Sunnyvale commission adopts draft 2025–2030 HUD consolidated plan, asks council to backfill cuts and prioritize Sunnyvale Community Services

The Sunnyvale Housing and Human Services Commission on April 15 adopted the city's draft 2025'2030 HUD consolidated plan and the draft fiscal year 2025'26 HUD action plan, and asked the City Council to backfill any elimination or substantial reduction of CDBG or HOME funds with General Fund dollars, with priority given to Sunnyvale Community Services if the council must choose which programs to backfill.

The action, moved by Commissioner K. Davis and seconded by Vice Chair Weiss, passed on a 5'0to'0 vote (Friedlander, Davis, Rivera, Weiss and Chair Duncan voting yes; Commissioners Steward and Hyramath absent). The plans must be submitted to the U.S. Department of Housing and Urban Development (HUD) by May 15, staff said; allocation amounts for FY2025'26 were not yet finalized.

The consolidated plan outlines the city's strategy for two HUD entitlement grants: the Community Development Block Grant (CDBG) and the HOME Investment Partnerships Program (HOME). City staff told the commission the draft assumes the same allocations as the prior year: CDBG $1,043,481 and HOME $377,129, plus estimated program income of $240,000 (CDBG) and $100,000 (HOME) and roughly $766,000 in unencumbered funds, including about $150,000 in remaining CARES Act (CDBG-CV) dollars.

Why it matters: The consolidated plan and annual action plan direct how federal housing and community development funds are spent in Sunnyvale for the next five years and list specific projects the city plans to fund in FY2025'26. If HUD allocations fall significantly, the commission recommended the council use local General Fund resources to maintain funded programs; the commission also asked the council to treat Sunnyvale Community Services as a top priority if partial backfill is necessary.

What the plans would fund: Staff described categories and program caps imposed by HUD: up to 20% of CDBG entitlement plus prior-year program income for CDBG administration, 15% for CDBG public services, and 10% for HOME administration. Proposed uses in the draft action plan include administration and planning, capital projects (including WorkFirst Sunnyvale), housing rehabilitation or home-improvement grants, and public services for seniors, people with disabilities, survivors of domestic violence, low-income households and at-risk youth.

Commission recommendations and staff proposals: At a March 26 review the commission had recommended changes to staff's funding suggestions. Staff had initially recommended an Upwards (Boost) childcare affordability grant of $160,000, WorkFirst Sunnyvale at $469,000 and an in-house home improvement program at $150,000. The commission recommended funding WorkFirst at $513,000 and increasing the home improvement program to $266,000 in lieu of the Upwards Boost allocation; the draft action plan before the commission reflected those commission recommendations.

Public comment: Melanie Ford, identified as community impact manager for Upwards, urged the commission to fund a local pilot of the Boost childcare program. Ford said a Sunnyvale pilot could cost about $48,000 to serve six providers and help nearly 100 families; she described Boost as a year-long mentorship and business support program for small childcare providers and said County funding will launch a separate pilot for non-entitlement cities. Ford said, "Boost doesn't just aim to bolster the child care providers and expand access to affordable care, but also improve the quality of care." The commission discussed the program's legal eligibility for CDBG microenterprise technical assistance funding and raised questions about Upwards' for-profit status and investor support; Upwards' representative said the CDBG funds would be used for local provider support and would be kept separate from the organization's commercial activities.

Questions from commissioners: Commissioners pressed staff on several clarifications during the hearing, including why Sunnyvale is an entitlement grantee (staff said entitlement status is formula based and tied to the share of low- and moderate-income households and population thresholds), the timeline for HUD allocation announcements (often early to mid-May), the expiration timeline for CARES Act funds (six years after grant, staff said), and program details for the two-year Tenant Based Rental Assistance (TBRA) program (staff said TBRA enters its second contract year so no renewal recommendation was needed). Commissioners also asked about the city's relationship with the county's continuum of care, the local housing authority and county Measure A bond funds (staff said Measure A funds are exhausted).

Decision and next steps: The commission's motion adopted alternatives to forward the consolidated plan and action plan to council and included direction that, in the event HUD funds are eliminated or substantially reduced, the council should backfill identified HUD funds with General Fund dollars and take into account the commission's recommendation to prioritize Sunnyvale Community Services. The commission's approval will be considered by the City Council at its May 6 meeting; staff will submit the action plan to HUD by the May 15 deadline using estimated allocations if HUD has not yet announced final numbers.

Votes at a glance: The commission also approved the consent calendar (minutes) earlier in the meeting. The consolidated plan/action plan motion passed 5'0to'0 (Friedlander, Davis, Rivera, Weiss and Chair Duncan voting yes; Steward and Hyramath absent).