Item Number: 1
City Council / Board of Directors
Public Hearing(s)
Meeting of: February 17, 2026
Submitted By:
Alex Jauregui, City Planner
Subject:
United States Department of Housing and Urban Development Required Public Hearing for Community Planning and Development Grants for Fiscal Year 2026-2027 Recommendation:
That the Honorable City Council:
(1) Open and conduct a Public Hearing to receive citizen, agency, and prospective applicant comments regarding the City’s needs and strategies for the 2026-2027 Annual Action Plan; and
(2) Close the Public Hearing.
Fiscal Impact:
There is no fiscal impact at this time; however, associated Agenda items in the future will guide the disbursement of approximately $1.91 million dollars in federal Community Planning and Development (CPD) Grants.
Strategic Plan Goal:
The subject public hearing will allow the City Council to obtain public input regarding the future allocation of available HUD funding via the 2026-2027 Annual Action Plan, which will enable the City to further fulfill the following Goals outlined in the 2023-2026 Strategic Plan:
• Goal A (Financial Sustainability) – Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds represent funding opportunities that require limited financial commitments while ensuring greater availability of general fund resources.
• Goal D (Reduce Homelessness) – Eligible activities such as public service and housing projects are aimed to directly benefit the homeless population as well as those at risk of homelessness, providing the City an opportunity to expand the outreach network and partnerships.
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Background:
In 1997, the City of Victorville became an Entitlement City with the U.S. Department of Housing and Urban Development (HUD). This status allows the City to receive Community Development Block Grant (CDBG) funds directly from HUD. Prior to Victorville’s status as an Entitlement City, CDBG funding was awarded to the City of Victorville through the County of San Bernardino and was subject to projects/programs that fulfilled a countywide need rather than those specific to the City.
The City of Victorville successfully formed a consortium in 2003 with the Town of Apple Valley in order to meet the threshold of obtaining HOME Investment Partnership Program (HOME) entitlement status with HUD. The successful formation of the consortium results in an annual allocation of HOME funds to both communities, which can be used in concert with CDBG funding to address specific needs within the City of Victorville.
As an Entitlement City for both programs, staff is responsible for all required tasks including program development, application guidance and processing, determination of project eligibility, project oversight, contract compliance, all reporting requirements, and direct draw of funds from HUD.
One of the key requirements of an Entitlement City status is the development of a five- year planning document, known as the Consolidated Plan (ConPlan). Pursuant to Section 24 of the Code of Federal Regulations (CFR) Part 91, HUD has established regulations that set forth the ConPlan process. The ConPlan is designed to help states and local jurisdictions to assess their affordable housing and community development needs, market conditions, and to make data-driven, place-based investment decisions. The ConPlan, which may have a duration of between 3 and 5 years, describes the jurisdiction’s community development priorities and multiyear goals based on an assessment of housing and community development needs, an analysis of current housing and economic market conditions and available resources. Subpart E of Section 24 CFR Part 91, requires local governments that participate in a consortium to include said consortium in the ConPlan. Pursuant to this regulation, on April 19, 2022, the City of Victorville adopted the 2022-2026 ConPlan, including the required consortium component.
The ConPlan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the ConPlan. Each year, grantees must submit an updated Action Plan describing specific planned uses for HUD program funds, including CDBG and HOME. The fiscal year 2026- 2027 Annual Action Plan represents the fifth and final program year of the 2022-2026 ConPlan. A copy of the ConPlan (Attachment A) in its entirety is available for the public on the City’s website; however, the priority needs outlined in the City’s 2022-2026 ConPlan are provided for your reference as follows:
Supportive services for the homeless and at risk
Human services
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Housing programs
Accessibility and Mobility
Economic Development
As part of the Action Plan preparation and adoption process, citizens of the City of Victorville are afforded an opportunity to provide input on housing and community development needs and issues affecting very-low and low income persons. Public notices to facilitate community participation were published in a local newspaper 10 days prior to the hearing date in accordance with the Citizen Participation Plan (Attachment B), which included notices in both English and Spanish and the notice was also placed at the Hook Community Center and posted on the City’s website. Lastly, statements regarding the availability of special accommodations for non-English speaking persons and those with disabilities are printed on all written materials pertaining to the Annual Action Plan development.
