HomeMy WebLinkAboutItem 6d - Consideration of 2026-27 Community Development Block Grant Funding Priorities Item 6d
Department: Community Development
Cost Center: 4008
For Agenda of: 10/21/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Ethan Estrada, Assistant Planner
SUBJECT: CONSIDERATION OF 2026-27 COMMUNITY DEVELOPMENT BLOCK
GRANT FUNDING PRIORITIES
RECOMMENDATION
As recommended by the Human Relations Commission (HRC), approve the Community
Development Block Grant (CDBG) ranked funding priorities for the 2026-27 funding year.
POLICY CONTEXT
The recommended funding priorities from the Human Relations Commission (HRC) align
with the City’s Major City Goals for FY 2025 -27 for Goal 3, Housing and Neighborhood
Livability – Healthy, Safe, and Affordable, and Goal 4, Homelessness Response. The
recommended funding priorities for the 2026-27 CDBG funding cycle allow the City to
further implement the General Plan 6th Cycle Housing Element by satisfying the following
on-going programs:
Housing Element Program 1.7: Continue to support local and regional solutions to
homelessness by funding supportive programs, services, and housing solutions .
Housing Element Program 4.7: Affirmatively Further Fair Housing
Housing Element Program 6.17: Financially assist in the development of affordable
housing.
Housing Element Program 8.11: Continue to provide resources that support local and
regional solutions to meet the needs of the homeless.
DISCUSSION
Background
The Community Development Block Grant (CDBG) Program, administered through the
U.S. Department of Housing and Urban Development (HUD), provides annual grants on
a formula basis to states, counties, and cities. These funds are to be distributed to
qualifying projects and programs with the intent of providing decent housing and a
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Item 6d
suitable living environment and expanding economic opportunities, principally for low- and
moderate-income persons. As an “urban county” under the CDBG Program, the County
of San Luis Obispo receives the funds from HUD and distributes them to its incorporated
cities. The City of San Luis Obispo is anticipated to receive an estimated allocation of
$526,836 for the 2026-27 funding cycle. As of the writing of this report, the federal
government has shutdown due to failed budget negotiations. Depending on the length of
this shutdown and/or the budget that is eventually approved, this funding amount may be
changed.
Interested parties have submitted their applications for grant funding to the County, which
has distributed them to the relevant jurisdictions. City staff is in the process of reviewing
these applications and will provide funding recommendations for the City’s Human
Relations Commission (HRC) to consider on November 5, 2025. The HRC will provide its
own funding recommendations for City Council to consider in February of next year.
Below is the current 2026-27 CDBG schedule:
Date Action
September 3, 2025 HRC Community Needs Workshop and Recommendation of
Funding Priorities
September 11, 2025 San Luis Obispo County Releases CDBG Notice of Funding
Availability (NOFA)
October 10, 2025 Applications Due by 5:00 PM to San Luis Obispo County
October 21, 2025 City Council Reviews and Votes on CDBG Funding Priorities
November 5, 2025 HRC Reviews Applications and Votes on Funding
Recommendations
February 2026 City Council Reviews and Votes on CDBG Funding
Recommendations
April 2026 San Luis Obispo County Reviews and Votes on Funding
Recommendations*
* Public notice will be published for a 30-day review prior to the April 2026 County Board
of Supervisors meeting.
To help guide the City’s CDBG funding recommendations, ranked funding priorities are
established each year. These priorities are based on the City’s Major City Goals, as well
as HUD’s National Objectives1 for the CDBG Program.
1 HUD’s CDBG Program require each activity funded to meet one of the following three objectives: benefit
to low- and moderate-income persons; aid in the prevention or elimination of slums or blight; and meet a
need having a particular urgency (i.e., disaster response/recovery).
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Item 6d
Previous Council or Advisory Body Action
On September 3, 2025, the Human Relations Commission (HRC) held a community
needs workshop and established ranked funding priorities to recommend to City Council
for approval. The HRC’s recommended ranked priorities are:
1. Provide emergency and transitional shelter, homelessness prevention and
services.
2. Develop and enhance affordable housing for low- and very low-income persons.
3. Enhance economic development (to include seismic retrofit, economic stability,
low- and moderate-income jobs2).
4. Promote accessibility and/or removal of architectural barriers3 for the disabled
and elderly.
These priorities are identical to the ranked funding priorities used for the 2023 -24, 2024-
25, and 2025-26 CDBG funding cycles.
Public Engagement
A public hearing was held by the Human Relations Commission (HRC) on September 3,
2025, in the form of a community needs workshop to provide an opportunity for the public
to comment on the ranked funding recommendations presented to the HRC. Public
noticing was provided for this hearing.
CONCURRENCE
The Human Relations Commission (HRC) reviewed and approved the ranked funding
priorities presented in this report.
ENVIRONMENTAL REVIEW
The proposed ranked funding priorities for CDBG funding allocations is not considered a
“project” under Section 15378 of the CEQA Guidelines.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2026-27
Funding Identified: N/A
2 “Low- and moderate-income jobs” refer to projects and programs that offer professional development or
services to assist low- and moderate-income persons with obtaining or retaining employment.
3 “Architectural barriers” refer to physical aspects of a structure or public facility (e.g., sidewalks) that fully
or partially prevent access to or ability to traverse said structure or facility for the elderly and the physically
handicapped.
