SUBJECT
Title
NOTICED PUBLIC HEARING:
FISCAL YEAR 2025-29 CONSOLIDATED PLAN AND FISCAL YEAR 2025-26 ANNUAL PLAN; 2025-29 CITIZEN PARTICIPATION PLAN; A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING THE FISCAL YEAR 2025-29 CONSOLIDATED PLAN AND FISCAL YEAR 2025-26 ANNUAL PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS, HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS AND EMERGENCY SOLUTIONS GRANT; AUTHORIZE THE ACCEPTANCE AND ADMINISTRATION OF GRANT FUNDS FROM THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE FISCAL YEAR 2024-27 STATE EMERGENCY SOLUTIONS GRANT PROGRAM; AUTHORIZE TO APPLY FOR ADDITIONAL FUNDING OPPORTUNITIES TO SUPPORT FUTURE HOUSING OR COMMUNITY DEVELOPMENT (DISTRICTS: ALL)
Body
OVERVIEW
The County of San Diego (County) administers four United States Department of Housing and Urban Development (HUD) funded entitlement programs: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Solutions Grant (ESG) programs. As a HUD recipient, the County is responsible for the development of a Consolidated Plan, a five-year strategic plan for the four entitlement programs, and an Annual Plan, which identifies specific projects to be funded during the upcoming fiscal year. The County also administers funding provided by the State of California through the State Emergency Solutions Grant (State ESG) program.
Today’s hearing serves as an opportunity for the San Diego County Board of Supervisors (Board) to receive public comment on the draft Fiscal Year (FY) 2025-29 Consolidated Plan and draft FY 2025-26 Annual Plan. The strategic goals included in the 2025-29 Consolidated Plan were drafted based on community feedback and approved by the Board on October 22, 2024 (26). The recommendations for funding in the Annual Plan are aligned with these established strategic goals and represent a range of services and projects that will support the housing needs and community revitalization for low-income residents and communities in eligible service areas. The recommendations are based on anticipated funding allocations, anticipated program income, and reallocations of prior year program balances. The total anticipated funding for FY 2025-26 is $25,294,932.
The requested action for today’s hearing requires a public notice, public hearing, and a 30-day public comment period, which began on February 7, 2025, and concludes today, March 11, 2025, following this hearing. The Consolidated and Annual Plans will be adjusted to reflect any appropriate revisions due to public testimony and any adjustments made by HUD to the final funding amounts. The final 2025-29 Consolidated Plan and 2025-26 Annual Plan is due to HUD in May 2025.
Approval of today’s recommendations would approve the draft FY 2025-29 Consolidated Plan and draft FY 2025-26 Annual Plan, authorize the FY 2025-26 project funding, authorize the County Health and Human Service Agency (HHSA) to execute contracts related to projects identified in the Annual Plan, and issue Notices of Funding Availability as necessary. Additionally, it authorizes the HHSA Deputy Chief Administrative Officer, or designee, to reallocate funding due to changes in funding amounts, program income, or project cost savings. Finally, today’s action would authorize application for and administration of State ESG funding, as well as authorize application for additional funding opportunities to support future housing or community development, as opportunities become available. Today’s action also memorializes the public and stakeholders’ engagement in planning, reporting, and program administration.
These actions align to the County Framework for Ending Homelessness, the County Housing Blueprint, and the County vision of a just, sustainable, and resilient future for all, particularly for historically underrepresented communities and populations in San Diego County. They also support the ongoing commitment to the regional Live Well San Diego vision of healthy, safe, and thriving communities. This will be accomplished by ensuring low-income residents have access to suitable living environments, thus enhancing their quality of life through decent and affordable housing.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Receive public testimony and approve the draft Fiscal Year 2025-29 Consolidated Plan and draft Fiscal Year 2025-26 Annual Plan for submittal to the United States Department of Housing and Urban Development (HUD) for four entitlement programs: Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA).
2. Adopt a Resolution entitled A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING THE FISCAL YEAR 2025-29 CONSOLIDATED PLAN AND FISCAL YEAR 2025-26 ANNUAL PLAN certifying compliance with the Housing and Community Development Act of 1974, as amended, to authorize the execution and transmittal of necessary documents and amendments for the Fiscal Year 2025-26 Annual Plan.
3. Adopt a Resolution entitled A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2024-2027 FUNDING YEARS OF THE STATE ESG PROGRAM.
