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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2026-27 Annual Action Plan for Federal Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Programs
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Statement of Issue:
The City receives annual federal funding through the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs. These programs support housing, community services, and infrastructure improvements that benefit low-income residents. To remain eligible for these grant funds, the City must submit an Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD) each year describing how these funds will be used. The deadline for submission of the 2026-27 Action Plan to HUD is May 15, 2026.
The proposed 2026-27 Annual Action Plan includes funding recommendations developed through a public process led by the Citizen Participation Advisory Board (CPAB). The plan outlines how federal funding will be allocated for the upcoming fiscal year.
Financial Impact:
The City will receive $1,432,332 in CDBG and $696,389.66 in HOME funds for FY 2026-27. These federal funds will be used for eligible housing, community services, and capital improvement activities as outlined in the Annual Action Plan. Approval of the 2026-27 Action Plan will not impact the City’s General Fund.
Recommended Action:
recommendation
Staff recommends that the City Council approve and authorize the following in compliance with the Consolidated Plan Procedures of 24 CFR Part 91:
A) Conduct a public hearing for the 2026-27 Action Plan; and,
B) Adopt Resolution No. 2026-10, “A Resolution of the City Council of the City of Huntington Beach, California, Approving the 2026-2027 Action Plan for Federal Community Development Block Grant and HOME Investment Partnerships Programs”; and,
C) Authorize the City Manager to sign all necessary related documents.
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Alternative Action(s):
Do not approve the 2026-27 Annual Action Plan and provide alternative direction to staff. If the City does not submit an approved Action Plan to HUD by May 15, 2026, the City would be out of compliance with federal requirements and would likely forfeit CDBG and HOME funding. The City Council may also choose to modify the recommended funding allocations within the overall funding limits described in this report.
Analysis:
Background
Each year, the City receives federal funding through the CDBG and HOME programs to support housing, public services, and community improvements for low-income residents.
These funds must be used in accordance with:
• HUD regulations, and
• The City’s 2025-29 Consolidated Plan
HUD requires a public process to determine how funds are allocated. Each year, the City:
• Publishes a Notice of Funding Availability
• Invites local community organizations to apply
• Conducts public meetings and hearings
The CPAB reviews applications, receives public input, and makes funding recommendations to the City Council.
The recommendations are included in the 2026-27 Annual Action Plan (Attachment 2, Exhibit B), which must be approved by the City Council and submitted to HUD by May 15, 2026.
Funding Overview
CDBG and HOME funds are used across three primary categories:
1. Public services
2. Capital and housing projects
3. Program administration
In addition to annual entitlement funding, the City may also have:
• Program income (loan repayments from prior City-funded projects), and
• Carryover funds (unspent balances from projects previously approved by the City Council; these projects may be completed under budget)
CDBG Funding Recommendations
Public Services (Maximum: $163,674)
Federal regulations allow up to 15% of the CDBG entitlement allocation to be used for public service programs.
These programs support services such as:
• Employment assistance
• Childcare
• Health services
• Substance abuse treatment
• Education and recreation
Following public meetings and review, CPAB recommends funding seven of nine applications:
• Oak View Family Resource Center/All For Kids Organization ($30,382) - provides after-school programs, reading support, and youth services to prevent child abuse.
• Pathways to Independence ($25,382) - supports young women overcoming abuse or poverty through education, housing, and therapy.
• Project Hope Alliance ($23,382) - provides school-based case management to assist students experiencing homelessness.
• Robyne’s Nest ($27,382) - supports homeless and at-risk youth with housing stability and life skills.
• Save the Brave ($17,382) - provides mental health support for veterans through community-based programs.
• Senior Center in Central Park ($22,382) - offers care management, home visits, and support services for seniors.
• StandUp for Kids Orange County ($17,382) - provides outreach, crisis support, and mentoring for homeless youth.
Capital and Housing Projects (Total: $1,050,425)
CDBG capital funding is recommended for the following projects:
• Code Enforcement ($220,607) - supports proactive code enforcement in low- and moderate-income neighborhoods.
• Housing Rehabilitation Loans and Grants ($479,818) - provides financial assistance to maintain and preserve existing housing stock.
• TBRA Program Supportive Services ($210,000) - provides services supporting tenant-based rental assistance participants.
• Sidewalk and ADA Improvements, Maintenance Zone 4 ($140,000) - funds accessibility improvements to public infrastructure.
HOME Funding Recommendations
Capital Projects (Total: $644,698.89):
HOME funds are recommended for the following:
• Tenant-Based Rental Assistance (TBRA)
o Families Forward ($200,000)
o Mercy House ($100,000)
o Mobile Home Senior TBRA ($111,032.77)
These programs provide rental assistance to low-income households and help address housing instability.
• CHDO Set-Aside ($233,666.12) - a required 15% set-aside to support future affordable housing development projects.
Fair Housing Services ($35,000)
HUD requires the City to provide fair housing services as a condition of receiving federal housing funds. These services will be funded through HOME administration funds and provided by the Fair Housing Foundation, including:
• Tenant/landlord mediation
• Legal assistance
• Fair housing education
• Investigation of housing discrimination claims
Program Administration
• CDBG Administration - up to $218,233 (20%)
• HOME Administration - up to $51,690.77 (10%), plus prior-year administrative funds
These funds support:
• Program oversight and compliance
• HUD-required reporting
• Financial monitoring
• Coordination with service providers
• Fair housing services
Public Review Process
In accordance with HUD regulations, the draft 2026-27 Annual Action Plan was available for public review from April 3 to May 5, 2026. Public outreach included:
• Notices published in The Wave and La Opinión
• English and Spanish materials
• Online posting on the City’s website
• In-person availability at City Hall and local libraries
Additional public engagement included:
• CPAB public meetings in January and February
• A joint City Council/CPAB study session on March 17
Final funding recommendations are summarized Attachment 1 and detailed in the Annual Action Plan.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) 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.
Since federal dollars are being used for the proposed CDBG and HOME activities, National Environmental Policy Act (NEPA) compliance will be required prior to execution of funding agreements and disbursement of funds. The City will complete all NEPA Compliance for the approved CDBG and HOME activities prior to the start of the Program Year (July 1, 2026).
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. FY 2026-27 Available CDBG and HOME Funding and Recommendations
2. Resolution No. 2026-10, “A Resolution of the City Council of the City of Huntington Beach, California, Approving the 2026-2027 Action Plan for Federal Community Development Block Grant and HOME Investment Partnerships Programs.”
3. PowerPoint Presentation