Westminster City Council
SUBJECT
Title
Public Hearing - Adoption of Multiple Plans Related to Allocation of Federal CDBG and HOME Funds.
End
publichearing
• Staff Report
• Mayor and City Council Questions for Staff
• Public Comments
• Mayor and Council Member Discussion
• Council Action
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Michael Son, Housing Specialist
____________________________________________________________
RECOMMENDED ACTION
Recommendation
A. Adopt Fiscal Years 2025/26-2029/30 Consolidated Plan & Fiscal Year 2025/26 Annual Action Plan; and
B. Adopt Fiscal Years 2025/26-2029/30 Citizen Participation Plan; and
C. Authorize the City Manager to execute the documents required for submission of CDBG and HOME funding to the United States Department of Housing and Urban Development (HUD) for review and approval; and
D. Authorize staff to adjust the funding levels of CDBG and HOME activities proportionately to match the actual allocations when announced by HUD.
end
BACKGROUND
Every five years, the U. S. Department of Housing and Urban Development (HUD) requires that entitlement jurisdictions, such as City of Westminster (City), receiving certain Federal funds, prepare a Consolidated Plan (Attachment 1) to identify housing, homeless, community and economic development needs and resources for meeting those needs. Development of the Consolidated Plan provides an opportunity for citizens, non-profit organizations and other stakeholders to help define priorities for addressing local community needs and to tailor a plan for meeting the identified needs. Annually, the City is also required to prepare an Annual Action Plan (Attachment 1) which includes allocating Community Development Block Grant (CDBG) program and HOME Investment Partnerships (HOME) program funds to agencies and activities that will assist in meeting the identified community needs.
To ensure meaningful citizen engagement, the City has also established a detailed Citizen Participation Plan (Attachment 2) that specifies the city’s policies and procedures for engaging citizens and encouraging them to participate in providing feedback on the allocation of CDBG and HOME funds for programs and activities.
HUD requires that the Consolidated Plan, Annual Action Plan and Citizen Participation Plan (Plans) be available for a minimum 30-day public review period. The Plans were available for public review from April 9, 2025 through May 14, 2025 on the City’s website and public counters.
Consolidated Plan
The Consolidated Plan must include detailed background information on the community provided by HUD, as well as census data, and builds upon several other related planning documents, including City’s current Consolidated Plan, City’s 2021-2029 Housing Element, 2024 Orange County Housing Authority Housing Choice Voucher Report, 2024 Orange County Homeless Count and Survey Report; and Orange County Continuum of Care strategy.
In establishing five-year priorities for assistance with CDBG and HOME funds, several factors are taken into consideration: 1) those households most in need of housing and community development assistance, as determined through the Consolidated Plan needs assessment, consultation, and public participation process; 2) which activities will best meet the needs of those identified households; and 3) the extent of other non-federal resources and programs available to address these needs.
After consultation with various public service providers and Westminster departments and reviewing the results of a Community Needs Survey posted on the City’s website and social media platforms, the Consolidated Plan was developed and includes general priorities to meet the needs of the community and the City’s rationale for investment of federal funds. The process identified the following priorities as having the greatest need in the community and associated goals to meet those needs:
|
Priority Need |
Goal Description |
|
Housing Needs |
Preserve existing housing and create new affordable. |
|
Community Services |
Support agencies that assist special needs populations and provide needed community services to low- and moderate- income persons, including unhoused individuals and families. |
|
Parks, Recreational Facilities, and Other Community Facilities |
Enhance and update public infrastructure and community facilities that benefit low- and moderate-income neighborhoods and residents, as well as those with special needs, such as the seniors, disabled, and homeless. |
|
Infrastructure Improvements |
Provide Needed Infrastructure Improvements in Low to Moderate Income Neighborhoods. |
|
Planning for Housing and Community Development Needs |
Implement planning for housing and community development through HOME administration, CDBG administration, and the Fair Housing Program. |
The City’s five-year Consolidated Plan period begins on July 1, 2025, and will run through June 30, 2030. As a result, the Annual Action Plan, which will implement the Consolidated Plan, proposes programs and projects that support these priorities.
Annual Action Plan
Each year, the City prepares an Annual Action Plan in connection with the Five-Year Consolidated Plan which details how the City will spend HUD federal funds, specifically CDBG and HOME. The Annual Action Plan has two principal purposes:
• The Annual Action Plan identifies the projects and programs to be undertaken during the upcoming fiscal year, and the proposed objectives and outcomes to be achieved within the overall context of the Five-Year Consolidated Plan; and
• The Annual Action Plan acts as the City’s application process for federal formula grants, principally comprised of CDBG and HOME programs.
