Gilroy directs CDBG funding to nonprofits and sidewalk projects; adopts equal distribution approach

The Gilroy City Council on April 6 directed staff to allocate the city’s FY 2026–27 Community Development Block Grant (CDBG) resources using an equal distribution approach for public‑service and non‑public‑service applicants and to split a designated non‑public‑service allocation between the city’s public‑works sidewalk program and Rebuilding Together Silicon Valley.

Community Development Director Sharon Goi told the council the city received an official HUD allocation of $362,000 for 2026–27 plus roughly $22,000 in prior‑year unused resources. HUD caps restrict public‑service spending to 15% and program administration to 20% of the allocation. Staff presented two allocation methods — equal distribution or evaluation‑based — and recommended council direction. After public testimony from Project Sentinel, Rebuilding Together Silicon Valley and other applicants describing homes and services supported by CDBG funds, council chose the equal distribution approach and directed staff to reflect the actual HUD amount in the draft annual action plan returned for adoption on May 4.

Speakers from Rebuilding Together described repairs that kept very‑low‑income households safe and in their homes and asked for increased funding; Project Sentinel described fair‑housing and tenant counseling work. Council members said they preferred funding organizations that engage the community and demonstrate outcomes.

Staff will revise the draft annual action plan and participate in the 30‑day public comment period; the amended document will return to council May 4 for adoption and eventual submittal to HUD.