Title
FY 2026-27 Community Development Block Grant (CDBG) Subrecipient Funding Recommendations
Body
To: Honorable President Scott Means and Members of the Social Service Human Relations Board
EXECUTIVE SUMMARY
The Department of Housing and Urban Development (HUD) allocates CDBG funds annually to entitlement jurisdictions to support local community development. The CDBG Entitlement Program provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities for low- and moderate-income individuals. Alameda is an entitlement City that receives approximately $1 million in CDBG funding each year from HUD. On April 3, HUD announced formula award allocations for FY 2026-27. The City of Alameda is expected to receive $1,080,816 in CDBG funding.
The City is in the middle of a public comment period. To conform with citizen participation requirements, a public notice was published on April 3, 2026, in the Alameda Journal newspaper, as well as in Chinese, Spanish, Tagalog, and Vietnamese-language newspapers. Accommodations are available for non-English speaking residents and persons with disabilities to participate in the public comment process. At the May 5 City Council meeting, a public hearing will be held as an opportunity for the community to provide input on the proposed programs and projects that will be funded with CDBG and HOME funds in the upcoming FY 2026-27.
BACKGROUND
Each year, entitlement jurisdictions must follow a process to receive public input, establish community goals and prepare a budget for the upcoming program year. As a condition of funding, the City is required to submit an annual Action Plan to HUD. The Action Plan details the programs, activities and resources that will be used to address the housing and community development priority needs and goals.
The Strategic Plan for FYs 2025-29 sets forth broad policy goals and identifies the City’s plan for addressing the priority needs, primarily through the use of CDBG and HOME funds. The priority need categories are defined by HUD. Specific objectives for the coming year are addressed in the FY 2026-27 Action Plan (Action Plan) covering the period of July 1, 2026 through June 30, 2027.
In preparing the Strategic Plan, the City consulted with community-based service providers, residents, City departments and the Social Service Human Relations Board (SSHRB). Community stakeholders helped establish priority needs and objectives and proposed strategies in the form of projects and activities to further those objectives. On October 23, 2025, SSHRB discussed priority needs and recommended that all existing CDBG-funded service providers continue to be funded at similar levels for the 2026-27 fiscal years. On December 2, 2025, City Council held a public hearing and adopted the Needs Statement as recommended by SSHRB.
CDBG funding for the upcoming fiscal year is derived from two sources: 1) CDBG entitlement funds that are allocated by HUD and 2) program income that is generated from CDBG loan repayments. Based on actual allocations from HUD, the City will be receiving $1,080,816 in CDBG entitlement funding for FY 2026-27. The FY 2025-26 revenue from CDBG loan repayments will continue to be received through June 30, 2026, so the actual amount of program income has yet to be finalized but is estimated to be $60,000. The total FY 2026-27 CDBG program budget is $1,697,520 which includes:
• $1,080,816 in CDBG entitlement funds
• $618,712 of carry-forward funds for active projects
• $100,000 of available funds from completed projects
• Approximately $60,000 of program income from loan repayments projected to be received in FY 25-26
DISCUSSION
CDBG Program Preparation and Planning
The City prepares an annual Action Plan that identifies specific goals, proposed uses of CDBG funds, community engagement opportunities, and other strategies. The draft FY 2026-27 Action Plan is attached as Exhibit 1. The proposed activities for FY 2026-27 are intended to address the City’s current priority needs as aligned with the Five-Year Strategic Plan.
As part of the annual CDBG planning process, the City released the CDBG 2026-27 Notice of Funding Availability (NOFA) and Request for Proposals (RFP) on January 20, 2026 and applications were due on February 20, 2026. Since the existing public service providers are being recommended for funding again, staff only accepted applications for economic and microenterprise development along with non-housing public improvements.
Public Services
Public services funding for FY 2026-27 is derived from two sources: entitlement funds allocated by HUD and program income generated from CDBG loan repayments. HUD requires that public services funding be capped at 15 percent of the total current year’s grant allocation plus program income received in the previous fiscal year.
