring the safety and wellbeing of their communities and possess the discretion and authority to adopt policies best suited to those communities; and
WHEREAS, the City of Pinole believes that public safety is best achieved through trust and collaboration between residents and their local government, not through the militarization or deputization of local resources in service of federal civil immigration enforcement; and WHEREAS, current City policies do not explicitly restrict federal civil immigration enforcement agencies from using City-owned land or facilities for operations, staging, processing, or surveillance, and without such protections, City assets may be inadvertently weaponized against the very communities the City serves, undermining trust in local government; and 1243 of 1325
2 WHEREAS, the City seeks to implement an “ICE-Free Zone” ordinance to protect public safety, ensure community members feel safe accessing City services and facilities, and prevent voluntary use of City resources to support federal civil immigration enforcement; and WHEREAS, the United States Supreme Court has long recognized that state and local governments retain primary authority over matters affecting the health, safety, and welfare of their residents, and that decisions concerning local public resources are best made by governments closest and most accountable to the people they serve; and
WHEREAS, respect for local police powers is a core principle of American federalism, reflected in the United States Constitution and widely affirmed in judicial precedent; and WHEREAS, California Constitution Article XI, Section 7 grants cities the authority to enact and enforce ordinances that are not in conflict with general state law, including ordinances governing municipal property and local government operations; and
WHEREAS, pursuant to the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, this ordinance constitutes a general policy action that does not have the potential to cause a physical environmental impact and therefore is not a project subject to CEQA; and WHEREAS, the City Council of the City of Pinole is the decision-making body for this ordinance and has reviewed and considered the CEQA determination before taking action to introduce and adopt this ordinance; and
WHEREAS, regulating the use of City-owned or City-controlled property, without regulating the conduct of federal agencies, is a lawful exercise of municipal authority and an appropriate and necessary means of promoting public safety, community trust, and the responsible use of public resources.

THE CITY COUNCIL OF THE CITY OF PINOLE DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS.

The above recitals are true and correct and made a part of this Ordinance.

SECTION 2. ADDITION OF CHAPTER 2.68 TO TITLE 2 OF THE PINOLE MUNICIPAL CODE Title 2 of the Pinole Municipal Code is amended to add Chapter 2.68, to read as follows:

Chapter 2.68 – Use of City-Owned or City-Controlled Property for Civil Immigration Enforcement Activities

2.68.010 Purpose.

The purpose of this Chapter is to protect public safety, promote community trust, and ensure that Cityowned or City-controlled property is not voluntarily used to support federal civil immigration enforcement activities except when mandated by a valid judicial warrant or court order.

2.68.020 Definitions.
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3 For purposes of this Chapter:
“Civil Immigration Enforcement” means any investigation, detention, arrest, surveillance, monitoring, questioning, information-gathering, or operational activity undertaken for the primary purpose of enforcing federal civil immigration laws, including actions by U.S. Immigration and Customs Enforcement (ICE) or U.S. Customs and Border Protection (CBP). “City Property” or “City-Owned or City-Controlled Property” means any real or personal property, land, building, facility, structure, vehicle, equipment, or space owned, leased, operated, or controlled by the City of Pinole.
“Judicial Warrant or Court Order” means a warrant or order issued by a federal or state judge or magistrate based on probable cause and legally sufficient to compel compliance by the City. “Surveillance” means observing, recording, monitoring, or collecting information about individuals for civil immigration enforcement purposes, including through cameras, license plate readers, drones, or other technologies.

2.68.030 Prohibited Uses of City Property.

Unless required by a valid judicial warrant or court order, no department, employee, official, contractor, or agent of the City shall knowingly permit City-owned or City-controlled property to be used for staging civil immigration enforcement operations; processing, interviewing, or temporarily detaining individuals for civil immigration purposes; surveillance or monitoring activities related to civil immigration enforcement; or as operations bases, coordination points, or logistical hubs for civil immigration enforcement actions.

2.68.040 Exceptions.

Nothing in this Chapter prohibits federal officers or employees from entering areas of City property generally open to the public. Nothing in this Chapter prevents the City or any City employee from complying with a valid judicial warrant or court order. Nothing in this Chapter restricts criminal law enforcement activities where civil immigration enforcement is not the primary purpose.

2.68.050 Implementation.

The City Manager, in consultation with the City Attorney, shall develop administrative procedures to implement this Chapter. City departments shall receive training, as appropriate, regarding the requirements of this Chapter.

