Council approves direction on HUD action plan; funds to be steered to parks/public facilities and homelessness programs

City staff opened the first required public hearing on the FY 2026–27 Annual Action Plan — the plan that sets how the city will spend CDBG, HOME and ESG allocations from HUD — and outlined eligible activities, timeliness requirements and estimated allocations. Staff said public services would receive the maximum allowable CDBG share (15% cap) and estimated HOME funds at about $1.1 million.

Public commenters emphasized stronger oversight and transparency, urging the city to make clear performance metrics and prioritize neighborhoods most in need. Ron Alvarado, a west‑side resident and candidate, urged "a fundamental shift toward transparency" so federal funds deliver direct results to neglected neighborhoods. Youth representatives and homeless‑service advocates urged approval so shelters and rapid‑rehousing programs can continue.

Council members discussed priorities, especially homeowner rehabilitation, first‑time‑buyer assistance and the limits HUD places on using HOME funds for rental properties. Council member Ortiz and others pressed for owner‑occupied home‑repair options and expressed interest in prioritizing homeownership to stabilize neighborhoods. Council member Figueroa proposed — and council approved — staff direction to create an umbrella improvement category for CDBG public‑facilities funding (approximately $1.3M in the staff presentation) prioritizing parks amenities (restrooms, playground equipment) to streamline federal reporting and reduce administrative costs.

Outcome: Council approved the plan’s public‑comment submission and directed staff to return June 17 with a final plan, including the actual HUD allocations and the staff‑directed umbrella approach for parks and public‑works projects. The June 17 hearing will be the council’s formal consideration and the version transmitted to HUD.

Who spoke: City housing/planning staff presented the draft; public speakers included Ron Alvarado (transparency and oversight), youth homelessness advisers (supporting plan approval), and neighborhood advocates; several council members asked for clarity on eligible HOME uses and reporting requirements.

Action: Council approved staff’s direction to proceed and asked staff to return with final dollar amounts and project lists on June 17 prior to HUD submission.