Title
Approval of the 2027 One-Year Action Plan and Amendments to Prior Years’ Action Plans for the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Housing Opportunities for Persons With AIDS (HOPWA) Funded Projects and Programs; Amendment to the Sacramento Housing and Redevelopment Agency (SHRA) Budget; Execute Documents for the Administration of Federal Programs; and Authorize Establishing / Transferring Revenue And Expenditure Budget For Various Community Development Block Grant Funded Projects [Published 08/24/2026]
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FileID
File ID: 2026-01587
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt: 1) a City Council Resolution: a) approving the 2027 One-Year Action Plan and amendments to prior years’ Action Plans and to allocate anticipated CDBG, HOME, ESG, and HOPWA funds as described in Exhibit A; b) approving amendments to prior years’ Action Plans as effective immediately; c) authorizing SHRA to amend its budget to allocate CDBG, HOME, ESG, and HOPWA funding for programs and projects in accordance with the amendments of the prior years’ Action Plans and the 2027 One-Year Action Plan, and to amend the budget if the United States Department of Housing and Urban Development (HUD) grant awards are less or greater than anticipated to the extent necessary to implement and ensure the timely completion of the activities; d) authorizing and delegating authority to SHRA to act as agent on behalf of the City of Sacramento to execute and amend grant agreements with HUD and execute agreements and contracts with the appropriate entities to carry out programs and projects in accordance with the Action Plans and in compliance with applicable federal laws and regulations as approved to form by SHRA’s Counsel; e) authorizing SHRA to make any budget adjustments, and execute and amend related documents as necessary to administer the programs as described in the 2027 Action Plan as outlined in Exhibit A; and f) authorizing SHRA to submit the 2027 One-Year Action Plan and amendments to prior years’ Action Plans to HUD; and 2) a City Council Resolution: a) authorizing the City Manager or designee to increase the following revenue and expenditure budgets: $300,000 in Dixieanne Alleyways Project (T15265000) from the CDBG Fund (Fund 2700); $300,000 in Fruitridge Road Improvements Phase 1 (T15036300) from the CDBG Fund (Fund 2700); $300,000 in Reichmuth Basketball Court Lighting (L19913800) from the CDBG Fund (Fund 2700); and $350,000 in 24th St Bypass Park Playground (L19912900) from the CDBG Fund (Fund 2700).
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Contact
Contact: Stephanie Green, Federal Programs Manager, (916) 440-1302, sgreen@shra.org; Christine Weichert, Director of Development Finance, (916) 440-1353, cweichert@shra.org; Sacramento Housing and Redevelopment Agency
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Presenter
Presenter: Stephanie Green, Program Manager, (916) 440-1302, sgreen@shra.org, Sacramento Housing and Redevelopment Agency
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Attachments
Attachments:
1-Description/Analysis
2-Attachment 2 - Background
3-City Council Resolution - Approving 2026 Action Plan
4-Exhibit A - 2027 Action Plan Activities
5-City Council Resolution - Establishing Revenue and Expenditure Budgets
6-PowerPoint Presentation Updated
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Description/Analysis
IssueDetail
Issue Detail: Since 1982, SHRA has managed and administered federal housing, public service, and community development funds on behalf of the City and County of Sacramento (City and County) and has served as the federal housing and community development staffing entity pursuant to a joint powers agreement between the City and County and its housing authorities. HUD requires the submission of a Consolidated Plan every five years and a One-Year Action Plan (Action Plan) annually for the CDBG, HOME, ESG, and HOPWA grant programs.
This report recommends the approval of the 2027 Action Plan and amendments to prior years’ Action Plans, and requests authorization to submit the plan to HUD.
The Action Plan identifies specific activities, projects, and other actions for federally funded programs for the 2027 calendar year that align with the priorities identified in the Consolidated Plan. The Consolidated Plan is a five-year planning document that identifies the area’s housing, public service, and community development needs and describes a long-term strategy to meet those needs.
