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a. Conduct a required public hearing to obtain residents’ views and respond to proposals and questions received during the preceding 30-day public comment period regarding the Urban County Community Development Block Grant and HOME Investment Partnership Act Consolidated Annual Performance and Evaluation Report for Fiscal Year 25/26;
b. Receive and Accept the Consolidated Annual Performance and Evaluation Report for Fiscal Year 25/26;
c. Authorize the Director of Housing and Community Development or their designee to submit the Consolidated Annual Performance and Evaluation Report to the United States Department of Housing and Urban Development;
d. Approve the Urban County Community Development Block Grant and HOME Investment Partnership Act Consolidated Annual Performance and Evaluation Report for Fiscal Year 25/26 for submittal to the United States Department of Housing and Urban Development; and
e. Authorize the Director of Housing and Community Development or their designee to make minor changes to the Consolidated Annual Performance and Evaluation Report as needed or in response to comments from the United States Department of Housing and Urban Development.
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RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Conduct a required public hearing to obtain residents’ views and respond to proposals and questions received during the preceding 30-day public comment period regarding the Urban County Community Development Block Grant and HOME Investment Partnership Act Consolidated Annual Performance and Evaluation Report for Fiscal Year 25/26;
b. Receive and Accept the Consolidated Annual Performance and Evaluation Report for Fiscal Year 25/26;
c. Authorize the Director of Housing and Community Development or their designee to submit the Consolidated Annual Performance and Evaluation Report to the United States Department of Housing and Urban Development;
d. Approve the Urban County Community Development Block Grant and HOME Investment Partnership Act Consolidated Annual Performance and Evaluation Report for Fiscal Year 25/26 for submittal to the United States Department of Housing and Urban Development; and
e. Authorize the Director of Housing and Community Development or their designee to make minor changes to the Consolidated Annual Performance and Evaluation Report as needed or in response to comments from the United States Department of Housing and Urban Development.
SUMMARY:
In 2012, the County of Monterey created a United States Department of Housing and Urban Development (HUD) Urban County Consortium to become a Community Development Block Grant (CDBG) Entitlement community. To remain eligible for HUD CDBG funds, the County is required to conduct two public hearings annually on CDBG funding priorities and goals. The County adopts an Action Plan annually in May following a public comment period and public hearing. The 30-day public comment period began on August 27, 2026, and will conclude with this public hearing to consider the Consolidated Annual Performance and Evaluation Report, known as the (CAPER). The CAPER being considered by the Board today summarizes accomplishments for the Fiscal Year (FY) 25/26 CAPER.
CDBG funds may be used to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services. As an Entitlement community, the County and its consortium members must prioritize activities which primarily benefit low- and moderate-income persons. Other eligible activities may aid in the prevention or elimination of slums or blight and activities that meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet one of these national objectives.
The County was notified on May 14, 2025, that it is eligible for HOME Investment Partnership Act (HOME) entitlement funding. HOME funds may be used to address affordable housing needs in the unincorporated areas of the County. It can provide new construction, acquisition, rehabilitation, and/or rental assistance. As an entitlement community, the County must prioritize activities, which primarily benefit low- and moderate-income persons.
In FY25/26, the County was allocated $1,361,629 in regular CDBG funding. CDBG regulations cap the amount of grant funding that may be used for administrative costs to 20% or $272,326 toward program administration based on the FY25/26 allocation and 15% or $204,244 toward public service projects. The County was allocated $403,480, and the County filled the funding gap of $96,520 utilizing State HOME funds. HOME also requires the County to match 25 cents for each dollar of HOME funds spent on affordable housing, which was $112,500 and Castroville-Pajaro Housing Successor funds were utilized.
DISCUSSION:
The County’s Consolidated Plan, which is prepared every 5 years and guides development of the Annual Action Plans, identified seven programmatic areas for CDBG funding priorities to primarily benefit low-moderate income communities. These programmatic areas are: Affordable Housing; Fair Housing; Homeless and Homeless Prevention Services; Infrastructure Improvements; Public Facilities; Public Services and General Program Administration. The Urban County’s accomplishments in each of these areas during FY25/26 is summarized below.
