City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Toni Lundgren, City Manager |
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Prepared by: |
Vielka Guarascio, Homeless & Housing Services Manager |
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Date: |
March 17, 2026 |
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Subject: |
2026-27 CDBG and HOME Funds Allocation |
Recommendation:
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Adopt a resolution allocating 2026-27 Community Development Block Grant (CDBG) funds in the approximate amount of $420,013 and 2026-27 Home Investment Partnership Act (HOME) funds in the approximate amount of $111,278; approving the CDBG Project Requests allocation recommendations provided in Attachment 2; approving the allocation of HOME funds to The Way Veteran Village project; approving the allocation of the County-approved CDBG and HOME award funds to subrecipients in accordance with the award allocation recommendations; and authorize City Manager or designee to proportional adjustments to funding amounts based on the final HUD allocations and sign the CDBG and HOME subrecipient agreements and necessary documents.
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Background:
Each year, the City receives federal CDBG and HOME funds from the U.S. Department of Housing and Urban Development (“HUD”) through San Joaquin County (“County”), which administers the program under an Urban Cooperative Agreement with participating cities. These funds must primarily benefit low- to moderate-income residents.
For fiscal Year 2026-27, the City is expected to receive approximately:
• $420,013 in CDBG funds
• $111,278 in HOME funds
CDBG funds are subject to federal allocation limits, including no more than 15% for public services and 14% for administrative costs, while capital improvement projects are not subject to these limits.
After soliciting applications in December 2025, staff received $685,533 in project requests from nonprofit organizations and City programs. Based on eligibility criteria and community priorities, staff recommends allocating the funds as follows:
Public Services (15% - $63,002 total):
• H.O.P.E. Ministries - $10,501
• PREVAIL - $10,501
• Second Harvest of the Greater Valley - $10,000
• Emergency Food Bank of Stockton - $3,000
• San Joaquin Fair Housing - $7,500
• San Joaquin County Human Services Agency - $8,500
• Give Every Child a Chance - $13,000
Public Facilities/ Improvements ($357,011 total):
• Boys & Girls Club of Manteca - $155,000
• Manteca Navigation Center - $202,011
The City also uses CDBG funds to contract with San Joaquin Fair Housing to provide required fair housing services. Without this contract, the City would need to provide these services internally.
Staff recommends allocating $111,278 in HOME funds to The Way Veteran Village project, which supports affordable housing for veterans.
Final allocations are subject to HUD’s final funding determination. Any adjustments will be applied proportionally, with CDBG changes affecting the Navigation Center project and HOME changes affecting The Way Veteran Village project.
The County Board of Supervisors is expected to consider final approval of the recommended projects in May 2026, with funds becoming available after July 1, 2026.
Fiscal Impact:
These projects are funded entirely by federal CDBG and HOME funds. Administrative costs are covered by program funds, resulting in no impact to the City’s General Fund.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - 2026-27 CDBG Project Requests
3. Attachment 3 - Subrecipient Agreement