Vallejo commission opens public hearing on FY 2026–27 action plan amid questions over use of federal funds

At 07:10 the Vallejo commission opened a public hearing on the proposed Fiscal Year 2026–27 Annual Action Plan, which outlines how the city would allocate Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and HOME‑ARP funds.

The plan presented by consultant Jean Adcock of John Kellogg & Associates lists Vallejo’s CDBG allocation at $1,049,400 with anticipated program income of $61,000 (a combined CDBG total of about $1,112,400) and HOME funds at about $420,114.54 with roughly $10,000 of program income. Adcock also noted prior‑year Neighborhood Stabilization Program (NSP) funds of roughly $920,000 and unspent HOME‑ARP dollars the city will address separately. “Vallejo’s allocation will be 1,049,400 with an anticipated program income of 61,000 for a total of 1,112,400 for CDBG,” Adcock told commissioners.

Why it matters: the AAP sets the federal funding priorities the city will submit to HUD and is the basis for grant agreements. Several commissioners pressed staff on whether the plan matches community needs, how match obligations would be met for HOME projects, and whether the city has a realistic timetable to spend legacy NSP and HOME‑ARP funds.

Commissioners pressed several specific points. Vice Chair Jackson asked for details on the $920,000 NSP balance and whether the consultant’s contract included work to craft a spending plan; staff replied the NSP money remains in the U.S. Treasury and HUD requires it to be listed in the plan, but there is not currently a staffing plan to implement those funds. Jackson asked commissioners to “elaborate more on that” and whether staff planned to expand use of the NSP funds; staff indicated the projects stalled and no active implementation plan exists now.

On HOME‑ARP uses, a commissioner noted a slide listing multiple HOME/Home‑ARP uses appeared inconsistent with the narrative. Staff acknowledged an error on the slide and clarified that HOME‑ARP can fund supportive services and that HOME and HOME‑ARP processes and public hearings are handled separately. “That box is specifically for HOME. … One of the eligible uses of HOME‑ARP is providing funds for supportive services,” a staff member said.

Commissioners also questioned a staff proposal to use remaining COVID‑era CDBG funds for outdoor gym equipment at the waterfront, citing optics and alternatives that more directly aid households affected by recent housing decisions. Staff and the consultant said the funds are time‑limited and must be tied to pandemic‑related activities; the city has about $114,000 of remaining COVID CDBG that HUD requires be spent by September or risk recapture. A staff member explained the waterfront project has been in development for years and that outdoor equipment can be tied to pandemic‑era programming to meet HUD eligibility.

Policy and process details that commissioners requested to track: the city is required to set aside HOME CHDO funding (staff said a 15% set‑aside is required by regulation) and intends to issue an RFP to select a new CHDO; commissioners requested the commission review any RFP and resulting contract. Staff also said HOME match requirements (a 25% non‑federal match for HOME projects) are tracked with finance and must be confirmed when projects are budgeted.

Public input and next steps: staff said the public comment period for the draft AAP opens the day after the hearing and will run 30 days; staff expects to provide a corrected draft that incorporates comments and return the final version to city council for approval. The consultant reminded the commission that specific funds (NSP, HOME‑ARP) require separate action plans and public hearings before the funds are expended.

Vote: Commissioner Cassidy moved to conduct the public hearing and adopt the enclosed resolution recommending city council approval of the FY 2026–27 Annual Action Plan; the motion passed unanimously and Chair Bundy adjourned the meeting at 08:08.

What to watch next: staff will post the corrected draft, accept 30 days of public comment, and return a final AAP for council action; commissioners requested sight of the draft RFP for any CHDO selection and further detail on sources of HOME match before projects are allocated.