The CAPER closes the July 1, 2025-June 30, 2026, year by summarizing the accomplishments and the progress the Urban County made towards the goals and objectives it established in its Annual Action Plan (AAP). The FY25/26 AAP was approved by the Board of Supervisors on May 13, 2025 and then approved again on November 4, 2025, to include HOME Investment Partnership Act funding. The AAP allocated CDBG funds in the amount of $555,087 for one public facility project in South Monterey County and $329,972 for one public facility project in North Monterey County; $204,244 for eight public service activities; and, $272,326 for general program administration. The AAP only allocated HOME funds in the amount of $500,000. Housing rehabilitation was allocated $150,000, tenant based rental assistance was allocated $300,000, and administration with $50,000. The timeframe to receive and accept applications for these funds was set with the FY26/27 CDBG application process; therefore, no agencies were awarded HOME funds in FY25/26.
Public Facilities - The Urban County allocated $555,087 for City of Gonzales Fire Engine, and $156,587 for Community Homeless Solutions Re-roofing. Greenfield and Del Rey Oaks projects are still in progress and incomplete. City of Gonzales purchased a new fire engine on August 8, 2025
Public Services - During FY25/26, the Urban County allocated approximately $202,244 to support a wide range of public services. Services included youth leadership development programs in Gonzales, Greenfield, and North County; providing food security and companionship in North County and the Salinas Valley; and programs to help maintain the independence and quality of life for the disabled and seniors. These services benefited an estimated 1,527 primarily low-moderate income Monterey County residents last year.
Alliance on Aging: 347
Boys and Girls Club of Monterey County: 472
Court Appointed Special Advocates: 15
Girls Inc: 190
Interim, Inc.: 13
Legal Services for Seniors: 300
Meals on Wheels of the Salinas Valley: 32
Meals on Wheels of the Monterey Peninsula: 158
Fair Housing - The Urban County retained the services of the Eden Council for Hope and Opportunity (ECHO) to provide fair housing activities during FY25/26. They assisted approximately 190 people with fair housing services and tenant/landlord dispute resolution. The Tenant/Landlord Counseling Program provides information to tenants and landlords on their housing rights and responsibilities. Additionally, ECHO has trained mediators to assist in resolving housing disputes through conciliation and mediation. The primary objective of the program is to build awareness of housing laws and prevent homelessness.
The County budgets the maximum amount possible for general administration even if it may not need the full amount. Any unused public service or general administration funds may only be used for affordable housing, community facilities, or public facilities in a subsequent year. The Urban County will rollover approximately $173,385 from these FY25/26 sources to FY26/27.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
The cities of Gonzales, Greenfield, Marina, and Sand City partnered with the County to be designated as an Urban County for the HUD Consolidated Plan from 2025-2029.
FINANCING:
This action does not change the current FY26/27 appropriations, revenues, or positions as it reports on outcomes for the prior fiscal year. The HUD grant is an annual agreement. If the County complies with grant requirements, the County may elect to continue to receive annual entitlement funding, subject to the federal budget process.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
Authorizing the Urban County to submit the FY25/26 CAPER to HUD by September 29, 2026, is required to keep the Urban County in compliance with HUD CDBG and the County with HOME requirements. Continued eligibility for the Urban County and County designations will allow the County to continue to receive the Entitlement Allocation of CDBG from HUD, approximately $1.3 million annually to help local jurisdictions make improvements to public facilities, provide food security for seniors, help children and youth develop the social skills they need to be successful in life. It will also continue entitlement from HOME approximately $400,000 annually to help make affordable housing improvements.
Check the related Board of Supervisors Strategic Plan Goals:
X Well-Being and Quality of Life
X Sustainable Infrastructure for the Present and Future
X Safe and Resilient Communities
X Diverse and Thriving Economy
Dynamic Organization and Employer of Choice
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Dawn M Yonemitsu, Management Analyst II, x5387
Reviewed by: Darby Marshall, Redevelopment & Housing Analyst II, x5391
Approved by: Craig Spencer, Director of Housing & Community Development, x5233
The following attachments are on file with the Clerk of the Board:
Attachment A - Draft CAPER for FY25/26