4. Authorize the reallocation of up to $9,400,000 in prior years’ resources, including up to $400,000 of CDBG funds and up to $9,000,000 of HOME funds, to supplement the Fiscal Year 2025-26 HUD Entitlement Programs.
5. Authorize the Deputy Chief Administrative Officer, Health and Human Services Agency or designee, to issue Notices of Funding Availability, publish notices, award contracts and execute agreements, amend existing contracts as needed to reflect changes to services and funding, execute certification forms, prepare and execute all necessary documents for the submittal, regulatory processing and implementation, and take any other actions necessary as required by HUD for Recommendations 2 through 4, and the Fiscal Year 2025-26 recommended and/or alternative CDBG, HOME, ESG, and HOPWA programs following the completion of environmental processing and HUD’s release of funds, as applicable.
6. Authorize the Deputy Chief Administrative Officer, Health and Human Services Agency, or designee, to adjust the funding amounts to projects identified as approved and/or alternative for CDBG, HOME, ESG, HOPWA, and State ESG within the Fiscal Year 2025-26 Annual Plan due to project balances from cancelled or completed projects, program income, and actual entitlement grant amounts determined and received by HUD.
7. Authorize the Deputy Chief Administrative Officer, Health and Human Services Agency, or designee, to apply for Fiscal Years 2024-25, 2025-26, and 2026-27 State of California ESG grant funds up to $2,000,000.
8. Authorize the Deputy Chief Administrative Officer, Health and Human Services Agency, or designee, to accept, if awarded, Fiscal Years 2024-2027 State of California ESG grant funds, and issue Notices of Funding Availability, publish notices, award contracts, execute agreements, amend existing contracts as needed to reflect changes to services and funding, execute certification forms, prepare and execute all necessary documents for the submittal, regulatory processing and program implementation, and take any other actions necessary as required by the State of California for projects funded with State of California ESG program funds.
9. Authorize the Deputy Chief Administrative Officer, Health and Human Services Agency, or designee, to apply for additional funding opportunities to support future affordable housing or community development.
EQUITY IMPACT STATEMENT
The Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Housing Opportunities for Persons with AIDS (HOPWA), and Emergency Solutions Grant (ESG) programs were established to meet the community development, housing, and public service needs of the most vulnerable populations and communities including low-income and moderate-income households and individuals with special needs.
In Fiscal Year 2023-24, the CDBG, HOME, HOPWA and ESG programs provided housing, support services, resource referral, or data collection for more than 50,000 individuals. These programs allow the County of San Diego (County) to provide tailored interventions, such as meal and nutrition delivery services, emergency, short-term, and permanent housing interventions, and home repairs for health and safety improvements.
The County Housing and Community Development Services (HCDS) recognizes the historical barriers that have limited some communities’ ability to fully participate in civic engagement, such as language, accessibility, and lack of representation. To address these barriers and improve the community engagement efforts in eligible jurisdictions, HCDS incorporated strategies to expand equitable participation opportunities and increase accessibility of information. This was accomplished through the facilitation of 12 public community input sessions in multiple locations countywide during Summer 2024, including 2 virtual sessions and 10 in-person. HCDS translated community input questionnaires and public notices in the County threshold languages, as well as consulting with over 40 trusted community-based organizations. Additionally, HCDS leveraged innovative tools and methods to make participation dynamic, interactive, and relevant for all residents, by deploying online community input questionnaires and utilizing the County social media to broaden outreach and capture diverse audiences and perspectives. HCDS community engagement efforts incorporated inclusive and equitable best practices to ensure meaningful input informed the development of the draft 2025-29 Consolidated Plan and the draft 2025-26 Annual Plan.
SUSTAINABILITY IMPACT STATEMENT
The established Five-year goals within the draft 2025-29 Consolidated Plan and the projects and services identified in the draft 2025-26 Annual Plan will work to address the housing, community development, and public service needs for the most vulnerable populations and communities within eligible service areas. As a recipient of the United States Department of Housing and Urban Development (HUD) entitlement funding, the County of San Diego (County) is responsible for the annual solicitation of community input for the development for the Annual Plan Strategy, which serves to prioritize services and projects for the incoming fiscal year with the true needs of the community. This will advance the County Sustainability Goal #1 to engage the community in meaningful ways; Sustainability Goal #2 to provide just and equitable access to County services; and Sustainability Goal #4 to protect health and well-being of residents. This will be accomplished by ensuring community engagement is centered on equity, innovation, and thoughtful engagement practices, ensuring projects and services create or support opportunities for affordable housing, public recreation, and supportive services for the most vulnerable residents in San Diego County. This will also be accomplished by promoting safe and affordable neighborhoods with access to community amenities, services, and supporting access to diverse housing options. These efforts are designed to improve the overall health and well- being of residents and reduce barriers for low-income and moderate-income households and individuals with special needs.
