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Council approves FY2026 HUD action plan allocating CDBG, HOME and ESG funds; unanimous vote
Summary
The council unanimously approved the FY2026 Annual Action Plan for HUD entitlement funds, allocating roughly $12M in CDBG, $30.3M in HOME funds and $990K in ESG while highlighting the programmatic emphasis on shelter, prevention and affordable housing production.
The San Diego City Council unanimously approved the FY2026 Annual Action Plan for HUD entitlement programs on June 30, authorizing the city to submit its application to the U.S. Department of Housing and Urban Development and committing federal CDBG, HOME and ESG funds to local housing and homelessness programs.
Economic Development Department staff presented the plan, noting proposed budgets of approximately $12 million for the Community Development Block Grant (CDBG) program, roughly $30.3 million for HOME (including prior‑year funds and program income) and about $990,000 for the Emergency Solutions Grant (ESG). Staff said the HOME allocation proposes $27.6 million for affordable rental housing production and $1.5 million for a first‑time homebuyer program.
“Projects and programs recommended for funding will help the City make progress towards achieving its five consolidated plan goals,” Community Development Coordinator Melissa Villopondo said, summarizing program priorities including economic development, nonprofit capital improvements and public services limited by HUD rules.
Public commenters from local nonprofits and service providers urged council to approve the plan and highlighted program impacts: Jarrett Thompson of Serving Seniors described transitional housing units that serve older adults, while Rebecca Raider of Voices for Children urged continued CDBG support for foster‑care advocacy services. Somali Family Service’s Hassan Adderman emphasized CDBG’s return on investment for underserved neighborhoods.
Why it matters: The action plan allocates federal entitlement dollars to programs addressing affordable housing production, homelessness prevention and community services. Staff also noted a council policy set‑aside of up to 25 percent of CDBG public‑service funding for homelessness programs (capped by a numeric limit), and the plan includes administrative caps required by HUD.
Council Member Elo Rivera moved and the council adopted the staff recommendations unanimously. Councilmembers noted federal budget uncertainty in future years and thanked community partners and staff for work on the plan. Staff said the city intends to submit the final action plan to HUD before July 13.