Discussion:
The purpose of this HUD required public hearing is to gather community input, incorporate citizen participation and complete the tasks necessary in the creation of the 2026-2027 Annual Action Plan by:
(1) Receiving citizen and agency comments regarding the City’s needs and strategies for the upcoming 2026-2027 Annual Action Plan, including comments regarding proposed projects for FY 2026-2027, as required by HUD guidelines in the City of Victorville’s Citizen Participation Plan; and
(2) Allowing prospective applicants for FY 2026-2027 CDBG/HOME grant funds an opportunity to share their needs.
ESTIMATED FUNDING:
The City is estimated to receive a 2026-2027 CDBG allocation amount of $1,409,225 and a HOME allocation of $508,362.83, based on 2025-2026 grant allocations. As of this writing, the 2026-2027 Federal budget has not been approved and HUD states that the grant amounts may change depending upon their final, actual appropriation. For reference, the current fiscal year 2025-2026 funding is provided in Attachment C.
Additionally, the noted amounts are anticipated to remain consistent annually over the course of the 5-year ConPlan with slight increases or decreases possible based upon historic fluctuations in funding allocations due to various factors including population and need.
1. Community Development Block Grant (CDBG)
The City is required to utilize CDBG grant funding to “provide decent housing, a suitable living environment and expanded economic opportunities.” It is required by the Federal government that “the aggregate use of CDBG funds....shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons ...”. This grant has maximum funding limits for Public Services (15%), 4 5
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Construction (65%), and Administration (20%); however, it is generally distributed as follows:
Public Service Projects - $211,384 (15% of Total CDBG Allocation) Construction/Other Projects - $915,996 (65% of Total CDBG Allocation) Administration - $281,845 (20% of Total CDBG Allocation) TOTAL - $1,409,225 (2025-2026 estimated CDBG Allocation)
2. HOME
The City is required to utilize HOME grant funding to “provide decent affordable housing to lower-income households; expand the capacity of nonprofit housing providers; strengthen the ability of state and local governments to provide housing; and leverage private-sector participation.” HOME funds have a minimum 15% funding restriction that is dedicated to Community Housing Development Organizations (CHDOs), and an Administration cap of 10%. The City of Victorville and the Town of Apple Valley have established a consortium in order to meet the population threshold for HOME entitlement status. Pursuant to HUD’s HOME Consortia Participating Members Percentage Report, Victorville’s funds will be distributed as follows:
Community Housing Development Organization (CHDO) - $76,255 (Required 15% minimum of HOME Allocaiton)
Construction/Other Projects - $381,271.33 (75% of HOME Allocation) Administration - $50,836.50 (Maximum 10% of HOME Allocaiton) TOTAL - $508,362.83 (2026-2027 estimated HOME Allocation) In addition, the HOME Program requires that federal HOME funds be matched 25% with non-federal forms of subsidy. Unless HUD waives the local match requirement, applicants for HOME funding will be responsible for providing match contributions. As of the current fiscal year, the Apple Valley/Victorville Consortium has been deemed fiscally distressed by HUD and this matching fund requirement has been waived as it has been in previous funding cycles.
APPLICATIONS, PROJECT TYPES AND FUNDING CONSIDERATIONS:
1. Applications
The deadline to submit applications for FY 2026-2027 funding was January 30, 2026 from non-profit agencies and City departments. Staff has begun evaluating the applications to determine eligibility using the federal CDBG and HOME criteria.
2. Project Types
Public Service Projects are defined by the population they serve and may only be funded by CDBG. Most public service projects are determined to be eligible based on the federal guidelines that presume certain groups are eligible, such as the homeless, victims of domestic violence, senior adults, certain at-risk groups such as the unemployed and youth, and low/moderate income families. CDBG 4 5
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regulations place a 15% cap on funds that can be allocated to Public Service Projects. Staff anticipates a total of $211,384 will be available to fund projects defined as Public Service Projects in the upcoming 2026-2027 program year.
