HomeMy WebLinkAboutCED Community Development Block Grant (CDBG)____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 04/21/2025
Disposition: Resolution 15402
Agenda Item No: 6.a
Meeting Date: April 21, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Micah Hinkle, Director
Alexis Captanian, Housing Manager
City Manager Approval: ____
TOPIC COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
SUBJECT RESOLUTION RECOMMENDING COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) PROJECT FUNDING FOR THE FISCAL YEAR 2025-2026 TO THE MARIN
COUNTY BOARD OF SUPERVISORS
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution recommending Community Development
Block Grant (CDBG) project funding for Fiscal Year (FY) 2025-26 to the Marin County Board of
Supervisors.
BACKGROUND:
The Community Development Block Grant (CDBG) is a federally funded program administered by the
U.S. Department of Housing and Urban Development (HUD) designed to enhance local quality of life by
supporting essential community-based projects. CDBG funding prioritizes the creation and preservation
of affordable housing, improvements to community infrastructure and facilities, and the provision of
critical public services benefiting residents in need.
In 2023, the City of San Rafael entered into a cooperative agreement with the County of Marin to
coordinate the allocation and management of CDBG funds more effectively. Through this partnership,
Marin County is organized into three distinct planning areas: Countywide, the City of San Rafael, and
the City of Novato. Funding recommendations across these planning areas are guided by a countywide
Priority Setting Committee (PSC), composed of elected City and Town Council representatives, a
County Supervisor, and local community members representing federally protected classes—including
individuals of diverse races, religions, national origins, genders (including gender identity and sexual
orientation), disabilities, and familial statuses—in accordance with fair housing regulations. San Rafael
City Councilmember Rachel Kertz currently serves on the PSC. Attachment 3 contains the roster of
PSC members for 2025-26.
Under this cooperative arrangement, the City of San Rafael is responsible for reviewing and
recommending allocations for CDBG-funded projects specifically benefiting the San Rafael community.
The process consists of the San Rafael City Council forwarding its recommendations to the PSC, which
then incorporates San Rafael’s recommendations along with proposals from the other two planning
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
areas into comprehensive recommendations for consideration by the Marin County Board of
Supervisors (BOS).
In June 2025, the BOS will conduct a public hearing to review and formally act on these combined
funding recommendations. Following approval by the BOS, the finalized funding plan will be submitted
to HUD for authorization, ensuring strategic investment in projects that effectively address community
needs and comply with federal guidelines.
The CDBG program has a minimum grant size of $15,000 per project per year, and Countywide
projects may receive funding from each planning area to bring their grant amount up to $15,000.
Federal regulation requires that the majority of funds be spent on housing and community
infrastructure/capital projects. The funding is allocated formulaically by HUD to entitled cities and
counties. Three factors are included in the San Rafael Planning Area allocation formula: population,
overcrowding, and poverty. The San Rafael Planning Area is expected to receive approximately
$481,541 in CDBG funding.
ANALYSIS:
Evaluation Guidelines
The Priority Setting Committee, County and City staff evaluated all applications received based on the
criteria listed below:
HUD National Objective Thresholds:
• Benefit low- and moderate-income persons.
• Prevent or eliminate blight or meet other community development needs for low- and moderate-
income persons.
Last year, the PSC established the following additional criteria:
• Support projects that affirmatively further fair housing and have the commitment and capacity to
engage in affirmative marketing.1
• Prioritize projects that serve members of protected classes as defined by HUD.
• Prioritize projects that serve low-income persons.
Project Evaluation Criteria:
• Readiness—can awarded funds be completely expended during the grant year?
• Sustainability—does the organization have the capacity to sustain a project or program beyond
this federal funding period?
• Effectiveness and Accountability—does the organization have the capacity and track record to
effectively execute the project and administer federal funds?
• Prioritize projects with the greatest impact.
