Temecula council backs CDBG funding for Mission Hope bridge housing, directs staff to shore up nonprofit shortfalls
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Summary
After a public hearing, the council approved the city’s FY2026–27 CDBG annual action plan to fund a family bridge housing contract with Mission Hope and voted to pursue budget options to make nonprofit partners whole after reallocation of public‑service federal funds.
The Temecula City Council voted unanimously April 14 to advance its FY2026–27 Community Development Block Grant (CDBG) annual action plan, including a staff recommendation to contract with Mission Hope to operate a four‑bedroom family bridge housing residence for Temecula households with children.
City staff told the council that HUD’s recently announced allocation included a small increase — “a slight increase of $19,965” — and that the finance subcommittee recommended concentrating the city’s public‑service CDBG allocation on the proposed family bridge housing and related stabilization services. Frank Perez, the city’s CDBG consultant, reviewed the federal requirements and the plan’s priorities before the hearing.
Why it matters: staff and Mission Hope argued that the bridge housing program fills an immediate gap for families who are homeless or narrowly housed and need local stabilization so children can remain in their schools. Heather Sanford, CEO of Mission Hope, said the nonprofit already serves hundreds of Temecula residents: “In 2025 … we served 2,039 Temecula residents,” and she told the council Mission Hope currently houses multiple Temecula families in its programs and has placed Temecula families in bridge housing.
Council members pressed staff on how the change affected long‑standing nonprofit CDBG awards. City staff said the public‑service slice of CDBG (the program’s 15% maximum) equates to roughly $93,964 this year and that the finance subcommittee recommended dedicating approximately $78,964 of that public‑service allocation to the Mission Hope contract. Staff estimated a shortfall of about $65,000 if the city did not replace other nonprofit awards that had historically come from CDBG.
Council direction and next steps: council members expressed support for the proposal while also directing staff to return at the May budget workshop with options to replace lost nonprofit funding from the city’s general fund or other sources. The city manager told the council he could present a revised community services grant budget to cover the roughly $65,000 gap so nonprofits could receive awards comparable to prior years. The city noted HUD allocations become effective July 1, 2026.
Voices from the public and nonprofits: nonprofit leaders told the council the recommended reallocation would concentrate federal support and risk creating immediate gaps in programs that rely on CDBG. Marshall Hamilton, executive director of the Safe Family Justice Center, warned that CDBG has historically built organizational capacity and “without the ability to fund those roles, it significantly limits the impact and accessibility” of services. Carly Bennett Valle, CEO of the Boys and Girls Club of Southwest County, said redirecting the entire public‑service pot in one year “has created a gap in services that is now felt.”
The vote and follow up: the council approved the action plan recommendation and the staff direction to pursue a general‑fund solution at the May budget workshop. The motion passed 5–0. Staff will return with a proposed budget amendment and timeline to expedite community services grant awards after July 1 if council approves the supplemental funding.
