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Hayward approves one‑time CDBG allocations; council directs staff to define expanded CSC advisory role
Summary
After a contentious process and public comment, council approved the FY26–27 CDBG annual action plan (HUD entitlement ~ $1.5M) focusing on one‑time eligible projects; council also asked staff to return with a proposal to expand the Community Services Commission's advisory role and clarify future processes.
Hayward City Council unanimously approved the fiscal year 2026–27 Community Development Block Grant (CDBG) annual action plan and associated one‑time funding recommendations at a public hearing on May 5.
Assistant City Manager Mary Thomas and management analyst Emily Huang told the council that the city’s HUD entitlement for the coming year is about $1.5 million. Staff said, given the city's fiscal constraints and the cancellation of the usual competitive Community Action Fund (CAF) process this year, they prioritized one‑time, CDBG‑eligible projects rather than continuing general‑fund contracts.
"We identified one‑time CDBG‑eligible projects that could fund internal services while incorporating commissioners' feedback to avoid ongoing costs," Emily Huang said, summarizing the staff approach.
Members of the Community Services Commission (CSC) and public commenters urged clearer process and stronger community participation. CSC Chair Lenita Wheeler said commissioners felt sidelined after the sudden cancellation of the normal funding cycle and asked for clearer direction and meaningful engagement in future CDBG decisions. Commissioner Calvin Wong said he voted against the recommendations at the CSC meeting, citing limited CSC input and concern for service providers who had planned to apply for funds.
Council members discussed priorities and safeguards. Council Member Bonia moved to approve the CDBG allocations with the explicit understanding that the allocations are one‑time and not automatically renewed; the motion also directed staff to return with a proposal to formalize an expanded advisory role for the CSC to assist with community needs assessment and related strategic planning. The motion was seconded and passed unanimously.
Councilmembers and commissioners suggested steps for future practice: clearer performance metrics for funded agencies, consideration of a community needs assessment to guide future allocations, and a public process to re‑establish the competitive CAF cycle when the city's fiscal situation allows.
The approved annual action plan will be submitted to Alameda County/HUD as required; staff said public comments received before the June 2 submission deadline will be incorporated.