FISCAL IMPACT
Funds for this request are included in the Fiscal Year (FY) 2025-27 CAO Recommended Operational Plan for the Health and Human Services Agency and Department of Public Works. If approved, this request will result in estimated cost and revenue in the amount of $25.9 million for FY 2025-26 and estimated annual cost and revenue of $0.6 million in FY 2026-27 and FY 2027-28.
The funding sources for these requests are anticipated to be approximately $13.9 million from FY 2025-26 United States Department of Housing and Urban Development entitlement grant awards which includes $4.3 million in Community Development Block Grant (CDBG), $2.9 million in HOME Investment Partnerships (HOME), $0.4 million in Emergency Solutions Grant (ESG), and $6.3 million in Housing Opportunities for Persons with AIDS (HOPWA). An estimated $2.0 million in total program income from repayment proceeds from loans funded with CDBG ($1.0 million) and HOME funds ($1.0 million). An estimated $9.4 million in total reallocation from prior years' of CDBG ($0.4 million) and HOME funds ($9.0 million). Additionally, funding includes approximately $1.8 million up to $2.0 million of the State of California’s Emergency Solutions Grant (State ESG) award over a three-year period, for an annual cost and revenue of approximately $0.6 million from FY 2025-26 through FY 2027-28. Funds for subsequent years will be included in future operational plans. There will be no change in net General Fund cost and no additional staff years.
BUSINESS IMPACT STATEMENT
The proposed recommendations will have a positive impact on the business community. Many of the recommended projects include construction that will be implemented by private firms selected through competitive bid processes.
Details
ADVISORY BOARD STATEMENT
N/A
BACKGROUND
As a recipient of United States Department of Housing and Urban Development (HUD) entitlement funding, County of San Diego (County) Housing and Community Development Services (HCDS) develops a five-year Consolidated Plan. The Consolidated Plan serves as a strategic plan and guiding document for activities funded with the County’s federal entitlement funding. HCDS administers four federal entitlement programs, including:
• Community Development Block Grant (CDBG) - Supports community development activities for low-and moderate-income persons to address a variety of housing, public service, and community development needs.
• HOME Investment Partnerships (HOME) - Supports local housing strategies to increase the supply of affordable housing, such as development of housing and rental assistance.
• Housing Opportunities for Persons with AIDS (HOPWA) - Supports housing and services for low-income people living with HIV and AIDS.
• Emergency Solutions Grant (ESG) - Supports the first step in a continuum of assistance to prevent homelessness through street outreach, emergency housing, homeless prevention, and rapid rehousing.
In addition, the County administers the State ESG program in the San Diego County region on behalf of the State of California (State). Detailed program information about the State ESG program is submitted in the State’s Consolidated Plan. Furthermore, effective July 1, 2025, the County will renew its responsibility with the City of San Diego to administer the HOPWA program as the alternative grantee.
Five-Year Consolidated Plan
The Consolidated Plan (Attachment A) describes a strategy for addressing housing and community development funding needs through the County’s four entitlement programs. The primary purpose of the Consolidated Plan is to:
1. Identify priority housing and community development needs in the County’s jurisdiction through market analysis, community input, and stakeholder consultation, and;
2. Strategically establish five-year goals that address priority community needs and identify potential federal, state, local, or private funding sources that could be leveraged with HUD entitlement funding.
The current Five-Year Consolidated Plan covers the period of July 1, 2020, through June 30, 2025, and was approved by the San Diego County Board of Supervisors (Board) on April 7, 2020, (2). The 2025-29 Consolidated Plan will be in effect July 1, 2025, through June 30, 2030.
