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Council approves 2025–26 HUD action plan; city braces for future federal funding uncertainty
Summary
Council approved the city’s fiscal year 2025–26 HUD action plan (CDBG, HOME, ESG), allocating roughly $9.47 million across affordable‑housing, public services and infrastructure, while staff warned of possible federal cuts next year and outlined contingency work to seek state grants and alternative funding.
The Long Beach City Council on Tuesday approved the city’s fiscal year 2025–26 action plan for HUD formula grants — Community Development Block Grant (CDBG), HOME Investment Partnerships and Emergency Solutions Grant (ESG) — totaling approximately $9.47 million including anticipated program income.
Staff said allocations prioritize affordable housing creation and preservation, public‑service programs, anti‑blight activities and homelessness services. The proposed action plan reflects community input from more than 30 outreach events and more than 500 multilingual survey responses; the city’s five‑year consolidated plan (adopted in 2022) guided priorities.
City staff noted a small year‑to‑year entitlement decrease and highlighted program‑by‑program adjustments: the housing acquisition budget was increased after prior reductions; sidewalk replacement funding was temporarily reduced while Public Works spends down prior year funds; and some public‑service grants were trimmed to remain within HUD’s 15% public‑service cap. Staff also flagged a broader budgetary risk: the presidential budget proposal released in May would eliminate CDBG and HOME in fiscal year 2026, though Congress has retained the programs in past years despite White House proposals.
To prepare for federal uncertainty, staff said the city has applied for more than $8.6 million in state housing grants and is coordinating with regional partners for affordable‑housing and homelessness funding. Council approved the action plan and authorized the city manager to execute documents and implement the grants.
