City Council Staff Report Page 1 of 8 September 22, 2026 Staff Report
Agenda Item No. 4.1
DATE: September 22, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Hold a Public Hearing and Adopt a Resolution Approving the 2025- 2026 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER) and
Authorizing the City Manager to Submit the 2025-2026 CDBG CAPER to the U.S. Department of Housing and Urban Development
EXECUTIVE SUMMARY
Staff recommends that the City Council hold a public hearing on the 2025-2026 Community Development Block Grant (“CDBG”) Consolidated Annual Performance and Evaluation Report (“CAPER”) and adopt a resolution (Attachment 1) approving the 2025- 2026 CAPER (Exhibit A) and authorizing its submittal to the U.S. Department of Housing and Urban Development (“HUD”).
STRATEGIC PLAN ALIGNMENT
This agenda item does not align with a specific goal or strategy in the Strategic Plan.
However, it is required in order for the City to receive Federal block grant funds, which support a variety of City programs and contribute to the City’s overall mission to provide effective, high-quality services that promote a high quality of life and economic vitality.
BACKGROUND
The City of Union City receives CDBG funding annually from HUD. In addition, Union City receives HOME Investment Partnership Program (“HOME”) funds annually through participation in the Alameda County HOME Consortium. As part of the requirements to receive this funding, the City must prepare and submit a CAPER to HUD every year. The CAPER describes how CDBG- and HOME-funded activities addressed the City’s housing and community development needs and compares its accomplishments to the goals the City set in the Program Year 2025-2026 (“PY25”) Annual Action Plan and the first year of the City’s 2025-2029 Consolidated Plan. The CAPER also provides a comprehensive accounting of all CDBG and HOME funds allocated and expended during PY25. See Attachment 1, Exhibit A, for the PY25 CAPER.
Agenda Item No. 4.1
City Council Staff Report Page 2 of 8 September 22, 2026
DISCUSSION
In PY25, the City expended $457,356.84 in CDBG funding and $94,976.00 in CDBG administration funds to cover administrative costs and staff time, for a total expenditure of $552,332.84. In total, the City spent $552,332.84 in CDBG funds on housing- and community-development-related activities. See Table 1 below showing a breakdown of CDBG funds spent by activity. The City also spent $232,932.94 in General Fund dollars to support public service programs.
Table 1. Program Year 2025 CDBG Expenditures by Activity Service Type Program Year
Total CDBG
Funding
Expenditure
Public Services 2025 $63,544.68
Micro-Enterprise Program 2025 $18,511.92
Minor Home Repair
Program 2025 $26,000.00
Public Facilities 2023 $127,878.12
Public Facilities 2024 $125,632.27
Public Facilities 2025 $95,789.85
HOME Funds 2025 $0
Program Income 2025 $0
Subtotal $457,356.84
Administration 2025 $94,976.00
Agenda Item No. 4.1
City Council Staff Report Page 3 of 8 September 22, 2026 Service Type Program Year
Total CDBG
Funding
Expenditure
Total $552,332.84
Public Services
The City spent $63,544.68 in PY25 CDBG funds and $232,932.94 in General Fund dollars to support 11 public service programs. See Tables 2 and 3 below for an overview of PY25 public service activities, grant amounts, amounts utilized by the service provider, and the number of residents served. In total, through its CDBG and General Fund funding, the City served 27,240 residents in PY25.
There are instances where public service providers did not use all of their grant funding.
The unexpended amounts ranged from $4 to $7,500. Staff is currently reaching out to these service providers to better understand why they were not able to spend their entire award by the end of the fiscal year.
