REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Evaluations and Funding Recommendations for FY 2026/27 and FY 2027/28 Allocations of HOME Investment Partnerships Program and HOME ARP Funds and FY 2026/27 Community Development Block Grant Funds
Report
REPORT IN BRIEF
The City of Sunnyvale issued a Request for Proposals (RFP) for its Community Development Block Grant (CDBG), HOME-ARP, and HOME Investment Partnerships Program (HOME) funds. These federal resources support local nonprofit organizations that provide services aligned with priorities identified in the City’s five-year Consolidated Plan. Through the RFP process, staff have developed funding recommendations for consideration by the Housing and Human Services Commission.
BACKGROUND
As an entitlement jurisdiction, the City of Sunnyvale receives CDBG and HOME formula grants each year from the United States Department of Housing and Urban Development (HUD). The annual amount that the City receives is based on several factors, including population, poverty levels, and housing statistics. These funds are used to support community development programs and local housing strategies designed to increase opportunities for low- and moderate-income income residents.
Additionally, the City received one-time supplemental HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) funding in 2022 to reduce homelessness and increase housing stability. This funding expires on September 30, 2030.
CDBG Eligible Projects
CDBG capital project proposals may include housing rehabilitation projects, economic development activities, public facilities and/or infrastructure improvements, acquisition of land for CDBG-eligible projects, commercial building rehabilitation, and other eligible activities authorized under CDBG regulations. All funded projects must demonstrate compliance with the national objective of benefiting low- and moderate-income persons.
HOME Eligible Projects
Since 2022, the City has dedicated its HOME funds exclusively to Tenant Based Rental Assistance (TBRA) program, administered through two-year contracts. The TBRA program provides short term rental assistance to income-eligible households to support housing stability. Therefore, this RFP proposes to allocate FY 2026/27 and FY 2027/28 HOME funds toward a new two-year TBRA contract.
HOME ARP Eligible Projects
The City completed its Fund Allocation Plan to HUD in FY 2021/22 and indicated its desire to use all eligible ARP funds for its TBRA program subsidies.
Final grant recommendations from the Housing and Human Services Commission will inform preparation of the 2026/27 Annual Action Plan, which is scheduled for considered by the Housing and Human Services Commission on April 14, 2026, and City Council on May 5, 2026.
EXISTING POLICY
2025-2030 HUD Consolidated Plan:
Goal A Assist in the creation, improvement, and preservation of affordable housing for lower-income and special needs households.
Goal B Alleviation of Homelessness
Goal C Support provision of essential human services, particularly for special needs populations.
Goal D Expanding Economic Opportunities
Council Policy 5.1.3 Human Services
The City shall make its best efforts to provide supplemental human services, which include but are not limited to emergency services, senior services, disabled services, family services, and youth services.
Sunnyvale Housing Element
Goal H-5: Equal Housing Opportunities and Special Needs
Promote equal housing opportunities for all residents, including Sunnyvale’s special needs populations, so that residents can reside in the housing of their choice.
Policy H-5.13: Housing and Services to Address Homelessness.
Participate in the County Collaborative on Affordable Housing and Homeless Issues to support its efforts to prevent and end homelessness. Facilitate and sponsor the provision of permanent supportive housing for homeless people. Support local service providers that offer facilities and support services to homeless individuals and families, and persons at risk of homelessness.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a "project" with the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines section 15378(b)(4) in that is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
DISCUSSION
In January 2026, the City of Sunnyvale ran two concurring RFPs for its CDBG and HOME funds.
The CDBG Capital Projects RFP offered $700,000 in available funding for eligible projects, and the HOME/HOME-ARP TBRA RFP offered $2,700,000 over two years to operate the City’s TBRA program.
In response to the two RFPs, the City received two proposals for CDBG capital projects, and two proposals for HOME/HOME-ARP Tenant Based Rental Assistance Program. Brief descriptions of each application are discussed below. The full applications are included as Attachment 3.
