AGENDA CAPTION:
Title
Receive a Staff presentation summarizing comments received related to proposed funding allocations, and consider approval of Resolution 2026-123R, adopting the Community Development Block Grant (CDBG) Action Plan that provides for the allocation of $774,306.00 in CDBG Entitlement funds for Program Year 2026-2027; authorizing the City Manager, or her designee, to act as the official representative of the city in matters related to the CDBG program and Action Plan; and declaring an effective date.
Body
Meeting date: July 7, 2026
Department: Planning and Development Services
Amount & Source of Funding
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Fiscal Note:
Prior Council Action: March 3, 2026 held public hearing to receive comments on potential uses of CDBG funding (no comments received) ; April 7, 2026 held public hearing to receive comments on proposed activities (no comments received), July 7, 2026 discussed allocations
City Council Strategic Initiative: [Please select from the dropdown menu below]
Quality of Life & Sense of Place
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☐ Environment & Resource Protection - Choose an item.
☒ Housing + Neighborhoods - HN-1: Ensure that San Marcos neighborhoods provide safe, affordable, and healthy homes and environments for residents
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☐ Parks & Public Spaces + Health, Safety & Wellness - Choose an item.
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☐ Core Services
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
The Community Development Block Grant (CDBG) Annual Action Plan contains summaries of ongoing work by non-profits and the City, and the CDBG funding allocations and program descriptions for the next fiscal year. The entire plan is adopted by City Council and then submitted to HUD for approval and funding.
REVIEW PROCESS
Each year the City follows a public review process. On March 3, the City Council received a staff presentation and held a public hearing to receive comments on community needs and the possible uses for CDBG funding.
After that, a staff committee met to create recommended funding allocations for programs and projects from the applications received. April 7 a second public hearing was held to receive comments more specifically on the proposed projects and allocations. Then City Council provided direction to staff to post the projects and allocations as presented, for the 30-day comment period.
After the April 7 agenda had already been published, HUD informed the City of the final grant amount, which is $774,306. The staff committee had anticipated this, and the action plan that was published showed how the additional funds could be spread among the projects that City Council had reviewed.
In May, during the comment period, Mission Able withdrew their CDBG funding request. The staff committee reconvened and moved the funding that had been recommended for them to other home repair projects.
July 7 City Council will receive a presentation on the final proposed allocation of the funding among the projects and programs City Council and the public have reviewed over time.
COMMENTS
Public input on potential uses of CDBG and other City Funding was requested in town hall meetings, a stakeholder workshop, public hearings, and the 30-day comment period.
No comments were received on the specific programs and projects that are recommended for CDBG funding.
Comments received were about funding needs in general. Comments centered on the importance of access to housing and support for social services, including mental health services. In addition, participants requested additional resources for people who are unhoused and the agencies that serve them.
In addition, during the 30-day comment period, a staff member provided additional information to include about ongoing City and non-profit efforts for the community, which was added to the text portions of the plan.
FUNDING ALLOCATIONS
Recommended CDBG funding allocations for the 2026-2027 program year will be discussed in the July 7 agenda item just prior to this one, and City Council will provide staff direction.
ADOPTION OF THE CDBG ANNUAL ACTION PLAN
The draft Action Plan is attached, as requested by City Council for the packet. Funding allocations will be adjusted if so directed by City Council.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval of the 2026-2027 CDBG Annual Action Plan as presented.