The City’s Annual Action Plan includes estimated CDBG and HOME allocations based on the most recent information available from HUD at the time of development of the Plans. Once the actual allocation amounts are announced by HUD, the City will adjust the funding levels of CDBG and HOME programs and activities proportionately to match the actual allocations.
CDBG Funding. The CDBG program serves to develop viable urban communities by providing decent housing, a suitable living environment, and expanding economic opportunities for persons of low and moderate income. The CDBG program provides annual grants on a formula basis to implement a wide variety of community development and housing activities set forth under Federal regulations.
The primary purpose of the CDBG program is to support “bricks and mortar” activities e.g., acquisition, rehabilitation and preservation, and public improvements and facilities. As a result, only 15 percent may be spent on public service activities, and 20 percent on administration and support services to projects, with the balance going to projects allowed under federal regulations.
For fiscal year 2025/26, the City will have an estimated total of $1,006,147 in CDBG funds. This total amount is comprised of $978,392 in CDBG entitlement funds and $27,755 in prior year unallocated CDBG funds carried forward. Carryover CDBG funds are due to project savings from prior years and program income.
Proposed CDBG Activities. In accordance with priorities established in the City’s Consolidated Plan, below is a summary of projects and funding proposed for approval.
• Family Resource Center, $50,554: The Westminster Family Resource Center is a family-friendly, community-based site that offers a comprehensive range of services and support systems to families. It is designed to be a one-stop shop where services provided are offered in partnership with private and public agencies working together to enhance each family’s capacity to become self-sufficient.
• Senior Outreach Center, $43,703: The Senior Outreach Program assists seniors (>62 years of age) and the disabled population needing support services to allow them to live independently and remain in their own home. The Program provides seniors and/or their adult children with information, referrals, services, and programs to provide for their essential needs.
• Home Delivered Meals Program, $27,164: The Home Delivered Meals Program provides three meals per day, five days per week to frail elderly participants aged 62 or over in the City. In addition to the meals, all participants receive case management services and have access to in-home safety services. The program benefits participants by assisting with basic food and nutritional needs which in turn improves overall health.
• Summer Youth Program, $10,340: The Summer Youth Program is an eight-week summer program that provides summer recreational activities to Westminster school aged children. To meet the low-income eligibility requirement, invitations will be extended to Family Resource Center families and Project SHUE participants. The hub of the Summer Youth Program will be at the Community Services Center.
• Project S.H.U.E., $14,990: Project S.H.U.E. (Safety, Health, Understanding, and Education) is an intergenerational afterschool program that is designed to provide underserved children, ages 6-9, a safe afterschool environment at the Westminster Senior Center. With the support of volunteer seniors, S.H.U.E. staff will create a structured setting that focuses on learning while fostering the healthy social development of each individual child. The environment this program creates helps to reduce the risk of negative peer pressure, gang/drug involvement, and low academic achievement.
• Street Improvements, $469,294: The Street Improvement Project for FY 2025/26 involves resurfacing five (6) residential streets: Comet Circle, Milky Way, Neptune Circle, Mercury Drive, Jupiter Circle, and Universe Avenue. The improvements include grinding existing pavement and constructing new asphalt concrete pavement; adjusting sewer manholes and water/hydrant valves to finished grade; and new striping to match exiting configuration.
• Sidewalk Improvements, $194,424: The sidewalk improvements may involve installing, repairing, or replacing concrete sidewalks, ADA wheelchair ramps, curb, gutter, and driveway approaches to improve accessibility for individuals with disabilities and enhance pedestrian safety in the low and moderate-income neighborhoods.
• Fair Housing Services, $20,000: The Fair Housing Services Program provides fair housing education, counseling and enforcement services to Westminster residents. This program helps the City to comply with HUD’s regulatory requirements to affirmatively further fair housing and includes counseling on landlord/tenant law and other aspects of housing.
• CDBG Program Administration, $175,678: The City will conduct the following administration/planning activities: (1) General Administration of the overall CDBG Program, including preparation of budget, applications, certifications, and agreements, (2) Coordination of all CDBG-funded capital improvement projects, (3) Coordination of the Public Service Subrecipients, (4) Monitoring of all CDBG projects/programs to ensure compliance with federal regulations, (5) Preparation of the Annual Action Plan, and (6) Preparation of the Consolidated Annual Performance and Evaluation Report (CAPER).
HOME Funding. The HOME Program is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. HOME funds are provided as formula grants to be used for home purchase, repairing rental or ownership properties, site acquisition, demolition of dilapidated housing to make way for HOME-assisted development, payment of relocation expenses, and tenant based rental assistance. Up to ten (10) percent is used for program planning and administration and 15 percent of the allocation must fund housing with a non-profit Community Housing Development Organizations (CHDOs).
