MEETING DATE:
APRIL 8, 2025
SUBJECT:
Title
PROPOSED GOALS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT 2025-2029 CONSOLIDATED PLAN AND 2025-2026 ANNUAL ACTION PLAN
Body
Recommendation
Recommendation
1. OPEN, CONDUCT and CLOSE a public hearing on the proposed goals for the development of the 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan.
2. OPEN a 30-day public period for the proposed 2025-2029 Community Development Block Grant Consolidated Plan and 2025-2026 Annual Action Plan to solicit community input, beginning April 14, 2025.
Body
Board or Commission Action
On May 12, 2020, Council approved Resolution No. 2020-8753 approving the 2020-2025 Community Development Block Grant Consolidated Plan and 2020-2021 Annual Action Plan.
Relevant Council Strategic Theme
Quality of Life
Executive Summary
The U.S. Department of Housing and Urban Development (HUD) annually provides funding to eligible jurisdictions through the federal Community Development Block Grant (CDBG) entitlement program. Funds must be used for eligible projects and programs that benefit low- and moderate-income individuals and households in the City of San Marcos that are consistent with the City’s Consolidated Plan (ConPlan). The current ConPlan expires on June 30, 2025.
In August 2024, the City procured the services of Veronica Tam + Associates (VTA), to conduct in-person and virtual community/stakeholder meetings, develop a community profile and housing market analysis, perform a community development needs assessment, identify housing issues faced by special needs populations, and develop strategic goals for the 2025-2029 ConPlan.
HUD requires the City to conduct a public hearing to provide notice that the Draft 2025-2029 Consolidated Plan, the 2025-2026 Annual Action Plan, and Substantial Amendment, will be available for a 30-day public comment period beginning April 14, 2025. The Notice of Public Hearing and request for public comment was published in the Coast News and Hispanos Unidos on March 28, 2025.
Discussion
The ConPlan is designed to help local jurisdictions assess affordable housing and community development needs, market conditions, and to make data-driven, place-based investment decisions. The ConPlan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority and specific goals identified by the ConPlan. Grantees report on accomplishments and progress toward ConPlan goals in the Consolidated Annual Performance and Evaluation Report (CAPER).
The CDBG program requires that goals/activities meet one of three national objectives which are:
• Benefit to low- and-moderate income (LMI) persons;
• Aid in the prevention or elimination of slums or blight; and
• Meet a need having a particular urgency (referred to as urgent need).
The LMI national objective is referred to as the “primary” national objective because HUD requires that recipients expend 70 percent of CDBG funds to benefit LMI persons. Low- and moderate-income is defined by HUD as an annual household income that is equal to or less than 80% of the County’s Area Median Income (AMI). Attachment A identifies the Income Qualifying CDBG Census Tracts within the City of San Marcos.
Public Outreach Process: In the development of the 2025-2029 ConPlan, a community needs survey was available from September-November 2024 in English and Spanish to collect input from San Marcos residents, business owners/employees serving San Marcos, and representatives from agencies serving San Marcos residents. The survey was published online and sent directly to community stakeholders, public service providers, and printed for completion at local outreach events. The survey yielded 218 responses ranking the highest needs as follows: community facilities and public infrastructure improvements, affordable rental and senior housing, homebuyer assistance and fair housing services, plus public services for seniors, transportation, and health care and mental health services.
City staff hosted two community workshops in October 2024 for San Marcos residents, one in-person in collaboration with Universidad Popular, led in Spanish with English translation, and a second virtual session led in English, with San Marcos residents. An additional stakeholder workshop with local public service providers active in San Marcos. In total, 34 residents and/or community stakeholders attended one of the three the workshops. Comments relevant to the CDBG program included: need for affordable housing, services for persons with disabilities, assistance for unhoused and at-risk populations, home rehabilitation programs, fair housing services, first-time homebuyer programs, bicycle and lighting infrastructure improvements, services for victims of domestic violence, and mobility improvements for persons with disabilities.
Strategic Goals Overview: The public outreach process identified the following primary objectives for the 2025‐2029 Consolidated Plan: Suitable Living Environment and Decent Housing. Strategic goals and improvements include, but are not limited to:
• Public Infrastructure and Community Facility Improvements
o Street improvements, such as installation of streetlights, sidewalk reconstruction, safety and energy efficiency enhancements, ADA improvements, and other Capital Improvement Projects in qualifying low- and moderate-income neighborhoods
o Community facility improvements, such as parks and recreation facilities, community centers, senior centers, and other community facilities that primarily benefit low and moderate income and special needs residents
• Affordable Housing
o Housing repair or rehabilitation assistance, acquisition or rehabilitation of affordable housing, public improvements in support of new affordable housing
• Public Services
o Services for youth, seniors, homeless and at-risk homeless, disabled, and fair housing services
The proposed goals drafted for the 2025-29 Consolidated Plan Strategic Plan serve to narrow the gap in housing and supportive services for residents in eligible low- and moderate-income areas. Strategies taken and goals proposed support public infrastructure and community facility improvements, affordable housing, and public services to ensure all San Marcos residents thrive.
In May 2025, following the 30-day public comment period, staff will return to the City Council with funding recommendations for CDBG eligible programs and services. The outcome of the remaining public comment opportunities will be incorporated into the final ConPlan.
Staff recommends City Council receive and approve the proposed goals for the 2025-2029 Consolidated Plan and 2025-2026 Annual Action Plan and make available for a 30-day public comment period beginning April 14, 2025.
Environmental Review
There is no environmental review associated with the Consolidate Plan Strategic Plan process.
Fiscal Impact
There is no fiscal impact associated with this action. There will be no change in net General Fund costs and no additional staff years.
Attachment(s)
1. Attachment A-City of San Marcos CDBG Qualifying Areas
Prepared by: Quinton Hufferd, Sr. Management Analyst
Submitted by: Quinton Hufferd, Sr. Management Analyst
Reviewed by: Sylvia Solis Daniels, Housing and Neighborhood Services Director
Approved by: Michelle Bender, City Manager