Title
[Grant Applications] Round 6 Transformative Climate Communities
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FileID
File ID: 2026-01584
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Location
Location: Districts 2 and 5
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Recommendation
Recommendation: Adopt a Resolution authorizing the City Manager or designee to: 1) submit grant applications to the California Strategic Growth Council for the Round 6 Transformative Climate Communities program for up to $9 million as a co-applicant on La Familia Counseling Center’s application and up to $5.5 million as a co-applicant on the Sacramento Municipal Utility District’s (SMUD) application; 2) submit any related documents necessary to support the grant application; and 3) if awarded, execute a subaward agreement with La Familia Counseling Center and/or SMUD to receive grant funding from the California Strategic Growth Council Round 6 Transformative Climate Communities program, enter into a joint partnership agreement with the other awarded co-applicants, and execute any related documents necessary to support the award.
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Contact
Contact: Ariana Hernandez, Sustainability Analyst, (916) 808-1419, ahernandez3@cityofsacramento.org; Rachel Patten, Sustainability Program Manager, (916) 808-5016, rpatten@cityofsacramento.org, Department of Public Works; Ginger Weagraff, Development Project Manager, (916) 808-1222, gweagraff@cityofsacramento.org, Economic Development Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution - TCC Round 6 Applications
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Description/Analysis
IssueDetail
Issue Detail: On May 29, 2026, the California Strategic Growth Council released a Notice of Funding Availability for Round 6 of its Transformative Climate Communities (TCC) grant program. The TCC grant program funds community-led development and infrastructure projects that achieve major environmental, health, and economic benefits in California’s most disadvantaged communities. These applications include a package of complementary projects by multiple community partners to meet program goals; the City typically acts as a co-applicant to the lead community applicant. Implementation projects have a maximum total request of $27.5 million, and grantees must leverage matching funds equal to at least 50 percent of the grant amount. Applications are due on September 30, 2026.
City staff evaluated several projects and selected those that best meet the goals and purpose of the grant program, are aligned with City priorities and planned work efforts, and have required match funding available. Staff recommend submittal of the following as competitive candidates for funding:
1) Greening North Franklin Project, in partnership with the La Familia Counseling Center (La Familia). The City would serve as a co-applicant with a total funding request up to $9 million.
2) North Sacramento Communities Advancing Resilience Equity and Sustainability (CARES) Project, in partnership with the Sacramento Municipal Utility District (SMUD). The City would serve as a co-applicant with a total funding request up to $5.5 million.
Staff are seeking City Council authorization to apply as a co-applicant for both projects and to execute any agreements or documents required to support both applications and potential future awards.
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PolicyConsiderations
Policy Considerations: The Greening North Franklin Project and North Sacramento CARES Project are consistent with the 2040 General Plan policies to promote an equitable, sustainable multimodal system (M-1), enhance safety and livability (M-3 and M-4), improve the City’s resilience to the effects of heat (ERC-8), and support economic vitality (E-4).
Additionally, the projects are consistent with the Climate Action & Adaptation Plan (Resolution No. 2024-0067), the Urban Forest Plan (Resolution 2025-0194), the Streets for People Active Transportation Plan (Resolution No. 2025-0319), and Transportation Priorities Plan (Resolution No. 2022-0079).
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EconomicImpacts
Economic Impacts: The Greening North Franklin Project and the North Sacramento CARES Project are expected to yield many positive economic impacts through workforce development training and capital improvement projects.
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EnvironmentalConsiderations
Environmental Considerations: The Community Development Department, Environmental Planning Services Division has determined, pursuant to California Environmental Quality Act (CEQA) Guidelines Sections 15060(c)(3) and 15378(b)(5), that the submittal of a grant application is not defined as a project requiring environmental review. The grant application submittal is an organizational or administrative activity of the City that will not result in direct or indirect physical changes to the environment. Individual projects that are awarded grant funding will undergo necessary environmental review consistent with CEQA Guidelines.
