To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Allocation of FY2026/27 CDBG, HOME, and ESG Funds and Approval of FY2026/27 Action Plan
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. FIND the FY 2026/27 Annual Action Plan exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA guidelines;
2. APPROVE and ADOPT the Draft FY 2026/27 Annual Action Plan (Attachment A);
3. APPROVE the Family and Human Services Committee recommendations for the allocation of $856,500 in FY 2026/27 Community Development Block Grant (CDBG) funds in the Public Services (PS) category (Attachment B) and $384,307 Emergency Services Grant (ESG) funds (Attachment C);
4. APPROVE the Finance Committee recommendations for the allocation of $421,500 in FY 2026/27 CDBG funds in the Economic Development (ED) category (Attachment D) and the allocation of $862,000 in the Infrastructure/Public Facilities (IPF) category (Attachment E);
5. APPROVE the Affordable Housing Finance Committee (AHFC) recommendations for the allocation of $4,294,840 in FY 2026/27 CDBG funds in the Housing category and $3,500,000 in HOME Investment Partnership Program (HOME) funds (Attachment F);
6. DIRECT the Department of Conservation and Development (DCD) Director, or designee, to file a CEQA Notice of Exemption for the FY 2026/27 Annual Action Plan with the County Clerk;
7. AUTHORIZE the DCD Director, or designee, to execute the program certifications and applications (SF-424's) for transmittal to the U.S. Department of Housing and Urban Development (HUD); and
8. AUTHORIZE the DCD Director, or designee, to execute CDBG and ESG program agreements with the recommended organizations for the recommended activities, as approved and adopted in the FY 2026/27 Annual Action Plan by the Board of Supervisors.
FISCAL IMPACT:
100% Federal funds. All funds are provided to Contra Costa County on a formula basis through the U.S. Department of Housing and Urban Development (HUD).
Catalog of Federal Domestic Assistance Numbers:
• CDBG Program - 14.218
• HOME Program - 14.239
• ESG Program - 14.231
BACKGROUND:
The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, primarily for low-income persons and households (persons/households earning no more than 80 percent of the Area Median Income). CDBG funds are allocated on an annual formula basis to eligible entitlement jurisdictions, including Contra Costa County, by the U.S. Department of Housing and Urban Development (HUD). The County's Department of Conservation and Development (DCD) administers CDBG funds on behalf of the "Urban County". The Urban County includes the unincorporated communities in the County and all incorporated cities and towns except the cities of Antioch, Concord, Pittsburg, and Walnut Creek. Those specific cities administer independent CDBG programs. The County's CDBG Program will be entering its fifty-second year.
The HOME program aims to expand the supply of decent, safe, sanitary, and affordable housing for very low and low-income households. HUD allocates HOME funds to eligible participating jurisdictions and HOME consortia on a formula basis. The Contra Costa HOME Consortium (Consortium) consists of the Urban County and the cities of Antioch, Concord, Pittsburg, and Walnut Creek. As the Consortium representative, DCD is responsible for administrating and managing the HOME program for the Consortium.
Contra Costa County, as an entitlement jurisdiction, receives ESG program funds on an annual formula basis from HUD for use in funding renovation, rehabilitation, or conversion of buildings for use as emergency shelters for persons experiencing homelessness; provision of essential services for people without housing, emergency shelter operations and related services, and homelessness prevention and rapid-rehousing activities. DCD administers the ESG program funds on behalf of the Urban County.
FY 2026/27 Annual Action Plan Process and Funding Recommendations
Contra Costa County, as an entitlement or participating jurisdiction, is entitled to receive CDBG, HOME, and ESG funds from HUD each year for housing and community development activities. To receive these annual awards of federal funds, the County must submit to HUD a strategic plan, called the Consolidated Plan, every five years. The Consolidated Plan identifies priorities of local needs and general objectives on how these needs will be addressed. As part of the Consolidated Plan process, the County must submit an Annual Action Plan for each year during the five-year Consolidated Plan period. An Annual Action Plan specifies and describes what actions and activities will be carried out during the program year to address priority needs identified in the County's current Consolidated Plan, and identifies the use and amount of CDBG, HOME, and ESG funds and program income anticipated to be received during the program year by activity and identifies proposed accomplishments by activity. The proposed FY 2026/27 CDBG, HOME, and ESG Action Plan is covering the second year of the County's five-year 2025-2030 Consolidated Plan.
On November 4, 2014, the Board of Supervisors adopted funding guidelines for the use of CDBG funds as follows: Housing - 45 percent; Public Services (PS) - 17 percent; Economic Development (ED) - 10 percent; Infrastructure/Public Facilities (IPF) - 8 percent; and Program Administration - 20 percent. The following sub-committees or advisory committees of the Board of Supervisors make funding recommendations:
• Family and Human Services Committee- CDBG PS category and ESG Program funds
• Finance Committee - CDBG ED and IPF categories
• Affordable Housing Finance Committee - CDBG Housing category and HOME funds
Committee Meetings
The Affordable Housing Finance Committee (AHFC), a Board-appointed advisory committee, held a noticed public meeting on April 29, 2026, to consider staff funding recommendations for FY 2026/27 CDBG Housing, and HOME applications. Project applicants were encouraged to attend and provide input into the allocation process. Following discussion and comment, the AHFC recommended funding allocations shown in Attachment F.
The Finance Committee met on May 4, 2026, to consider staff recommendations for the FY 2026/27 CDBG ED programs and IPF projects. The meeting was noticed, and project applicants were encouraged to attend and provide input into the allocation process. After discussion, the Finance Committee approved staff recommendations as shown in Attachments D and E.
The Family and Human Services (FHS) Committee met on May 11, 2026, to consider staff recommendations for FY 2026/27 CDBG PS and ESG programs and projects. The meeting was noticed, and project applicants were encouraged to attend and provide input into the allocation process. After discussion, the FHS Committee approved staff recommendations as shown in Attachments B and C.
CEQA: The Action Plan is exempt from CEQA review. However, individual projects may be subject to further determination and study, which the project's lead agency will undertake. Depending on the location of recommended projects, the County may be the responsible agency for some housing projects. CEQA determinations will be made and approved by the responsible agency for a respective housing project before entering into project agreements or other legal documents for each respective housing project.
National Environmental Policy Act (NEPA): All CDBG, HOME, and ESG projects/programs are subject to NEPA and review in accordance with HUD NEPA regulations (24 CFR Part 58). The NEPA review for each project will be completed prior to entering into project agreements or other legal documents for each respective project.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action will prevent the Action Plan from being submitted to HUD by the June 3, 2026 deadline and jeopardize the County's receipt of the FY 2026/27 CDBG, HOME, and ESG funds.