REPORT TO COUNCIL
SUBJECT
Title
Consider Approval of First Substantial Amendment to the FY 2025/26 Housing and Urban Development (HUD) Action Plan to Terminate WorkFirst Sunnyvale Project
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission (HHSC) considered this item on February 25, 2026.
The HHSC voted to approve Alternative 1: Approve the draft First Substantial Amendment to the FY 2025/26 Action Plan as shown in Attachment 3 to the report.
The vote was 5-0 with Commissioner Davis absent.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
ALTERNATIVES
1. Approve the draft First Substantial Amendment to the FY 2025/26 Action Plan as shown in Attachment 3 to the report.
2. Approve the draft First Substantial Amendment to the FY 2025/26 Action Plan with modifications.
3. Do not amend the existing FY 2025/26 Action Plan.
STAFF RECOMMENDATION
Recommendation
Alternative 1: Approve the draft First Substantial Amendment to the FY 2025/26 Action Plan as shown in Attachment 3 to the report.
JUSTIFICATION FOR RECOMMENDATION
The WorkFirst Sunnyvale program ended in October 2025, following the full closure of Downtown Streets Team (DST), a non-profit agency. As a result, a substantial amendment to the FY 2025/26 HUD Action Plan is required to uncommit the remaining funds that were previously committed to the WorkFirst Sunnyvale program. Because alternatives to continue the program this year were fully explored and determined to be infeasible, the uncommitted funds will be made available for future eligible activities.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
_X_ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: Matthew Hazel, Housing Programs Analyst
Reviewed by: Annette Tran, Human Services Manager
Reviewed by: Amanda Sztoltz, Housing Officer
Reviewed by: Trudi Ryan, Director of Community Development
Reviewed by: Dennis Jaw, Assistant Director of Finance
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Connie Verceles, Deputy City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Report to Housing and Human Services Commission [26-0084, February 25, 2026] (without attachments)
2. Draft Summary of First Substantial Amendment to the FY 2025/26 Action Plan
3. Draft First Substantial Amendment to the FY 2025/26 Action Plan
Additional Attachments for Report to Council
4. Excerpt of Draft Minutes of the Housing and Human Services Commission Meeting of February 25, 2026