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Monterey council approves draft CDBG annual action plan for FY 2026–27 and authorizes HUD submission
Summary
The council conducted a public hearing on the draft FY 2026–27 Community Development Block Grant (CDBG) action plan and voted to authorize submission to HUD. Staff proposed an entitlement of $242,234 with up to $1.2 million in program income and recommended priority allocations for purchase-and-resale, public services and planning/administration.
The Monterey City Council held a public hearing May 5 on the draft FY 2026–27 CDBG annual action plan and voted to authorize staff to submit the plan to the U.S. Department of Housing and Urban Development.
Jacob Verania, housing and community development coordinator, outlined the city's draft allocation and program priorities. "Our entitlement amount for fiscal year 26–27 is $242,234," Verania said, adding that staff estimates program income could total up to about $1.2 million. The plan proposes priorities that include public service grants (approximately $215,400), purchase-and-resale activity (recommended up to $940,000) and planning and administration (about $118,000), with backup projects identified should actual program income vary.
Councilmembers asked clarifying questions about how rehabilitation and resale costs are treated, how program income is counted for the 15% public-service cap and how the city will prioritize backup projects. Staff said sales proceeds after resale typically return as program income to the program, and that staff would adjust allocations if final program-income figures require compliance with HUD caps. The council also confirmed that language identified in an earlier draft that had raised concerns about transgender-related phrasing had been corrected to state the city will comply with applicable state and federal regulations.
After public comment and questions, the council moved to accept staff's recommendation to submit the draft action plan to HUD; the motion passed unanimously. Staff said they will proceed with HUD submittal and will return to council if adjustments to the plan are required after final program-income figures are confirmed.
