Santa Maria council approves draft FY 2025–26 CDBG action plan, allocates public‑service and capital funds

The Santa Maria City Council voted unanimously April 1 to approve the draft fiscal year 2025–26 Community Development Block Grant (CDBG) action plan, adopt the Block Grants Advisory Committee's funding recommendations for public services and a single city capital project, and approve contingency rules for shifting funds if HUD's final award differs from current estimates.

Rosie Rojo, the city's community programs manager, told the council the draft plan is built on committee recommendations and public input gathered over the past year and that the city is estimating awards for 2025–26 near last year's amounts. "We come before you tonight to conduct a public hearing to receive comments as part of our drafted fiscal year 25, 26 community development block grant action plan," Rojo said during her presentation.

Why it matters: CDBG is a federal program administered by the U.S. Department of Housing and Urban Development (HUD) that local governments use for affordable‑housing, public‑service and community development projects targeted to low‑ and moderate‑income residents. The council's vote moves the draft plan forward for a 30‑day public review and schedules a final council approval after HUD issues the city's actual allocation.

Most important decisions and figures

- The Block Grants Advisory Committee received 17 public‑service applications and one capital application; the committee recommended funding 11 public‑service applicants and the city sports complex as the primary capital project.

- Rojo said the draft allocations reflect HUD caps and estimates: public services are budgeted at roughly $209,000 (the 15% HUD cap on public services), capital projects around $956,000, general administration at about $268,000 (the 20% admin cap), and a $10,000 fair‑housing allocation. The committee's list excludes the $37,500 of discretionary allocations the council will make during the meeting.

- The city set a per‑agency funding cap equal to 10% of the public services pot ($20,924 under current estimates). Each councilmember was allotted $7,500 in discretionary funds to add to existing recommended grants or to combine with other councilmembers to reach the $15,000 minimum award level described by staff.

Public comment and committee perspective

Dozens of speakers representing Santa Maria nonprofits and resident groups addressed the council during the hearing. Agencies emphasized services for seniors, people with disabilities, youth, and unhoused families and asked the council to sustain or increase CDBG support.

Yolanda Vasquez, regional director for Catholic Charities of Santa Barbara County, urged the council to restore funding for the agency's utility assistance work. "We provide utility assistance, immediate assistance for clients that are behind in their bills for up to 3 months," Vasquez said. Catholic Charities noted it served thousands of local residents in the prior fiscal year and asked the council to consider it for funding.

Multiple speakers from the Independent Living Resource Center (ILRC, transitioning to the name Access Central Coast) described programs for people with disabilities, housing navigation, and emergency preparedness. "Not receiving CDBG funding this year would be devastating," Alexa Martin, ILRC deputy director, told the council, adding that the office served more than 260 Santa Maria residents in the prior year.

Edwin Weaver of Fighting Back Santa Maria Valley described services supporting students in transition and said Santa Maria "has the second highest homeless student rate in the state of California," noting the program's role in keeping children in school while families find stable housing.

Mackenzie Greeley, a volunteer on the Block Grants Advisory Committee, said the group faced difficult tradeoffs and thanked applicants for their outreach: "This has been a really hard year ... you know the day to day and what that service means to you."

Council action and discretionary allocations

After public comment and deliberations, the council approved the committee's recommended allocations and contingencies by unanimous roll call (Ayes: Aguilar Hernandez; Flores; Sotto; Mayor Pro Tem Escobedo; Mayor Patino). The council also individually allocated their $7,500 discretionary funds across several nonprofit applicants during the meeting; councilmembers announced increased awards to organizations that had appeared at the hearing, including additional discretionary supplements to the Independent Living Resource Center / Access Central Coast and Fighting Back Santa Maria Valley, among others. The council adopted contingency rules that describe how additional or reduced HUD funding would be distributed across recommended agencies and allow the council to reallocate discretionary funds as needed.

Councilmembers additionally asked staff to return to the council if HUD issues a final allocation that is materially lower than current estimates so the council can consider using other revenue sources, including a potential general‑fund solution, during the budget process. That caveat was added to the contingencies and passed with the same unanimous vote.

What comes next

The draft action plan and consolidated plan remain on a 30‑day public review; staff said they will return May 6 for final council approval after the public review period and once HUD provides the city's allocation, unless HUD directs a different schedule. If HUD's final number changes, the council will revisit allocations as described in the contingency rules.

The hearing and subsequent vote represent the council's procedural approval of recommended CDBG funding priorities and a set of contingency rules; specific grant contracts and disbursements will be finalized after HUD confirmation and any council adjustments.

Ending note

Council members and staff thanked the Block Grants Advisory Committee members and the many nonprofit representatives who attended the meeting and urged ongoing public engagement during the 30‑day review.