Escondido council adopts 2025–29 consolidated plan, approves $1.3M CDBG and $590K HOME allocations

The Escondido City Council on Thursday unanimously adopted Resolution No. 2025-69 approving the city's 2025'2029 five-year consolidated plan and the 2025'26 annual action plan, and authorized the distributed allocations for Community Development Block Grant (CDBG) and HOME program funds.

Housing and neighborhood services manager Danielle Lopez told the council, “Tonight, we'll be asking you to adopt resolution number 2025-69, approving the 2025, 2026 CDBG and HOME budgets allocations, approving the 2025-2029 5 year consolidated plan, and the 2025-2026 1 year action plan.” The adopted plan sets this year's federal allocations at $1,300,000 for CDBG and $590,000 for HOME.

The consolidated plan documents how the city will spend federal HUD funds and sets priorities for affordable housing, supportive services, neighborhood improvements and public services. Norma Olkein, management analyst, outlined the HOME program limits and proposed uses: “For program year 2025, the city of Escondido has been awarded 590,000 in HOME funds. These funds are restricted to permanent housing activities. The budget is broken into 3 required categories. First, 10% of the total allocation is set aside for administration... Next, 15% is reserved for CHODOs... The remaining 75% is available for direct housing activities.”

Council members heard staff summarize the allocation process: HUD determines entitlement amounts by formula; Escondido received its official allocations on May 13; staff released a March 21 request for proposals and received 18 applications requesting about $1.5 million for roughly $1.3 million in available CDBG funds. Lopez said the city set program caps consistent with HUD rules: up to 20% for administration, up to 15% for public services and roughly 65% for capital projects.

The staff-recommended public service awards included programs for in-home meal delivery, mental-health supports in early-learning centers, a mobile recreation summer program, senior-care resource services, Project NEXT at Escondido High School, fair-housing services through Legal Aid Society of San Diego, Operation Hope for families experiencing homelessness, and Alabaster Jar Project services for survivors of human trafficking. Capital projects recommended for funding included a historic structure assessment, neighborhood cleanup and beautification events, sidewalk infill, restroom expansion at the Urban Core recycling center, and business support training for in-home family childcare providers.

During public comment, Melanie Forr of Upwards urged continued funding for the Boost program for in-home family childcare providers, citing local participation and a 45% revenue increase reported by participating providers. Rebecca Raider of Voices for Children requested reconsideration if any funds become available; staff and council noted public service allocations are capped by HUD program rules and cannot be substituted with capital funds without amending the action plan.

Council members asked for follow-up items including expanded outreach for the first-time homebuyer program (one loan issued year-to-date with another pending), consideration of whether unspent public-service funds could be reallocated later in the year, and continued reporting on Project NEXT and the senior rental subsidy lottery. Staff said contracts with subrecipients will begin in July and the consolidated and annual plans will be submitted to HUD by July 11 if the resolution is recorded.

Votes at a glance:

- Resolution No. 2025-69 (approve 2025'2029 consolidated plan, 2025'26 action plan, and CDBG/HOME allocations) ' approved 5-0. - Consent calendar (items 1'11) ' approved 5-0 earlier in the meeting. - Closed-session report: Winchester v. City of Escondido ' council authorized a settlement totaling $40,000 ' approved 5-0 (reported publicly after closed session).

Why this matters: The consolidated plan and action plan dictate how federal entitlements are spent on affordable housing, homelessness prevention, neighborhood infrastructure and public services in Escondido for the coming year and set priorities through 2029. The allocations determine which local nonprofits and capital projects receive HUD funds and set contractual and reporting obligations for recipients.

Looking ahead: Staff will execute subrecipient contracts starting in July, monitor quarterly performance and return to council if significant changes are needed, including any formal amendment to reallocate funds if underspending occurs.