REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Review of 2025/26 Consolidated Annual Performance Evaluation Report (CAPER)
Report
BACKGROUND
The Consolidated Annual Performance Evaluation Report (CAPER) is the City’s annual report on the housing and community development activities funded by two federal entitlement grants received annually by the City: the Community Development Block Grant (CDBG) and the HOME Investment Partnership Program Grant (HOME). The CAPER reports expenditures, accomplishments, and progress toward the goals established in the City’s Five-Year Consolidated Plan and the Annual Action Plan.
The draft CAPER, provided in Attachment 1, covers fiscal year (FY) 2025/26, and is the first annual performance report under the 2025-2030 Five-Year Consolidated Plan, which was approved by the City Council on May 6, 2025 (RTC No. 25-0551). The CAPER is required by the U.S. Department of Housing and Urban Development (HUD) and must be submitted within 90-days of the end of the program year to maintain the City’s ongoing eligibility for these CDBG and HOME funding.
EXISTING POLICY
2025-2030 HUD Consolidated Plan:
Goal A Affordable Housing: Support in the creation, improvement, and preservation of affordable housing for lower-income and special needs households.
Goal B Homelessness: Support program and services that prevent and alleviate homelessness.
Goal C Community Development: Support the provision of essential human services, particularly for lower-income and special needs populations.
Goal D Economic Opportunities: Support economic development activities that promote employment opportunities and help lower-income individuals secure and maintain employment
ENVIRONMENTAL REVIEW
This matter is not a project within the meaning of CEQA, because the creation of government funding mechanisms or other government fiscal activities, such as annual grant reporting, do not involve commitments to any specific project which may result in a potentially significant physical impact on the environment (CEQA Guideline15378(b)(4)).
DISCUSSION
Eligible Uses of the Grants
The CDBG and HOME grants may be used only for activities that primarily benefit the City's lower-income residents and neighborhoods. Both grants allow a limited amount of funds for program administration by the City.
Community Development Block Grant
CDBG may be used for housing and community development activities, such as housing rehabilitation, public services, public improvements and facilities, economic development, and certain other narrowly defined community development activities.
HOME Grants
HOME grants may only be used for the creation and preservation of housing affordable to lower-income residents, specifically: new construction, acquisition, and/or rehabilitation of deed-restricted affordable rental housing, tenant-based rental assistance (TBRA), or down-payment assistance programs.
Grant Reporting Requirements
The HOME and CDBG grants are subject to federal regulations that impose reporting requirements and expenditure time limits on all grantee jurisdictions. The primary reporting requirements are the following:
Five-Year Consolidated Plan ("ConPlan"). The ConPlan is a five-year strategic plan that identifies the housing and community development needs of lower-income residents and neighborhoods of the City, based on community input. The ConPlan also prioritizes these needs, identifies funding available to the City to address them (primarily the CDBG and HOME grants), and establishes annual goals and objectives to meet the identified needs using the grant funds.
Annual Action Plans. The Action Plan is essentially a one-year budget and grant application describing how the City proposes to use its CDBG and HOME funds during the coming fiscal year. HUD must approve each Action Plan on or before July 1 of each year so the City can begin using the grant funds. Each Action Plan is appended to the ConPlan after approval by HUD.
Annual Performance Report ("CAPER"). The CAPER describes each grantee jurisdiction's progress in implementing its most recent Action Plan. It includes a summary of the City's grant expenditures and the accomplishments of the grant-funded activities, many of which are implemented by non-profit agencies or "sub-recipients".
The City must prepare and submit the CAPER to HUD within ninety days of the end of each program year. The CAPER allows local and federal stakeholders to see how grantees nationwide are using HUD funds and how well grant-funded activities are performing.
The City must share the above plans and reports in draft form with the community to give local stakeholders an opportunity to comment and request changes before submitting them to HUD. The City publishes notices in the Sunnyvale Sun and on its website and holds public hearings before the Housing and Human Services Commission (and City Council, in the case of the ConPlan and Action Plans) before finalizing each draft plan and sending it to HUD.
2025-26 CAPER
Table 1 below provides an overview of each grantee’s total expenditures based on its 25-26 allocation and overall program performance.
