REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Jennifer Villasenor, Director of Community Development
PREPARED BY: Charles Kovac, Housing Manager
Subject:
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Annual Community Development Block Grant and HOME Investment Partnerships Grant End-of-Year Progress Report to the U.S. Department of Housing and Urban Development
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Statement of Issue:
Each year, the City of Huntington Beach (City) is required to report to the U.S. Department of Housing and Urban Development (HUD) on its progress towards meeting the goals in its approved 2025-2029 Consolidated Plan (which covers July 1, 2025 through June 30, 2030). This annual report, called the Consolidated Annual Performance and Evaluation Report (CAPER), documents the City's use of Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds for the recently completed Fiscal Year (FY 2025-26). The CAPER must be submitted to HUD by September 30.
Financial Impact:
There is no financial impact associated with this action. This report summarizes expenditures already made.
Recommended Action:
recommendation
A) Adopt the FY 2025-26 CAPER for CDBG and HOME funds; and,
B) Authorize the City Manager to transmit the report to HUD by September 30, 2026.
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Alternative Action(s):
HUD requires submission of the CAPER by September 30 to maintain eligibility for CDBG and HOME funds. Staff does not recommend any alternatives.
Analysis:
CDBG is the federal government's primary program for helping local governments improve physical, economic, and social conditions for low- and moderate-income residents. HOME is the principal federal program providing local governments with grants to expand the availability of affordable housing for low- and moderate-income residents.
The 2025-2029 Consolidated Plan describes the City's proposed use of CDBG and HOME funds to address housing and non-housing community development needs of low- and moderate-income residents during the five-year plan period. To achieve the goals outlined in the Consolidated Plan, each year the City prepares an Annual Action Plan that outlines the projects, programs, and activities that will be implemented. The current Consolidated Plan and Annual Action Plan are available for public review on the City's website at <https://www.huntingtonbeachca.gov/cdbg>.
After the conclusion of each fiscal year, the City must prepare a CAPER summarizing the expenditure of funds and the accomplishments for that year. These plans and reports are required to be prepared and submitted to HUD to remain eligible for federal entitlement grant funds.
The draft FY 2025-26 CAPER (Attachment 1) has been prepared in a HUD-prescribed format containing the required information.
Per federal regulations, the CAPER was made available for public review and comment. A notice was published in The Wave on August 27, 2026, inviting public comment and participation at the City Council meeting. Following this 15-day review period, the CAPER must be approved by the City Council and submitted to HUD by September 30.
In FY 2025-26, the City Council provided funding to six nonprofit organizations that delivered a range of services benefitting lower-income Huntington Beach residents. Funds were also allocated to City programs for housing repairs and improvements, special code enforcement, and emergency rental assistance for lower-income residents. The program accomplishments summarized below represent key highlights of the City's CDBG and HOME programs. For a comprehensive overview of all accomplishments for the year, please refer to the attached CAPER.
Public Services Accomplishments (CDBG)
Federal regulations allow up to 15 percent of annual CDBG funds to be used for public service programs. In FY 2025-26, the City Council allocated the maximum amount of $161,587 for public service programs administered by social service agencies and City departments that assisted youth and homeless individuals. Examples of public service program accomplishments during FY 2025-26 include:
• After-school enrichment activities and healthy development programs for 137 children (achieving the enrollment goal of 100 children).
• Homelessness prevention and assistance services were provided to 538 residents, compared to a goal of 112 individuals.
Capital Accomplishments (CDBG)
The City Council allocated $962,083 to CDBG capital projects to assist lower-income households. The program accomplishments include:
• 18 housing units occupied by low- and moderate-income residents were rehabilitated, compared to a goal of 12.
• Two code enforcement officers conducted proactive inspections and compliance assistance at 864 housing units serving lower-income residents, exceeding the goal of 600 housing units.
• Infrastructure improvements in Maintenance Zone 3 resulted in the installation/stabilization of 30 ADA curbs and ramps at various locations, providing access to over 2,200 people.
Tenant-Based Rental Assistance (HOME)
The City Council dedicated $400,000 in HOME funds to the Tenant-Based Rental Assistance (TBRA) program, which helps prevent homelessness by providing short-term rental and utility assistance to lower-income households. The program is administered by Families Forward and Mercy House. In FY 2025-26, a total of 33 households received emergency assistance through TBRA, exceeding the goal of 30 households.
In November 2022, the City Council also approved the Mobile Home TBRA Program, which provides similar assistance specifically for lower-income seniors living in mobile homes who are struggling with rising space rents. Unlike the regular TBRA program, the mobile home program is administered directly by Housing Division staff. In FY 2025-26, the City allocated $202,254.76 in HOME funds to this program. During the year, seven senior households received assistance, bringing the total number of participating households to 86 since the program launched in April 2023.
Navigation Center (HOME-American Rescue Plan)
In 2021, as part of the federal American Rescue Plan (ARP) pandemic relief legislation, the City received a special one-time allocation of approximately $2.2 million in HOME-ARP funds. These funds are intended to help communities respond to homelessness and housing instability.
Since then, the City has used HOME-ARP funding to support operations at the Huntington Beach Navigation Center. Eligible activities have included housing navigation services, daily meals, transportation support such as shuttle leases, fuel and vehicle repairs, and client transportation assistance (e.g., bus passes, shuttle rides, or similar support).
In FY 2025-26, the City expended the remaining $250,000 in HOME-ARP funding on these activities, along with approximately $10,000 in administrative costs for City staff. Through these efforts, Mercy House, the Navigation Center operator, assisted 328 unduplicated homeless individuals during the program year.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15378(b)(4) (governmental fiscal activities that do not result in a direct or reasonably foreseeable indirect physical change in the environment and do not commit the lead agency to any specific project) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. Consolidated Annual Performance & Evaluation Report (CAPER) FY 2025-26
2. PowerPoint Presentation