To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Jonathen Sakamoto, Housing Supervisor
TITLE:
Title
Community Development Block Grant (CDBG) Consolidated Plan and Annual Plan
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution adopting the Community Development Block Grant (CDBG) Program 2025-2030 Consolidated Plan and the Fiscal Year 2025-2026 Annual Action Plan and Program Budget, approving program certifications and authorizing the City Manager to execute all documents.
Body
DISCUSSION:
As an entitlement jurisdiction for Community Development Block Grant (CDBG) funds, the City of Napa is required to adopt a Consolidated Plan every five years. The Consolidated Plan serves as a planning document which identifies needs for affordable housing and community development, provides a five-year strategy to address these needs, and describes the City’s performance during the previous five-year Consolidated Plan cycle.
The City must prepare and submit all CDBG plans and reports using HUD’s on-line reporting system. The structure of the Consolidated Plan and Annual Action Plan follows HUD’s prescribed template.
The Consolidated Plan will serve as the guiding document for funding projects and programs with CDBG funds over the next five years. The Draft 2025-2030 Consolidated Plan was prepared by City staff and its consultant, Thurmond Consulting LLC. To obtain public input for the Consolidated Plan, the City held numerous meetings. Meetings included a collaborating partners meeting comprised of governmental and service agencies, and two public meetings including one held in Spanish. An on-line survey was conducted in English and Spanish to obtain community input on community needs. Public input was supplemented with data from the U.S. Census, the recently completed Analysis of Impediments to Fair Housing Choice, the Housing Element, and other planning documents.
The Consolidated Plan, as presented, lists all of the City’s identified affordable housing and community development needs for the Plan cycle - even though the anticipated CDBG funding is insufficient to address all these needs. In some cases, other resources, such as State HOME Program funds, Section 8 rental assistance funding, Affordable Housing Impact fees, 1% TOT for Affordable and Workforce Housing, State Permanent Local Housing Allocation, and other funds have been identified as potential funding sources to help address identified needs. Because, during the five-year Consolidated Plan cycle, CDBG funds can only be used to address the priority needs specifically identified in the Plan, the Draft Consolidated Plan includes many needs without any anticipated funding (such as the need for childcare facilities). Including unfunded needs provides the City with flexibility to later decide to allocate CDBG funding to these activities without having to go through a Consolidated Plan amendment. If it is determined that an amendment to the Consolidated Plan is warranted, a process including public participation will follow. The priorities identified in the draft Consolidated Plan include:
- Housing rehabilitation*
- Construction of new affordable rental units
- Acquisition and rehabilitation of existing units
- Provision of rental assistance
- Farmworker housing
- First time homebuyer assistance
- Permanent supportive housing
- Emergency shelter services*
- Outreach/referral for racial/ethnic minority groups*
- Fair housing activities*
- Services for youth transitioning from foster care
- Non-profit capital improvement projects*
- In-fill sidewalks in low-income neighborhoods
- Improvements to City facilities and parks
- Affordable childcare facilities
- Local business support
- Green space expansion/improvement in areas of need
- Improvement of access to parks and recreation facilities*
- Bicycle and pedestrian improvements
- Expansion of programming at parks and recreation facilities
- Physical/mental/behavioral health services
- Flexible funding to prevent homelessness
(* denotes priorities with CDBG funding anticipated during the five-year Consolidated Planning cycle)
The CDBG Citizens’ Advisory Committee received the draft Consolidated Plan for review and comment prior to adoption by Council. Once adopted, the Consolidated Plan will become the single, coordinated document to guide the City’s CDBG funding over the next five years.
Fiscal Year 2025-2026 Annual Plan and Funding Recommendations
The City’s Consolidated Plan includes the first year’s Annual Action Plan. The Annual Action Plan identifies specifically how the City’s CDBG funding shall be allocated for Fiscal Year 2025-2026. This must be done in accordance with the priorities identified in the Consolidated Plan.
The total available CDBG funding for Fiscal Year 2025-2026 is $601,188. This includes $591,772 in CDBG grant funds and $9,416 of anticipated program income from the City’s revolving loan fund. Based on previous year HUD guidance, the City can utilize 20% of revolving loan fund repayments for its CDBG activities, with the 80% remaining in the revolving loan fund to be used specifically for rehab loans and grants.
Under CDBG regulations, up to 20% of the City’s CDBG grant plus the current year’s program income that is not kept in a revolving loan fund is available for planning and administration. No more than 15% of the CDBG grant and previous year’s program income may be used on public service activities. The remaining funds must be spent on Community Development activities.
The CDBG Citizens’ Advisory Committee reviewed applications and has made the below funding recommendations to Council. The amount of funding requested exceeded available funding by over $846,758. The specific funding allocations provided in the attached Annual Action Plan were made after the CDBG Citizens’ Advisory Committee reviewed funding applications at its April 29, 2025 meeting.
As recommended by the CDBG Citizens’ Advisory Committee, the following funding allocations have been incorporated into the City’s Fiscal Year 2025-2026 Annual Action Plan and Program Budget:
- FHNV planning and administration $120,238
- NEWS for a bilingual case manager (public service) $41,088
- On The Move (public service) $26,309
- Puertas Abiertas Promotoras Program (public service) 16,688
- Catholic Charities Rainbow House Family Shelter (public service) $10,309
- Housing Rehabilitation Program (community development) $292,980
- Mentis Care Facility Repair (community development) $31,788
- Puertas Abiertas Facility Repair (community development) $61,788
FINANCIAL IMPACTS:
Approval of the City’s Fiscal Year 2025-2026 Annual Action Plan and CDBG Program budget will commit $601,188 to the activities described above. The CDBG Program budget has been incorporated into the City’s budget for Fiscal Year 2025-2026. No General Funds are committed by this action.
CEQA:
The Community Development Director has determined that the Recommended Action described in this Agenda Report is not in-and-of-itself a “project” (pursuant to CEQA Guidelines Section 15378) since it does not result in a physical change in the environment. The individual activities and projects contemplated under the Consolidated and Annual Plans and CDBG Budget are not subject to CEQA pursuant to CEQA Guidelines Sections 15060(c), as they will not result in a direct or reasonably foreseeable indirect physical effect on the environment. The individual activities and projects contemplated under the Consolidated and Annual Plans and CDBG Budget are either 1) not subject to CEQA pursuant to CEQA Guidelines Sections 15060(c), as they will not result in a direct or reasonably foreseeable indirect physical effect on the indirect physical effect on the environment; or (2) exempt from CEQA pursuant to CEQA Guidelines Section 15301(c), which exempts the repair or minor alteration of existing private and public structures, streets, sidewalks and gutters.
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
EX A - Draft Consolidated Plan and Annual Action Plan
EX B - CDBG Certifications
EX C - SF424
EX D - HUD-424B
ATCH 2 - CDBG Funding Chart
NOTIFICATION:
Notice announcing the availability of the Draft Consolidated Plan and Annual Action Plan for public review was published in the Napa Valley Register on June 19, 2025. Notice was also placed on the City’s website and posted at Puertas Abiertas and Hispanic markets. Copies of the Draft Consolidated Plan and Annual Action Plan were made available by contacting the Housing Division. Copies of this staff report were e-mailed to the CDBG Citizens’ Advisory Committee and CDBG applicants.