Staff Scoring Committee
A scoring committee comprised of Community Development Department staff reviewed and evaluated all submitted proposals. The committee assessed eligibility, completeness, and alignment with the evaluation criteria outlined in the RFP, as well as the priority needs identified in the City's 2025-2030 Consolidated Plan. Each committee member independently scored the proposals, and the scores were averaged to determine a final score for each proposal. Proposals were then ranked based on their average score, as shown in Attachment 2.
Funding Proposals
CDBG Capital Project Proposals
For this RFP, two capital project proposals were received as shown in Attachment 2. Both are being recommended for funding at the levels requested, as the local need was clear and the total requested amount did not exceed the available funding level.
1. Upwards Care Inc. - Boost Program
Upwards Care Inc. requested $119,000 for their Boost Program, an economic development program that offers personalized business and technical support for small, micro-enterprise home daycare providers to grow and optimize their business. Over twelve months, Boost staff work closely with Sunnyvale low-mod income home daycare providers, equipping them with digital tools and professional guidance to build sustainable operations and increase their staffing and enrollment capacity, creating more jobs and leading to more accessible childcare options for Sunnyvale families.
The program proposes to serve 13 micro-enterprise providers in the new program year. Staff recommends funding this proposal in the amount of $119,000, as shown in Attachment 2. Upwards’ average score was 75/100.
2. Rebuilding Together Silicon Valley - Repair and Accessibility Modification Services
Rebuilding Together requested $120,000 to support its Repair and Accessibility Modification Services program, which offers rehabilitation work low- and moderate-income owner-occupied houses. Through an extensive volunteer network, Rebuilding Together Silicon Valley hosts two rebuilding days each year where volunteer teams complete less urgent home repairs and a greater depth of maintenance activities. Typical projects involve exterior painting, stair repairs, deck and porch repairs, debris removal, and deferred maintenance repair work.
The program proposes to serve 13 homeowners and will help preserve the City’s existing housing stock by maintaining natural affordable homes and enabling residents, particularly seniors and individuals with disabilities, to safely age in place. The program would complement the City’s CDBG-funded Home Improvement Program, allowing the program to focus on high-demand grants for roof replacement and emergency rehabilitation. Staff recommends funding this proposal for $120,000, as shown in Attachment 2. Rebuilding Together’s average score was 77/100.
HOME Tenant Based Rental Assistance (TBRA) Proposals
The City received two proposals to administer the HOME TBRA program. One proposal was submitted by the existing TBRA program administrator, Sunnyvale Community Services (SCS); the second proposal was from LifeMoves.
1. Sunnyvale Community Services (SCS)
SCS proposes to serve 40 households at risk of or experiencing homelessness. SCS demonstrated experience operating the program for the City, highlighting access to a variety of beneficial programs, knowledge of the community, experienced personnel in place, and citing successful housing placements with the existing program. Additionally, SCS demonstrated current experience with operating a federal rental assistance program. SCS’s average score was 52/60.
2. LifeMoves
LifeMoves proposed to serve up to 31 households at risk of or experiencing homelessness annually. The program has experience with Rapid Rehousing Programs (similar to TBRA) in addition to housing placement, and case management services. Their application exhibited a very strong ability to provide supportive services, including behavioral health support services and clinical case management, which would serve chronically homeless individuals and others who may have more housing challenges. The applicant proposed a staffing structure of two fulltime (FT) case managers and one FT Housing Specialist to serve TBRA participants.
The applicant did not demonstrate experience with operating a federal rental assistance program nor how they would be able to quickly ramp up to take on the City’s program starting in July. LifeMoves average score was 49/60.
Based on the evaluation results, the Committee recommends funding SCS in the amount of up to $2,700,000 to continue administering the City’s TBRA program for FY 2026/27 and FY 2027/28 ($1,350,000 per fiscal year).
