SUBJECT
Title
NOTICED PUBLIC HEARING - FISCAL YEAR 2026-27 ANNUAL PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS, EMERGENCY SOLUTIONS GRANT, AND HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS; REALLOCATION OF PROGRAM FUNDS; A RESOLUTION OF THE SAN DIEGO COUNTY BOARD OF SUPERVISORS APPROVING THE FISCAL YEAR 2026-27 ANNUAL PLAN; AUTHORIZE APPLICATIONS FOR ADDITIONAL FUNDING OPPORTUNITIES TO SUPPORT FUTURE HOUSING OR COMMUNITY DEVELOPMENT (DISTRICTS: ALL)
Body
OVERVIEW
As a recipient of the United States Department of Housing and Urban Development (HUD) entitlement program funding, the County of San Diego (County) develops a five-year Consolidated Plan to guide long-term planning and investment of housing and community development activities that serve residents across the region. On March 11, 2025 (08), the San Diego County Board of Supervisors (Board) approved the 2025-29 Consolidated Plan. The Consolidated Plan establishes goals for four federal entitlement programs, which are locally administered by the County Health and Human Services Agency, Housing and Community Development Services (HCDS). These programs include the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA). Funds from these federal entitlement programs support a variety of housing and community development activities in the region.
Each year of the five-year Consolidated Plan cycle includes an annual planning process consisting of three key documents: the Annual Plan Strategy, the Annual Plan, and the Consolidated Annual Performance and Evaluation Report. The Fiscal Year (FY) 2026-27 Annual Plan Strategy, which sets forth the priorities for activities that will be funded in the FY 2026-27 Annual Plan was approved by the Board on November 4, 2025 (16).
Today’s action requests approval of the draft FY 2026-27 Annual Plan. The Annual Plan includes specific projects identified to be funded based on the anticipated funding allocations for each 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. Recommendations are based on estimated funding allocations, anticipated program income, and reallocations from prior years’ program balances. In total, it is anticipated that $22.9 million will be available in FY 2026-27.
Today’s requested action concludes a formal public comment period for the FY 2026-27 Annual Plan, which opened February 20, 2026. During the comment period, the draft plan was available for the public to review and comment. It will be updated to reflect any appropriate revisions from public testimony and final funding amounts made by HUD. After adjustments, the final Annual Plan will be submitted to HUD.
Approval of today’s action authorizes the FY 2026-27 project funding and memorializes the steps taken to engage the public and stakeholders in planning, reporting, and program administration. Today’s action also authorizes the Chief Administrative Officer or designee to reallocate funding as necessary due to changes in funding amounts, program income, or project cost savings. In addition, it authorizes the Chief Administrative Officer or designee to execute contracts related to projects identified in the FY 2026-27 Annual Plan and issue Notices of Funding Availability as necessary. Finally, it authorizes the Chief Administrative Officer or designee to apply for future funding opportunities that advance affordable housing and community development.
This item advances the County vision of a just, sustainable, and resilient future for all residents, with a particular focus on communities that have been historically underrepresented. This item also aligns with the regional Live Well San Diego vision of healthy, safe, and thriving communities by ensuring low-income residents have access to suitable living environments and by enhancing quality of life through decent and affordable housing. Additionally, this action supports the County Housing for All initiative, the Framework for Ending Homelessness, and the Housing Blueprint by ensuring funding supports programs across the homeless-to-housed continuum for San Diego’s most vulnerable residents.
RECOMMENDATION(S)
CHIEF ADMINISTRATIVE OFFICER
1. Hold this public hearing to receive testimony and approve the proposed Fiscal Year 2026-27 Annual Plan outlining the proposed use of Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA) Program funds for submittal to United States Department of Housing and Urban Development (HUD).
2. Adopt a Resolution entitled A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING THE FISCAL YEAR 2026-27 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 2026-27 Annual Plan.
3. Authorize the reallocation of up to $7.0 million in prior years’ resources, including up to $0.6 million of CDBG funds, up to $5.7 million of HOME funds and up to $0.7 million of HOPWA funds, to supplement the Fiscal Year 2026-27 HUD Entitlement Programs.