TABLE 1 Program Expenditures and Performance
|
Funding Source |
Program |
Agency |
Budget |
Actual |
Performance Goal |
Actual |
|
CDBG |
Family and Individual Counseling |
Bill Wilson Center |
32,000.00 |
29,010.55 |
32 |
29 |
|
|
Court Appointed Special Advocates |
Child Advocates of Silicon Valley |
43,000.00 |
43,000.00 |
13 |
15 |
|
|
Senior Nutrition Program |
Sunnyvale United Methodist Church |
39,800.00 |
39,800.00 |
50 |
61 |
|
|
Year-Round Food Program (CDBG) |
Sunnyvale Community Services (SCS) |
41,000.00 |
39,771.32 |
233 |
232 |
|
|
Year-Round Food Program (CDBG-CV) |
Sunnyvale Community Services (SCS) |
150,000.00 |
150,000.00 |
550 |
628 |
|
|
Fair Housing |
Project Sentinel |
26,415.00 |
26,415.00 |
25 |
36 |
|
|
WorkFirst Sunnyvale |
SCS / Downtown Streets Team |
171.604.42 |
171,604.42 |
16 |
16 |
|
|
Boost Program |
Upwards Care |
64,000.00 |
64,000.00 |
8 |
8 |
|
|
Carroll Inn Rehabilitation |
Carroll St Inn |
0.00 |
0.00 |
0 |
121 |
|
|
Home Improvement Program - Minor Rehab Grants Program |
City of Sunnyvale |
199,779.00 |
80,222.86 |
12 |
8 |
|
|
Home Improvement Program - Major Rehab Loan Program |
City of Sunnyvale |
100,000.00 |
13,186.00 |
2 |
2 |
|
HOME |
Tenant-Based Rental Assistance |
Sunnyvale Community Services (SCS) |
1,000,000.00 |
371,658.66 |
40 |
40 |
Annual Program Performance and Expenditures Overview
During FY 2025/26, the City expended $808,578 in CDBG funds and $410,049 in HOME funds. The City also expended its remaining COVID-CV funding of $151,682.
Program expenditure levels varied based on activity timing and program changes. Key variances are summarized below.
CDBG
WorkFirst Sunnyvale
The WorkFirst program provides job skills training and targeted employment case management to people experiencing homelessness and helps participants secure employment while offering volunteer opportunities to beautify the City.
The program operated during the first four months of the fiscal year, until Downtown Streets Team, the primary agency managing the program, permanently closed its doors on October 31, 2025. During this period, the program served 16 duplicated and unduplicated participants. Their annual goal was to serve 60 duplicated and unduplicated participants and to expend $510K; however, through the HUD amendment process, the City reduced the total program budget and number of participants served to actuals.
City of Sunnyvale Home Improvement Programs (HIP)
Minor Rehab Grants Program
The Minor Rehab Grants Program provides grants of up to $15,000 for minor home repairs for eligible low-income homeowners. Starting in Q2, the City paused the program for several months while the City reviewed the new conditions in its HUD grant agreement.
Major Rehab Loan Program
The Major Rehab Loan Program provides loans of up to $40,000 to low-income households needing major home repairs, such as new roofing. This program is not as widely used as the Minor Rehab Grant Program; although it met its goal of providing two loans, it fell short of expending the full allocation because homeowner applicants required smaller loans and the loans were not fully disbursed by the end of the fiscal year.
Carroll St Inn Rehabilitation Loan
The project replaced the aging heating, ventilation, and air conditioning (HVAC) system at Carroll Street Inn, a 121 single room occupancy (SRO) affordable housing site, with a more energy-efficient system. The project required over $2 million in upgrades, with the City contributing $480,000 in CDBG funds.
The CDBG funding was expended in FY 2024-25 for the required upgrades; however, the overall project was not completed until October 2025. Because final project completion occurred during FY 2025/26, the accomplishments are also reported in the FY 2025/26 CAPER.
HOME
Tenant-Based Rental Assistance (TBRA)
The TBRA program expended approximately 37% ($371,658.66) of HOME funds this year and served 40 unduplicated households, meeting its annual performance goal but falling short of expending the $1 million in funding for housing subsidies. The program began the year with 19 enrolled households and added 21 households during the year. Financial and operational adjustments affected enrollment and expenditures, including full implementation of HUD-required utility allowances.
City staff is working closely with the agency to keep program enrollment around 35-40 households for the duration of the program year and to monitor expenditures.
FISCAL IMPACT
There is no cost or fiscal impact related to approving this report; however, timely submission of the CAPER allows the City to remain in good standing as a CDBG and HOME grantee and continue receiving both grants.
PUBLIC CONTACT
Public contact was made by posting the Housing and Human Services Commission meeting agenda on the City's official-notice bulletin board at City Hall. Notice of a public hearing, including a 15-day public comment and review period, was published in a legal advertisement in the Sunnyvale Sun newspaper on September 4, 2026. A copy of that notice is included in the CAPER. The City made the draft CAPER available for public review on the City Housing website for the 15-day review period. 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).
ALTERNATIVES
1. Approve the draft 2025/26 CAPER as presented in Attachment 1 of the staff report.
2. Approve the draft 2025/26 CAPER with modifications
RECOMMENDATION
Recommendation
Alternative 1: Approve the draft 2025/26 CAPER as presented in Attachment 1 of the staff report.
JUSTIFICATION FOR RECOMMENDATION
The CAPER is required to be submitted to HUD each year by September 27, 2026 in order for the City to receive its annual funding award.
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
Approved by: Trudi Ryan, Director, Community Development
ATTACHMENTS
1. Draft 2025/26 CAPER
2. Supplemental 2025/26 CAPER Goals and Accomplishments
3. Link to 2025-2030 ConPlan and most recent Action Plans and CAPERs https://www.sunnyvale.ca.gov/homes-streets-and-property/housing