Therefore, staff proposes the following funding allocations:
|
Funding Type |
Estimated Amount |
15% of Amount for Public Services |
|
City of Alameda Entitlement |
$ 1,080,816 |
$ 162,122 |
|
FY 2025-26 Program Income |
$ 60,000 |
$ 9,000 |
|
Total Estimated Funds Available |
$ 1,140,816 |
$ 171,122 |
At the October 23, 2025, SSHRB meeting, City staff suggested that existing CDBG-funded service providers should continue to be funded in FY 2026-27. The FY 2026-27 Draft Summary of Activities, Exhibit 2, shows the existing public service providers and staff recommendations for funding. As an attempt to fully fund all service providers at the FY 2025-26 amounts to maintain these critical social services, Eden Information and Referral will continue to be paid $24,981 from CDBG administrative funds. Alameda Family Services was awarded $46,674 in General Funds in FY 25-26 but will not be receiving supplemental funding for the upcoming fiscal year. The general funds were used as one-time funding to support their youth-based program. Staff acknowledge that additional funding sources may not be available in the future and all organizations are made aware of this possibility and encouraged to continue raising funds to leverage CDBG funding.
Economic Development
Alameda Point Collaborative (APC) and Upwards, Inc. submitted applications for FY 2026-27 economic development funds. APC requested $135,000 to provide workforce development opportunities to formerly homeless individuals through workshops and training programs. Upwards, Inc. requested $119,600 to administer a microenterprise development program that supports low-to-moderate income childcare providers to stabilize and grow their business. City staff are proposing to fund APC at $125,000 for workforce development and Upwards, Inc. at $81,340 as a starter program.
Public Improvements
The City received one public improvement project application for FY 2026-27. There will be approximately $250,000 in funding for non-housing public improvements. Staff proposed that Building Futures with Women and Children (BFWC) be funded in the full amount available for the Bessie Coleman Court sewer lateral and renovations project. BFWC also received two awards in the amount of $188,020 and $172,568 for consecutive years (FY24-25 and FY25-26). This funding was allocated to Building A construction at Bessie Coleman Court.
Residential Rehabilitation
The City will allocate approximately $235,365 to fund residential program delivery and substantial rehabilitation activities. Funds for substantial rehabilitation continue to be allocated as required per the 1990 Guyton Judgment and Settlement Agreement (Guyton Agreement). This agreement requires the City to undertake certain activities to further affordable housing production. Additionally, the Guyton Agreement requires that 15.3 percent of the City’s CDBG entitlement be allocated to the Substantial Rehabilitation Program. Funds for substantial rehabilitation will continue to be allocated as required.
On December 31, 2026, the City’s contract with Rebuilding Together East Bay Network (RTEBN) ended. As the program administrator for the rehabilitation program, RTEBN helped the City carry out a multifaceted program to improve housing conditions for low-income and elderly individuals. Staff are now in the process of strategizing whether the program will continue to be administered in-house or bid for a new program administrator.
Administrative Funds
Administrative funds have been included as permitted by HUD guidelines. Funds from this category are capped at 20% of the entitlement award. As was done in FY 2025-26, staff recommends funding Eden Information & Referral services with CDBG administrative funds in the amount of $24,981, which reduces the number of providers paid from the limited public service funds. Eden I & R will continue to provide a much needed service and is the sole provider of 211 information and referral services in Alameda County. The City will allocate approximately $216,981 in total for general administration.
Carry-Forward Funds
Carry-forward funds are for projects in progress that were approved and appropriated the prior year but are not fully expended. Per HUD requirements, carry-forward funds are encumbered within the same grant year until a project is completed or a replacement project is identified, and, funds are reprogrammed to a new project. This Action Plan includes approximately $618,712 of carry-forward funds, based on the projects that are expected to be completed by fiscal year end. This encompasses funding for projects such as Bessie Coleman Court, Day Center and Safe Parking Relocation, and other eligible projects that have yet to be completed.
RECOMMENDATION
This agenda item is for discussion purposes only. No action is required by SSHRB.
Respectfully submitted,
Andre Fairley, HHS Management Analyst
Exhibits:
1. Draft FY2026-27 Action Plan
2. Draft FY2026-27 Summary of Activities