Encinitas council unanimously approves $291,470 CDBG award and program priorities; council augments with $11,280 general‑fund subsidy

The City Council adopted Resolution 2026‑24 to transmit the Fiscal Year 2026–27 Community Development Block Grant (CDBG) Annual Action Plan to HUD and to authorize execution of required certifications and agreements. Staff reported a HUD allocation of $291,470 and said the city is augmenting the grant with an $11,280 general‑fund subsidy to round the program to approximately $302,750.

Staff described the proposed distribution: 15% (plus the subsidy) allocated to public service agencies (approximately $55,000), 20% to planning and administration (about $58,000), and the remainder ($~189,000) to residential rehabilitation. Staff explained the residential rehabilitation program serves low‑income homeowners for critical health, safety and ADA repairs and expands to allow forgivable loans to owners of deed‑restricted affordable multifamily rental units; program recipients must qualify as low income and subrecipients provide receipts for reimbursement.

Public commenters expressed a mix of views. Several speakers supported continued funding for fair‑housing legal services and nonprofit partners serving food‑security and housing needs; some urged caution about subsidy rules and administrative costs. One speaker urged the council to pause CDBG participation altogether and redirect general funds; others provided data about CRC service volumes and noted the benefits of drawing federal funds.

Council members emphasized oversight and guardrails, asked for clarity on eligibility and income audits, and sought mechanisms to ensure funds reach low‑income residents rather than subsidizing private profit. Council moved to adopt the plan with staff recommendations and unanimously approved the resolution.

Why it matters: CDBG funds are federal dollars that cities must allocate for eligible activities; adoption confirms the city's plan for distributing those resources in 2026–27 and authorizes staff to execute necessary HUD certifications.