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Item 6d
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund N/A
State
Federal
Fees
Other:
Total N/A
Approving the CDBG ranked funding priorities does not impact the City fiscally. The action
under consideration today is the approval of the ranking for future funding allocation. In
February, staff will return to the City Council with an item to review an d approve CDBG
funding recommendations.
ALTERNATIVES
Council may modify the ranked funding priorities. Should Council pursue this option,
the result of any modifications made to the ranked funding priorities must be consistent
with HUD’s National Objectives for the CDBG Program.
ATTACHMENTS
A - HRC Minutes of September 3, 2025
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1
Human Relations Commission Minutes
September 3, 2025, 5:00 p.m.
Council Hearing Room, 990 Palm Street, San Luis Obispo
Human Relations
Commissioners
Present:
Commissioner Stephanie Carlotti, Commissioner Vincent
DeTurris, Commissioner Esmeralda Parker, Commissioner Jenn
Fields, Vice Chair Catuih Campos, Chair Angie Kasprzak
City Staff Present: Diversity, Equity, & Inclusion Manager Matt Pennon, Diversity,
Equity, & Inclusion Administrative Specialist Samantha
Vethavanam
1.CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was
called to order on September 3, 2025 at 5:04 p.m. in the Council Hearing Room
at City Hall, 990 Palm Street, San Luis Obispo, by Chair Kasprzak.
2.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public Comment:
None.
End of Public Comment--
3.CONSENT
3.a CONSIDERATION OF MINUTES - AUGUST 6, 2025 HUMAN
RELATIONS COMMISSION MINUTES
Public Comment:
None.
End of Public Comment--
Motion By Commissioner Fields
Second By Vice Chair Campos
To approve the Human Relations Commission Minutes of August 6, 2025.
Ayes (6): Commissioner Carlotti, Commissioner DeTurris, Commissioner
Parker, Commissioner Fields, Vice Chair Campos, and Chair Kasprzak
CARRIED (6 to 0)
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2
4.BUSINESS ITEMS
4.a REVIEW OF THE 2024-25 HUMAN SERVICES GRANT YEAR-END
REPORTS
Diversity, Equity, & Inclusion Manager Matt Pennon presented the report
and responded to inquiries.
Public Comment:
Karen Jones
End of Public Comment--
The Human Relations Commission reviewed the 2024-25 Human Services
Grant year-end reports, and they were received and filed.
5.PUBLIC HEARINGS
5.a ANNUAL COMMUNITY DEVELOPMENT BLOCK GRANT COMMUNITY
NEEDS WORKSHOP
Assistant Planner Ethan Estrada presented the staff report and responded
to inquiries.
Public Comment:
Sam Gottlieb
End of Public Comment--
Motion By Commissioner Parker
Second By Vice Chair Campos
To approve the CDBG funding priorities are presented during the
Community Needs Grant Workshop.
Ayes (6): Commissioner Carlotti, Commissioner DeTurris, Commissioner
Parker, Commissioner Fields, Vice Chair Campos, and Chair Kasprzak
CARRIED (6 to 0)
5.b HUMAN SERVICES GRANT COMMUNITY NEEDS GRANT WORKSHOP
Diversity, Equity, & Inclusion Manager Matt Pennon presented the staff
report and responded to inquiries.
Public Comment:
Sam Gottlieb
Karen Jones
Juliane McAdam
End of Public Comment--
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3
Motion By Commissioner Carlotti
Second By Commissioner DeTurris
The Human Relations Commission provided input for modifications to the
Human Services Grant funding priorities and information for 2026-27 and
approved the document with the modifications discussed.
Ayes (6): Commissioner Carlotti, Commissioner DeTurris, Commissioner
Parker, Commissioner Fields, Vice Chair Campos, and Chair Kasprzak
CARRIED (6 to 0)
6.COMMENT AND DISCUSSION
6.a STAFF & COMMISSIONER UPDATES AND AGENDA FORECAST
Diversity, Equity, & Inclusion Manager Matt Pennon and Diversity, Equity,
Inclusion Admin Specialist Sam Vethavanam provided the following:
DEI SLO Business Grantee highlights continue to be posted.
Commissioners will be reviewing the 2024-25 DEI High Impact
Grant mid-year reports at the October meeting.
The 2025-26 DEI High Impact Grant application period just closed
and 20 applications were received.
The City’s Title VI Plan was approved by City Council on
September 2, 2025.
The Office of DEI will be presenting at the Latino Outreach Council
on September 11, 2025.
Staff from the Office of DEI went on a ride-along with the Long Term
Care Ombudsman.
Commissioner DeTurris provided an update that he has requested a leave
of absence for October, November, and December,
Commissioner Fields provided an update on SLO Climate Coalition events
in the month of September.
Chair Kasprzak provided an update on an event for the SLO Tenants
Union and an event for Transitions Mental Health Association.
7.ADJOURNMENT
The meeting was adjourned at 6:03 p.m. The next Regular Meeting of the Human
Relations Commission is scheduled for October 1, 2025 at 5:00 p.m. in the
Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.
APPROVED BY HUMAN RELATIONS COMMISSION: 10/01/2025
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