HomeMy WebLinkAboutCC 04-21-2026 Item No. 7 CDBG and BMR Fund Allocations_Supplemental ReportCC 4-21-2026
#7
CDBG and BMR Fund
Allocations
e
Supplemental Report
COMMUNITY DEVELOPMENT DEPARTMENT
CITY HALL
10300 TORRE AVENUE • CUPERTINO, CA 95014-3255
TELEPHONE: (408) 777-3308
CUPERTINO.GOV
CITY COUNCIL SUPPLEMENTAL REPORT 1
Meeting: April 21, 2026
Agenda Item #7
Subject
Fiscal Year (FY) 2026-27 Community Development Block Grant (CDBG) Program and
Below Market Rate Affordable Housing Fund (BMR AHF) funding allocations;
authorization to execute funding agreements; and approval of a BMR AHF $75,000 public
service funding cap.
Recommended Action
1. Authorize the City Manager to execute the FY 2026-27 CDBG and BMR AHF
funding agreements.
2. Approve Resolution No. 26-XXX (Attachment A) to approve an annual $75,000
public service funding cap for the BMR AHF fund.
Staff’s responses to questions received from councilmembers are shown in italics.
Q1: What is the fund balance of the Below Marker Rate Fund?
Staff response: The Below Market Rate (BMR) Fund began the fiscal year with a total fund balance of
$9,605,415. Of this amount, $4,562,573 is not currently available, as it is tied to outstanding development
loans and accrued interest receivable, resulting in an available beginning balance of $5,042,842.
During the current fiscal year, the fund is projected to utilize approximately $731,817 of available fund
balance. This projection excludes approximately $4.5 million in budgeted Housing Mitigation Fee revenue,
as the associated development activity has not yet occurred and revenue has not been collected. Staff believes
it is more prudent to exclude this revenue until it is realized. Accounting for the budget, the estimated
ending balance for the fiscal year will be approximately $4.3 million.
After accounting for current year use and $3.0 million in committed funds related to the Mary Avenue
Project, the adjusted ending available fund balance is approximately $1.3 million.
Attachments Provided with Original Staff Report:
A. Draft Resolution
B. FY 2026-27 NOFA/RFP
C. City Council April 15, 2025 Meeting Minutes
D. Housing Commission Resolution No. 17-02 (CDBG Contingency Plan)
E. Resolution No. 18-035
F. FY 2026-27 CDBG and BMR AHF Funding Application Summary