Each year, the estimated entitlement amount is based on actuals received from the previous year. In 2026, HOME and CDBG award amounts decreased, while ESG and HOPWA awards increased from the previous year. The Action Plan budget was developed on the assumption that the 2027 federal budget will be constant at 2026 funding levels.
|
Federal Funding |
|
Entitlement |
Estimate 2026 |
Actual 2026 |
Estimate 2027 |
|
CDBG |
$4,600,000 |
$4,553,953 |
$4,550,000 |
|
ESG |
$400,000 |
$401,117 |
$400,000 |
|
HOME |
$2,300,000 |
$2,141,076 |
$2,100,000 |
|
HOPWA |
$2,050,000 |
$2,210,490 |
$2,200,000 |
SHRA held public meetings beginning in February to receive input on the Action Plan from the public, the Sacramento Housing and Redevelopment Commission (Commission), and the City Council. At the first public meeting, SHRA staff reviewed the 2027 Action Plan, including CDBG objectives, eligibility requirements, 2027 entitlement estimates for CDBG, HOME, ESG, and HOPWA, estimated allocations by funding activity (Infrastructure, Housing, Public Service, and Planning and Administration), examples of previously funded projects, and the Action Plan preparation and adoption schedule.
Following the first public meeting, City staff provided a prioritized list of requested projects for the Action Plan. SHRA staff reviewed the projects for eligibility, readiness, and alignment with Consolidated Plan priorities. The draft list of prioritized eligible projects were presented to City Council at the second workshop in June for review and comment.
As required by HUD, the draft Action Plan was available for public review and comment for 30 days from August 24, 2026, through September 23, 2026, and a noticed public hearing soliciting comments on the Action Plan was held at the Commission on October 7, 2026.
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PolicyConsiderations
Policy Considerations: The proposed appropriation of funds for new and existing activities in the 2027 Action Plan is consistent with the goals and objectives outlined in the proposed 2025-2029 Consolidated Plan.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): Pursuant to Cal. Code Regs., tit. 14, section 15378 subds. (b)(2) and (5), the recommended actions are not considered a “project,” as they constitute administrative activities and policymaking of government entities that will not result in direct or indirect physical changes in the environment. Alternatively, if a determination is made that the plans and policies do constitute a project subject to CEQA, the recommended actions are exempt pursuant to Cal. Code Regs., tit. 14, section 15061 (b)(3), as they do not have the potential to cause a significant effect on the environment.
National Environmental Policy Act (NEPA): Pursuant to 24 C.F.R. section 58.34(a)(1) and (3) (2025), the recommended actions are considered the development of plans and administrative and management activities exempt from NEPA review. With respect to the laws and authorities specified in section 58.6, the recommended actions do not involve activity that would require compliance with:
• 24 C.F.R. section 51.300-305;
• 16 U.S.C. section 3501 (Coastal Barrier Resources Act); or
• 42 U.S.C. sections 4001-4128, 5154(a) (Flood Disaster Protection Act and National Flood Insurance Reform Act).
Activities identified in the Action Plan as public services, supportive services, tenant-based rental assistance, facility operations, and program administration have been reviewed pursuant to CEQA and NEPA and no further review is required for these activities. Environmental review under CEQA and NEPA, as applicable, for all new projects with the potential to significantly affect the environment will be completed prior to taking any choice-limiting action.
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Sustainability
Sustainability: The proposed appropriation of funds for existing and new activities is consistent with the City’s Sustainability Master Plan’s Focus Area - Public Health and Nutrition by improving residents’ health. The Consolidated Plan serves as a five-year planning document to direct investments that seek to improve health, nutrition, and social and economic sustainability.
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Commission/Committee Action
Commission/Committee Action: At its October 7, 2026, meeting, a public hearing will be held and it is anticipated that the Sacramento Housing and Redevelopment Commission will adopt a Commission resolution related to the Project and recommend that the City Council consider approval of the recommendations in this report. In the event the Commission does not take the anticipated action, staff will advise the City Council at the meeting.
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RationaleforRecommendation
Rationale for Recommendation: As a condition of receiving various federal grants provided through HUD, the regulations require the submittal of the Consolidated Plan once every five years and the annual submittal of the One-Year Action Plan describing proposed activities and expenditures that meet the goals and priorities of the City of Sacramento. In general, the purpose of the activities funded is to revitalize lower-income neighborhoods and to assist disadvantaged populations by providing adequate public facilities and services and generating affordable housing opportunities. Newly funded capital improvement projects are scheduled to be implemented and completed within 18 months to comply with federal regulations governing the timely expenditure of funds in the current year.
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FinancialConsiderations
Financial Considerations: The proposed allocations in the 2027 One-Year Action Plan are based on estimated revenues. Exhibit A includes details regarding the proposed program and project allocations.
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LocalBusinessEnterprise
LBE - M/WBE and Section 3 requirements: Local Business Enterprise requirements do not apply to this report. Minority and Women’s Business Enterprise requirements and Section 3 considerations will be applied to all activities to the extent required by the federal funding and in accordance with SHRA’s Section 3 Economic Opportunity Plan.
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