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Council adopts CDBG 2025–2030 consolidated plan and FY26 action plan with caveat to revisit homeless services funding if state money falls short
Summary
Council approved the five‑year consolidated plan and fiscal‑year 2026 action plan for Community Development Block Grant (CDBG) funding and the city’s community grant funding plan, but added caveats directing staff to return with revised recommendations if PLHA/PIP or other state funds are less than expected.
The Walnut Creek City Council on June 17 adopted the Contra Costa Consortium’s draft 2025–2030 consolidated plan and the FY2026 annual action plan for the city’s Community Development Block Grant (CDBG) program and approved the city’s FY26 community grant funding plan. Council and staff emphasized uncertainty in state housing funding (PLHA) and the newly eligible Pro Housing Incentive Program (PIP) and placed conditions on awards for homeless services if anticipated state funds do not materialize.
Housing planner Allison (presenting as Lisonbee Rustic) reviewed the needs assessment and draft priorities, emphasizing continued focus on affordable units for seniors, people with disabilities and people who are or were experiencing homelessness; non‑housing needs such as mental health, nutrition, job training, and transportation; and continuation of prior priorities.
The city received 24 applications for FY26 funding: 20 community service applications and 4 economic‑development requests. The consolidated funding recommendation would fund returning programs, including CORE (outreach/navigation) and Trinity Center (day services and workforce development), and restore Choice in Aging as a recipient based on capacity. Staff noted a projected gap of about $145,000 to sustain homeless services because PLHA allocations have declined in recent years (from as high as ~$236,000 in earlier years to $90,000 in the most recent allocation) while provider requests rose with inflation and program expansion.
Staff said the city applied for PIP (a new state program tied to SB 2 fee revenues) and could be eligible for up to $1,000,000; PIP awards were expected to be announced later in the month. The Housing and Community Development Committee recommended adopting the draft consolidated plan and funding recommendations, with two caveats: (1) if state funding (PLHA/PIP) is greater or less than expected, staff should return with revised recommendations; and (2) if the city receives no PLHA or PIP funding, staff should proceed with the funding plan but postpone fully awarding Trinity Center and CORE until alternate local funding sources are identified.
Trinity Center representatives and other applicants spoke in support of funding. Trinity Center described expanded daytime services, workforce development that connects clients to local employers, and the role of city funding in leveraging county and philanthropic resources. Choice in Aging and other nonprofits thanked the council for support of licensed vocational care and other programs.
Council voted to adopt the consolidated plan and FY26 action plan and approved the funding plan with the caveats and asked staff to return promptly if state allocations are confirmed differently; council also directed staff to prepare advocacy letters to local state representatives urging PLHA/PIP appropriations.
The action permits the city to submit HUD required consolidated plan documents by the July 13 deadline and to move forward with the FY26 grant allocations while preserving a mechanism to revisits awards if state funding shortfalls occur.
