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PUBLIC HEARING TO ADOPT A RESOLUTION APPROVING A SUBSTANTIAL AMENDMENT TO THE 2025-2029 CONSOLIDATED PLAN; A SUBSTANTIAL AMENDMENT TO THE 2026-2027 ANNUAL ACTION PLAN; AND ALLOCATE CDBG PROGRAM FUNDS TO THE HOUSING AUTHORITY OF THE COUNTY OF SAN JOAQUIN FOR PUBLIC HOUSING RENOVATIONS
recommended action
RECOMMENDATION
It is recommended that at the conclusion of the public hearing, the City Council adopt a resolution to:
1. Approve the First Amendment to the 2025-2029 Consolidated Plan (attached as Exhibit 1 to the Resolution);
2. Approve the First Amendment to the 2026-2027 Annual Action Plan (attached as Exhibit 2 to the Resolution);
3. Authorize the City Manager to reallocate funds among approved activities and partners as needed to maximize impact, meet funding timeliness requirements, and benefit to the Stockton community;
4. Authorize the City Manager, or designee, to execute an agreement between the City of Stockton and the Housing Authority of the County of San Joaquin for $966,154.50 to make improvements to existing public housing units; and
5. Authorize the City Manager, or designee, to take actions necessary and appropriate to carry out the purpose and intent of the resolution.
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Summary
The U.S. Department of Housing and Urban Development (HUD) requires jurisdictions to prepare a Five-Year Consolidated Plan (Con Plan) and an Annual Action Plan (AAP) to receive Community Development Block Grant (CDBG), Home Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) funding. The AAP identifies the specific projects to fund during the year to accomplish the goals established in the City’s Five-Year Con Plan. The Housing, Homelessness, Events, & Parking Department (HHEP) is the lead department in administering these HUD funded programs.
An amendment to the 2025-2029 Con Plan (Attachment A) has been prepared to escalate the priority need for public facility improvements to a “High” need. An amendment to the 2026-2027 AAP (Attachment B) has been prepared to identify and allocate CDBG funds towards necessary improvements to public facilities and public housing.
In order to modify a previously approved Con Plan and/or AAP, a jurisdiction must publicize the amendment for 30-day public review and comment. The public review and comment period began on October 9, 2026, and will end at the close of the November 10, 2026 Public Hearing.
DISCUSSION
Background
The US Department of Housing and Urban Development (HUD) requires the City of Stockton, as a recipient of HUD entitlement funds, to develop an AAP that describes the proposed activities to be funded through any of its three funded programs: CDBG, HOME, and ESG. The City's AAP details its funding objectives for these programs and identifies the specific projects/activities to which HUD resources will be allocated.
At the City’s discretion, HUD allows the City to amend the Con Plan and AAP as needed if the City determines that planned activities are no longer feasible and/or will not meet planned objectives (Attachment C).
In partnership with the Public Works Department and the Housing Authority of the County of San Joaquin (HACSJ), staff has identified projects that meet the community priority needs outlined in the 2025-2029 Con Plan. These substantial amendments will allow staff to allocate money towards public facility renovation projects as well as HVAC upgrades to public housing owned and operated by HACSJ. These projects will allow staff to meet HUD’s expenditure deadline and timeliness test. A summary of the proposed changes is included as Exhibit 3 to the Resolution.
Present Situation
Through this item, HHEP is proposing two Substantial Amendments:
1. First Amendment to the 2025-2029 Consolidated Plan (Con Plan)
• Reevaluation of the 2024 “Your Voice. Our Future.” Community Needs Assessment to classify “Resilient & Healthy Communities,” which includes Public Facility and Infrastructure improvements, as a “high” priority need.
2. First Amendment to the 2026-2027 Annual Action Plan (AAP)
• Added HUD matrix codes to include activities such as public facility improvements and public housing modernization.
o The added activities include, but are not limited to:
§ 14C - Public Housing Modernization
§ 14F - Energy Efficiency Improvements
§ 03E - Neighborhood Facilities
§ 03F - Parks, Recreational Facilities
• Reprogrammed $966,154.50 in CDBG funding to support the public housing modernization project.
HHEP staff is also recommending entering into an agreement with HACSJ for the modernization project at Conway Homes Public Housing, contingent on HUD approval of the Substantial Amendments. The proposed project will utilize CDBG funds to replace existing HVAC units that are approaching or have reached the end of their useful life. Only a Public Housing Authority (PHA) is eligible for the use of those funds. HACSJ is the federally designated housing authority of San Joaquin County.
FINANCIAL SUMMARY
There is no financial impact to the City’s General Fund or any other unrestricted fund as a result of the recommended action. Additionally, there are no changes to the allowable administrative caps for Fiscal Year 2026-2027 CDBG funds for implementation and grant management of these activities. CDBG funds are budgeted and appropriated by the HUD Office of Community Planning and Development (CPD).
Attachment A - Resolution 2025-04-29-1602
Attachment B - Resolution 2026-04-28-1501
Attachment C - Community Participation Plan