For City Council Meeting April 28, 2026
TO: Honorable Mayor and City Council
FROM: Tanya Williams, City Manager
AUTHOR: Christina Taylor, Community Development Director
Title
Request City Council to: (1) Conduct a Public Hearing to Solicit Public Comments from Interested Citizens; (2) Adopt Resolution No. 8497 adopting The Annual Action Plan for Fiscal Year 2026-2027; (3) Authorize the City Manager, or their Designee, to Submit The Annual Action Plan to the U.S. Department of Housing and Urban Development; and (4) Authorize the City Manager, or their Designee, to Take all Actions Necessary to Implement the Programs Identified in the Annual Action Plan.
PRESENTATION
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1) Conduct a Public Hearing to solicit public comments from interested citizens;
2) Adopt a Resolution adopting The Annual Action Plan for Fiscal Year 2026-2027;
3) Authorize the City Manager, or their designee, to submit The Annual Action Plan to the U.S. Department of Housing and Urban Development; and
4) Authorize the City Manager, or their designee, to take all actions necessary to implement the programs identified in the Consolidated Plan and the Annual Action Plan.
BACKGROUND
The City of Rialto (City), as an entitlement City, receives Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds on an annual basis from the U.S. Department of Housing and Urban Development (HUD) to carry out a wide range of community development activities, which benefit low- and moderate-income residents.
The U.S. Department of Housing and Urban Development (HUD) requires that the grantee cities, such as Rialto, prepare an Annual Action Plan every year as a condition to receiving Federal funding under the Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) in order to meet the goals and objectives approved by the City Council in the Five-Year Consolidated Plan.
The Action Plan will appropriate CDBG and HOME funds to specific programs and projects for the 2026-2027 Fiscal Year (FY). For the 2026-2027 Program Year, the City has been awarded $1,075,883.00 in CDBG funds and $343,254.06 in Federal HOME funds.
ANALYSIS/DISCUSSION
As a prerequisite to receiving its annual CDBG and HOME allocations, the City is required to submit a One-Year Action Plan. The Action Plan outlines Rialto’s plan for the use of its 2026-2027 CDBG funds. It describes the resources available for program implementation; activities to be undertaken during Program Year 2026-2027; a monitoring plan; the City’s homeless and anti-poverty strategies; and coordination efforts that have or will be undertaken to implement the Action Plan.
Community Development Block Grant (CDBG) - Grant Purpose
The Community Development Block Grant program is authorized by Title I of the Housing and Community Development Act of 1974, as amended. The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate income. The CDBG objective is to be achieved in two ways: First, a grantee can only use funds to assist eligible activities that meet one of three national objectives of the program:
• Benefit low-and moderate-income persons,
• Aid in the prevention or elimination of slums and blight, or
• Meet community development needs having a particular urgency.
Second, at least 70 percent of funds must be spent (over a period of up to 3 years) for activities that address the national objective of benefiting low-and moderate-income persons.
Community Development Block Grant (CDBG) - Funding and Limitations
The One-Year Action Plan, for Program Year 2026-2027, provides recommendations for funding by the Rialto CDBG Ad-Hoc Committee. The recommendations are separated into three categories 1) Administration 2) Public Services and 3) Capital Improvement Projects. Table 1 provides a summary of anticipated available funding, separated by source as follows:
Table 1
The initial steps in preparing the City’s One-Year Action Plan began with a City issued Notice of Funding Availability (NOFA) for CDBG funds on January 19, 2026. The City held a public meeting in front of the Ad-Hoc Committee on April 7, 2026, and April 13, 2026. Each agency was given an opportunity to present its program and make a formal request for CDBG funding. Funding recommendations made by the Ad-Hoc Committee, which are proposed in Attachment 2, were placed in the 2026-2027 Draft Annual Action Plan. The plan was made available to the public on March 30, 2026.
HOME Investment Partnerships Program (HOME) - Grant Purpose
The Home Investment Partnerships Program was established by the Title II of the Cranston-Gonzalez National Affordable Housing Act. The objectives of the HOME program include:
• Expanding the supply of decent and affordable housing, particularly housing for low- and very low-income residents,
• Strengthening the abilities of State and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing,
• Providing financial and technical assistance to participating jurisdictions, including the development of model programs for affordable low-income housing; and
• Extending and strengthening partnerships among all levels of government and the private sector, including for-profit and non-profit organizations, in the production and operation of affordable housing.
HOME Investment Partnerships Program (HOME) - Funding and Limitations
The One-Year Action Plan, for Program Year 2026-2027 must consider three categories 1) Administration 2) Mandatory Community Housing Development Organization Set-Aside and 3) Available for Other Activities. Table 2 provides a summary of anticipated available funding, separated by source as follows:
Table 2
A public hearing before the City Council and 30-day comment period is required to allow citizens to comment on the proposed use of the CDBG and HOME funds and to consider and approve the City’s 2026-2027 One-Year Action Plan. Therefore, the One-Year 2026-2027 Action Plan must be made available to the general public for a period of 30 days to provide them with an opportunity to review the Ad-Hoc Committee’s recommendations for funding. In compliance with the City’s approved Citizen’s Participation Plan and CDBG implementing regulation 24 CFR 92-105, a Public Notice was published to solicit public comments from interested citizens and to consider and approve the City’s One-Year 2026-2027 Action Plan. The public hearing was noticed for April 28, 2026.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
Guiding principle: “Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.”
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report and resolution and approved it as to form.
FINANCIAL IMPACTS
Operating Budget Impact
There is no impact on the Operating Budget.
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
Approval of this action does not require a Business License application or payment of a Business License tax.
ATTACHMENTS
1. Fiscal Year (FY) 2026-2027 Annual Action Plan (AAP) - DRAFT
2. Ad-Hoc Recommendations
3. Resolution
4. Notice of Public Hearing Proof of Publication - English and Spanish
5. Presentation