Commission recommends reallocating remaining CARES Act CDBG funds to Sunnyvale Community Services food program

The Sunnyvale Housing and Human Services Commission voted July 23 to recommend that City Council approve a fifth substantial amendment to the 2019–20 HUD annual action plan to reallocate remaining CARES Act Community Development Block Grant (CDBG CV) funds.

The amendment would move approximately $150,000 into public services to fund Sunnyvale Community Services’ food assistance program and retain roughly $35,000 for city administration and contract management. Vice Chair Weiss moved the recommendation and Commissioner Stewart seconded; the roll call vote was unanimous with all present voting yes and Commissioner Davis absent.

The staff report said the city originally received just over $1.7 million in CDBG CV funds under the CARES Act. About $1.5 million has been spent, including roughly $1.2 million on emergency rental assistance. Remaining funds have been left after some subrecipients underspent and one county isolation/quarantine program did not use Sunnyvale’s allocation. The fifth amendment makes adjustments staff described as a net negative $146,934 to certain line items and principally increases the public services budget by $150,000 for the current fiscal year (FY 2025–26).

Matt Hazel, the city’s housing programs analyst, explained that CDBG CV funds were accounted for in the 2019 action plan, which is why a “substantial amendment” to that plan is required. He noted the Sunnyvale citizen participation plan requires the same outreach as the original action plan when budget revisions change by 30 percent and that a 30‑day public comment period runs through Aug. 14. Staff recommended Alternative 1: approve the fifth substantial amendment as shown in the staff report attachment.

Marie Bernard, representing Sunnyvale Community Services, spoke during public comment and described rising demand for the pantry. She said more than 10,000 people a year use the pantry and the organization served 3,573 unduplicated households last year, a 43 percent increase since 2020. Bernard told commissioners that higher food prices and cuts to allocations from partner Second Harvest Silicon Valley have increased need, and that the $150,000 would pay about $110,000 for food purchases and about $40,000 toward salary and benefits for a food and nutrition program manager (roughly 40 percent of one full‑time equivalent, as Bernard described it).

Commissioners pressed a few clarifying points about closed or transitioned programs that had been funded in earlier amendments; Hazel explained one county program did not use the funds and several subrecipient programs underspent, which produced the remaining balance for reallocation. Hazel also reiterated the six‑year spending deadline for CDBG CV funds and that the staff decision was to make the majority of remaining funding available in FY 2025–26.

The commission’s action tonight is a recommendation to City Council; City Council approval is required to finalize the amendment.