TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Community Development Block Grant (CDBG) FY 2026-2027 Action Plan.
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RECOMMENDATION
recommendation
1) Conduct a Public Hearing to receive public comment; 2) approve the 2026-2027 CDBG Annual Action Plan in the amount of $570,458 and estimated carryover funds in the amount of $305,450 for total expenditures estimated to be $876,248; 3) authorize the City Manager to execute all necessary documents on behalf of the City and submit the 2026-2027 CDBG Annual Action Plan; and 5) authorize staff to complete all federal environmental reviews per 24 Code of Federal Regulations (CFR) Part 58.
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FISCAL IMPACT
The City has received a funding allocation of $570,458 in CDBG program funds for FY 2026-2027. There will be an estimated carryover of funds in the amount of $305,450. The actual carryover funds will be determined at the close of FY 2025-26. This allocation has been incorporated into the City’s FY 2026-2027 budget.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Public Service Excellence through Internal and External Partnerships
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Revenue: |
Expenditure: Fund 350- CDBG |
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Transfer In: |
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BACKGROUND
On January 26, 2026, the Community Services, Parks and Recreation (CSPR) Commission (“Commission”) received presentations from applicants seeking Public Service grant funding. Following the presentations, the Commission sub-committee conducted a comprehensive review of all applications on February 12, 2026, ranking and prioritizing proposals and developing preliminary funding recommendations based on established evaluation criteria, including consistency with the U.S. Department of Housing and Urban Development (HUD) national objectives, alignment with the City’s Needs Assessment, and the provision of unduplicated services.
On February 23, 2026, the Commission sub-committee presented its recommendations to the full Commission. The Commission approved the recommendations (Exhibit 1) following review and discussion and recommended them to City Council for consideration.
Capital Improvement Project applications were reviewed by City staff using the same criteria.
ISSUES/ANALYSIS
The primary objective of the CDBG program is to create viable urban communities through adequate housing, a suitable living environment, and expanded economic opportunities, principally for low- and moderate-income persons. The FY 2026-27 CDBG Annual Action Plan outlines the City’s proposed use of its annual allocation of $570,458.
Exhibit 1 summarizes the Commission’s funding recommendations, including allocation of 15% of total funds to public service programs and 65% to capital improvement projects, consistent with staff recommendations.
Tonight’s Public Hearing satisfies HUD’s Citizen Participation requirements for the adoption of the FY 2026-2027 Annual Action Plan. A 30-day public review period, held from March 7, 2026, through April 9, 2026, provided an opportunity for community input. No written comments were received. Following adoption, the Action Plan will be submitted to HUD for review and approval.
Attachments:
Exhibit 1: CDBG FY 2026-2027 Funding Recommendations
Exhibit 2: Program Year 2026-2027 Annual Action Plan