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Sustainability
Sustainability: Transportation and buildings (commercial and residential) are responsible for 94% of Sacramento’s local greenhouse gas emissions. The Greening North Franklin Project and the North Sacramento CARES Project include activities that will result in reduced greenhouse gas emissions in these sectors through reduced vehicle trips, increased active modes of transportation, building weatherization, and energy efficiency upgrades. The Greening North Franklin Project and the North Sacramento CARES Project will advance climate resilience through tree planting, installation of shade structures and other heat reducing public amenities and building electrification.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: If awarded, the Greening North Franklin Project would provide the gap funding needed to complete transformational projects in the North Franklin neighborhood. The grant would include construction funding for the City’s Franklin Boulevard Complete Street Phase 3 Project, which would close an important gap in the bicycle network and would bring needed pedestrian and roadway upgrades to a historically disinvested community. Additionally, the Greening North Franklin Project would provide funding for La Familia and other partners to advance sustainable, community-supported investments, including the completion of funding needed for La Familia’s Opportunity Center.
If awarded, the North Sacramento CARES Project would provide robust funding to deliver much needed upgrades to Charles Roberston Park and Carl Johnston Park, conduct building electrification for select City facilities, and advance the North Sacramento Engage, Empower, and Implement (EEI) Project. These projects will install heat-reducing public amenities in an overburdened community, as well as bring energy efficiency upgrades and climate resilient investments to a historically disinvested community. Additionally, the North Sacramento CARES Project would provide funding for SMUD and other partners to advance sustainable, community-supported investments.
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FinancialConsiderations
Financial Considerations: A total of $82.5 million in grant funding for the Round 6 Transformative Climate Communities grant program’s Implementation project category is available statewide with a maximum award of up to $27.5 million per application. The grant’s funding guidelines require match or leverage funding equal to at least 50 percent of the requested grant amount.
Funding has been identified for match/leverage contribution requirements and to cover grant ineligible costs for both projects. For the Greening North Franklin Project, existing grant awards for the Franklin Boulevard Complete Street work (T15165500 and T15255600) will meet the local funding requirement without the appropriation of additional local funds. For the North Sacramento CARES Project, department operating budgets, leveraged funding from SMUD, and existing grant awards for the Charles Robertson Park upgrades, Carl Johnston Park upgrades, and North Sacramento EEI project (G02180380) will meet the local funding requirement without the appropriation of any additional local funds. No additional match contributions will be necessary for either project.
Staff will return to City Council for any necessary budget adjustments and other actions if grants are awarded.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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Background
Background: The California Strategic Growth Council (SGC) launched the Transformative Climate Communities (TCC) program in 2016 as part of California Climate Investments. The TCC Program funds community-centered projects that reduce greenhouse gas (GHG) emissions while improving public health, economic opportunity, and environmental conditions.
In November 2024, California voters approved the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 (Proposition 4), a $10 billion General Obligation Bond commonly known as the Climate Bond. The Climate Bond funds TCC Round 6 and supports projects that strengthen community resilience and provide economic, environmental, and health benefits. Round 6 advances this goal by awarding additional points to project applications located in disadvantaged and severely disadvantaged communities as well as climate vulnerable communities identified through the Vulnerable Communities Platform.
TCC Round 6 will fund three grant types: Planning, Project Development, and Implementation. SGC will award TCC grants through a competitive process.
• Planning: Approximately $900 thousand is available for three Planning Grant awards of up to $300 thousand each.
• Project Development: Approximately $15 million is available for three Project Development Grant awards of up to $5 million each.
• Implementation: Approximately $82.5 million is available for three Implementation Grant awards of up to $27.5 million each.
TCC investments focus on a defined geographic area to address multiple community needs simultaneously in a concentrated area. This place-based approach allows communities to identify priorities and propose solutions that advance climate resilience and equity. Implementation Grant applications must define a continuous project area of up to five continuous square miles.
Grant applications must comprehensively address how the proposed project activities achieve the following three Program Objectives:
1. Achieve significant reductions in greenhouse gas (GHG) emissions: Applicants must develop an application with integrated projects that will reduce GHG emissions and further the objectives of California Health and Safety Code Section 38566.
2. Improve public health and environmental benefits: Applicants must describe how their projects will improve public health outcomes and achieve environmental benefits within the Project Area.
3. Expand economic opportunity and shared prosperity: Applicants must describe how their projects will create economic opportunities for Project Area residents and ensure that benefits are accessible and equitable.