The Consolidated Plan is designed to help states and local jurisdictions assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions. Furthermore, it is developed from feedback gathered through stakeholder consultations, in-person and virtual community input sessions, an online questionnaire, and an analysis of community data indicators. Utilizing this feedback, the Consolidated Plan describes community needs, services to address those needs, and goals established to address unmet needs. Additionally, it sets funding priorities to be addressed by activities recommended in the related Annual Plans, which determine viable projects for the upcoming fiscal year. The Consolidated Plan’s geographic focus is the jurisdiction within the San Diego County Consortium, which includes:
• Urban County (CDBG and ESG): composed of the San Diego County unincorporated area and the participating cities of Coronado, Del Mar, Imperial Beach, Lemon Grove, Poway, and Solana Beach.
• HOME Consortium (HOME): composed of the Urban County and six additional participating cities of Carlsbad, Encinitas, La Mesa, San Marcos, Santee, and Vista.
• San Diego County (HOPWA): The County administers HOPWA funding for the entire geographic county.
Organization Consultations
As part of the Consolidated Plan process, jurisdictions are required to consult with organizations that provide relevant services, such as affordable housing providers and developers, non-profits that provide public services, homeless service providers, organizations that enforce fair housing laws, and County departments that provide services to vulnerable populations. 41 organizations were invited to provide feedback, of which approximately two-thirds (26) of the organizations identified insufficient inventory of safe and affordable housing as the greatest concern in the community. Other primary needs identified include homeless services and prevention, cost of living, and improving access to community amenities such as transportation, childcare, healthcare, and community centers.
Community Input
From June 2024 to July 2024, HCDS conducted a variety of community engagement activities to gather vital feedback and identify strategic goals for the Consolidated Plan. Feedback was gathered through 10 in-person and 2 virtual community forums, as well as through an online questionnaire. Both were promoted widely through various methods including social media, emails, and news stories. Members of the public identified housing and homelessness as key priority areas for their communities, with approximately 60% of the individuals that participated in the engagement process identifying these as the most important issues facing the community. Other primary needs identified include infrastructure improvements, especially those related to community facilities such as childcare and community center, repairs to damage caused by flooding, and improvements to broadband connection systems. Information on community feedback can be found in Attachment A.
Citizen Participation Plan
As required by HUD regulations, the County has a Citizen Participation Plan (CPP, Attachment B) setting forth the policies and procedures for public input and citizen participation. The CPP establishes timelines, public notification procedures, and methods of publicization for all legislative actions related to the Consolidated Plan. The CPP is designed to provide effective and continuous opportunities for public participation throughout the fiscal year.
Data-Driven Needs Assessment
In addition, the Consolidated Plan includes a wide variety of data, from a housing market analysis across the jurisdiction to an examination of the current availability of resources and specific needs amongst different demographic groups, such as individuals with disabilities or low-income homeowners. The Consolidated Plan also includes a discussion of non-housing community development needs throughout the region. The Needs Assessment and Market Analysis sections of the Consolidated Plan outline levels of relative need in the areas of affordable housing, homelessness, special needs, and community development. The Needs Assessment section includes an evaluation of housing needs, such as households that are cost-burdened or overcrowded, disproportionately greater needs based on demographics, and public housing needs. Moreover, the Needs Assessment includes a discussion of the nature and extent of sheltered and unsheltered homelessness within the region, an assessment of housing resources available to persons who are not homeless but require supportive housing, and a summary of the needs for public facilities, improvements, and services. The Market Analysis section of the Consolidated Plan describes the significant characteristics of the housing market, including the supply, demand, condition, and cost of housing. Specifically, the Market Analysis evaluates the conditions and availability of public and assisted housing units, facilities, housing, and services available to homeless persons or individuals with disabilities or special needs, and the barriers to affordable housing.
Fiscal Year (FY) 2025-26 Annual Plan
The Five-year Consolidated Plan follows an annual cycle for each of the included years. This annual cycle includes three stages, resulting in the following documents: the Annual Plan Strategy, the Annual Plan, and the Consolidated Annual Performance and Evaluation Report (CAPER). The Annual Plan Strategy is the first stage of the cycle and relies on public input to make recommendations on how the County should prioritize projects and meet annual goals. The second stage results in the Annual Plan, presented today, which provides a list of recommended projects for funding to the Board. The third stage is the CAPER, which details the outcomes and accomplishments from the prior year’s Annual Plan.
