HomeMy WebLinkAboutItem 6c - 2027-28 Community Development Block Grant Funding Priorities6c Item 6c
Department: Community Development
Cost Center: N/A
For Agenda of: 10/20/2026
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Ethan Estrada, Assistant Planner
SUBJECT: CONSIDERATION OF 2027-28 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 2027-28 funding year.
POLICY CONTEXT
The recommended funding priorities from the Human Relations Commission (HRC) align
with the City’s Major City Goals for the 2025-27 Financial Plan for Goal 3, Housing and
Neighborhood Livability – Healthy, Safe, and Affordable, and Goal 4, Homelessness
Response.
The recommended funding priorities for the 2027-28 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 6c
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 allocation of $571,078 for
the 2027-28 CDBG funding cycle.1
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 Ci ty’s Human
Relations Commission (HRC) to consider on November 4, 2026. The HRC will provide its
funding recommendations for City Council to consider in February of next year. Below is
the current 2027-28 CDBG schedule:
Date Action
September 2, 2026 HRC Community Needs Workshop and Recommendation of
Funding Priorities
September 28, 2026 San Luis Obispo County Releases CDBG Notice of Funding
Availability (NOFA)
October 20, 2026 City Council Reviews and Approves CDBG Funding Priorities
October 30, 2026 Applications Due by 5:00 PM to San Luis Obispo County
November 4, 2026 HRC Reviews Applications and Votes on Funding
Recommendations
February 2, 2027 City Council Reviews and Considers Approving CDBG
Funding Recommendations
April 2027 San Luis Obispo County Reviews and Approves Funding
Recommendations
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 Objectives2 for the CDBG Program.
On September 2, 2026, the 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 The City was notified by HUD that it now qualifies as an entitlement community and can receive CDBG
funds directly from HUD. The City has opted to continue as a participating member of the Urban County
of San Luis Obispo due to the administrative and reporting requirements associated with being an
entitlement community.
2 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 6c
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 childcare provider services; low- and
moderate -income jobs3).
4. Promote accessibility and/or removal of architectural barriers4 for the disabled and
elderly.
These priorities are generally the same as the ranked funding priorities used for the 2023 -
24, 2024-25, 2025-26, and 2026-27 CDBG funding cycles. A minor change has been
made in removing “seismic retrofit, economic stability” from priority 3 and replacing it with
“childcare provider services.” The HRC made this change to indicate their interest in
supporting childcare provider services via the CDBG Program, having found that the City
has not received applications pertaining to “seismic retrofit” in recent years and that
“economic stability” was vague. Regardless, “seismic retrofit” and “economic stability”
related projects are still eligible under the priority of “enhance economic development.”
Previous Council or Advisory Body Action
As noted above, the Human Relations Commission discussed the funding priorities at a
meeting on September 2, 2026.
Public Engagement
A public hearing was held by the Human Relations Commission (HRC) on September 2,
2026, 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. The HRC
hearing was noticed per the required posting and notification standards.
This item is on the agenda for the October 20, 2026 City Council meeting and will follow
all the required posting and notification standards. Public comment can be provided to
the City Council through written correspondence submitted prior to the meeting and
through public comment during the meeting.
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 California Environmental Quality Act (CEQA)
Guidelines.
3 “Low- and moderate-income jobs” refers to projects and programs that offer professional development
or services to assist low- and moderate-income persons with obtaining or retaining employment.
4 “Architectural barriers” refers 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 6c
FISCAL IMPACT
Budgeted: N/A Budget Year: 2027-28
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $0 $0 $0
State
Federal
Fees
Other:
Total $N/A $0 $0 $0
Approving the CDBG ranked funding priorities does not impact the City fiscally. The action
under consideration is the approval of the ranking for future funding allocation. In
February, staff will return to the City Council with an item to review and appro ve CDBG
funding recommendations. As a part of this funding recommendation, the City will receive
a small allocation of funds for administrative purposes as outlined in the current Urban
County Cooperation Agreement between the City and the County.
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 2, 2026
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1
Human Relations Commission Minutes
September 2, 2026, 5:00 p.m.