Partnership and shared decision-making are core elements of the TCC program. Round 6 requires a Collaborative Governance Agreement outlining governance structure, organizational roles, and financial relationships. The Lead Applicant and all Co-Applicants must jointly develop and sign the Collaborative Governance Agreement, and the collaborative structure must include community residents. As a Co-Applicant, the City must sign a Collaborative Governance Agreement worksheet for each project to submit as part of the project application materials. The final Collaborative Governance Agreement will be developed between the Lead Applicant and Co-Applicants if the project is awarded TCC funding. The City has previously entered into a Collaborative Governance Agreement through Round 2 of the TCC program with the Sacramento Housing and Redevelopment Agency (SHRA) and partners.
City staff evaluated several projects and selected those that best meet the goals and purpose of the grant program, are aligned with City priorities and planned work efforts, and have required match funding available. Staff recommend that the City of Sacramento submit the following two Implementation Grant projects as Co-Applicants as competitive candidates for funding under the Round 6 TCC program: Greening North Franklin Project in partnership with La Familia and North Sacramento Communities Advancing Resilience Equity and Sustainability (CARES) Project in partnership with SMUD.
If grant funding is awarded, SGC will execute a grant agreement with the Lead Applicant, the Lead Applicant will execute a subaward agreement with the City as a Co-Applicant, and all Co-Applicants will enter into a Collaborative Governance Agreement as a joint partnership agreement. If grant funding is awarded, staff will return to City Council to make necessary budgetary adjustments.
Greening North Franklin Project
La Familia will serve as the Lead Applicant and the City will be a Co-Applicant. The total funding request will be up to $27.5 million, with a City portion not to exceed $9 million. Key components of the City’s scope within the Project include:
1. Franklin Boulevard Complete Street. Design and construction of Phase 3 of the Franklin Boulevard Complete Street project, which includes improvements on Franklin Boulevard between 32nd Avenue and 38th Avenue to create a safer and more accessible street for all roadway users.
La Familia will lead construction of an Economic Development Opportunity Center (Opportunity Center) on vacant land owned by La Familia at Franklin Boulevard between 37th and 38th Avenues. Once constructed, the Opportunity Center will serve as a community hub by providing critical services and resources to some of the community’s most disadvantaged. On February 15, 2022, City Council adopted Resolution 2022-0062, which amended the approved Fiscal Year 2021/22 budget to include a $2 million allocation towards the Opportunity Center. As La Familia readied for groundbreaking in 2025, the federal government withdrew Environmental Protection Agency (EPA) grant funding intended for the Opportunity Center, creating a funding gap. The TCC grant would fill this gap and enable construction.
Other components of this project that will be led by La Familia and other application partners include urban greening improvements to the Maple Neighborhood Center, anti-displacement work for local businesses, residential weatherization and energy efficiency upgrades, as well as community education on climate resiliency and air quality.
The Project includes the County of Sacramento, Franklin Neighborhood Development Corporation, Community Resource Project, United Latinos, and the Sacramento Tree Foundation as likely partners.
North Sacramento CARES Project
SMUD will serve as the Lead Applicant and the City will be a Co-Applicant. The total funding request will be up to $27.5 million, with a City portion of $5.5 million. Key components of the City’s scope within the Project include:
1. Charles Robertson Park Upgrades. Design and implementation of multiple heat-mitigation and community resilience park improvements, which includes conversion of a wading pool to a new splash pad, tree planting, basketball surfacing, updating existing field lighting, and more. The final project elements and design will be shaped by community input through an upcoming park planning process.
2. Carl Johnston Park Upgrades. Design and implementation of heat-mitigation and community resilience park improvements, which includes building a new community garden, tree planting, basketball court improvements, irrigation upgrades and turf reduction. The final elements will be shaped by community input through an upcoming park planning process.
3. North Sacramento Engage, Empower, and Implement (EEI) Project. Advance community partnerships, emergency preparedness, and built environment projects that advance climate resiliency and environmental sustainability.
SMUD will lead residential energy efficiency, weatherization, and building electrification upgrades for income-qualified residents in the Project Area. The Project includes the Sacramento Metropolitan Air Quality Management District, GRID Alternatives, Sacramento Native American Health Clinic, Sierra Service Project, AcademySTAY, the Sacramento Youth Center, Sacramento Tree Foundation, Ace Valley Station, Alchemist Community Development Corporation, Republic Services, Capital College & Career Academy, and Habitat for Humanity of Greater Sacramento as likely partners.
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