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Council accepts HUD entitlement grants report; staff to release NOFA Feb. 2 and return with recommendations
Summary
City staff presented Chula Vista’s required public hearing on HUD entitlement funds (CDBG, HOME, ESG), outlined allowable uses and constraints (15% cap on CDBG public services), announced a Feb. 2 NOFA and March 2 application deadline, and the council unanimously accepted the report and timeline.
City staff presented the required public hearing on Jan. 6 for Chula Vista’s 2026–27 Annual Action Plan for HUD entitlement grants and the City Council unanimously accepted the staff report.
Dania Gonzalez, principal management analyst in Housing and Homeless Services, described the three entitlement programs the city receives—Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG)—and explained eligible uses and statutory constraints. She noted that public service activities combined are limited to 15% of total CDBG funding and that HOME has historically supported first‑time homebuyer assistance and affordable housing loans, while ESG supports shelter operations and homelessness prevention.
Gonzalez summarized the schedule and outreach plan: the Notice of Funding Availability (NOFA) will be released Feb. 2, applications will be due March 2, staff will return with recommendations at an April public hearing and seek final approval in May to meet HUD’s May 16 submission deadline. Staff said estimated annual amounts are based on past appropriations but cautioned that Congress had not yet set this year’s allocations and that federal grant terminations could affect agreements.
During the council discussion several members urged staff to prioritize sidewalk and ADA pedestrian improvements in older neighborhoods and to consider direct supports for at‑risk populations. Staff explained the existing use of a Section 108 loan to fund CIP work and that roughly $320,000 per year is available for public‑service projects under the 15% cap. Council members asked for follow‑up materials, including cost estimates for sidewalk projects and a clearer breakdown of planned investments by subcategory; staff said the application period will determine final recommendations and that the public review period runs from March 13 to April 14 with an anticipated April 14 hearing.
The City Council voted unanimously to accept the staff report; staff will publish the NOFA on Feb. 2 and return with application‑based recommendations in April.
