Title
Public Hearing to Consider Adoption of the Community Development Block Grant (CDBG) /HOME Partnership Investment Program (HOME) Fiscal Year 2026-27 Annual Action Plan; and Authorize the Interim City Manager, or Designee, to Negotiate and Execute Related Documents, Agreements, and Modifications at Funding Levels Approved by Congress. (Housing and Human Services 203, 204)
Body
To: Honorable Mayor and Members of the City Council
From: Adam W. Politzer, Interim City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) is an entitlement recipient of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). Fiscal Year (FY) 2026-27 represents the second year of the Five-Year Consolidated Plan, which is a planning document required by HUD to be submitted by all jurisdictions that directly receive HUD formula funds. In FY 2026-27, the City will receive $1,080,816 in CDBG entitlement funds. This amount will be allocated to four priority areas including non-housing public services, non-housing public improvements, residential rehabilitation, and administration. As a member of the Alameda County HOME Partnership Investment Program (HOME) Consortium, the City expects to receive $201,000 in FY 2025-26 HOME project funds.
This public hearing is 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
The City is an entitlement recipient of CDBG funds from HUD. CDBG funds programs and activities that benefit low- and moderate-income persons and households as well as projects that prevent or eliminate blight. 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 using 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). The 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. On April 3, HUD announced formula award allocations. Based on actual allocations from HUD, the City will receive $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
All citizen participation requirements have been met for the public hearing, with publication of the notice in the April 3, 2026, Alameda Journal newspaper, as well as in Chinese, Spanish, Tagalog, and Vietnamese-language newspapers. While staff has not identified local Arabic or Korean language media, the public notice is also posted on the City web site and can be translated into all six languages. Accommodations are available for non-English speaking residents and persons with disabilities to participate in the public comment process.
The City is also one of eight jurisdictional members of the Alameda County HOME Consortium (HOME Consortium) through which participating jurisdictions may receive HOME funding from HUD. As a participating jurisdiction, both the Five-Year Strategic Plan and Annual Action Plan for CDBG and HOME funds are coordinated through the HOME Consortium. In addition, each jurisdiction of the HOME Consortium must prepare an individual Consolidated Plan and Annual Action Plan. As a continued member of the HOME Consortium, the City expects to receive $201,000 in FY 2026-27 HOME Investment Partnership Program funds.
DISCUSSION
Annual Action Plan
The City prepares an annual Action Plan that outlines and 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. These priority needs and underlying goals include:
• Public Services - Safety Net
o Support programs for very low- and low-income residents, preserving safety net services, and providing support and coordination for families and individuals who are vulnerable or “in crisis.”
o Improve access to food and reduce food insecurity.
o Support services that provide mental health care or support services for those residents experiencing mental health challenges.
• Address Homelessness
o Fund and support overnight shelter, crisis housing and public services for homeless families and individuals.
o Fund supportive services, including case management and outreach, at agencies that serve homeless families and individuals.
• Economic Development and Microenterprise Assistance
o Fund economic development initiatives and support services that help job seekers to receive additional training or enter the job market, including micro-enterprise assistance.
• Promote Affordable Housing
o Create new affordable housing throughout the City.
o Substantial rehabilitation to preserve existing inventory of affordable housing and/or to convert underutilized structures into affordable rental units.
o Offer financing for owner occupied/residential rehabilitation projects.
• Non-Housing Public Improvements
o Clean-up and securing unsafe structures and sites that pose a health and safety threat.
o Make improvements, including those for ADA accessibility, to public facilities, such as curbs and sidewalks, neighborhood parks and recreational improvements, tree planting, homeless facilities, and other eligible projects.
• Fair Housing and Administration
o Improve the administration of funding and coordination among project providers.
o Support fair housing efforts in the community, including providing assistance to individuals facing challenges with acquiring housing.
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 micro-enterprise 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 recommended 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. In order to fully fund all service providers at the FY 2025-26 amounts necessary to maintain these critical social services, Eden Information and Referral will continue to be paid $24,981 from CDBG administrative funds rather than from the public services 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. Funds from the HHS General Fund budget was used as one-time funding to support their youth-based mental health program. Staff recognizes 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 micro-enterprise 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 agreement 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 is assessing whether the program will continue to be administered in-house or solicit bids 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 are not yet completed.
HOME Funding Allocation
As a member of the Alameda County HOME Consortium, the City expects to receive approximately $201,000 in FY 2026-27 HOME funds of which five percent (5%) may be used for administrative purposes. It is recommended that the City uses its remaining HOME allocation for the construction and/or rehabilitation of affordable housing. The HOME funding balance is approximately $771,000.
On March 26, 2026, the City released a HOME RFP to solicit applications for eligible affordable housing projects. HHS anticipates that there will be several different organizations interested in applying for HOME funds. The deadline to submit applications was April 27 and HHS staff will review proposals and make a recommendation to City Council on which organizations to fund for the expansion of affordable housing.
ALTERNATIVES
• Authorize the Interim City Manager, or designee, to adopt the CDBG/HOME FY 2025-26 Action Plan; and authorize the Interim City Manager, or designee, to negotiate and execute related documents, agreements, and modifications to implement the programs and projects for the upcoming fiscal year.
• Provide direction to staff for a modified service program funding allocation or capital project allocation, as long as those changes are consistent with HUD guidelines.
• Decline to move forward with adopting the proposed CDBG/HOME FY 2025-26 Action Plan at this time, which would result in the loss of CDBG and HOME funding for the upcoming fiscal year.
FINANCIAL IMPACT
CDBG and HOME funds received will be budgeted in Fund 203 and Fund 204. This Action Plan will appropriate $1,080,816 in CDBG Entitlement funds. Other CDBG funds noted in the Action Plan include an estimated $60,000 in program income from loan repayments in FY 2025-26 from the Substantial Rehabilitation and Residential Rehabilitation programs. The Action Plan will appropriate approximately $201,000 of HOME funds for affordable housing administration, construction, and rehabilitation projects. In addition, approximately $618,712 will be appropriated and carried forward from prior years’ allocations.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action supports the City’s Strategic Plan priority to House All Alamedans and End Homelessness, specifically Project HH1 to address housing and human services functions and develop recommendations; Project HH2 to implement the Homelessness Strategic Plan; and Project HH3 to further the preservation, rehabilitation, or construction of affordable housing in Alameda. In addition, the preparation of the FY 26-27 Action Plan is in accordance with HUD requirements. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
The execution of related agreements and final funding commitments are subject to the requirements of the National Environmental Policy Act (NEPA) and satisfactory environmental clearance pursuant to 24 CFR Part 58. The City has satisfied all such NEPA requirements applicable to the actions recommended herein. Additionally, these actions does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Hold a public hearing to consider adoption of the FY 2026-27 CDBG/HOME Action Plan; and authorize the Interim City Manager, or designee, to negotiate and execute related documents, agreements, and modifications at funding levels approved by Congress.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
By,
C’Mone Falls, Housing and Human Services Manager
Andre Fairley, Management Analyst
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Draft FY 26-27 Action Plan
2. Draft AP Summary of Activities
3. SSHRB Needs Statement