Westminster City Council
SUBJECT
Title
Draft FY 2026-2027 Annual Action Plan and Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program Funding Requests.
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Michael Son, Housing Specialist
____________________________________________________________
RECOMMENDED ACTION
Accept the Draft FY 2026-2027 Annual Action Plan and initiate a 30-day public review period of the documents in compliance with the U.S. Department of Housing and Urban Development (HUD) Consolidated Plan Regulations.
BACKGROUND
Each year, the City prepares an Annual Action Plan in connection with the Five-Year Consolidated Plan which details how the City will spend federal funds from the U.S. Department of Housing and Urban Development, specifically the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs. 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 2025/26-2029/30 Consolidated Plan (Con Plan); and
• The Annual Action Plan acts as the City’s application process for federal formula grants, principally comprised of as the CDBG and HOME programs. This agenda item includes funding requests from agencies/departments seeking CDBG funding provided as Attachment 1 to this agenda item. At the end of the mandatory 30-day public comment period, the City Council will be asked to approve the allocation of funds at the May 13, 2026, City Council meeting.
For the City Council’s consideration, an estimated total of $1,572,551.68 in CDBG funds and $1,044,993.22 in HOME funds will be allocated to the proposed activities further detailed in this staff report and outlined in Attachment 1.
Consistent with the City’s Con Plan adopted by City Council in May 2025, the priority needs and proposed activities to be funded for FY 2026-2027 are shown in the table below for the City Council’s consideration.
|
FY 2025-2029 Consolidated Plan 5-Year Priority Needs |
FY 2026-2027 Proposed Activities |
|
Priority Housing Needs |
ü Tenant Based Rental Assistance Program ü CDBG Code Enforcement ü Set aside for potential affordable housing project |
|
Priority Community Services |
ü Senior Outreach ü Meals on Wheels ü Family Resource Center ü Project S.H.U.E. ü Summer Youth |
|
Priority Infrastructure Improvements |
ü Street Improvements ü Sidewalk Improvements |
|
Priority Parks and Recreational Facilities |
ü No park projects are proposed |
|
Planning for Housing and Community Development Needs |
ü CDBG Administration ü HOME Administration ü Fair Housing Foundation |
CDBG Funding
Authorized by Title I of the Housing and Community Development Act of 1974, the CDBG program serves to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally 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 CDBG regulations. The overriding purpose of the CDBG program is to support “bricks and mortar” activities e.g., acquisition, rehabilitation and preservation, and public improvements and facilities.
For FY 2026-2027, the City of Westminster will have an estimated total of $1,572,551.68 in CDBG funds. This total amount is comprised of an estimated $970,291 in Fiscal 2026-2027 CDBG entitlement funds and $602,260.68 in prior year carryover CDBG funds. Carryover CDBG funds are due to project savings from subrecipients and capital improvement projects and program income. The City is awaiting the release of the 2026 Community Development Block Grant (CDBG) entitlement amounts from the U.S. Department of Housing and Urban Development (HUD). Upon receipt of these figures, City staff will promptly adjust CDBG public service allocations through prorating and make corresponding adjustments to the allocation for CDBG Administration activities, and any remaining balance allocated to Streets, maintaining compliance with HUD guidelines. Any discrepancies between the anticipated and actual entitlement amounts will be managed by adjusting the CDBG unallocated fund balance accordingly.
Proposed CDBG Activities
In accordance with priorities established in the City’s Five-Year Consolidated Plan, below is a summary of projects and funding proposed.
• Family Resource Center, $50,586: 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, $43,730: 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 to prevent early placement in a board and care or convalescent home. An added key element to this program is the American Red Cross Lifeline Program, a personal response system for persons who may need assistance during an emergency. This service enables homebound seniors to continue to live independently in their own homes.
• Home Delivered Meals Program, $30,000: 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 of Westminster. 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 quality of life.
• Summer Youth Program, $10,365: 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, combined with walking over to Freedom Park.
