San Marcos holds public hearing on CDBG consolidated plan; staff recommends $2.08 million available for programs and capital projects

City staff presented the U.S. Department of Housing and Urban Development Community Development Block Grant (CDBG) consolidated plan for 2025–2029 and the fiscal year 2025–26 annual action plan at the May 12 meeting and opened a public hearing.

“HUD annually provides funding to eligible jurisdictions through the CDBG entitlement program,” said Sylvia Solis Daniels, Housing and Neighborhood Services Director, joined by Quentin Hufford, senior analyst, who led the presentation. Staff described required public outreach in 2024 (surveys, stakeholder meetings, service-provider consultations) and said the consolidated plan sets strategic goals for public services, administration, affordable housing, and public infrastructure projects for the five-year period beginning July 1, 2025.

Staff said the city anticipates an award of $662,806 based on prior-year allocations (HUD had not yet released final FY 2025–26 numbers) and identified $2,011,656 in available prior-year funds, bringing total estimated available funding to about $2,075,069. Staff recommended allocating up to 20% of the annual CDBG allocation ($132,561) to administration and fair-housing outreach, up to 15% ($99,000) for six public-service providers (including Latinx victim advocacy, senior nutrition, rental assistance for low-income seniors, homeless prevention, youth/family wraparound services, and domestic-violence support), and reserving the remainder for capital improvements eligible under CDBG rules. The presentation also noted HUD required the city to return $1,490,811.83 into CDBG-eligible capital projects over three years using nonfederal sources to address HUD monitoring findings for older program years.

Speakers from service providers supported the plan and described program impacts: Richard Radosh of Community Resource Center highlighted rental assistance and client success stories; Bobby Castro of Lifeline Community Services described wraparound supports for families; Bobby Case of the Legal Aid Society’s Fair Housing Center described fair-housing outreach and training; and Julia Sebastian of Interfaith Community Services described past CDBG-CV homelessness-prevention work and supported continued funding.

After public comment, the council closed the public hearing, moved to approve the consolidated plan and the FY 2025–26 annual action plan with the substantial amendment for prior-year funds, and voted unanimously to adopt the actions recommended by staff.

Staff will submit the finalized consolidated plan and annual action plan to HUD once the entitlement allocation is announced and necessary modifications are made.