Sunnyvale adopts HUD consolidated plan and 2025–26 action plan; council reallocates CDBG funding amid federal uncertainty

Sunnyvale City Council voted unanimously May 6 to adopt the city’s draft 2025–2030 HUD Consolidated Plan and the draft fiscal year 2025–26 HUD Action Plan, approving a package of local program funding and instructing staff to return with options should federal funds be reduced.

The five‑year Consolidated Plan and one‑year Action Plan guide how the city will use anticipated HUD entitlement funds — primarily CDBG (Community Development Block Grant) and HOME — for affordable housing, homelessness response and community development. During the meeting staff estimated Sunnyvale’s CDBG entitlement at roughly $1.0 million and HOME at about $400,000 based on prior allocations; HUD’s formal allocations for 2025–26 were then pending.

Why it matters: the Consolidated Plan sets policy priorities for the next five years and the Action Plan programs funds immediately available; the council’s vote also contained a directed funding mix that reflects local priorities and a contingency posture in case of federal budget cuts.

Root Policy consultant Heidi Agler presented the Consolidated Plan analysis and summarized resident and stakeholder engagement, which emphasized rental affordability, rental…