| ITEM #: 2. DATE: 02/09/2026 AI #:2949 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | FY2027-2030 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) PLANNING UPDATE |
| STAFF PRESENTER(S): | Christina Panaitescu, Community Partnerships Program Manager |
Summary
Council will receive an update on the CDBG Fiscal Year (FY) 2027-2030 Consolidated Plan and FY2027 Action Plan and have an opportunity to provide feedback on investment priorities and activity recommendations. (Christina Panaitescu, Community Partnerships Program Manager)
FISCAL IMPACT
The amount of CDBG funding received by the city will vary from year-to-year based on the federal budget for the Department of Housing and Urban Development (HUD), which administers the CDBG and HOME program funding. The city expects to receive approximately $415,122 annually during each of the next four years. There is no direct impact to the city's budget since the program does not require a match from the city.
BACKGROUND AND PREVIOUS ACTIONS
The CDBG program was created under the Housing and Community Development Act of 1974, and is one of the longest continuously-run programs at HUD. The CDBG program provides annual grants to states and over 1,200 units of local government nationally.
CDBG funds may be used for a variety of activities that meet the needs of low- and moderate-income (LMI) residents and neighborhoods, and vulnerable populations as defined by HUD. Eligible activities fall into four broad categories:
1. Community Facilities and Infrastructure
2. Community Services and Programs
3. Economic Development
4. Quality Affordable Housing
Activities must also address Congress' primary CDBG objective to improve communities, principally for LMI residents by:
1. Providing Decent Housing,
2. Providing a Suitable Living Environment, and
3. Expanding Economic Opportunities.
In May 2020, Council directed staff to accept HUD's invitation to become a CDBG Entitlement Community (direct recipient) and initiate the planning process in order to begin receiving funds in FY 2022. The Public Participation Plan and a Five-Year Consolidated Plan established the framework and priority categories for the use of CDBG funding received for the five-year period covering CDBG program years (PY) 2021-2025, which is equivalent to city's FY 2022-2026.
On December 15, 2025, Council passed Resolution No. 2025-2497, accepting an invitation to join the Maricopa County HOME Consortium, opening the door to additional federal funding under HUD's HOME Investment Partnership Program.
CDBG funds may be used for a variety of activities that meet the needs of low- and moderate-income (LMI) residents and neighborhoods, and vulnerable populations as defined by HUD. Eligible activities fall into four broad categories:
1. Community Facilities and Infrastructure
2. Community Services and Programs
3. Economic Development
4. Quality Affordable Housing
Activities must also address Congress' primary CDBG objective to improve communities, principally for LMI residents by:
1. Providing Decent Housing,
2. Providing a Suitable Living Environment, and
3. Expanding Economic Opportunities.
In May 2020, Council directed staff to accept HUD's invitation to become a CDBG Entitlement Community (direct recipient) and initiate the planning process in order to begin receiving funds in FY 2022. The Public Participation Plan and a Five-Year Consolidated Plan established the framework and priority categories for the use of CDBG funding received for the five-year period covering CDBG program years (PY) 2021-2025, which is equivalent to city's FY 2022-2026.
On December 15, 2025, Council passed Resolution No. 2025-2497, accepting an invitation to join the Maricopa County HOME Consortium, opening the door to additional federal funding under HUD's HOME Investment Partnership Program.
STAFF ANALYSIS
The Four-Year Consolidated Plan will establish the framework and priority categories for the use of HUD Community Planning & Development (CPD) Funds for PY 2026-2029, which is equivalent to city's FY 2027-2030. This planning document is required by HUD and is expected to be updated every three to five years beginning in 2030.
The plan describes needs, resources, goals, strategies, and objectives to assist Goodyear’s LMI population, households, and neighborhoods as defined by HUD. The majority of the plan is a HUD-required analysis of the existing conditions impacting LMI residents in the city. Data in the plan are generated by HUD through its Comprehensive Housing Affordability Strategy (CHAS) data system and from the US Census Bureau American Community Survey. This analysis informs the development of priority categories and proposed activities to use the city's allocation in alignment with HUD funding requirements.
In developing the Consolidated Plan, the city must establish long-term goals related to the use of CDBG and HOME funds and strategies to improve the delivery system, address lead-based paint hazards, reduce the incidence of poverty, and address barriers to affordable housing development.
To remain open to investing CDBG funds in activities that directly benefit LMI households, neighborhoods, and people with special needs throughout the city, staff recommend not restricting activities to one specific target area.