Other Funded Projects for FY 2026/27
CDBG Public Services
The City funds its Public Services grantees on a two-year grant cycle, with FY 2026/27 representing the second year of the current grant term. Consistent with federal regulations, the City will allocate up to 15% of its annual CDBG entitlement grant to support Public Services activities during the second-year term.
City of Sunnyvale CDBG Home Repair Programs
The City reserves funding from its annual entitlement to fund the CDBG Home Repair grant and revolving loan programs which serve low-income homeowners with major roof repairs and minor home repairs.
The total amount requested in the CDBG funding was less than the total amount of funding available, with approximately $651,700 left in uncommitted funding. The Commission may choose to retain this amount for next year’s capital projects RFP or consider expanding the funding for current applicants.
FISCAL IMPACT
The recommended funding allocations will not impact the General Fund. make use of HUD CDBG, HOME, and HOME ARP grant funds and related Program Income for key areas consistent with the grant program regulations. Expenditure of these federal funds is necessary to meet timeliness requirements in place by HUD.
|
ESTIMATED CDBG Funds Available for FY 2026/27 |
|
|
Entitlement Grant |
$1,038,000 |
|
Prior Year Fund Balances Available to Commit |
$550,000 |
|
Program Income (PI) |
$160,000 |
|
Total Budget Allocation Estimates |
$1,748,000 |
|
Total CDBG Funding Allocations |
|
City Administration (20% Cap*) |
$237,600 |
|
Year 2 Public Services Grants (15% Cap*) |
$179,700 |
|
Revolving Loan Fund (Loans and Admin)* |
$240,000 |
|
Sunnyvale Home Improvement Program |
$200,000 |
|
Proposed Capital Project Funding |
$239,000 |
|
Total Allocated Funding |
1,096,300 |
|
Remaining Unallocated CDBG Funds |
$651,700 |
* Administration and Public Service caps are calculated based on the CDBG entitlement plus program income in accordance with HUD regulations. Public Services calculations use estimated program income received in FY 2025/26 ($160,000), while Administration calculations use estimated program income for FY 2026/27 ($150,000).
|
ESTIMATED HOME and TBRA Budget for FY 2026/27 & 2027/28 |
|
|
Program Income (PI) |
$100,000 |
|
Prior Year HOME and HOME-ARP Funds |
$1,900,000 |
|
Housing Mitigation Funds |
$200,000 |
|
|
|
|
Former Redevelopment Agency Low-Moderate Income Funds |
$500,000 |
|
Funds Offered for 2 Year TBRA Contract |
$2,700,000 |
PUBLIC CONTACT
Public contact was made by posting the meeting agenda on the City's official-notice bulletin board at City Hall. 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. Fund the CDBG capital project and TBRA proposals in the amounts shown in Attachment 2 to this report.
2. Fund one or more of the proposals with a different amount(s) than those recommended by staff as shown in Attachment 2, not to exceed the total amount of funding estimated to be available for each funding source.
RECOMMENDATION
Recommendation
Alternative 1: Fund the CDBG Capital Project and HOME and HOME ARP proposals in the amounts shown in Attachments 2 to this report.
JUSTIFICATION FOR RECOMMENDATION
The recommended funding allocations utilize HUD grant funds and related program income for eligible activities consistent with federal program regulations. Each applicant demonstrated that their proposed services fall within allowable uses, address identified community needs in Sunnyvale and primarily benefit low-income households. Timely expenditure of these federal funds is also necessary to ensure compliance with HUD timeliness requirements.
As mentioned above, the total amount requested in the CDBG funds was less than the total amount available, with approximately $651,700 left in uncommitted funding. The Commission may choose to retain this amount for next year’s capital projects RFP or consider expanding the funding for current applicants.
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
_X_ 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
___ 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
ATTACHMENTS
1. FY 2026/27 List of Grant Proposals Received
2. FY 2026/27 CDBG and HOME TBRA Draft Funding Recommendations
3. FY 2026/27 Capital Project and HOME TBRA Proposals