Hayward council reviews CDBG consolidated plan and difficult community-agency funding recommendations

Hayward City Council on April 1 received a work-session presentation on the city's proposed five-year Consolidated Plan for Community Development Block Grant (CDBG) investments and the Community Services Commission's (CSC) funding recommendations for fiscal 2025-26.

The city presented the Consolidated Plan, required by the U.S. Department of Housing and Urban Development, as a framework for housing and community-development priorities and for allocating future CDBG funds. Emily Huang, management analyst and project lead for the CAF process, said the plan draws on the city's 2025 strategic roadmap, a residential satisfaction survey, the housing element, the climate action plan and the homelessness strategic plan.

Commission and public commenters said the funding recommendations reflected painful trade-offs because requests far exceeded available funds. Calvin Wong, a Community Services Commissioner and member of the services review committee, described the panel's work as ''brutal'' and said the committee's deliberations produced recommendations after 16 hours of interviews and four hours of discussion. Wong said housing and homelessness was the committee's top priority but that the committee could fund only about 25% of the total requests for those services.

''We were only able to fund around 25% of the total ask,'' Wong said. ''That is an incredible source of shame because I believe that housing is an essential first step.''

Other public commenters and agency representatives urged the council to prioritize legal services and eviction-defense programs. Samantha Beckett, directing attorney of the tenants-rights practice at Central Legal, said Alameda County eviction rates remain high and that tenant legal services are a cost-effective homelessness-prevention tool. Duke Huang, senior-meals program manager at Spectrum Community Services, asked what contingency plan the city would follow if federal CDBG allocations were delayed or reduced.

Council members acknowledged the scarcity of funds and voiced support for reexamining the city's general-fund allocation for community services. Mayor Pro Tem Roach, Councilmember Syra and others said the city should consider increasing general-fund support while being mindful of an overall citywide budget shortfall. Council members also asked staff to provide clearer per-agency data on residents served in prior years to help evaluate the relative impact of grants.

The CSC recommended a mix of full and partial awards across CDBG public services, general fund services and arts and music. Staff noted some specific conditional recommendations in the packet: for example, Bay Area Community Health and another youth-serving project were recommended for additional funding up to $25,000 each if extra funds became available, and that some agencies (including The Arc) were determined to have adequate budgets and were not recommended for CDBG awards.

Council and staff discussed process improvements the city proposes for CAF: moving to a two-year funding cycle, separating arts and music into a distinct process tailored to arts organizations, and revising the scoring rubric to make decisions more objective and transparent. Staff said many applicants find the current process time-consuming (more than 16 hours for many) and that weekday interviews and two-year awards are common in comparable jurisdictions. Assistant City Manager Regina Youngblood and staff said they will present detailed proposed rule changes to the CSC in May and that council priorities would be reconciled with CSC priorities in future cycles.

Councilmembers asked that proposed CAF process changes be discussed with the CSC before Council adopts them, and several members asked staff to provide a clear contingency plan if federal CDBG awards arrive late or smaller than budgeted. Staff said contracts will include contingency language tied to federal funding availability and that, if federal dollars do not come through, staff will return to the council for direction.

The work session did not include final council votes; staff said the public-comment period on the Consolidated Plan runs April 4'May 4 and recommended items will return to Council at a public hearing on April 22. The CSC's recommendations and any staff changes to the CAF process will also return to council for action.

Ending

Councilmembers thanked the CSC and staff for the months of interviews and deliberations. Several members encouraged agencies to diversify funding and explore partnerships with local foundations and businesses. The council did not take formal action on the funding recommendations during the April 1 meeting; votes are scheduled in a future hearing.