4. Authorize the Chief Administrative Officer or designee to issue Notices of Funding Availability (NOFA), 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 and 3, and the Fiscal Year 2026-27 recommended and/or alternative CDBG, HOME, ESG, and HOPWA programs following the completion of environmental processing and HUD release of funds, as applicable.
5. Authorize the Chief Administrative Officer or designee to adjust the amount of funding to projects identified within the Fiscal Year 2026-27 Annual Plan as necessary to reflect the actual entitlement grant amounts when they are determined by HUD.
6. Authorize the Chief Administrative Officer or designee to reallocate as necessary, in accordance with the Citizen Participation Plan, project balances from cancelled or completed projects and program income, to existing and/or alternative CDBG, HOME, ESG, and HOPWA projects.
7. Authorize the Chief Administrative Officer or designee to apply for additional funding opportunities to support future affordable housing or community development projects, in the current and future fiscal years, as they will provide overall value to the County and its residents by helping to build safe and affordable neighborhoods.
EQUITY IMPACT STATEMENT
The Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons with AIDS (HOPWA) programs were established to address the housing, community development, and public service needs of the county’s most vulnerable residents. These programs specifically serve low-and-moderate income households.
To reduce barriers to participation, the County of San Diego (County) Health and Human Services Agency, Housing and Community Development Services (HCDS) implemented an inclusive community engagement strategy. This included hosting community input sessions in diverse geographic locations, offering translated public notices, and community input surveys in the County’s threshold languages to serve non-English speaking residents, and leveraging the County’s social media platforms and website to broaden awareness and accessibility for hard-to-reach populations. By actively seeking and integrating community input for the development of the Annual Plan, this process helps ensure that funding priorities reflect the lived experiences and needs of historically underserved communities.
SUSTAINABILITY IMPACT STATEMENT
Today’s action supports the County of San Diego’s Sustainability Goal #1 to engage the community, Goal #2 to provide just and equitable access, and Goal #4 to protect health and well-being. This is accomplished by continuing to provide diverse engagement opportunities to seek community input on funding priorities for the development of the Annual Plan and administering programs that prioritize underserved populations and communities. These programs create opportunities for affordable housing, community infrastructure, shelter, and supportive services for the most vulnerable residents of San Diego County. They help build safe and affordable neighborhoods with access to sidewalks, playgrounds, and green space; assist non-profit organizations that provide care and services to residents in need; and support access to diverse housing options, which impact individual and community health.
FISCAL IMPACT
Funds for this request will be included in the Fiscal Year (FY) 2026-28 CAO Recommended Operational Plan for the Health and Human Services Agency. If approved, this request will result in an estimated cost and revenue of $22.9 million for FY 2026-27.
The anticipated funding sources and amounts consists of approximately $13.8 million in FY 2026-27 from the United States Department of Housing and Urban Development entitlement grant awards, which includes $4.2 million in Community Development Block Grant (CDBG), $2.8 million in HOME Investment Partnerships (HOME), $0.4 million in Emergency Solutions Grant (ESG), and $6.4 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) are included. An estimated $7.0 million will be reallocated from prior years' of CDBG ($0.6 million), HOME funds ($5.7 million), and HOPWA funds ($0.7 million). 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 who will be 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, the County of San Diego (County) Health and Human Services Agency, Housing and Community Development Services (HCDS) develops a required five-year Plan. The Consolidated Plan serves as the County’s strategic and guiding documents for prioritizing activities funded through its four entitlement programs:
• Community Development Block Grant (CDBG): Supports housing, public services, and community development activities benefiting low-and moderate-income residents.
• HOME Investment Partnership (HOME): Supports local strategies to expand affordable housing through development, acquisition and/or rehabilitation of affordable housing, first-time homebuyer activities, and rental assistance.
• Emergency Solutions Grant (ESG): Funds the initial steps in a continuum of care to prevent and address homelessness through street outreach, emergency shelter, homeless prevention, and rapid rehousing.
• Housing Opportunities for Persons with AIDS (HOPWA): Provides housing and services for low-income individuals living with HIV/AIDS and their families.