Construction and Other Community Development Projects are generally limited by their location and are funded with CDBG. A target area map determined by the 2020 census defines those areas where there exists a concentrated portion of the low and moderate-income population, or an area severely affected by blight. A map of the City's current CDBG targeted areas has been included with this agenda item as Attachment D. A project is eligible under this funding type when it demonstrates that the immediate or target area benefits from the project or activity.
During the subject program year approximately $915,996 is available to fund projects defined as Construction and Other Community Development Projects.
Housing Projects may also be funded from this category.
Housing Projects may be funded with either CDBG or HOME funds. CDBG regulations limit housing activities to “providing or improving permanent residential structures which, upon completion will be occupied by low and moderate-income persons”. HOME regulations are designed to provide affordable housing to low and very-low-income households. HUD requires a minimum of 15% of the total HOME allocation to be reserved for CHDO activities. Approximately $381,271.33 in HOME funds is anticipated to be available to fund non-CHDO housing projects.
Housing Projects may also be funded utilizing the $915,996 in CDBG funds from the Construction and Other Community Development Projects category listed above.
3. Funding Considerations
Funding caps are established by statute for administration (CDBG - 20% and HOME – 10% maximum of the total grant award), public service projects (CDBG - 15% maximum of the total grant award) and CHDO projects (HOME – 15% minimum). Although these fundings limits were previously waived in conjunction with associated but separate CDBG-CV funds (CDBG CARES Act funding in repsonse to the coronavirus pandemic), such waivers are not applicable to the subject CDBG & HOME funds being discussed.
A. Council Policy
On November 15, 1994 (amended April 4, 1995, May 1998 and January 15, 2019), the City Council adopted a policy that established guidelines for determining CDBG/HOME program and project priority. The policy states that Council is tasked with the responsibility of determining program and project priority as well as allocating funds during the fiscal year in which grant funds are available. In order to facilitate the annual allocation of funds, the City Council designates two members of the Council to serve on the CPD Grants Subcommittee. Currently, Mayor Becerra and Councilmember Irving are appointed to serve on the CPD Grants Subcommittee, which will 4 5
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make recommendations to the City Council for formal review and approval in conjunction with the Annual Action Plan.
B. Religious Organizations
The White House Office of Faith-Based and Neighborhood Partnerships was established by former President George W. Bush through executive order on January 29, 2001. The initiative sought to strengthen faith-based and community organizations and expand their capacity to provide federally funded social services. HUD revised its regulations to remove barriers to the participation of faith-based organizations in HUD programs. In general, no group of applicants competing for HUD funds should be subject to greater or fewer requirements than other organizations solely because of their religious character or affiliation. However, HUD does require that organizations clearly delineate eligible and ineligible uses of funds. HUD’s final rule stipulates that a recipient organization may not use direct HUD funds to support inherently religious activities, such as prayer, worship, religious instruction, or proselytization.
C. Fair Housing
Affirmatively furthering fair housing is a legal requirement for federal grantees to support the goals of the Fair Housing Act of 1968. There are no requirements for minimum funding levels, or funding caps for this activity.
The City’s responsibilities include identifying barriers to fair housing and taking appropriate actions to overcome the effects of those barriers. This activity is generally contracted to organizations that principally offer fair housing services as well as landlord/tenant mediation, such as Inland Fair Housing and Mediation Board. Additionally, the 2022-2026 ConPlan includes an Analysis of Impediments to Fair Housing Choice. This analysis, along with the Affirmatively Furthering Fair Housing Plan adopted in conjunction with the City’s 6th Cycle Housing Element, will be incorporated into the Annual Action Plan to ensure compliance with applicable goals.
CPD Grants Subcommittee and Allocation of Funds:
The CPD Grants Subcommittee will work with staff to review applications and provide their funding recommendations prior to the adoption of the 2026-2027 Annual Action Plan.
It is anticipated that the City Council will award grant amounts as part of the adoption of the Annual Action Plan during a public meeting anticipated to occur in May 2026.
Staff is available to answer questions as needed.
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Prepared By:
Alex Jauregui, City Planner
Attachments: A. 2022-2026 Consolidated Plan
B. Citizen Participation Plan
C. 2025-2026 CDBG/HOME Allocations
D. CDBG Target Area Map