Based on the data analysis and input from residents and stakeholders, the following proposed four-year priority areas and strategies are presented for Council discussion and ultimate inclusion in the FY 2027-2030 Consolidated Plan and FY 2027 Annual Action Plan:
High-Priority Activities
(likely to be funded with CDBG or HOME resources during the next four years)
(may be funded as opportunities arise)
The amount of CDBG funding received by the city will vary from year-to-year based on the federal budget. The city expects to receive approximately $415,122 annually during each of the next four years. The Annual Action Plan must describe specific activities that the city will fund with its CDBG allocation in the upcoming fiscal year and must correlate with at least one priority activity area indicated in the Four-Year Consolidated Plan.
Public Outreach and Feedback
The following priority areas were identified during the public outreach and feedback gathering process, including public meetings, hearings, and interviews with residents and stakeholders:
FY 2027 Recommended Activities
For FY 2027, based on stakeholder input and the success of the city’s COVID-response pilot program, staff recommend focusing on owner-occupied home rehab program, and eviction prevention services such as tentant-landlord education and mediation to prevent eviction filings (utilizing up to 15% of the total FY 2027 annual entitlement), and CDBG program administration (utilizing 20% of the total FY 2027 annual entitlement). For future planning, the Four-Year Consolidated Plan identifies activities in other priority areas to be considered in future years.
Next Steps
Following Council’s discussion, the city will begin a 30-day public comment period for both draft plans, which will be made available on the city’s website at www.goodyearaz.gov/cdbg from April 1-30, 2026. On April 27, 2026, the city will hold a Public Hearing to collect any further public comments. At the May 11, 2026 Council Meeting, once the public comment period is completed and feedback has been compiled, Council will consider adoption of the final Four-Year Consolidated Plan and FY 2027 Annual Action Plan in order to meet HUD submission deadlines.
The plan describes needs, resources, goals, strategies, and objectives to assist Goodyear’s LMI population, households, and neighborhoods as defined by HUD. The majority of the plan is a HUD-required analysis of the existing conditions impacting LMI residents in the city. Data in the plan are generated by HUD through its Comprehensive Housing Affordability Strategy (CHAS) data system and from the US Census Bureau American Community Survey. This analysis informs the development of priority categories and proposed activities to use the city's allocation in alignment with HUD funding requirements.
In developing the Consolidated Plan, the city must establish long-term goals related to the use of CDBG and HOME funds and strategies to improve the delivery system, address lead-based paint hazards, reduce the incidence of poverty, and address barriers to affordable housing development.
To remain open to investing CDBG funds in activities that directly benefit LMI households, neighborhoods, and people with special needs throughout the city, staff recommend not restricting activities to one specific target area.
Based on the data analysis and input from residents and stakeholders, the following proposed four-year priority areas and strategies are presented for Council discussion and ultimate inclusion in the FY 2027-2030 Consolidated Plan and FY 2027 Annual Action Plan:
High-Priority Activities
(likely to be funded with CDBG or HOME resources during the next four years)
- Community Facilities and Improvements
- Public Services
- Program Administration
- Attainable and Sustainable Housing
(may be funded as opportunities arise)
- Economic Development
The amount of CDBG funding received by the city will vary from year-to-year based on the federal budget. The city expects to receive approximately $415,122 annually during each of the next four years. The Annual Action Plan must describe specific activities that the city will fund with its CDBG allocation in the upcoming fiscal year and must correlate with at least one priority activity area indicated in the Four-Year Consolidated Plan.
Public Outreach and Feedback
The following priority areas were identified during the public outreach and feedback gathering process, including public meetings, hearings, and interviews with residents and stakeholders:
- Harrison Street Improvements
- Housing Rehabilitation
- Loma Linda Community Center Improvements
- Sidewalk Improvements or Traffic Calming
- West Valley Low Barrier Shelter
- Boys & Girls Club*
- Senior & Youth Programs at Loma Linda*
- Tenant-Landlord Mediation*
FY 2027 Recommended Activities
For FY 2027, based on stakeholder input and the success of the city’s COVID-response pilot program, staff recommend focusing on owner-occupied home rehab program, and eviction prevention services such as tentant-landlord education and mediation to prevent eviction filings (utilizing up to 15% of the total FY 2027 annual entitlement), and CDBG program administration (utilizing 20% of the total FY 2027 annual entitlement). For future planning, the Four-Year Consolidated Plan identifies activities in other priority areas to be considered in future years.
Next Steps
Following Council’s discussion, the city will begin a 30-day public comment period for both draft plans, which will be made available on the city’s website at www.goodyearaz.gov/cdbg from April 1-30, 2026. On April 27, 2026, the city will hold a Public Hearing to collect any further public comments. At the May 11, 2026 Council Meeting, once the public comment period is completed and feedback has been compiled, Council will consider adoption of the final Four-Year Consolidated Plan and FY 2027 Annual Action Plan in order to meet HUD submission deadlines.