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Stanislaus County approves $3.6 million HUD annual action plan; staff warn $5 million in Turlock-held HOME funds may expire
Summary
The Board of Supervisors unanimously adopted the FY 2026–27 annual action plan allocating about $3.6 million across CDBG ($2.3M), ESG ($202K) and HOME ($1.1M) programs; staff told the board roughly $5 million of legacy HOME funds remains under the City of Turlock’s control and could be at risk of lapse without committed projects.
The Stanislaus County Board of Supervisors voted 5–0 on May 12 to approve the county’s FY 2026–27 annual action plan for U.S. Department of Housing and Urban Development entitlement funds, authorizing staff to file HUD certifications and implement allocations.
The plan directs approximately $2.3 million to Community Development Block Grant activities, $202,000 to Emergency Solutions Grants and $1.1 million to the HOME Investment Partnerships program, a staff presentation said, for a combined total near $3.6 million. Staff reported that CDBG and HOME allocations will fund infrastructure, affordable housing and public services while ESG will support shelter, rapid re‑housing and prevention programs.
County deputy director Anna San Nicolas told the board the funding recommendations were developed through community and stakeholder meetings between April 8 and May 8 and must meet HUD’s consolidated plan priorities: infrastructure, affordable housing, homelessness and essential services. She said program accomplishments to date include assisting roughly 1,000 residents, about $1.4 million in infrastructure investments and $345,534 awarded last year to nonprofit public‑service projects.
The board’s action authorized the planning director to sign HUD applications and certifications and directed the CEO to sign an allocation agreement with urban county members. Anna San Nicolas and Planning Director Angela Freitas also outlined the county’s regional approach: the Urban County distribution model covers member cities except Modesto and a four‑city HOME Consortium arrangement in which member cities receive allotments based on population and housing units.
A central point of debate during the hearing was $5 million in legacy HOME funds that remain administered by the City of Turlock from prior years. Supervisors asked whether those funds are at risk. Freitas and San Nicolas said Turlock is reviewing prospective projects and that HOME funds have subsidy limits and match requirements that can complicate deploying money quickly. Staff reported the Turlock‑held balance at “approximately $5 million” and cautioned that HUD deadlines are staggered; uncommitted funds could be lost if not reserved or spent. The planning director committed to provide supervisors a schedule of any imminent expirations and to follow up with Turlock staff.
Public commenters urged use of available funds countywide for homeless services and infrastructure. One commenter noted that different HUD funding streams (CDBG, ESG, HOME) have distinct allowable uses and that HOME funds cannot be used for certain shelter needs.
After public comment, the board moved to adopt the staff recommendations and close the hearing. The motion passed 5–0. The board also approved related routine consent steps needed for HUD submission and authorized staff to make HUD‑required adjustments.
What happens next: staff will finalize and submit the HUD annual action plan and sign required agreements; planning staff said they will return with more detail on deadlines and the status of legacy funds held by the City of Turlock. The hearing record indicates the county will continue coordinating with cities and nonprofit partners to leverage other funding sources for larger projects.
