REPORT TO COUNCIL
SUBJECT
Title
Public Hearing: Opportunity for Public Comment on the First Version of the DRAFT FY 2026/27 Annual Action Plan for the Use of Federal Housing and Urban Development (HUD) Grant Funds
Report
BACKGROUND
As an entitlement agency, the City of Santa Clara receives annual funding from the United States Department of Housing and Urban Development (HUD) in the form of Community Development Block Grant (CDBG) and Home Investment Partnerships Program (HOME) funds. CDBG funds can be used to provide public services and funding for Capital Improvement projects that serve residents in Santa Clara. HOME funds can be used for the development of affordable housing and for providing rental assistance. The City does not compete for these funds, and the amount awarded each year is based on a population-based formula and the federal budget.
Every five years, HUD requires the City to prepare a Five-Year Consolidated Plan (Consolidated Plan), which identifies broad goals and needs within the community that could be addressed through the use of HUD funding. The City's current Consolidated Plan covers 2025-2029. HUD also requires the City to submit an Annual Action Plan (AAP) each fiscal year.
The AAP details how CDBG, HOME and local funding allocations will be used in a given year by the City to address the goals and needs identified in the Consolidated Plan. The 2026/27 AAP covers the second year of the 2025-2029 Consolidated Plan cycle. The purpose of this report is to gather public input on the programs the City proposes to fund in the 2026/27 fiscal year (FY).
DISCUSSION
The FY 2026/27 AAP is a one-year Plan that details how HUD funds will be spent on projects and activities to address goals and needs identified in the Consolidated Plan. The AAP also allocates funds from prior year activities and projects that did not fully spend down, and funds that have come back to the City as Program Income (PI) when loans are repaid. This year's AAP incl...
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