Sunnyvale City Council approves five-year HUD consolidated plan for affordable housing

Affordable housing and homelessness support took center stage at the Sunnyvale City Council meeting on May 6, 2025, as officials discussed the city's five-year consolidated plan and the annual action plan for the upcoming fiscal year. The meeting highlighted the pressing need for affordable housing and effective homelessness solutions, with city staff emphasizing these as top priorities based on community feedback.

The consolidated plan outlines key goals for the next five years, with affordable housing and homelessness services remaining at the forefront. "Not a lot shifted from the prior consolidated plan that was done five years ago," noted a city representative, underscoring the ongoing challenges in these areas. The plan also includes provisions for community development projects and expanding economic opportunities for lower-income residents, particularly those experiencing homelessness.

During the meeting, the council reviewed the draft action plan for the 2025-2026 fiscal year, which will guide the allocation of federal funding from the U.S. Department of Housing and Urban Development (HUD). Although the exact funding amounts have yet to be confirmed, city staff are preparing for potential decreases, having faced funding cuts averaging $50,000 annually since the COVID-19 pandemic.

Council members raised questions about specific funding allocations, particularly for home repair programs. The minor home repair program, which provides grants, is more frequently utilized than the major home repair loan program, which has seen limited uptake. This discrepancy prompted discussions on whether to focus resources more heavily on the minor repairs.

The council also explored the implications of potential funding cuts, with staff recommending strategies to backfill any shortfalls with city funds if necessary. The discussion included defining what constitutes a "substantial reduction" in funding, with a suggested threshold of $300,000 or a 30% cut.

As the city prepares to finalize its plans, the emphasis remains on addressing the urgent needs of the community, particularly for vulnerable populations. The council's decisions in the coming weeks will be crucial in shaping the support available for affordable housing and homelessness services in Sunnyvale.