The 2025-29 Consolidated Plan describes a strategy for addressing housing and community development funding needs through the County’s four entitlement programs. The 2025-29 Consolidated Plan was developed from feedback gathered through stakeholder consultations, in-person and virtual community input sessions, an online questionnaire, and an analysis of community data indicators. Additionally, the Consolidated Plan 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
• Regional (HOPWA): Includes the entire region of San Diego County
The current five-year Consolidated Plan covers the period of July 1, 2025, through June 30, 2029, and was approved by the Board on March 11, 2025 (08).
Annual Process
The five-year Consolidated Plan operates an annual cycle, producing three key documents each year: the Annual Plan Strategy, the Annual Plan, and the Consolidated Annual Performance and Evaluation Report (CAPER). The first stage is the Annual Plan Strategy, which establishes funding priorities for the upcoming fiscal year and is informed by robust community input. The second stage is the Annual Plan, which proposes specific projects and activities for funding that align with the Annual Plan Strategy’s funding priorities and the Consolidated Plan’s goals. The last stage is the CAPER, which reports on the outcomes and accomplishments of the prior year’s Annual Plan activities.
Community input was foundational to the development of the Annual Plan Strategy and subsequent Annual Plan. Community engagement efforts included utilizing the Engage San Diego County website, administering online surveys, utilizing the County News Center, and social media platforms. Additionally, engagement efforts included facilitating six in-person community input sessions across multiple locations in the unincorporated County and two virtual sessions to garner additional feedback from community stakeholders. Through these efforts, HCDS reached over 14,000 residents and stakeholders via distribution lists, generated nearly 3,000 social media impressions, and received 169 survey responses. The community input received created a roadmap for funding priorities, which was presented to the Board on November 4, 2025 (16). This hearing served as an additional opportunity to receive community input. Through this outreach and engagement process, the development of the Annual Plan Strategy yielded the following funding priorities:
• Support the development and rehabilitation of affordable housing;
• Maintain emergency and long-term supportive housing assistance options;
• Promote housing and economic stability by investing in programs that help individuals maintain housing; and
• Improve neighborhoods and public facilities that foster safe, healthy, accessible, connected, and livable communities.
As required by federal HUD regulations, the County has a Citizen Participation Plan (CPP), which sets 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. Per the County CPP, the draft FY 2026-27 Annual Plan was made available for public review on the HCDS website on February 20, 2026, with public notices in all County threshold languages, and hard copies located at the HCDS office (3989 Ruffin Road, San Diego, CA 92123). Public notices were also published in the San Diego Union Tribune, Voice and Viewpoint of San Diego, El Latino, NGUOI VIET News, Saigon Times, Beirut Times, and Asian Journal newspapers. Public notices were also shared via HCDS email lists and County social media. The notices included summaries of FY 2026-27 recommended projects and announced the availability of the plan for the required 30-day public review and comment period from February 20, 2026, through March 24, 2026. Federal regulations require that the comment period end after the public hearing concludes. Comments received during the public comment period, as of the preparation of this Board letter, are included in Attachment A.
It is anticipated that approximately $22.9 million in total resources will be available through the FY 2026-27 Annual Plan to support housing and community development needs. The entitlement funding recommendations in the FY 2026-27 Annual Plan are based on anticipated funding allocation, anticipated program income, and reallocated funds from prior years. Anticipated FY 2026-27 funding includes:
|
Program |
Annual Allocation |
Anticipated Program Income |
Prior Years’ Resources |
Total |
|
CDBG |
$4,232,730 |
$1,000,000 |
$600,000 |
$5,832,730 |
|
HOME |
$2,834,075 |
$1,000,000 |
$5,700,000 |
$9,534,075 |
|
ESG |
$376,429 |
$0 |
$0 |
$376,429 |
|
HOPWA |
$6,434,968 |
$0 |
$700,000 |
$7,134,968 |
|
Total |
$13,878,202 |
$2,000,000 |
$7,000,000 |
$22,878,202 |
CDBG resources from prior years are from previously cancelled projects or cost savings from completed projects. HOME resources from prior years have been conditionally awarded to developers for development of affordable housing but must be reallocated until loan documents are executed. Additionally, HOPWA resources from prior years have been allocated to the HOPWA tenant-based rental assistance program and will support the ongoing administration of the program through FY 2026-2027.
