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Council approves 2025–26 CDBG and HOME draft action plan; HUD submission next step
Summary
City Council adopted the annual action plan and consolidated plan updates that allocate Community Development Block Grant and HOME funds for the coming fiscal year and authorized staff to adjust amounts once HUD issues final allocations.
Huntington Beach, Calif. — The City Council on May 6 adopted the city’s 2025–26 annual action plan and the first‑year funding elements of the 2025–29 Consolidated Plan for use of HUD Community Development Block Grant (CDBG) and HOME funds.
Charles Kovac, the city’s housing manager, presented the recommended allocations. Because HUD had not yet issued final entitlement amounts for 2025–26 at the time of the staff report, the council approved funding recommendations based on the current year’s awards and carried authorization for staff to adjust allocations once HUD publishes the final numbers.
Staff said the city typically receives about $1.12 million in CDBG funds and about $538,000 in HOME funds annually. The draft action plan combines anticipated FY 2025–26 allocations with carryover funds and program income to present a working budget of about $2.4 million pending HUD confirmation.
Recommended allocations advanced by staff included funding for tenant‑based rental assistance, housing rehabilitation grants and loans, ADA curb-and-ramp improvements, special code enforcement, CDBG public‑service grants (six programs), and HOME tenant‑based rental assistance (including mobile‑home TBRA). Staff also proposed raising the maximum home‑rehab grant from $15,000 to $20,000 to reflect rising labor and materials costs. Staff said unspent HOME administration funding from prior years would be applied to FY 2025–26 administrative needs and fair‑housing activities.
The city and the Citizen Participation Advisory Board held required public outreach and a 30‑day comment period that closed at the hearing. The council approved the action plan and related documents and authorized the city manager to finalize submittal to HUD when final allocations arrive. The vote was unanimous.
Why it matters: CDBG and HOME funds support low‑income housing, accessibility improvements and community services. The council’s action preserves continuity of programs while allowing staff to adjust line items once HUD’s final allocation for 2025–26 is known.
What’s next: Staff will submit the final action plan to HUD when the entitlement amounts are announced and will return to council with any adjustments required by the final award.