In addition to the criteria set forth by HUD, the PSC approved establishing two additional priorities for
funding CDBG and HOME housing projects:
1 Affirmative Marketing is targeted outreach about program opportunities to groups of people otherwise least likely
to apply for or receive those opportunities. Given Marin’s history of segregation, the protected class populations
typically included in Affirmative Marketing are Black/African American, Asian/Pacific Islander, and Latinx.
Programs that do not conduct broad Affirmative Marketing are less competitive in the allocation process.
2 Family Housing is identified as a need in both the County’s Consolidated Plan and Analysis of Impediments. In
addition, HUD requires that Marin’s CDBG and HOME grants contribute to the creation of new family housing
units.
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• Family Housing2
• Land trust model in eastern Marin provides homeownership opportunities (in this context,
Eastern Marin is defined as all areas in Marin outside West Marin).
The PSC also established the following priorities for public service projects:
• Children, Youth, and Parent Support Services – includes services that target low-income
families and address disparities in access to early childhood education, high costs of childcare
countywide, and family self-sufficiency. Programs and services include but are not limited to
supporting childcare scholarships, student extracurricular activities, parent engagement and
training, case management, therapeutic services, transportation, home visitations, and family
legal support.
• Housing Support Services – includes services that assist individuals in accessing stable
housing, prevent discrimination in housing choice, and aid renters in maintaining stable housing.
Programs and services include but are not limited to fair housing counseling, legal support,
housing locators, and down payment and rental assistance.
CDBG Funding – City of San Rafael Planning Area
Tables A, B, and C show below on pages 4-6 of this report, provide funding recommendations based
on the evaluation criteria outlined above. The San Rafael Planning Area allocations are in bold.
Following each chart is a brief description of the project(s) recommended for funding.
The County of Marin has not yet received formal notification from HUD regarding the final allocation for
the 2025–26 CDBG program. Consequently, the recommendations presented in this report are
preliminary and have been developed based on an assumption of funding consistent with the prior
year's total allocation of $1,559,706.
Once HUD announces the final funding amount, the recommendations will be reviewed and adjusted as
necessary. If HUD’s FY 2025-26 allocation is not as anticipated, staff will adjust funding
recommendations proportionately, with no award falling under $15,000 per program guidelines.
Based on the HUD funding formula established in the cooperative agreement, the San Rafael Planning
Area is expected to receive approximately $481,541 in CDBG funding, distributed across the following
categories: (1) $200,500 dedicated specifically for housing projects; (2) an additional $208,525 that
may be allocated flexibly between housing or capital/community infrastructure projects; and (3) a
maximum of $72,515 available for public service activities. These amounts reflect federal regulatory
requirements, ensuring a strategic investment that meets community priorities while adhering to HUD
guidelines.
Attachment 2 contains the recommended allocation of San Rafael planning area CDBG funds to
applications received for the San Rafael Planning Area and Countywide projects serving the San
Rafael Planning Area. The list also indicates the total expected allocation for each application, including
funding recommended from the other planning areas. Attachment 4 shows all funding requests
received for the 2025-26 cycle.
Housing Projects
A total of four (4) housing projects submitted applications for CDBG funding under the San Rafael
Planning Area, with a combined funding request of $1,894,881.
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• Two projects are located in San Rafael, requesting a total amount of $800,000.
• One is a countywide program that benefits San Rafael residents, requesting $94,881.
• One is a regional development project located in Novato (Redwood Blvd), requesting
$1,000,000.
In accordance with CDBG guidelines, a minimum of $200,500 must be allocated to housing projects.
For FY 2025–26, staff recommends a total of $219,026 in housing funding, as outlined in Table A. This
higher allocation was made possible by shifting a portion of capital improvement funds into the housing
category, prioritizing essential housing preservation and rehabilitation efforts.
