For City Council Meeting September 22, 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 the Public Hearing, to Solicit Public Comments from Interested Citizens; and (2) Adopt Resolution No. 8578 Approving the Program Year 2025-2026 Consolidated Annual Performance and Evaluation Report (CAPER); and (3) Authorize the City Manager or their designee to Sign All Necessary Documents to Submit the Program Year 2025-2026 CAPER to the U.S. Department of Housing and Urban Development (HUD).
(ACTION)
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RECOMMENDATION
Staff recommends that the City Council:
1. Conduct a Public Hearing for September 22, 2026, to solicit public comments from interested citizens; and
2. Adopt Resolution 8578 approving the Program Year 2025-2026 Consolidated Annual Performance and Evaluation Report (CAPER); and
3. 3) Authorize the City Manager or their designee to sign all necessary documents to submit the Program Year 2025-2026 CAPER to the U.S. Department of Housing and Urban Development (HUD) and modify as required.
BACKGROUND
In February 2025, the City Council approved the City’s Five-Year 2025-2029 Consolidated Plan subject to final HUD allocation award changes. In May, 2025, the City was notified by the Department of Housing and Urban Development of their allocation of CDBG and HOME funds. The City held a hearing and approved the revised 2025-2029 Consolidated Plan June 24, 2025, City Council Meeting.
As required by the United States Department of Housing and Urban Development (HUD), the City of Rialto prepared the Consolidated Annual Performance and Evaluation Report (CAPER), which contains an assessment of the City’s performance in meeting Program Year 2025-2026 housing and community development goals as outlined in the 2025-2029 Consolidated Plan.
Additionally, the CAPER discusses its progress in meeting the five-year goals as outlined in the 2025-2029 Consolidated Plan. Lastly, the CAPER discusses changes the City anticipates making in the upcoming year as a result of the assessment of Program Year 2025-2026 annual performance.
The Program Year 2025-2026 CAPER was made available for public review and comment beginning on September 7, 2025, through September 22, 2025. A notice of availability was duly published in the San Bernardino County Sun newspaper on September 4, 2025. The CAPER was made available on the City’s website at yourrialto.com.
ANALYSIS/DISCUSSION
The City, as a direct recipient of HUD federal funds, is required to submit a CAPER report to HUD. This report presents a summary of resources made available during the program year, accomplishments based on priorities established by the 2025-2029 Consolidated Plan, and assessing the City’s annual performance.
The CAPER for the Fiscal Year ending June 30, 2026, provides a summary of how the City of Rialto has expended its federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds as defined in the City’s 2025-2029 Consolidated Plan.
CDBG: The City of Rialto received an allocation of $1,313,371 in CDBG funds in Program Year 2025-2026 in addition to funds that were funds spent previous fiscal years on public facilities projects and housing rehab programs. A total of $2,368,730.39 CDBG funds were expended during Program Year 2025-2026. Accomplishments included:
• Provided Public Services to 659 Low-income residents in the City of Rialto
• Completed two Curb, Gutter, and Sidewalk projects
• Completed the Building 400 of the Community Center
• Completed Carl Johnson Community Center Phase I
CDBG Program Summaries:
• Community Facilities & Infrastructure Improvement: Construction of Building 400 wings at the Community Center has been completed, which includes updating of the facility's Building Code and Americans with Disability Act (ADA). Completion of PY2025 Curb, Gutter, and Sidewalk project and Phase I of the Carl Johnson Community Center rehabilitation. Phase II is in progress and will spend the remainder of the Program Year 2025-2026 funds.
• Mobile Home Rehabilitation Program: During the 2025-2026 program year, the City made some progress with the Mobile Home Rehabilitation program by completing intake on 43 mobile home units and there are 11 units currently in progress with scope of work development and one under construction. There is a queue of applications and the City anticipates all funding will be expended.
Subrecipient Summary of Residents Served:
**REPORT CONTINUED**
CDBG & HOME Summary of Expenditures
CDBG-CV: The City also received $1,339,584 in supplemental CDBG Coronavirus (CDBG-CV) funding to help prepare, prevent, and respond to the COVID 19 pandemic. The City amended their 2020-2021 Annual Action Plan to allocate funds to programs and activities throughout the City to help struggling residents in the community. To date, the City has expended $899,136.60 of CDBG-CV funds. Substantial Amendment No. 7 was presented to Council on July 22, 2025, to approve the reprogramming of the remaining $440,447.40. These funds will be spent on the Rialto Park Inclusive Playground; however these funds were not spent in Program Year 2025-2026.
HOME: The City of Rialto received HOME funds for the first time in Program Year 2025-2026 for an allocation of $375,252.43. During Program Year 2025-2026, the City focused on implementing their HOME Residential Rehabilitation Grants Program and spent $33,187.50. City staff and their consultant have reviewed 7 applications and have six pending households that are going through income verification, scope of work and workplan development.
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.
FINANCIAL IMPACT
Operating Budget Impact
There is no impact to the Operating Budget.
Capital Improvement Budget Impact
There is no impact to the Capital Improvement Budget.
Licensing
Approval of this action does not require a Business License application and payment of a Business License tax.
ATTACHMENTS
1. Program Year 2025-2026 CAPER - Draft
2. Program Year 2025-2026 CAPER - Resolution
3. Program Year 2025-2026 CAPER - Presentation