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Annual Action Plan 2026 32 OMB Control No: 2506-0117 (exp. 09/30/2021) has been working closely with HUD staff to provide regular progress updates. Discussion On March 24, 2026, the City’s Housing and Human Concerns Committee approved the following contingency plan: If the CDBG allocation is greater than the Program Year 2025 allocation: • Funding for public service (including fair housing) programs should increase proportionally to the maximum amount requested by the applicant. However, funding for public service programs will remain within the public service spending cap of 15% of the total estimated PY 2026 CDBG allocation and 15% PY 2025 CDBG program income. • Increase CDBG administration to keep the total funded within the regulatory limits (20 percent of the PY 2026 CDBG allocation and 20% of PY 2026 CDBG program income). • After the administration and public service allocations are made, the remaining funds will go towards the recommended funding for microenterprise assistance, minor home repair programs, and housing project(s), and the recommended amounts should increase proportionally. If the CDBG allocation is less than Program Year 2025 allocations: • As needed, the City will reduce all CDBG public service programs (including fair housing) by a pro-rata amount to keep total funding within 15 percent of the total PY 2026 CDBG allocation and 15% PY 2025 CDBG program income. • Reduce CDBG administration to keep the total funded within the regulatory limits (20 percent of the PY 2026 CDBG allocation and 20% of PY 2026 program income). • As needed, the remaining reductions will come from the microenterprise assistance, minor home repair programs, and housing project(s), and the recommended amounts should reduce proportionally. ATTY/RESO.0019/CC RESO 2026 ANNUAL ACTION PLAN (CDBG) - EXHIBIT A REV: 05-01-26 LF Page 32 of 107