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1 <br />Office of the City Manager <br />Patrick Heisinger <br />MEMORANDUM <br />To: Housing & Human Concerns Committee (HHCC) <br />From: Madiha Haque, Housing & Economic Development Specialist II <br />Date: March 19, 2026 <br />Subject: Community Development Block Grant (CDBG) Contingency Recommendations <br />Background <br />The 2026 Action Plan covers the period from July 1, 2026, through June 30, 2027, referenced herein <br />as Program Year (PY) 2026, and discusses resources to be received by the City from the United States <br />Department of Housing and Urban Development (HUD). This memorandum serves as guidance for <br />the Housing and Human Concerns Committee to make CDBG funding recommendations for PY 2026. <br />The City operates on a two-year funding cycle for public services, fair housing, minor home repair, <br />and economic development programs. PY 2026 is the first year of the two-year cycle. For housing <br />and public facility projects, the City operates on a one-year funding cycle. Applicants are evaluated <br />on organization capacity, program performance, and alignment with City goals. More information <br />about the City’s PY 2026 application and evaluation process is available in the PY 2026 CDBG Notice <br />of Funding Availability (NOFA). <br />Funding recommendations must meet the requirements, as described in Exhibit A - Housing and <br />Human Concerns Committee Funding Deliberations Guidelines. <br />The City estimates it will receive $654,563 in CDBG funds plus an estimated $15,000 in CDBG <br />program income, and $59,077 in unspent prior year CDBG funds for a total of $728,640. The City <br />has estimated this level of funding based on funding from PY 2025, as HUD has not announced the <br />allocations for PY 2026. City staff is anticipating that the U.S. Department of Housing & Urban <br />Development (HUD) will announce the PY 2026 CDBG allocations within the month of April. As in <br />prior years, when there are delays in announcing funding allocations, HUD allows jurisdictions to <br />conduct citizen participation on draft Annual Action Plans with estimated funding amounts. <br />Jurisdictions that opt to do this must include contingency provisions to explain how the proposed <br />plans will be adjusted to match actual allocation amounts once they are announced. <br />Attachment B <br />ATTY/RESO.0019/CC RESO 2026 ANNUAL ACTION PLAN (CDBG) - EXHIBIT A <br />REV: 05-01-26 LF <br /> <br />Page 78 of 107