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San Diego council adopts FY2027 HUD action plan allocating CDBG, HOME and ESG funds

San Diego City Council · April 21, 2026

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Summary

Council unanimously approved the draft FY2027 annual action plan for HUD entitlement grants, allocating roughly $13.8M in CDBG, $31.5M in HOME and $969k in ESG to homelessness prevention, nonprofit facility improvements, affordable housing production and other programs.

The San Diego City Council on April 21 approved the city’s FY2027 Annual Action Plan and authorized submission to the U.S. Department of Housing and Urban Development. Economic Development Department staff presented recommended allocations for the city’s HUD entitlement grants, which were confirmed by HUD on April 3, 2026.

Staff laid out the budgets included in the plan: Community Development Block Grant (CDBG) approximately $13.8 million, HOME Investment Partnerships funds approximately $31.5 million (including new grant funds, loan repayments and prior‑year balances), and an Emergency Solutions Grant (ESG) allocation of roughly $969,322. The plan distributes CDBG across public services, nonprofit facilities and economic development following HUD regulations (administration capped at 20% of CDBG; public services capped at 15%). Staff proposed bridge funding (Bridge to Home) of about $1.38 million to provide gap financing for affordable housing projects and earmarked HOME funds for rental housing production and first‑time homebuyer assistance.

Melissa Villalpando, a community development coordinator with EDD, reviewed the competitive NOFA/RFQ process used to identify awardees and described technical assistance, scoring and CPAB (Consolidated Plan Advisory Board) involvement. Nadine Hassoun and San Diego Housing Commission staff described HOME‑funded examples including rental projects receiving federal HOME loans or project‑based vouchers.

Nonprofit speakers including Vanessa Ruiz of Promises to Kids and Hassan Abdulhaman of Somali Family Service urged council to support renovation and program funding that serve foster youth, immigrants and other vulnerable groups. Public commenters and councilmembers emphasized transparency, continued technical assistance for applicants and opportunities for earlier council input in future cycles.

Councilmember Campillo moved adoption of the plan and Council approved it unanimously, 9–0. Staff said public comment received during the open period and responses will be included in the final plan submitted to HUD by the May 15, 2026 deadline.

The adopted action plan authorizes the city to apply for FY2027 entitlement funds and to implement the listed allocations and programmatic priorities; individual projects funded through the plan’s allocations will be managed by EDD and the San Diego Housing Commission under HUD rules.