2.68.060 Enforcement; No Private Right of Action.

This Chapter does not create or form the basis of liability on the part of the City or any City department, agency, official, or employee, nor does it create a private right of action against the City or any City personnel. This Chapter shall be implemented through existing administrative policies and procedures governing City operations. The City Manager may establish additional rules or regulations necessary to carry out the provisions of this Chapter.
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4 SECTION 3. CEQA.

Approval of the proposed amendments is exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), which provides a general rule exemption for projects with no potential for a significant effect on the environment. Because this ordinance solely regulates the governmental use of existing City-owned or City-controlled property and does not authorize or require any physical construction, alteration of facilities, or change in land use, it can be seen with certainty that the ordinance will not result in any direct or reasonably foreseeable indirect physical environmental impacts.

SECTION 4. Severability.

If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of Pinole hereby declares that it would have passed each Section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 5. Effective Date.

In accordance with California Government Code Section 36937, this Ordinance shall take effect and be in force thirty (30) days after its final passage.

SECTION 6. Publication.

The City Clerk is directed to certify to the adoption of this ordinance and arrange for its posting and publication as required by law.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on December 2, 2025, the City Council passed this Ordinance by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of Pinole on December 2, 2025.
____________________________
Heather Bell, CMC
City Clerk
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ITEM 6.2

RESOLUTION REAFFIRMING AND

PROCLAIMING UNION CITY AS A

COMPASSIONATE CITY
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2 Background
• Staff presented information regarding potential options to address civil immigration enforcement activities on City property to the Legislation and Policy Committee at its meeting on April 20, 2026.
• The Committee considered examples of actions taken by other jurisdictions including the City of Pinole, the City of South San Francisco, and Alameda County. • Following presentation and discussion, the Committee directed the City Attorney’s Office to prepare an ordinance for Council review that would prohibit the use of Cityowned and controlled facilities and property for civil immigration enforcement. 1248 of 1325

3 Background
• The City Council considered an ordinance that would prohibit the use of City-owned and controlled facilities and property for civil immigration enforcement at its meeting on May 12, 2026.
• After consideration of the proposed ordinance, the City Council voted to not proceed with the introduction of the proposed ordinance and for staff to return with a resolution reaffirming and proclaiming Union City as a compassionate city and including the words “or City properties” to locations that the City strongly urges ICE not to engage in enforcement activities.
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4 Compassionate City Resolution
• In 2017, the City Council adopted Resolution 5069-017, declaring Union City a “Compassionate City.”
• The Resolution expresses the City’s commitment to a community free from prejudice, bigotry, and hate, and prohibits the City from engaging in activities solely to enforce federal immigration law.
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5 Proposed Resolution
• The purpose of the proposed resolution reaffirming Union City as a Compassionate City would be to further the City’s commitment to enhancing its cultural fabric by supporting and celebrating its multi-ethnic diversity, which is critical to the City’s overall prosperity. • Consistent with Council direction, the proposed resolution includes the words “or City properties” in locations that the City strongly urges ICE not to engage in enforcement activities.
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6 Recommendation
Staff and the City Attorney’s Office recommend that the City Council adopt the proposed resolution or provide other direction.
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May 26, 2026
Union City Mayor and City Council
34009 Alvarado-Niles Road
Union City, CA 94587
Dear Mayor and Council,
I was disappointed to learn that the City Council did not act on an ordinance to protect our immigrant communities. Every day, our shared constituents live in fear of the actions of our federal administration. In Assembly District 20, immigration enforcement agents have attempted to access schools-and have succeeded at deporting children.

There is a difference between an ordinance and a resolution. A resolution is simply an expression of values. But statements of values without action do little to protect our neighbors. An ordinance is a local law and carries legal weight.

Over 46% of Union City residents are immigrants. Every Union City resident deserves dignity and safety from the City Council. Other jurisdictions who have enacted ordinances that prohibit federal immigration agencies from using city/county-owned or controlled property for enforcement operations include: San Francisco, Oakland, San Jose, Richmond, Santa Clara, Pinole and more.

I urge the City Council to reconsider and pass an ICE-free zones ordinance.

Sincerely,
Liz Ortega
California State Assembly, District 20
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City Council Staff Report Page 1 of 3 May 26, 2026
Staff Report
Agenda Item No. 6.3
DATE: May 26, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving the City of Union City Investment Policy for Fiscal Year 2026-2027

EXECUTIVE SUMMARY
This action is to review and approve an updated Investment Policy for Fiscal Year 2026- 2027 to incorporate recommendations from the City’s Investment Fiduciary. Staff recommends that the City Council adopt the attached resolution approving the updated Investment Policy for Fiscal Year 2026-2027.

STRATEGIC PLAN ALIGNMENT
This staff report aligns with Goal A: Financial Stability and Sustainability.

