Rancho Santa Margarita adopts 2025–29 consolidated plan, adjusts CDBG allocations

The Rancho Santa Margarita City Council unanimously adopted a five-year Consolidated Plan covering fiscal 2025–2029, the 2025–26 annual action plan and an updated Assessment of Fair Housing, the council voted during its May 14 regular meeting.

Mike Lanieris, the city’s CDBG consultant, told the council that HUD published the city’s allocation late that day and it came in about $13,000 higher than the earlier estimate — roughly a 7% increase over the $200,000 figure the staff had used in preliminary planning. He said staff’s recommendation is to scale previously proposed allocations upward proportionally to capture the additional funds. “We’re recommending we just adjust those upward by the 7% roughly,” Lanieris said.

The plan identifies five funding categories: public facility and infrastructure improvements, housing preservation (including a minor home repair program), public service grants, homelessness-prevention services, and program administration including fair-housing services. Lanieris explained limits the program enforces: public services are capped at 15% of annual CDBG funding and administration is restricted to no more than 20%.

During the public hearing, Anna Conte, CEO of Family Assistance Ministries, urged continued CDBG support for organizations that provide rental and utility assistance and case management to low-income Rancho Santa Margarita residents. “At FAM, CDBG funds are used as a supplemental source, strategically combined with other funding streams to maximize reach and results,” Conte said, describing the organization’s role helping residents avoid displacement.

Council members praised the thoroughness of the staff report and consultant presentation. Council member Barrett cited housing-cost figures in the materials, noting the city’s median rent (reported by Zillow in February 2025) was $3,750 and referenced the broader affordability challenges facing Orange County. The staff report also describes a small city-run minor home repair grant (up to $5,000) targeted to seniors and homeowners with disabilities to support accessibility and basic maintenance.

The council also approved three amendments to the city’s citizen-participation plan; the most substantive would increase the threshold that triggers a “substantial amendment” to the consolidated plan from 45% to 55% of funds, a change Lanieris said HUD encourages to avoid requiring formal public hearings for minor reallocations.

Mayor Beal moved to adopt the resolution approving the consolidated plan, the annual action plan, the Assessment of Fair Housing, and the proposed citizen-participation amendments; the motion carried unanimously.

Next steps: staff will incorporate the updated allocation figures into the one-year action plan and finalize grant agreements and awards to nonprofit service providers identified in the plan.