Council Hearing Room, 990 Palm Street, San Luis Obispo
Human Relations
Commissioners Present:
Commissioner Stephanie Carlotti, Commissioner Jenn
Fields, Commissioner Esmeralda Parker, Vice Chair
Vincent DeTurris, Chair Catuih Campos
Human Relations
Commissioners Absent:
Commissioner Jennifer Chassman Browne
City Staff Present: Diversity, Equity, and Inclusion Administrative Specialist
Samantha Vethavanam
City Staff Absent: Diversity, Equity, and Inclusion Manager Matt Pennon
_____________________________________________________________________
1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was
called to order on September 2, 2026 at 5:01 p.m. in the Council Hearing Room
at City Hall, 990 Palm Street, San Luis Obispo, by Chair Campos.
2. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA
Public Comment:
None
--End of Public Comment--
3. CONSENT
3.a CONSIDERATION OF MINUTES - AUGUST 5, 2026 HUMAN
RELATIONS COMMISSION MINUTES
Motion By Commissioner Parker
Second By Commissioner Fields
To approve the Human Relations Commission Minutes of August 5, 2026.
Ayes (5): Commissioner Carlotti, Commissioner Fields, Commissioner
Parker, Vice Chair DeTurris, and Chair Campos
Absent (1): Commissioner Browne
CARRIED (5 to 0)
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2
4. PUBLIC HEARINGS
4.a ANNUAL COMMUNITY DEVELOPMENT BLOCK GRANT COMMUNITY
NEEDS WORKSHOP
Assistant Planner, Ethan Estrada presented the staff report and
responded to Commission inquiries.
Chair Campos opened Public Comment
Public Comment:
William Petersen
--End of Public Comment--
Chair Campos closed Public Comment
Recommendation to subtract seismic retrofit and economic stability from
priority #3 and add childcare provider services.
Motion By Commissioner Fields
Second By Vice Chair DeTurris
Ayes (5): Commissioner Carlotti, Commissioner Fields, Commissioner
Parker, Vice Chair DeTurris, and Chair Campos
Absent (1): Commissioner Browne
CARRIED (5 to 0)
5. BUSINESS ITEMS
5.a HUMAN SERVICES GRANT COMMUNITY NEEDS GRANT WORKSHOP
Diversity, Equity, and Inclusion Admin Specialist Sam Vethavanam
presented the staff report and responded to Commission inquiries.
Chair Campos opened Public Comment
Public Comment:
Karen Jones
--End of Public Comment--
Chair Campos closed Public Comment
Recommend maintaining the main funding priority categories for the
Human Services Grant, Preventing and Addressing Homelessness, as
recommended.
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3
Motion By Commissioner Parker
Second By Vice Chair DeTurris
Ayes (5): Commissioner Carlotti, Commissioner Fields, Commissioner
Parker, Vice Chair DeTurris, and Chair Campos
Absent (1): Commissioner Browne
CARRIED (5 to 0)
5.b ACCESS AND BELONGING ICON UPDATE
Diversity, Equity, and Inclusion Admin Specialist Sam Vethavanam
presented the staff report and responded to Commission inquiries.
Chair Campos opened Public Comment
Public Comment:
None
--End of Public Comment--
Chair Campos closed Public Comment
Action: By consensus, the Commission received and filed the update on
the new Access and Belonging Icon.
5.c 2025-26 HUMAN SERVICES GRANT FINAL REPORT REVIEW
Diversity, Equity, and Inclusion Admin Specialist Sam Vethavanam
presented the staff report and responded to Commission inquiries.
Chair Campos opened Public Comment
Public Comment:
None
--End of Public Comment--
Chair Campos closed Public Comment
Action: By consensus, the Commission received and filed the 2025-26
Human Services Grant mid-year reports.
6. COMMENT AND DISCUSSION
6.a STAFF & COMMISSIONER UPDATES AND AGENDA FORECAST
Diversity, Equity, and Inclusion Admin Specialist Sam Vethavanam
provided the following updates:
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4
Grant application - Commissioner Fields part of CGS
Belonging project event 8/27
Belonging project event 9/12
College Corps Fellows starting
Item added to agenda for City Staff to go over what it means to be
a grant report reviewer
Commissioner Fields provided the following update:
Bisexual Visibility Day 9/26
7. ADJOURNMENT
The meeting was adjourned at 6:55 p.m. The next Regular Meeting of the Human
Relations Commission is scheduled for October 7, 2026 at 5:00 p.m. in the
Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY HUMAN RELATIONS COMMISSION: 10/07/2026
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