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Page 3 of 6 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />Spending Limitations & Other Grant Requirements <br />Planning and Administration - HUD regulations allow for up to 20% of PY 2026 CDBG funds and <br />20% of PY 2026 CDBG program income to be used for CDBG administration. If federal funds are <br />not used for planning and administration expenses related to the use of federal grants, the <br />General Fund would have to absorb these costs. <br />Public Services - CDBG regulations allow for up to 15% of the PY 2026 CDBG funds and 15% of <br />the PY 2025 CDBG program income to be used on public service activities. <br />Grant Minimum - The City has a $15,000 grant minimum to ensure that the value of the grant <br />exceeds the administrative burdens of implementing the numerous CDBG requirements. <br />Two-Year Funding Cycles - The City operates on a two-year funding cycle for certain programs to <br />reduce the administrative burden on both City and grantee staff that would be caused by an <br />annual application process by allowing applicants to submit a streamlined renewal application for <br />the second year of funding. The public service, fair housing, microenterprise and minor home <br />repair projects selected for this PY 2026 Action Plan will be in the first year of the two-year funding <br />cycle. See Table 2 for the final funding recommendations. <br />Funding Recommendations <br />The City issued a CDBG Notice of Funding Availability (NOFA) in December 2025. The City received fifteen <br />(15) CDBG applications, but two (2) of the applications did not meet the City’s threshold requirements. <br />The HHCC evaluated applications based on the applicant’s capacity to meet all federal requirements, <br />CDBG eligibility, consistency with the Con Plan funding priorities, program impact and outcomes, outreach <br />and collaboration efforts, budget and cost reasonableness, fund leveraging, and ability to meet grant <br />expenditure deadlines. <br />On March 24, 2026, the HHCC held a public hearing to make funding recommendations (see Table 2). <br />Since HUD had not announced allocations at the time of the HHCC funding deliberations, the HHCC <br />approved a contingency plan for how to adjust CDBG funding if actual allocations were lower or higher <br />than anticipated (see Section AP-15 in the Action Plan for the contingency plan). A more detailed overview <br />of the CDBG funding recommendations are listed in Attachment D, including the amount applicants <br />requested, HHCC’s original recommendations, and the adjusted recommendations based on the actual <br />allocations and contingency plan. <br />Table 2: PY 2026 Recommended CDBG Funding <br />Administration and Planning <br /> CDBG Administration $131,708 <br />Public Services & Fair Housing <br /> Bay Area Legal Aid - Domestic Violence Legal Safety Net Project $25,000 <br /> CORA - Safe House $15,000 <br /> Mental Health Association - Spring Street Shelter $17,250 <br />Project Sentinel – Fair Housing $15,758 <br />Rape Trauma Services - Sexual Abuse Services for Children and Youth $15,000 <br />Samaritan House - Safe Harbor Shelter $18,000 <br />8.B. - Page 3 of 123 <br />346