Table A: Housing Projects
Funding Applications received CDBG
Request
San Rafael
Recommendation
Expected Total
CDBG Allocation
Canal Alliance – Marin Villas
Rehab* $ 400,000 $ 138,525 $ 138,525
Habitat for Humanity – Home Rehab
Program $ 94,881 $ 13,000 $ 40,000
Habitat for Humanity – Redwood
Blvd $1,000,000 $ 67,501 $ 424,401
Marin Foster Care Association –
158-166A Park Street* $ 400,000 -- --
TOTAL $1,894,881 $ 219,026 $ 602,927
* San Rafael-only request
Marin Villas Rehabilitation Project (Canal Alliance) will complete full renovations for two units and
bathroom upgrades for two additional units at a four-unit affordable rental property in San Rafael.
Renovations will improve safety, ventilation, and habitability. Canal Alliance has owned the property for
over 20 years and will provide temporary relocation during construction.
Marin County Home Rehabilitation Program (Habitat for Humanity) provides zero-interest deferred
loans to rehabilitate approximately 20 low-income, owner-occupied homes countywide. The program
supports essential repairs including roofing, plumbing, and ADA accessibility modifications to help
homeowners remain safely in their homes.
Redwood Blvd Project (Habitat for Humanity) A proposed 80-unit affordable homeownership
development in Novato that includes a mix of two-, three-, and four-bedroom units for families earning
between 60%–90% of Area Median Income (AMI). The San Rafael contribution supports
predevelopment activities and demonstrates regional collaboration to increase affordable housing
options within Marin County.
158–166A Park Street Acquisition (Marin Foster Care Association) will acquire six one-bedroom units in
San Rafael to house transition-age foster youth. The project will offer stable housing paired with
supportive services to help young adults exiting the foster care system avoid homelessness and
achieve independence. Given the administrative complexity associated with federal funding sources
and considering the size and capacity of the applicant organization, City and County staff have
recommended the project for funding through the City and County Affordable Housing Trust Funds
rather than CDBG.
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Capital Projects
Two capital projects submitted applications from the San Rafael Planning Area, totaling $721,150 in
requested funding.
• One project is located specifically in San Rafael, requesting $150,000.
• One project serves Marin County residents broadly, including residents of San Rafael,
requesting $571,150.
In accordance with CDBG guidelines, up to $208,000 may be allocated to capital or housing projects.
For FY 2025–26, the City of San Rafael recommends $190,000 in capital funding, as outlined in Table
B below.
Notably, $18,525 of the capital allocation was strategically shifted to support a housing rehabilitation
project (Canal Alliance – Marin Villas), as discussed in the Housing section above. This reflects the
City’s prioritization of critical housing preservation needs within the allowable capital funding cap.
Table B: Capital Projects
Funding Applications received CDBG Request San Rafael
Recommendation
Expected Total
CDBG Allocation
Ritter Center – Ritter Builds Hope
Capital Campaign* $ 150,000 $ 125,000 $ 125,000
Homeward Bound – New
Beginnings Shelter Repairs $ 571,150 $ 65,000 $ 219,714
TOTAL $ 721,150 $ 190,000 $ 344,714
* San Rafael-only request
Ritter Builds Hope Capital Campaign (Ritter Center) will renovate and upgrade the Ritter Center facility
at 800 A Street, San Rafael, to expand healthcare, behavioral health, and supportive housing services
for low-income and homeless residents. Improvements include ADA accessibility enhancements,
trauma-informed counseling spaces, energy-efficient system upgrades, and exterior façade
improvements.
New Beginnings Center Infrastructure Repairs (Homeward Bound of Marin) involves critical repairs and
upgrades to Marin County’s largest emergency shelter in Novato, including roof replacement,
interior/exterior painting, bathroom safety improvements, and installation of an emergency backup
generator system to ensure continuous operation during power outages.
Public Services
The County anticipates an allocation of approximately $72,515 in CDBG public services funding for the
San Rafael Planning Area in the FY 2025–26 program year, based on 15% of the total CDBG
entitlement after deducting administrative and required fair housing costs. While the City Council may
choose to allocate a lower amount annually, it cannot exceed this 15% cap.