Table 2. Program Year 2025 CDBG Public Service Grant Expenditures and Residents Served
Organization Program Grant
Amount
Grant
Expenditure
Amount
Number of
Union City
Residents
Served
Abode Services
Emergency
Homeless Shelter
Services
$10,000 $10,000 10
City of Fremont Senior Support
Services $10,000 $10,000 34
ECHO
Fair Housing,
Tenant/Landlord
Counseling
$10,000 $10,000 132
Union City Family
Center
General Social
Services $20,000 $16,202.84 1,586
Safe Alternatives
to Violent
Environments
(SAVE)
Crisis Intervention for
Domestic Abuse
Survivors
$10,000 $7,341.84 56
Agenda Item No. 4.1
City Council Staff Report Page 4 of 8 September 22, 2026 Organization Program Grant
Amount
Grant
Expenditure
Amount
Number of
Union City
Residents
Served
Spectrum
Community
Services
Senior Meals
Services $10,000 $10,000 151
CDBG Totals $70,000 $63,544.68 1,969
Agenda Item No. 4.1
City Council Staff Report Page 5 of 8 September 22, 2026 Table 3. Program Year 2025 General Fund Public Service Grant Expenditures and Residents Served
Organization Program Grant
Amount
Grant
Expenditure
Amount
Number of
Union City
Residents
Served
Abode Services
Emergency
Homeless Shelter
Services
$5,000 $5,000 *
Centro De
Servicios
General Social
Services $155,000 $155,000 24,152
Community
Resources for
Independent
Living
Housing and
Independent Living
Skills
$15,000 $15,000 49
Immigration
Institute of the
Bay Area
Legal Services for
Immigrants $15,000 $7,500 184
Legal Assistance
for Seniors Legal Services $10,000 $8,213.76 19
Safe Alternatives
to Violent
Environments
(SAVE)
Youth Services
Program $10,000 $9,996.00 718
SOS Meals on
Wheels (formerly
LIFE Eldercare)
Senior Meals
Services $15,000 $15,000 149
Spectrum
Community
Services-Senior
Meals
Senior Meals
Services $5,000 $5,000.00 *
Union City Family
Center
General Social
Services $15,000 $12,223.18 *
General Fund
Totals $245,000 $232,932.94 25,271
*Note: This vendor received both CDBG and General Fund monies. To avoid doublecounting residents served, the “number of Union City residents served” is included in the CDBG funding table above.
Microenterprise Assistance
The City spent $18,511.92 in PY25 to support the Community Child Care Council (4Cs).
Agenda Item No. 4.1
City Council Staff Report Page 6 of 8 September 22, 2026 They provide microenterprise assistance, including business support, education, technical assistance, and incentives, to help residents launch and operate in-home family childcare businesses. The program assisted eight (8) low-income, in-home childcare providers.
The provider submitted all its reimbursement requests on time this year and has continued to work with staff on invoice submissions and reporting. Although the service provider did not expend the remaining $1,488.08 of its CDBG award, this is considered an irregularity, as it has consistently expended its full award each program year.
Housing Rehabilitation
The City spent $26,000 in PY25 CDBG funds to implement the City’s Housing Rehabilitation Program, which provides repair and rehabilitation grants to low-income homeowners. The City contracts with Alameda County through its Healthy Housing Services program, which provides services for the Minor Home Repair Program. This year the program provided six (6) minor home repair grants. Rehabilitation projects included: installation of shower grab bars, repair of subfloors in bathrooms and bedrooms, replacement of existing toilets with ADA-height toilets, installation of smoke alarms, repair of window sealing, repair of front steps, partial roof repair, and replacement of a water heater. The average cost of repair per home was $4,333.
The City has been working with new Alameda County staff at Healthy Homes to ensure the timely submission of invoices. County staff have consistently responded positively and submitted invoices on time, but last program year they were unable to spend their full CDBG award, leaving a balance of $24,000. According to County staff, this was mainly attributed to a large increase in the number of applications and Program updates, resulting in longer processing times for residents’ applications. This is not anticipated to be an issue moving forward. City staff will continue to coordinate with the County to ensure they can fully utilize their funding allocation moving forward.
Public Facilities
The City spent a total of $349,300.24 on City capital projects, which are described further below. The funds for these projects were allocated in PY 23, 24 and 25.
