FROM:
Housing
SUBJECT:
Title
2026 Action Plan; Substantial Amendments to 2025-2029 Consolidated Plan and 2025 Action Plan
End
RECOMMENDATION:
Recommendation
1. Adopt the 2026 Action Plan.
2. Adopt the Substantial Amendment to the 2025-2029 Consolidated Plan.
3. Adopt the Substantial Amendment to the 2025 Action Plan.
End
COUNCIL GOALS:
• Increase citizen involvement by seeking community input.
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by pursuing grant opportunities.
• Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.
• Concentrate on Inter-governmental relations by advocating Fontana's position in regional, state, and federal organizations.
DISCUSSION:
Each year, The US Department of Housing and Urban Development (HUD) requires the submission of a One-Year Action Plan that describes planned projects along with one-year goals and budgets for the CDBG, HOME and ESG during the upcoming program year. The draft 2026 Action Plan represents the second-year program as described in the 2025-2029 Consolidated Plan. The draft document submitted for consideration fulfills HUD requirements.
Per the City’s Citizen Participation Plan (CPP), a Substantial Amendment to a Consolidated Plan is required when a Strategic Plan goal is added or removed and a Substantial Amendment to an Action Plan is required when a new activity is added. A Substantial Amendment to the 2025-2029 Consolidated Plan and the 2025 Action Plan are necessary because the City has identified a new goal it wishes to address throughout the Consolidated Plan cycle, and a new activity it would like to add to the Action Plan.
One-Year Action Plan (2026-2027)
The draft Action Plan covers the period of July 1, 2026, to June 30, 2027. It outlines the one-year goals and budgets for the CDBG, HOME and ESG programs, and the planned projects to address the priority needs and goals identified in the Consolidated Plan.
If additional funds become available during the program year from unanticipated increases in appropriations, savings from completed projects or dropped projects, the City will use those funds for the rental acquisition and rehabilitation program without amending the Action Plan.
This year, the City received $1,917,147 for CDBG, $575,759.69 for HOME, and $170,763 for ESG funds from HUD. In addition, the City has $4,451,494.91 in carryover HOME funds. These funds will be utilized for various rental housing projects including the CourtPlace Apartment project.
The following CDBG projects are included in the draft FY26 Action Plan:
|
Activity |
Budget |
|
Fair Housing Services |
$30,000 |
|
Affordable Rental Housing Development |
$346,145.55 |
|
Preservation of Affordable Housing |
$900,000 |
|
Youth/Senior Recreation Scholarships |
$40,000 |
|
Public Safety |
$247,572.05 |
|
Program Administration |
$353,429.40 |
The following HOME projects are included in the draft FY26 Action Plan:
|
Activity |
Budget |
|
Affordable Rental Housing Development |
$518,183.73 |
|
Program Administration |
$57,575.96 |
The following ESG projects are included in the draft FY26 Action Plan:
|
Activity |
Budget |
|
Homeless Prevention, Rapid Rehousing, Street Outreach, Emergency Shelter, and HMIS |
$157,955.78 |
|
Program Administration |
$12,807.22 |
Substantial Amendment to 2025-2029 Consolidated Plan
The Substantial Amendment to the 2025-2029 Consolidated Plan would add the goal: Public Facilities and Infrastructure. In support of this goal, $1,000,000 will be reallocated to it from the Affordable Housing goal.
|
5-Year Goal |
5-Year Funding Amount |
|
Affordable Housing |
(1,000,000) |
|
Public Facilities and Infrastructure |
1,000,000 |
Substantial Amendment to 2025 Action Plan
The Substantial Amendment to the 2025 Action Plan would add the goal, Public Facilities and Infrastructure, and the project, Acquisition/ Improvement of Public Facilities. In support of this goal, $1,000,000 will be reallocated to it from the Affordable Housing goal, and $1,000,000 will be reallocated from the Affordable rental housing development project.
|
Project |
Funding Amount |
|
Affordable rental housing development |
(1,000,000) |
|
Acquisition/ Improvement of Public Facilities |
1,000,000 |
The proposed project is the acquisition of a public facility to be leased to a private nonprofit and operated as transitional housing for low- and moderate-income women who are recovering from substance abuse disorder. Wraparound supportive services including case management and referrals would be offered and participation in the programming would be voluntary. The lease to the nonprofit would be for a nominal amount.
If the lease component of this project is not approved, the City will reallocate from the Acquisition/ Improvement of Public Facilities project to Acquisition Rental and proceed with submitting the Action Plan
FISCAL IMPACT:
The fiscal impact associated with this approval of this item is approximately $1,917,147 for CDBG, $575,759.69 for HOME, and $170,763 for ESG and is included in the proposed 2026-27 budget in various Fund 362 and 363 projects.
Project # 30200011-362 $383,429.40 Project # 30200012-362 $170,763
Project # 04032033-362 $247,572.05 Project # 30200017-363 $57,575.96
Project # 30200016-362 $40,000 Project # 30200006-363 $518,183.73
Project # 30200002-362 $346,145.55
Project #30200004-362 $900,000.00
MOTION:
Approve Staff Recommendation