REPORT TO COUNCIL
SUBJECT
Title
Consider Approval of the Draft 2025-2030 HUD Consolidated Plan and Draft FY 2025/26 HUD Action Plan and Provide Direction Regarding Potential Options if Federal Funding is Reduced
Report
SUMMARY OF COMMISSION ACTION
The Housing and Human Services Commission considered this item on April 15, 2025.
The Housing and Human Services Commission voted to approve Alternative 1: Adopt the draft 2025-2030 HUD Consolidated Plan and 2025/26 Action Plan as shown in Attachments 2 and 3 to this report, and Alternative 3 (with modifications): In the event that CDBG and/or HOME funds are eliminated or substantially reduced, backfill all HUD funds identified in the 2025/26 Action Plan with General Fund giving priority to backfill Sunnyvale Community Services (SCS) programs over other applications if only partial general fund backfill is made available. Commissioner Davis made the motion, Vice Chair Wiess seconded, and the vote was 5-0, with Commissioners Hiremath and Steward 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. Adopt the draft 2025-2030 HUD Consolidated Plan and 2025/26 Action Plan as shown in Attachments 2 and 3 to this report.
2. Adopt the draft 2025-2030 HUD Consolidated Plan and 2025/26 Action Plan as shown in Attachment 2 and 3 to this report with modifications.
Due to federal funding uncertainty, should CDBG and HOME HUD funds be eliminated or substantially reduced, the City shall:
3. In the event that CBDG and/or HOME funds are eliminated or substantially reduced, evaluate backfilling all HUD funds identified in the 2025/26 Action Plan with other City funds, most likely General Fund, and return to Council with a recommended funding strategy.
4. In the event that CBDG and/or HOME funds are eliminated or substantially reduced, do not backfill any HUD funds identified in the 2025/26 Action Plan with City funds.
HHSC ALTERNATIVES
5. In the event that CDBG and/or HOME funds are eliminated or substantially reduced, backfill all HUD funds identified in the 2025/26 Action Plan with General Fund giving priority to backfill Sunnyvale Community Services (SCS) programs over other applications if only partial general fund backfill is made available.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 & 3: (1) Adopt the draft 2025-2030 HUD Consolidated Plan and 2025/26 Action Plan as show in Attachments 2 and 3 to this report and (3) In the event that CBDG and/or HOME funds are eliminated or substantially reduced, evaluate backfilling all HUD funds identified in the 2025/26 Action Plan with other City funds, most likely General Fund, and return to Council with a recommended funding strategy.
JUSTIFICATION FOR RECOMMENDATION
Approval of the Action Plan and Consolidation Plan will allow the City to receive the 2025 CDBG and HOME grants and use them to address local needs for affordable housing and related programs, consistent with the 2025-2030 Consolidated Plan.
Backfilling all HUD funds identified in the 2025/26 Action Plan with General Fund will continue to support these ongoing programs and allow them to continue serving some of the most vulnerable households in our community. Staff does not recommend prioritizing a certain agency to backfill funding if there are insufficient General Funds to cover the entire reduction of federal funds.
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: Matt Hazel, Housing Programs Analyst
Reviewed by: Jenny Carloni, Housing Officer
Reviewed by: Trudi Ryan, Director, Community Development
Reviewed by: Kurtis Mock, Budget Manager
Reviewed by: Matt Paulin, Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. Report to Housing and Human Services Commission [25-0219, April 15, 2025] (without attachments)
2. Link to Draft 2025-2030 HUD Consolidated Plan
3. Link to Draft 2025 HUD Action Plan
4. Excerpt Final Minutes of Housing and Human Services Commission Meeting of March 26, 2025
5. General Fund Human Services Proposals and HHSC Recommendations
Additional Attachments for Report to Council
6. Excerpt Draft Minutes of Housing and Human Services Commission Meeting of April 15, 2025