A total of 15 public service applications were received that listed the San Rafael Planning Area in their
funding request. Of those, staff recommends four projects for funding. While most applications propose
countywide services, the City of San Rafael’s Pickleweed Preschool specifically serves the San Rafael
community.
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Due to limited funding and based on program priorities, staff recommend allocating the full $72,515 to a
targeted set of high-impact projects, shown in Table C below. The Expected Total CDBG Allocation
column in Table C represents the total funding recommended from the San Rafael, Novato, and
Countywide Planning Areas combined.
Table C: Public Services
Funding Applications received CDBG
Request
San Rafael
Recommendation
Expected Total
CDBG
Allocation
Legal Aid of Marin – Keeping
Marginalized Marin Tenants Housed $ 135,000 $ 27,515 $ 78,956
Adopt A Family of Marin – Emergency
Rental Assistance for Families at Risk
for Homelessness
$ 25,000
Marin YMCA – Expanding Affordable
Childcare through YMCA Elementary-
Aged Programs
$ 65,000
Front Porch Communities – Home
Match $ 20,000
Marin Housing Authority – Older and
Disabled Adult Service Initiative 2025 $ 230,000
Marin Center for Independent Living –
Residential Access Modification
Program (RAMP)
$ 45,000 $ 10,000 $ 15,000
Community Action Marin –
Community Supports and Emergency
Services
$ 49,680
Vivalon – Nourish by Vivalon $ 67,200
Fair Housing Advocates of Northern
California – Fair Housing Counseling
and Education*
$ 85,000 $ 50,000
ExtraFood – Creating a More
Equitable Food System in Marin
County
$ 52,513
Make It Home – One Cozy Bed $ 25,000 $ 15,000 $ 15,000
Subtotal: Countywide Public Services $ 799,393 $ 52,515 $ 108,956
San Rafael-only requests:
City of San Rafael – Pickleweed
Preschool $ 27,991 $ 20,000 $ 20,000
Center for Employment Opportunities
– CEO Marin’s Rapid Response
Housing & Assistance Program
$ 60,000
WelcomingHome.org – 4 homes in
2025 (San Rafael and Novato) $ 20,000
Road to Empowerment Restorative
Services – Peer Mentor Program (San
Rafael and Novato)
$ 30,000
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Funding Applications received CDBG
Request
San Rafael
Recommendation
Expected Total
CDBG
Allocation
Subtotal: San Rafael Public Services $ 137,991 $ 20,000 $ 20,000
TOTAL PUBLIC SERVICES $ 937,384 $ 72,515 $ 128,956
*Required Fair Housing Services
Marin Center for Independent Living – Residential Access Modification Program (RAMP) Provides
home modifications such as ramps, grab bars, and stair lifts to increase accessibility and housing
stability for residents with disabilities.
City of San Rafael – Pickleweed Preschool Provides affordable early childhood education for 68
children in the Canal neighborhood. Funding helps retain a key staff position after the loss of state
funding.
Make It Home – One Cozy Bed Distributes beds and bedding to vulnerable families transitioning into
permanent housing, helping to stabilize housing conditions and promote comfort and dignity.
Legal Aid of Marin – Keeping Marginalized Marin Tenants Housed Provides legal advocacy, education,
and outreach to prevent eviction and housing discrimination for low-income tenants, including seniors,
immigrants, and individuals with disabilities. The program helps prevent displacement and promotes
housing stability through free legal services and fair housing enforcement.
FISCAL IMPACT:
There is no direct cost or revenue impact from the recommended action as the City would be
recommending CDBG funding for specific projects to be disbursed by the County of Marin. However,
allocating federal funds to potential City projects may allow City general and capital funds to be
allocated to other priorities.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Approve the recommended CDBG funding allocations as outlined in this report.
2. Modify the CDBG funding allocations by adjusting individual project awards.3
3. Defer to the Countywide Priority Setting Committee to finalize funding recommendations for the San
Rafael Planning Area.