Following public testimony and Board discussion at today’s hearing, the Board is requested to approve the draft FY 2026-27 Annual Plan and adopt a resolution (Attachment B) that 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 2026-27 Annual Plan. The Annual Plan must be submitted to HUD before May 15, 2026. HUD typically awards the County entitlement funds in July, and projects are expected to begin shortly thereafter. Comments received during the public hearing and public comment period will be considered and, if appropriate, included in the Annual Plan submitted to HUD. 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.
Reallocation of CDBG, HOME, and HOPWA Funds (Recommendation 3)
Today’s action requests the Board to reallocate up to $7 million in prior years’ CDBG, HOME, and HOPWA funds from previously approved projects. The following funding allocations are requested:
• Up to $0.6 million in prior years’ CDBG allocations are proposed to be allocated to the FY 2026-27 CDBG Housing Development fund and will be made available for affordable housing development, acquisition and or rehabilitation. CDBG reallocations are from previously cancelled projects or cost savings from completed projects.
• Up to $5.7 million in prior years’ HOME allocations are proposed to be allocated to the FY 2026-27 HOME program. HOME Reallocations have been conditionally awarded. However, HOME funds cannot be officially committed until loan documents are executed.
• Up to $0.7 million in prior years’ HOPWA allocations are proposed to be allocated to the FY 2026-27 HOPWA tenant-based rental assistance program. These funds are currently allocated to the HOPWA tenant-based rental assistance program and will be necessary for continued funding in FY 2026-2027.
Annual Plan Implementation and Adjustments (Recommendations 4 and 5)
Today's action requests the Board authorize the preparation of all required documents and take all necessary actions for the submittal, regulatory processing, and implementation of the draft FY 2026-27 Annual Plan and recommended reallocation projects. Additionally, today’s action requests the Board authorize the Chief Administrative Officer or designee to adjust the amount of funding to projects identified in the draft FY 2026-27 Annual Plan, as necessary, to reflect the actual entitlement grant amounts when they are determined by HUD and issue Notices of Funding Availability when appropriate.
Reallocation of Future Program Balances and Program Income (Recommendation 6)
Approved CDBG, HOME, ESG, HOPWA projects are occasionally completed under budget, reduced in scope, or cancelled for various reasons throughout the year, which results in project balances. Through the Annual Plan process, some projects that are determined to be eligible, but not recommended for funding, are identified as alternative projects. It is routine to reallocate remaining project funds to previously approved alternative projects.
Today’s action requests the Board authorize the reallocation, as necessary, of CDBG, HOME, ESG, and HOPWA project balances and/or uncommitted funds, including program income, to existing and/or alternative CDBG, HOME, ESG, and HOPWA projects.
Authorization to Apply for Additional Funding Opportunities (Recommendation 7)
Today’s action requests the Board authorize the application of additional funding opportunities, ensuring the County can respond quickly to competitive grants with short timelines. This flexibility enhances the County’s capacity to secure critical resources and advance affordable housing and community development priorities.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
Today’s action supports the County of San Diego 2026-31 Strategic Plan Initiatives of Sustainability (Economy and Resiliency), Equity (Housing and Economic Opportunity), and Community (Engagement, Quality of Life, and Partnership). Additionally, today’s action supports the regional Live Well San Diego vision of healthy, safe, and thriving communities by supporting community development and housing reflective of priorities identified by residents of the San Diego County as well as the Board, which was collected through various means of engagement. This item also aligns with the County Housing for All initiative, along with the Framework for Ending Homelessness, and the County Housing Blueprint by ensuring that funding supports programs across the homeless-to-housed continuum and advances the County’s broader policy goals to address the root causes of the housing crisis.
Respectfully submitted,
ebony n. shelton
Chief Administrative Officer
ATTACHMENT(S)
Attachment A - County of San Diego Consortium 2025-2029 Consolidated Plan and 2026-2027 Annual Plan
Attachment B - Resolution Entitled A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING THE FISCAL YEAR 2026-27 ANNUAL PLAN