Housing staff ask council to adopt FY2026–27 HUD annual action plan, propose contingency funding for nonprofits

Mountain View’s housing department asked the City Council to adopt the FY2026–27 Annual Action Plan on April 24, outlining anticipated CDBG and HOME uses and proposing a one‑time contingency allocation from local housing funds to ensure nonprofits retain full funding if new HUD addendum policy conditions restrict the use of prior‑year funds or program income.

Housing officer Alec Fibbril and Affordable Housing Manager Julie Bernard said HUD’s grant agreements arrived with a new addendum that may impose restrictions on recipients’ use of federal funds. To avoid service disruptions, staff recommended submitting modified grant agreements to HUD, joining litigation challenging the addendum’s legality and prioritizing use of prior‑year funds and program income that staff deem not subject to the new conditions. As a precaution, staff proposed a one‑time contingency allocation from the city’s general housing fund to fully fund nonprofit partners for FY26–27 if federal constraints arise.

Under staff recommendations, CDBG capital projects and economic development investments (minor home repairs, microenterprise assistance) would continue, while public‑service grants—administered on a two‑year cycle—would be fully funded through a combination of CDBG and the proposed local contingency. Staff noted a total recommended CDBG allocation of $371,227 for nonprofit partners in FY26–27 and said the contingency funding is intended as a temporary measure while the city pursues federal clarification.

Nonprofit speakers thanked council for the proposed funding. Melanie Farr of Upwards (a child‑care business assistance program) described coaching for family child‑care providers and said the program would use grant funds to support expansion and stability for local providers. Georgia Bassel of Senior Adults Legal Assistance said CDBG funding supports free legal help for low‑income seniors and urged adoption of the staff recommendation.

Council unanimously approved the annual action plan and the contingency approach, and asked staff to continue to pursue clarity from HUD while protecting nonprofit services.