AGENDA TITLE:
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Public Hearing to Consider Adopting a Resolution Approving the 2026-2027 Annual Action Plan for the Community Development Block Grant Program (CDBG) (CD)
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MEETING DATE:
June 3, 2026
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
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RECOMMENDED ACTION:
Public hearing to consider adopting a resolution approving the 2026-2027 Annual Action Plan for the Community Development Block Grant Program (CDBG).
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BACKGROUND INFORMATION:
A public hearing is required as part of the federal requirements under the U.S. Department of Housing and Urban Development (HUD) for the Community Development Block Grant (CDBG) program.
Overview
The overall goal of the CDBG program is to serve low- and moderate-income persons by developing viable urban communities through the following actions: providing decent housing; providing a suitable living environment; and expanding economic opportunities. The City of Lodi is an entitlement jurisdiction under the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG) Program and receives an annual allocation directly from HUD, with funding levels determined through HUD’s allocation methodology based on factors such as population, poverty, housing conditions, and community needs.
Each year the City prepares an Annual Action Plan that identifies the services and projects to fund that will meet the Consolidated Plan Goals. The 2024-2028 Consolidated Plan is a five-year planning document for the CDBG program. It outlines the City actions to be undertaken during those five years in relation to capital improvements, economic development, public services, infrastructure improvements, housing, homelessness, special needs, and other various community development type activities, of which are identified by the City and the community. The 2026-2027 Annual Action Plan presents a detailed description of each activity proposed for the next CDBG program year, as well as the City’s CDBG budget and goals for that year.
Staff took into consideration the opinions of residents, community stakeholders, community-based organizations, the Lodi Improvement Committee, City staff, and various other professional and influential members of the community to decide on which goals would best address the identified priority needs. The result was the creation of six (6) primary goals that would be the focus over the five-year period:
Improve Public and Community Facilities
• Improve, renovate, update and or modernize community, social service and or public owned facilities.
Preserve and Increase Affordable Housing
• Rehabilitate and preserve existing housing stock, acquire land and or partner with agencies or housing development entities to build new affordable housing.
Support Critical Public Services
• Support local non-profits and social services to provide critical community services.
Encourage Fair Housing Practices
• Support the City and its partners to implement best fair housing practices.
Reduce Homelessness
• Reduce homelessness through support of public services, shelter operations, and shelter development.
Planning and Administration
• Support City staff to plan and administer CDBG entitlement funds.
Annual Action Plan
The 2026-27 Annual Action Plan is the third of five annual action plans for the 2024-28 CDBG period and includes the budget for the program year, as well as the proposed projects and allocations for each project. The CDBG award amount for the City of Lodi for the 2026-27 program year is $665,263. The City has a guideline of allocating 40 percent of the annual CDBG award (net of administrative costs) to community-based organizations (CBOs), with the remainder allocated to City projects. Also, HUD places a yearly 15 percent cap on funds spent on public services.
Based upon the estimated allocation, the distribution of funds will be as follows:
Capital projects $434,263 (Includes project cost and activity delivery/admin costs)
CBO projects $ 98,000 (15% Cap)
Administration $133,000 (20% Cap - Includes fair housing activities)
TOTAL $665,263
The City received three applications for capital projects requesting over $434,000. In addition, the City of Lodi Graffiti Abatement Program will be receiving $15,000 out of the Administration funding since it was determined that it could no longer be funded under Capital projects. The CBO projects, a portion of the Graffiti Abatement Program, and Program Administration will be awarded funding out of the Public Service funds as listed below:
Program Administration
Planning and Administration $78,000
TBD - Fair Housing Services $40,000 (estimate due to request for proposals pending. City Staff is currently providing services)
Graffiti Abatement $15,000
City Service Programs
Graffiti Abatement Program (Public Services Funds) $15,000
CBO Service Programs
Community Partnership for Families - Family Resource Center $29,500
PREVAIL - Propel Program $16,000
Second Harvest Food Bank - Food Assistance $10,000
LOEL Senior Center - Meals on Wheels $10,000
The Salvation Army - Hope Harbor Operations $17,500
City Capital Project Programs (allocation includes activity delivery costs)
Public Works Project - $235,000
CBO Capital Project Programs (allocation includes activity delivery costs)
DCDC/HACSJ - Salas Park - $115,000
Other Miscellaneous Capital Projects
Specific projects not yet determined - $84,263
The review of the applications centered on the rating criteria that focuses on the following areas:
• Serving Priority Populations. Programs and projects were evaluated on whether they serve targeted priority populations, as identified in the Consolidated Plan.
• Activity Need and Justification. Activities were evaluated on their ability to address a significant community need and their benefit to very low-income persons.
• Readiness to Proceed. Programs and projects were evaluated based on their feasibility of implementation, overall and within the allotted time frame.
• Cost Reasonableness and Effectiveness. Budgets were reviewed to determine completeness and reasonableness of all costs related to the request for CDBG funding. Organizations applying for service funding were also evaluated on their ability to become self-sustaining.
• Activity Management and Implementation. Applicants were evaluated on past experience, administrative capacity, and financial management.
• Past Performance. Applicants previously receiving CDBG funds from the City were evaluated on their reporting and timely expenditure of funds
Funding Allocation
HUD has released the amount of CDBG awards for the 2026-27 program year. The City will receive $665,263. The City has a guideline of allocating 40 percent of the annual CDBG award (net of administrative costs) to community-based organizations (CBOs), with the remainder going to City projects. There is a 15 percent public service cap on the overall annual allocation.
The Draft 2026-2027 Annual Action Plan was made available for public review and comment for 30-days beginning May 2, 2026 and will be brought forward for final approval. The submission deadline for the Annual Action Plan is early June and staff is confident in meeting that deadline in order to receive funding beginning July 1, 2026.
Next Steps
Upon City Council approval of the 2026-2027 Annual Action Plan, City staff will submit to HUD for approval. The plan is due to HUD by August 2026, but will be submitted by the end of June 2026.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Revenue and appropriations have been included in the 2026-27 Fiscal Year budget submission for the Community Development Department.