• Project S.H.U.E., $15,000: Project S.H.U.E. (Safety, Health, Understanding, and Education) is an intergenerational afterschool program that is designed to provide underserved children, 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 a 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, $800,000: The Street Improvement Project for FY 2026/27 involves the resurfacing of approximately eight (8) residential street segments.
|
# |
Street Name |
Segment |
|
1 |
Kent Street |
Cornwall Ave. to End |
|
2 |
Newcastle Avenue |
Kent St. to Brookhurst St. |
|
3 |
Wakefield Street |
Sabre Ave. to Cornwall Ave. |
|
4 |
Sabre Avenue |
Wakefield St. to Westerly City Limit |
|
5 |
Cornwall Avenue |
Wakefield St. to Bromley St. |
|
6 |
Heil Avenue |
Magnolia St. to Venus Dr. |
|
7 |
Venus Drive |
Heil Ave. to Universe Ave. |
|
8 |
Galaxy Dr. |
Universe Ave. to Heil Ave. |
|
9 |
Van De Velde Way |
Heil Ave. to End |
|
10 |
Lunar St. |
Universe Ave. to End |
|
11 |
Ed Bane Cir. |
Lunar St. to End |
The scope of this project includes grinding existing pavement and constructing new asphalt concrete pavement. The exact surface treatment for the street(s) will be determined at a later date through further field evaluation and analysis.
• CDBG Code Enforcement Program, $200,000: The program will focus on addressing substandard housing conditions, property maintenance violations, graffiti, and other blighting influences that negatively affect neighborhood stability and quality of life through a dedicated CDBG Code Enforcement officer. Enforcement activities will emphasize proactive inspections, education, and voluntary compliance. Efforts will be coordinated with broader neighborhood stabilization efforts, including clean up initiatives, graffiti abatement, nuisance abatement, and infrastructure improvements within designated CDBG-eligible low- and moderate-income residential 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, $175,058.20: The City will conduct the following administration/planning activities: (1) General Administration of the overall CDBG Program, including preparation of budget, applications, certifications, 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:
• Homeowner (owner-occupied) rehabilitation.
• Rental housing acquisition, new construction, or rehabilitation.
• Homebuyer housing acquisition, new construction, or rehabilitation, including direct assistance to eligible homebuyers to purchase the housing.
• Tenant-based rental assistance (rental subsidy).
Up to ten (10) percent is used for program planning and administration and 15 percent of the allocation must fund the development of permanent affordable housing with a non-profit Community Housing Development Organization (CHDOs).
The City of Westminster will have $1,044,993.22 in HOME Program funds comprised of this coming year’s estimated allocation of $384,859.87 and an estimated carryover balance of $660,133.35. Again, the City is awaiting final allocations from HUD. HOME Administration will be adjusted accordingly, and the remaining adjustments will be reflected in the Affordable Housing activity category.
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:
• Affordable Housing, $706,507.23: The City may use HOME funds on an affordable housing project in conjunction with a local Community Housing Development Organization (CHDO). The City will extend gap financing to acquire and support construction or rehabilitation of affordable rental housing.
• Tenant-Based Rental Assistance Program, $300,000: 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, $38,485.99: 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.
FISCAL IMPACT
The funding amounts listed are preliminary estimates based on prior year allocations. Final funding levels will be adjusted once HUD releases the FY 2026 CDBG and HOME entitlement allocations, and activity budgets will be updated accordingly.
There is no fiscal impact to the General Fund associated with this action. However, approval of the FY 2026-2027 Annual Action Plan at the public hearing on May 13, 2026, will provide CDBG and HOME funds for the proposed activities and projects upon HUD approval.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
Initiating the 30-day review period will provide an opportunity for the public to comment on the projects and activities proposed to be funded in the draft Annual Action Plan. Comments received will be considered prior to the final adoption of the FY 2026-2027 Annual Action Plan on May 13, 2026.
ATTACHMENTS
1. Draft FY 2026-2027 CDBG & HOME Funding Requests
2. Draft FY 2026-2027 Annual Action Plan
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager