City staff presented the first of two required public hearings on the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG) allocation for fiscal 2026–27 and asked the City Council for guidance on priorities, allocation percentages and RFP design.
Housing and Neighborhood Services Manager Danielle Lopez said the city will request HUD funds through a 5‑year consolidated plan covering 07/01/2025–06/30/2029 and that, for 2026–27, staff recommends using the maximum HUD‑allowed shares: up to 20% for administration, up to 15% for public services and the remainder for capital projects. She told the council staff plans to release an RFP next week and bring funding recommendations back on May 20.
During council discussion members asked about capital vs. public‑service breakdowns and the timeliness test HUD requires for capital projects. Staff recommended placing a per‑award cap on public services to allow funding of multiple programs; that recommended range was $10,000 to $50,000, with historical awards ranging from $8,600 to $35,000.
Council directed staff to reaffirm the consolidated‑plan priorities and to release the RFP with the allocation structure discussed. Staff said it will respond to all applicants and run one‑on‑one meetings with councilmembers in April prior to final recommendations.
What happens next: Staff will publish the RFP for CDBG funding, review applications in March, hold one‑on‑one meetings with councilmembers in April, post the draft annual action plan for 30 days of public review, and return with funding recommendations for adoption on May 20.