4. Provide alternative direction to staff regarding project selection or funding priorities.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution recommending Community Development
Block Grant (CDBG) project funding for Fiscal Year (FY) 2025-26 to the Marin County Board of
Supervisors.
ATTACHMENTS:
1. Resolution
2. Exhibit A to Resolution: 2025-26 CDBG Project Allocations
3. 2025-26 PSC Roster
3 Note: Funds may be reallocated within categories; however, the Public Services category cannot exceed
$72,515, per federal cap guidelines.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
4. 2025-26 All Funding Requests Received
RESOLUTION NO. 15402
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL RECOMMENDING
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FUNDING FOR
THE FISCAL YEAR 2025-2026 TO THE MARIN COUNTY BOARD OF SUPERVISORS
BE IT RESOLVED by the Council of the City of San Rafael as follows:
WHEREAS in June 1999, the City Council revised the Cooperation Agreement
with the County of Marin for Community Development Block Grant (CDBG) funds
whereby the City remained in the County system; and
WHEREAS in December 1999, the City devised a project selection process for
CDBG projects; and
WHEREAS on April 21, 2025, in accordance with the adopted project selection
process the City Council reviewed the submitted applications;
NOW, THEREFORE IT IS HEREBY RESOLVED that the City Council
recommends to the Marin County Board of Supervisors that the $481,541.48 in CDBG
funds available for allocation by the City of San Rafael be distributed to the projects and
in the amounts shown on Exhibit A to this resolution, subject to adjustments necessary
to accommodate any changes in the final allocation given to the County of Marin by the
federal Department of Housing and Urban Development (HUD).
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting
of the Council of said City held on the 21st day of April 2025, by the following vote:
AYES: Councilmembers: Hill, Kertz & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Bushey & Llorens Gulati
Lindsay Lara, City Clerk
Funding Applications received CDBG Request San Rafael
Recommendation
Expected Total
CDBG Allocation
Canal Alliance – Marin Villas Rehab
(San Rafael) $ 400,000.00 $ 138,525.47 $ 138,525.47
Habitat for Humanity – Home Rehab
Program (Countywide) $94,881.00 $ 13,000.00 $ 40,000.00
Habitat for Humanity- Redwood Blvd $ 1,000,000.00 $ 67,500.59 $ 424,401.41
Marin Foster Care Assoc. – 158–166A
Park Street (San Rafael) $ 400,000.00
Housing SubTotal $ 1,894,881.00 $ 219,026.06
* San Rafael-only request $ 721,150.00 $ 190,000.00
Legal Aid of Marin – Keeping
Marginalized Marin Tenants Housed $ 135,000.00 $ 27,515.42 $ 78,955.91
Marin Center for Independent Living –
Residential Access Modification
Program (RAMP)
$45,000.00 $ 10,000.00 $ 15,000.00
Make It Home – One Cozy Bed $25,000.00 $ 15,000.00 $ 15,000.00
Countywide Public Services subtotal $ 205,000.00 $ 52,515.42
San Rafael-only request
City of San Rafael – Pickleweed
Preschool $27,991.00 $ 20,000.00 $ 20,000.00
* San Rafael-only request $27,991.00 $ 20,000.00
481,541.48$
$ 125,000.00 $ 125,000.00
Homeward Bound – New Beginnings
Shelter Repairs (Countywide) $ 571,150.00 $ 65,000.00 $ 219,713.88
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Total San Rafael Funding Recommendation
Ritter Center – Ritter Builds Hope
Capital Campaign (San Rafael) $ 150,000.00
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Exhibit A to Resolution: 2025-26 CDBG Project Allocations
2025-26 PSC Roster
CM - Countywide Nancy Johnson
CM - Lower Ross Tracie Palmer
