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Council approves $555,374 CDBG allocation for FY 2025–26, expands microenterprise grants
Summary
The council adopted the 2025–30 consolidated plan and approved the FY 2025–26 Annual Action Plan, awarding a $555,374 Community Development Block Grant (CDBG) entitlement and related subrecipient allocations, including extra microenterprise grant funding and program administration support.
The Milpitas City Council on June 3 held a public hearing and adopted the five‑year Consolidated Plan (2025–30) and the FY 2025–26 Annual Action Plan, which includes the city’s CDBG entitlement of $555,374 and staff‑recommended allocations to local nonprofit providers.
Michelle Silva, administrative analyst in the Office of Housing, said the city’s allocation for FY25‑26 is $555,374 and summarized HUD program caps and national objectives. Staff recommended full program administration funding to the city, an expansion of the city’s microenterprise assistance program and specific awards to local nonprofits. The Community Housing Commission ranked public‑service priorities with seniors first, then housing services and homeless services.
Key staff recommendations included additional microenterprise funding to expand the Micro Enterprise Assistance Program (MEAP): staff recommended adding $110,993 to the revolving‑loan‑fund allocation already approved by council on May 6 so the program could offer up to 20 additional $5,000 grants (bringing the potential total to 67 microenterprise grants). Staff proposed $250,000 toward roof replacement at Terrace Gardens senior housing and recommended awarding the maximum program administration allocation to the city ($111,074.80).
Several applicant organizations spoke in favor of funding: Marina Sanchez of Terrace Gardens emphasized the senior housing roof needs; Jonathan Daire of Nextdoor Solutions and Kathy Wesselby of YWCA outlined domestic‑violence and crisis supports; Georgia Basile of Senior Adults Legal Assistance described elder legal services; and Yoli Garcia described Hope for the Unhoused’s weekly meals and hygiene services. Upwards requested funding for a childcare business support pilot; staff recommended no funding for that request from the entitlement allocation but noted other county activity and explained insurance‑eligibility issues affecting one applicant (Hope for the Unhoused) for this cycle.
Councilmember Chua moved to adopt the consolidated plan, annual action plan and FY25‑26 allocations as recommended; Vice Mayor Barbadillo seconded. The motion passed unanimously.
The council authorized the city manager to finalize plan documents, execute CDBG agreements with approved subrecipients and make administrative adjustments necessary to meet HUD submission requirements.
