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San Marcos council adopts FY 2026–27 CDBG action plan, reallocates prior funds to shovel‑ready projects
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Summary
The City Council unanimously adopted the FY 2026–27 Community Development Block Grant annual action plan and substantial amendments, directing $1,182,516—including $685,579 in entitlement funds and $496,937 in reinstated prior‑year funds—toward administration, public services, housing affordability and construction‑ready capital projects.
The San Marcos City Council unanimously adopted the city’s FY 2026–27 Community Development Block Grant (CDBG) annual action plan and substantial amendments at its April 28 meeting.
Quentin Hufford, senior analyst in Housing and Neighborhood Services, told the council the city will receive $685,579 in CDBG entitlement funding for program year 2026–27 and will reinstate approximately $496,937 in prior‑year funds, for a total of $1,182,516. Staff recommended using up to 20% for program administration ($137,000, which includes fair‑housing services); $102,500 for public services such as rental assistance and senior support; $100,000 for housing affordability programs (owner‑occupied rehabilitation and accessibility improvements); and $346,079 in new entitlement funds for community facilities plus $496,937 in reinstated funds for neighborhood infrastructure and park improvements.
Mayor Jones and council members praised renovation work such as HVAC upgrades at the senior activity center and called the rental assistance program a key tool to prevent homelessness. Council member Nunez asked whether staff had flexibility to increase allocations if needs exceed available funds; Hufford said the city expects demand to exceed available CDBG resources and will seek additional funding from other sources while following federal CDBG requirements for eligibility.
The staff report said substantial amendments to prior plans primarily remove the Bradley Park master plan allocation and reallocate those funds to projects that are construction‑ready, including Rich Marr Park Phase 2 and the senior center HVAC replacement. The amendments were published for public review; the public comment period closed at the end of the council’s hearing.
Following council questions and comments, the council closed the public hearing and approved two resolutions adopting the 2026–27 annual action plan and the stated substantial amendments. Staff indicated that, once HUD approves the plan, CDBG funding will be available via reimbursement beginning July 1, 2026, to nonprofit service providers and capital projects.
The council vote was recorded as unanimous, and the approved actions will be submitted to the U.S. Department of Housing and Urban Development for final approval.