The Annual Plan includes specific projects identified for funding based on the anticipated funding allocations per program. The recommendations in the Annual Plan represent a wide range of services and projects that will support community revitalization and affordable housing for low-income residents and persons with special needs. It is anticipated that approximately $25,294,932 in total resources will be available through the draft FY 2025-26 Annual Plan to support community revitalization and affordable housing needs. The entitlement funding recommendations in the draft FY 2025-26 Annual Plan are based on anticipated funding allocation levels announced by HUD, anticipated program income available, and reallocated funds from prior years.
The associated Resolution (Attachment C) certifies compliance with the Housing and Community Development Act of 1974, as amended, and authorizes the execution and transmittal of necessary documents and amendments for the draft FY 2025-26 Annual Plan. The Annual Plan must be submitted to HUD before the deadline of May 15, 2025, to ensure timely funding.
Current Noticing and Public Comments
Today’s hearing serves as an opportunity for the Board to receive public comment on the draft 2025-29 Consolidated Plan and draft 2025-26 Annual Plan. A public notice was published in local newspapers, including San Diego Union Tribune, Voice and Viewpoint, El Latino, Asian Journal, Beirut Times, Saigon Times, and Nguoi Viet. The current public notice period began on February 10, 2025, and concludes with today’s hearing. Written and oral public comments received prior to the end of the public comment period will be included in the final 2025-29 Consolidated Plan. Similarly, the draft FY 2025-26 Annual Plan will be adjusted to reflect any appropriate revisions due to public testimony and any adjustments made by HUD to the final funding amounts. Any significant changes resulting from the public hearing, or in response to public comments received, if appropriate, will be presented at a later time to the Board for consideration. During this public comment period, the draft 2025-29 Consolidated Plan and draft 2025-26 Annual Plan have been posted online with a public notice in the County’s threshold languages. Documents were also available for public viewing at the HCDS office, located at 3989 Ruffin Road, San Diego, CA 92123.
Today’s hearing concludes the second and final required hearing and public comment period for the draft 2025-29 Consolidated Plan and draft 2025-26 Annual Plan. The previous comment period was conducted during the needs assessment stage of the Consolidated Plan to identify strategic goals for the 2025-29 Consolidated Plan cycle. It began on September 20, 2024, and concluded with the October 22, 2024 (26) Board hearing, which established the new Consolidated Plan goals.
State of California Emergency Solutions Grant (State ESG)
The State of California has announced that FY 2024-27 State ESG grant funds will be made available to current HUD ESG entitlement recipients through a three-year application process. These funds may be used regionally to address homelessness through eligible ESG activities. ESG Program components eligible for funding include street outreach, emergency shelter, homelessness prevention, rapid rehousing, and HMIS.
The State released its ESG Notice of Funding Availability on December 31, 2024. The Resolution entitled, A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2024-27 FUNDING YEARS OF THE STATE ESG PROGRAM, (Attachment D) authorizes the application for State ESG funds up to $2,000,000 for distribution over a three-year period.
State ESG grant funds are available for County use in the fiscal year following the named grant year. The total expected award amount for State ESG is $1,814,757, which includes:
• FY 2024-25: $631,547 (Available for County use in FY 2025-26)
• FY 2025-26: $591,605 (Available for County use in FY 2026-27)
• FY 2026-27: $591,605 (Available for County use in FY 2027-28)
The $2,000,000 request indicated in today’s action includes any additional funds that may be made available beyond the current allocation.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s actions support the County of San Diego 2025-30 Strategic Plan Initiatives of Sustainability (Economy and Resiliency), Equity (Housing and Economic Opportunity), and Community (Engagement, Quality of Life, and Partnership). Furthermore, today’s actions support the regional Live Well San Diego vision of healthy, safe, and thriving communities by supporting community development and housing reflective of priorities identified by San Diego County residents, as well as the San Diego County Board of Supervisors.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
Attachment A - Draft 2025-29 Consolidated Plan with Draft 2025-26 Annual Plan
Attachment B - 2025-29 Citizen Participation Plan
Attachment C - Resolution Entitled A RESOLUTION OF THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN DIEGO APPROVING THE FISCAL YEAR 2025-29 CONSOLIDATED PLAN AND THE FISCAL YEAR 2025-26 ANNUAL PLAN
Attachment D - Resolution Entitled A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2024-27 FUNDING YEARS OF THE STATE ESG PROGRAM