TO: Board of Supervisors
FROM: Scott Wagner, Director of Housing & Community Services
REPORT BY: Jesus Tijero, Homeless Programs Project Manager
SUBJECT: FY 2026 U.S. Department of Housing & Urban Development Continuum of Care Program Annual Funding Competition
RECOMMENDATION
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Approve and authorize the application and acceptance of U.S. Department of Housing & Urban Development Fiscal Year 2026 Continuum of Care Program Annual Funding Competition funding for a total of $973,260 to provide certain homeless services in future fiscal years. (Fiscal Impact: $973,260 Revenue; Housing & Community Services Programs Fund; Not Budgeted; Discretionary)
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BACKGROUND
Each year the Department of Housing and Urban Development (HUD) releases a Notice of Funding Opportunity (NOFO) for their Continuum of Care (CoC) Competition and Renewal Grant Program. The Program is designed to promote community-wide commitment to the goal of ending homelessness and to provide funding for efforts by nonprofit organizations, state and local government, Indian Tribes and public housing agencies to quickly re-house and support individuals and families experiencing homelessness.
The Napa City and County CoC is a group of community stakeholders who work together to plan for and provide emergency, transitional and permanent housing and other services to address the needs of individuals and families experiencing homelessness. Napa County Dept. of Housing & Community Services (DHCS) plays a key role as the collaborative applicant in coordinating the CoC and in supporting the CoC’s eligibility for funding from HUD, along with submitting applications annually to support their efforts to provide permanent housing for individuals and families experiencing homelessness.
The Fiscal Year 2026 HUD CoC NOFO contains drastic changes to funding uses and eligibility criteria, including a cap on the amount of funding a community can utilize for direct rental assistance support for permanent housing (including permanent supportive housing) of no more than 60% of total award. For context, the Napa City and County CoC annual renewal demand as of Fiscal Year 2024 was roughly $1,000,000, of which more than 95% is utilized for permanent supportive housing direct rental assistance and supports. The new criteria change results in an abrupt end of historically on-going federal rental assistance funding to more than forty (40) disabled individuals who previously experienced chronic homelessness.
The Director of Housing & Community Services requests permission to apply for and accept U.S. Department of Housing & Urban Development (HUD) Fiscal Year 2026 Continuum of Care Program Annual Funding Competition for a total of $973,260 to provide certain homeless services. The grant applications include:
1. Permanent Supportive Housing grant in the amount of $619,589, to provide case
management and rental subsidies to house individuals or families experiencing chronic homelessness in need of non-time-limited affordable housing assistance with wrap-around services.
2. Day Center Program grant in the amount of $301,894 to expand the South Napa Shelter Day Center beyond its current focus on meeting immediate basic needs. The enhanced program provides intensive service coordination, housing navigation, behavioral health support, employment services and recovery-oriented programming designed to move participants from crisis towards permanent housing and long-term self-sufficiency.
3. CoC Planning grant in the amount of $51,777 to provide federal funding to assist with the cost of planning and evaluating CoC homeless services and programs.
Requested Action:
Authorize and direct the Director of Housing & Community Services to submit and execute funding applications and grant agreements on behalf of Napa County for the HUD Fiscal Year 2026 CoC Program Annual Funding Competition.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
If awarded, allocation to be appropriated in future fiscal HCS budgets accordingly |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
There is no mandate to apply for the HUD CoC Program Funding |
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Is the general fund affected? |
No |
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Future fiscal impact: |
If awarded, funds will be included in the FY 2027-2028 budget |
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Consequences if not approved: |
Napa County will need to seek alternate grant funding, allocate local funding, or discontinue certain homeless services in the coming fiscal year |
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Additional Information: |
County Strategic Initiative: Build Healthy, Connected Communities |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.