BACKGROUND
The City’s Investment Policy sets forth the City’s investment objectives, risk preferences, authorized investments, and other investment-related priorities. A thoughtful and comprehensive investment policy not only provides accountability for investment officials but also promotes public trust in investment decisions. Developing, reviewing, and monitoring the City’s Investment Policy serves as an important tool of communication between the investment official, City Management, and the City Council.

Shuster Advisory Group, LLC (“Shuster”) has worked closely with City staff through regular meetings to review and evaluate the City's investment portfolio, including discussion on updating the City’s Policy and any recommended changes to the Policy.

Shuster is an independent SEC-Registered Investment Advisor with over $11 billion in assets under management. As a fiduciary, Shuster specializes in serving the unique investment needs of governmental agencies, special districts, and institutional clients, including more than 120 cities and public entities. Shuster provides comprehensive retirement plan consulting and fiduciary investment management services, including investment selection, monitoring, and oversight. In addition, Shuster offers expertise in managing Section 115 Trusts and operating cash assets, helping public agencies 1254 of 1325
Agenda Item No. 6.3
City Council Staff Report Page 2 of 3 May 26, 2026
optimize liquidity, preserve capital, and enhance yields across reserve and long-term funds. The firm also serves private wealth clients through tailored portfolio management and planning services.

The City’s Cash Investment Portfolio assets are governed by the California Government Code (“CA Code”) as found in the California Local Agency Investment Guidelines. As a fundamental principle, CA Code Section 53600.3 states that a City is the ultimate Fiduciary on all public funds subject to the prudent investor standard. Further, CA Code Section 53601 specifies the allowable investments that a City may purchase to achieve the ultimate goals of safety, liquidity, and yield. While risk is inherent throughout the investment process, the CA Code is meant to provide a structural framework within which City officials may construct their Cash Investment Portfolios.

DISCUSSION
The current Investment Policy Statement remains compliant with CA Code Section 53601. However, updates to the CA Code in recent years have expanded investment flexibility for local agencies while preserving the core principles of safety, liquidity, and return.

Shuster has recommended targeted updates to the City’s IPS to align with current statutory allowances and incorporate best practices in public fund management. These changes are designed to enhance yield potential, streamline the portfolio structure, and ensure the City remains well-positioned in a dynamic interest-rate environment.

Proposed updates include:

1. Allowing the maturity of agency asset-backed and mortgage-backed securities to be measured by Weighted-Average-Life (WAL), which is not to exceed 5 years, pursuant to CA Code Section 53601(o).

2. Increasing the maximum allowable maturity for commercial paper to 397 days, pursuant to CA Code Section 53601(h).

3. Setting the maximum portfolio allowance for bankers’ acceptances in any one commercial bank to 30%, pursuant to CA Code Section 53601(g).

4. Clarifying that the current maximum allowance for any LAIF account is $75 million.

5. Enhancing the reporting data inputs for more informative monitoring of the Fixed Income portfolio's exposures and risk across security types.

The recommended threshold limit updates above reflect the latest allowable limits within CA Code 53601. While these limits may not be fully utilized, it's important to maintain flexibility given dynamic market conditions.

FISCAL IMPACT
There is no direct fiscal impact associated with updating the City’s Investment Policy Statement.
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Agenda Item No. 6.3
City Council Staff Report Page 3 of 3 May 26, 2026

RECOMMENDATION
Staff recommends that the City Council adopt a Resolution approving the City of Union City Investment Policy for Fiscal Year 2026-2027.

Prepared by: Chu Thai, Finance Director
Submitted by: Chu Thai, Finance Director
Attachments

1. Draft Resolution
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RESOLUTION NO. 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION

CITY APPROVING THE CITY OF UNION CITY INVESTMENT POLICY FOR FISCAL YEAR 2026-2027
WHEREAS, Government Code Section 53646 recommends that public agencies have their investment policy reviewed and approved annually by the local governing body at a public meeting; and
WHEREAS, Government Code Section 53646 also states that any change in the investment policy shall be considered by the governing body of the local agency at a public meeting; and
WHEREAS, the last time the City Council approved the City’s Investment Policy was November 26, 2024; and
WHEREAS, the proposed changes to the City’s Investment Policy aim to align with California Government Code Section 53601 regarding permitted investments and improve reporting data inputs for better monitoring of the Fixed Income portfolio's exposures and risks across security types, with other modifications being grammatical edits.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby approves the City’s Investment Policy, attached hereto as Exhibit A and Exhibit B, demonstrating transparency and commitment to sound financial management.
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Resolution No. 2026-XXX
Approving FY 26-27 Investment Policy