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Council directs CDBG funding to sidewalks, lighting in lower‑income areas and splits public‑service grants
Summary
Gilroy’s City Council on May 5 reviewed the draft 2025–2030 Consolidated Plan and directed CDBG non‑public‑service funds toward sidewalk and street‑lighting projects in lower‑income neighborhoods, while splitting public‑service grant awards equally among eligible applicants.
The Gilroy City Council on May 5 reviewed a draft 2025–2030 Consolidated Plan (CDBG) and the 2025–26 Annual Action Plan and provided allocation direction for Community Development Block Grant dollars.
Root Policy Research, the countywide consultant hired for the consolidated plan, summarized outreach and findings: Gilroy contributed 563 resident survey responses to a countywide effort, with strong representation among low‑ and moderate‑income households, renters, seniors and people with disabilities. Key priorities identified in outreach included home rehabilitation and accessibility improvements, affordable rental housing, neighborhood infrastructure (sidewalks and lighting), youth and senior services and better coordinated supportive services.
For program year 2025–26 the city expects roughly $400,000 in HUD CDBG formula funds plus about $78,829 in prior‑year unspent CDBG resources. HUD caps limit public‑service spending to 15 percent and program administration to 20 percent of the annual allocation. Staff received nine applications for CDBG funding this cycle (six public‑service applications and three non‑public‑service requests).
Council reviewed two allocation approaches staff presented. For public services staff recommended equal distribution among the six eligible applicants (approximately $10,000 each). For the non‑public‑service requests staff recommended a proportional distribution among applicants; council instead directed staff to use the available non‑public‑service funding to support public‑works improvements (sidewalk and lighting) targeted to lower‑income areas — specifically naming East of Monterey and southern neighborhoods as priorities.
Council also approved staff’s recommendation to fund public‑service applicants evenly (each roughly $10,000) and asked staff to incorporate the city’s direction into the final Annual Action Plan. Staff will adjust line items when HUD posts final formula numbers (expected May 14) and return to the council for adoption on June 2 before submitting the plan to HUD.
Council also noted the city’s participation in a countywide consulting contract had reduced the city’s consulting share to roughly $56,445 for the consolidated plan.
