Commission recommends rolling over CDBG and HOME allocations as HUD requirements are reviewed

The Davis Social Services Commission on a unanimous vote recommended that the City Council roll over the commission's existing Community Development Block Grant (CDBG) and HOME funding allocations for federal fiscal year 2026–2027 while new federal contract conditions are reviewed.

Director Bailey, who presented the staff report, told commissioners the city received confirmation of an allocation but that the contract accompanying the funds included new requirements that the city attorney is reviewing. "We essentially went six months without understanding whether or not we would have the funding," Bailey said, and staff is proposing to fund the same agencies this year to provide continuity.

Bailey briefed the commission on program limits and recent figures: the city's CDBG award totals about $730,000, public services are limited to 15% of that amount (roughly $109,000), and jurisdictions may use up to 20% of CDBG for administration. Bailey said HOME funds are primarily intended for acquisition, rehabilitation and construction, and that the city will implement an "over‑the‑counter" process to assess developer requests for local support for larger development projects.

Commissioners pressed staff on how shifting federal and state priorities are affecting local providers. Commissioners and staff described that prevention dollars have declined at the federal and state levels while behavioral‑health funding has grown, leaving many local social‑service organizations struggling with staffing and rising operating costs. A commissioner summarized the rationale for the staff recommendation: "I think it makes sense to maintain the continuity in the face of everything else changing in the funding landscape," the commissioner said.

After discussion about separating the immediate decision for FY 2026–27 from a broader rethinking of the allocation approach for future years, one commissioner moved to recommend maintaining the prior allocations; the motion passed unanimously.

Next steps: the commission will forward its recommendation to City Council, which will open a public hearing and decide whether to accept the commission's recommendation and provide further direction to staff. Staff said it will continue liaison outreach and gap analysis with local providers and will return to the commission as HUD guidance and council direction crystallize.