The City of Westminster is estimated to have $1,218,958 in HOME Program funds comprised of this coming year’s estimated allocation of $409,546 and an estimated carryover balance of $809,412.
Proposed HOME Activities. City staff recommends the following activities that are consistent with priorities set forth in the City’s Five-Year Consolidated Plan and that fulfill the purpose of the HOME program to create affordable housing for low-income households:
• Acquisition / Rehabilitation / New Construction, $678,003: The City is proposing to use HOME funds on a to-be-determined affordable housing project with a local Community Housing Development Organization (CHDO). The City will extend gap financing to acquire and support construction or rehabilitation of affordable transition or permanent rental housing. While a location is yet to be determined, the City will attempt to address the two key problems in Westminster as identified in the Consolidated Plan’s Housing Needs Assessment: 1) renter cost burden; and 2) household overcrowding.
• Westminster Tenant-Based Rental Assistance, $500,000: The City is proposing to use HOME funds to provide tenant-based rental assistance to eligible households in Westminster that are currently experiencing homelessness or are at risk of becoming homeless. The City will contract with an experienced TBRA operator to administer the program and provide case management and wrap around services to participants.
• HOME Program Administration, $40,955: The City may use up to ten (10) percent of the HOME allocation for the overall administration of the HOME Program. The City will use HOME funds to ensure the overall development, management, coordination (including coordination with Community Housing Development Organizations), and monitoring of all HOME-funded projects/programs to ensure compliance with federal regulations of the HOME program.
Citizen Participation Plan
As part of the Consolidated Plan, the City is required to certify its full compliance with, and adherence to, a detailed Citizen Participation Plan in accordance with the Federal requirements. This Plan outlines the policies and procedures to be adopted by the City Council to promote citizen involvement in the allocation and use of federal funds, particularly CDBG and HOME funds. The primary goal of the Citizen Participation Plan is to engage those who are least likely to participate in the process, especially low-income individuals living in distressed neighborhoods, public and assisted housing developments, and areas where CDBG funds are proposed for use. This document provides a clear framework for citizen participation in line with federal regulations.
Potential Elimination of CDBG and HOME Program funds
On May 2, 2025, the Trump administration released its fiscal year 2026 “skinny budget,” which proposes eliminating the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs. These programs are the backbone of the City’s affordable housing, homelessness prevention, and community development efforts. The proposed cuts would eliminate more than $2 billion in annual federal funding that supports local governments across the country. For Westminster, this would mean the loss of approximately $1 million in CDBG and over $400,000 in HOME funding each year-funds that directly support tenant-based rental assistance, street and sidewalk improvements, youth and senior programs, and affordable housing development. If Congress adopts this proposal, the City would need to consider whether to allocate General Fund resources to preserve these critical services or face the potential elimination of programs that serve the City’s most vulnerable residents.
FISCAL IMPACT
There is no immediate impact to the City’s General Fund. The programs and activities outlined in the Consolidated Plan and Annual Action Plan will be fully funded through federal grants from the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2025/26.
Actual grant amounts may vary slightly once HUD releases final allocations. To ensure flexibility, the City Council’s action includes authorization for staff to proportionally adjust program funding levels based on the final award amounts. Adoption of these plans is required for the City to access and administer these federal funds, which will support affordable housing, essential public services, and infrastructure improvements for low- and moderate-income residents.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Approval of the Consolidated Plan, Annual Action Plan, and Citizen Participation Plan ensures that the City of Westminster remains eligible to federal CDBG and HOME funds. These funds will directly support essential services such as affordable housing, senior and youth programs, street and sidewalk repairs, and fair housing enforcement. The plans reflect community input and demonstrate the City’s ongoing commitment to addressing the needs of low- and moderate-income residents.
While approval of the Consolidated Plan and related documents ensures the City’s eligibility for fiscal year 2025/26 HUD funding, the future of these programs remains uncertain. The administration’s fiscal year 2026 budget proposal would eliminate all CDBG and HOME funds beginning next year. If these cuts are enacted, the City may be forced to eliminate or significantly scale back programs funded through these sources. Alternatively, the City Council may need to consider allocating General Fund resources to continue vital programs such as rental assistance, fair housing services, and infrastructure improvements in low-income neighborhoods. Staff will continue to monitor federal budget negotiations closely and advocate for the preservation of these essential programs.
ATTACHMENTS
1. Fiscal Years 2025/26-2029/30 Consolidated Plan & Fiscal Year 2025/26 Annual Action Plan
2. Fiscal Years 2025/26-2029/30 Citizen Participation Plan
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager