Escondido council adopts five-year consolidated plan, sets allocation rules for CDBG and HOME funds

The Escondido City Council on April 16 approved the city's five-year consolidated plan for fiscal years 2025'2029 and the fiscal year 2025'26 annual action plan for Community Development Block Grant (CDBG) and HOME funds, voting 5'00 to adopt new program priorities and funding allocation rules.

City staff said the consolidated plan guides how federal HUD formula funds are targeted over five years. "The purpose of the consolidated plan is to assist each jurisdiction in determining the needs in their community," consultant Dominique Clark told the council during the presentation.

The plan matters because CDBG and HOME dollars are earmarked for projects that directly affect low- and moderate-income residents, such as homelessness services, affordable housing development and neighborhood infrastructure. City staff recommended, and the council approved, policy-level set-asides: 15% of CDBG for public services and 20% for administration; 10% of HOME for administration (the remainder for HOME activities); and the maximum allowable 7.5% for ESG administration should the city receive ESG funds.

Housing and Neighborhood Services Manager Danielle Lopez and consultant Dominique Clark led a detailed briefing on the plan and the city's public outreach. Clark described HUD's requirement that jurisdictions submit a consolidated plan every five years and said staff combined federal, state and regional data with community engagement to draft priorities.

Staff reported the outreach included a bilingual flyer campaign, two surveys (164 community responses and 12 stakeholder responses), and three community meetings (22 attendees total). Survey results cited homeless services and affordable housing development as top needs; among homeless services, respondents prioritized mental and behavioral health and substance abuse services, a navigation/resource center and homeless prevention and diversion.

Based on data and input, staff proposed four broad priorities for the 2025'2029 period: (1) support development and preservation of affordable rental and homeownership units; (2) expand supportive services to prevent and reduce homelessness and promote housing stability; (3) promote safe, healthy communities through facility and infrastructure improvements and neighborhood revitalization; and (4) deliver essential supportive services to vulnerable populations including youth, families, seniors and people with special needs.

Staff also explained program mechanics: Escondido is an entitlement jurisdiction, so CDBG and HOME allocations are formula-driven rather than competitive; ESG funding is allocated by formula but may be retained by the state if a jurisdiction's calculated share falls below HUD's threshold. Clark said the city expects HUD's allocations to be announced in mid-May and opened a 30-day public review period for the draft plan from April 24 through May 23, with a return to council for final approval on June 11.

Council members asked about application and proposal timelines; staff said the RFP for CDBG-funded projects is open now and will close on April 24, with the recommended funding awards to be presented to council in June. There were no public speakers on the item. Mayor Dana M. White moved adoption; the motion passed 5'00.

The approved priorities and allocation rules will guide how the city programs CDBG and HOME dollars and, if received, ESG funds over the coming program year and five-year horizon.