To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Jonathen Sakamoto, Housing Supervisor
TITLE:
Title
Community Development Block Grant (CDBG) Program Annual Action Plan
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the Community Development Block Grant (CDBG) Fiscal Year 2026-2027 Annual Action Plan and program budget, approving program certifications, and authorizing the City Manager to execute all documents.
Body
DISCUSSION:
The CDBG Annual Action Plan identifies specifically how the City’s CDBG funding shall be allocated for Fiscal Year 2026-2027. This must be prepared in accordance with the priorities identified in the City of Napa 2025-2030 Consolidated Plan.
The total available CDBG funding for Fiscal Year 2026-2027 is $596,022. This includes $573,349 in CDBG grant funds and $22,673, which is 20% of anticipated program income from the City’s revolving loan fund. Based on previous year’s HUD guidance, the City can utilize 20% of revolving loan fund repayments for its CDBG activities, with the remaining 80% remaining in the revolving loan fund to be used specifically for housing rehabilitation loans and grants.
Under CDBG regulations, up to 20% of the City’s CDBG grant plus 20% of 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 plus 15% of the previous year’s program income that is not kept in a revolving loan fund may be used on public service activities. The remaining funds must be spent on Community Development activities.
The CDBG Citizens’ Advisory Committee reviewed and rated applications and made funding recommendations in March. The amount of funding requested by applicants exceeded available funding by over $700,000, requiring the CDBG Citizens’ Advisory Committee to make difficult recommendations.
At the CDBG Citizens’ Advisory Committee meeting on April 27, 2026, applicants presented their applications and funding requests. The CDBG Citizens’ Advisory Committee did not recommend funding for one application. The following funding allocations have been recommended by the CDBG Citizens’ Advisory Committee and have been incorporated into the City’s draft Fiscal Year 2026-2027 Annual Action Plan and Program Budget:
• Fair Housing Napa Valley (planning and administration): $114,669
• Catholic Charities’ Rainbow House Family Shelter services (public service): $15,000
• Puertas Abiertas Promotoras Program (public service): $31,385
• Napa Emergency Women’s Services for bilingual case manager (public service): $53,615
• Share the Care Napa Valley (public service): $15,000
• Community Resources for Children (public service): $15,000
• The Salvation Army Napa (public service): $40,000
• Mentis - Griggs Property (community development): $40,000
• Mentis - Carolina Property (community development): $90,000
• Housing Rehabilitation Program (community development): $181,353
FINANCIAL IMPACTS:
Approval of the City’s Fiscal Year 2026-2027 Annual Action Plan and CDBG Program budget will commit $596,022 to the activities described above. The CDBG Program budget has been incorporated into the City’s budget for Fiscal Year 2026-2027. 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 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 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 Annual Action Plan
EX B - CDBG Funding Chart
EX C - CDBG Certifications
EX D - SF424
EX E - SF424D
NOTIFICATION:
Notice announcing the availability of the Draft Annual Action Plan for a 30-day public review was published in the Napa Valley Register on May 14, 2026. Notice was also placed on the City’s website and posted at Hispanic markets and laundromats. Copies of the Draft Annual Action Plan were posted on the Housing Division website. Copies of this staff report were e-mailed to the CDBG Citizens’ Advisory Committee and CDBG applicants.