Fred Castro Park Improvement Project
The Fred Castro Park Improvement Project included the replacement of play equipment, rehabilitation of landscaping, replacement of fencing along the park's perimeter, repair of pedestrian pathways to address non-ADA-compliant grades, and lighting upgrades throughout the park. In PY25, the City spent $19,615.27 in CDBG funds to complete the installation of lighting around the park as the final portion of the project. Additional CDBG funds spent on the other project components were reported in the PY24 CAPER.
Charles F. Kennedy Park Improvement Project
The Charles F. Kennedy Park Improvement Project includes the construction of sidewalks and curbs around the lot, asphalt resurfacing and repainting, rehabilitation of non-ADAcompliant access points throughout the parking lot, tree maintenance, irrigation system repairs, repairs to the community center at the park, and the purchase of wood fiber for use in the play area. The parking lot and park rehabilitation were completed in PY25, and Agenda Item No. 4.1
City Council Staff Report Page 7 of 8 September 22, 2026 a total of $329,684.97 in CDBG funds was spent on the project.
HOME Funding
There were two (2) programs to which HOME funds were allocated in PY25. Although work occurred during the program year, for the reasons listed below, no HOME funds were spent or reported in the PY25 CAPER.
Tenant-Based Rental Assistance
Union City allocated approximately $32,787 of its HOME funding from the Alameda County HOME Consortium to Fremont’s Stay Housed Program, which is a Tenant Based Rental Assistance (TBRA) program that assists individuals and families in securing and/or staying housed by providing them with rental subsidies. This program provides rental assistance for up to 24 months for low-income families at risk of homelessness to help with their long-term housing options. The program also enrolls participants in the selfsufficiency program to help achieve long-term financial stability.
The program was able to support three (3) Union City families this year. Due to a large client caseload, Fremont staff submitted their invoices for processing after the end of the program year. This funding expenditure will be reported as part of next year’s CAPER report. Based on a review of the invoices, the program was able to expend all of the funds allocated by Union City.
Union City and Fremont staff met to engage on expanding outreach. Staff is working with its public service providers to educate them regarding the program with the goal of increasing referrals to the TBRA program.
Scattered Sites Homekey Project
In the PY25 Annual Action plan, City staff allocated approximately $84,310 of HOME funding to go towards the Scattered Sites Homekey project, which provides supportive housing for residents experiencing homelessness. The City partnered with Bay Area Community Services (BACS) and the City of Hayward on a State Homekey grant application to support the project, which consists of retrofitting single-family homes to accommodate those experiencing homelessness. The project included the purchase of one home in Union City.
The City was not able to expend funds on the program in PY25 due to BACS needing to expend all of the State HCD funding before it could draw from other funding sources. The State HCD Homekey Program has mandatory disbursement regulations which require that all State grant funds need to be spent prior to any local funding. It is anticipated that PY25 funds will be expended by the end of 2026 and will cover costs related to the acquisition and rehabilitation of the Union City property and costs associated with the clients’ transition to permanent housing.
Administration
The City spent $94,976 in CDBG funding on administration of both the CDBG and HOME programs, which primarily covered staff costs, consultant support and incidental supplies.
FISCAL IMPACT
Agenda Item No. 4.1
City Council Staff Report Page 8 of 8 September 22, 2026 There is no impact to the General Fund as a result of receiving this report.
RECOMMENDATION
Staff recommends that the City Council hold the public hearing on the 2025-2026 CAPER and adopt the attached resolution (Attachment 1) approving the 2025-2026 CAPER (Exhibit A) and authorizing the City Manager to submit the CAPER to HUD.
Prepared by: Francisco Gomez, Housing and Community Development Manager Submitted by: Carmela Campbell, Economic and Community Development Director Attachments
1. Attachment 1 – Draft Resolution
2. Exhibit A - PY25-26 CDBG CAPER