CM - Novato Crystal Lewis
CM - San Rafael Craig Yates
CM - Southern Marin Ida Green
CM - Upper Ross Philip "PJ" Feffer
CM - West Marin Hal Russek
EM - BOS Supervisor Eric Lucan
EM - Belvedere Peter Mark
EM - Corte Madera Rosa Thomas
EM - Fairfax Barbara Coler
EM - Larkspur Sarah Margulies
EM - Mill Valley Stephen Burke
EM - Novato Mark Milberg
EM - San Anselmo Chantel Walker
EM - San Rafael Rachel Kertz
EM - Sausalito Melissa Blaustein
EM- Tiburon Holli Their
PROJECT SPONSOR PROJECT NAME Planning Area CDBG Request
Canal Alliance
Canal Alliance - Marin Villas
Affordable Housing
Renovations, Phase II San Rafael
400,000.00$
Abode Housing Development
519 4th Street Community
Apartments (official name has
not been selected yet)
San Rafael
Eden Housing, Inc.Oak Hill Eden
Habitat for Humanity Greater San
Francisco Habitat Redwood Blvd.Novato 1,000,000.00$
Habitat for Humanity Greater San
Francisco
Habitat Marin County
Rehabilitation Program County Wide 94,881.00$
EAH Riviera and Turina Scattered
Site Renovation San Rafael
Marin Foster Care Association 158-166 Park Street San Rafael 400,000.00$
Housing Request Subtotal $ 1,894,881.00
North Marin Community Services
680 Wilson Siding
Replacement; Northern
Facade and Upper Roof
Novato 110,000.00$
Ritter Center Ritter Builds Hope Capital
Campaign Project San Rafael 110,000.00$
Two Valleys Community Land Trust Forest Knolls Mobile Home
Park Common Building County Other 59,000.00$
Homeward Bound of Marin
New Beginnings Center
Infrastructure Repairs and
Improvements
County Wide 571,150.00$
North Bay Children's Center Outdoor Classrooms, Learning
Lab Novato 75,000.00$
Capital Request Subtotal $ 850,150.00
Marin Center For Independent Living Residential Access
Modification Program County Wide 45,000.00$
Fair Housing Advocates of Northern
California
Fair Housing Counseling and
Education County Wide 85,000.00$
Community Action Marin Community Supports and
Emergency Services County Wide 49,680.00$
ExtraFood Creating a More Equitable
Food System in Marin County County Wide 52,512.50$
Legal Aid of Marin Keeping Marginalized Marin
Tenants Housed County Wide 135,000.00$
Fairfax-San Anselmo Children's Center After School Transportation
Project County Other 20,000.00$
Vivalon Nourish by Vivalon County Wide 67,200.00$
Adopt A Family of Marin
Emergency Rental Assistance
for Families at Risk for
Homelessness
County Wide 25,000.00$
City of San Rafael Pickleweed Preschool San Rafael 27,991.00$
Marin YMCA
Expanding Affordable
Childcare through YMCA
Elementary-Aged Programs
County Wide 65,000.00$
Planned Parenthood Shasta Diablo Inc.Increasing Equitable Access
to Care in Marin County County Other 30,000.00$
North Marin Community Services Nourishing North Marin Novato 25,000.00$
Make It Home One Cozy Bed County Wide 25,000.00$
San Geronimo Valley Community Center Child and Family Food Access County Other 30,000.00$
Center for Employment Opportunities, Inc.
CEO Marin’s Rapid Response
Housing & Assistance
Program
San Rafael 60,000.00$
Front Porch Communities Home Match County Wide 20,000.00$
Marin Housing Authority Older and Disabled Adult
Service Initiative 2025 County Wide 230,000.00$
2025-26 Marin County NOFA - All Applications Received
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Performing Stars of Marin
Youth Afterschool and
Summer Enrichment
Programming
County Other 20,000.00$
WelcomingHome.org 4 homes in 2025 San Rafael, Novato 20,000.00$
North Bay Children's Center, Inc.Childcare Scholarship Novato 20,000.00$
Road to Empowerment Restorative
Services Peer Mentor Program San Rafael, Novato 30,000.00$
Public Services Request Subtotal $ 1,082,383.50