Attachment A - FY 2026-2027 Draft Annual Action Plan.pdf
City of Phoenix — Community Services and Education Subcommittee (2026-04-22)
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City of Phoenix 2026-2027 Draft Annual Action Plan Attachment A Annual Action Plan 2026 1 OMB Control No: 2506-0117 (exp. 09/30/2021) Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction The 2026-27 Annual Action Plan is the specific one-year plan for the use of U.S. Department of Housing and Urban Development (HUD) formula grant funds. The formula grant programs included in the Consolidated Plan consist of the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Solutions Grant (ESG) and Housing Opportunities for Persons with AIDS (HOPWA) programs. The one-year action plan is based upon the priority needs defined in the Consolidated Plan strategy section and the available resources. The plan will guide the allocation of resources and other investment decisions along with the City's projected performance goals in the coming year. The strategy establishes the general priorities for assisting low- and moderate-income Phoenix residents and neighborhoods. 2. Summarize the objectives and outcomes identified in the Plan This could be a restatement of items or a table listed elsewhere in the plan or a reference to another location. It may also contain any essential items from the housing and homeless needs assessment, the housing market analysis or the strategic plan. Through the 2025-2029 Consolidated Plan efforts, the City has identified eight priority needs and associated goals to address these needs. These needs act as a framework for FY 2026-27 programs and activities identified in this Annual Action Plan. Affordable Housing 1A Promote and fund new affordable housing development such as homeownership opportunities for low- and moderate-income households; development of new rental housing inventory; homeowner housing rehabilitation activities; and Community Housing Development Organizations (CHDO) affordable housing development activities in the city. Code enforcement activities will revitalize communities and help improve the health and safety of low/mod neighborhoods. Public Services 2A Provide for supportive services for low- to moderate-income and special need populations. Services for LMI will include youth programs, health services, employment training, housing information and Annual Action Plan 2026 2 OMB Control No: 2506-0117 (exp. 09/30/2021) referral services and other eligible services under the CDBG program. Public services assisting special needs populations may include homeless programs, senior services, services for persons with a disability, and/or services for victims of domestic violence. Public Facilities & Infrastructure Investment 3A Provide funds to improve and expand public facilities and infrastructure such as neighborhood facilities, parks and rec centers, water/sewer systems, sidewalks, and streets. Public facility improvements may also help special need groups and may be directed towards homeless shelters, senior centers and community centers. Economic Development 4A Provide support for activities and promote job retention or creation for low- and moderate-income residents. Activities may include financial aid and technical assistance. There is also a need to provide support for façade improvements to commercial sites located in low/mod areas in Phoenix. Removal of Slum & Blight 5A Provide support for the removal of slum and blight in low/mod areas in Phoenix. Demolition activities of aging and dilapidated structures will encourage revitalization efforts, and help improve the health and safety of these areas. Housing & Services for the Homeless 6A Provide support for overnight shelter services for individuals and families experiencing homelessness. Emergency shelter will include wraparound services that help individuals and families gain self-sufficiency. The City will also provide homeless prevention services for those at-risk of homelessness, and rapid rehousing assistance to homeless individuals and families with the goal of eliminating or reducing homelessness in the City. Housing & Supportive Services for People Living with HIV/AIDS 7A Provide funding support for housing subsidy activities for people living with HIV/AIDS, which include Transitional Housing, Tenant-Based Rental Assistance (TBRA), Short-Term Rent, Mortgage and Utility (STRMU) Assistance and Permanent Housing Placement (PHP). Several supportive services activities address the needs of eligible clients, increase accessibility to medical care and other vital resources. Effective Program Administration 8A Effective program management of HUD grant programs will ensure compliance with each respective grant and their regulations and that programs meet their established objectives. This includes a range of Annual Action Plan 2026 3 OMB Control No: 2506-0117 (exp. 09/30/2021) activities such as general administration and planning of the CDBG, ESG, HOME and HOPWA grant programs, monitoring subrecipients, fair housing activities and keeping strict grant-based accounting. 3. Evaluation of past performance This is an evaluation of past performance that helped lead the grantee to choose its goals or projects. FY2025 marked the first year of the 2025-2029 Consolidated Plan. The established priority needs will guide planning efforts for the upcoming year, as detailed in the FY2024 CAPER. The following is a summary of accomplishments by priority: Housing: Phoenix continued its efforts to improve housing conditions for low- and moderate-income households, with a strong focus on rental housing construction and tenant-based rental assistance. The City successfully increased access to affordable rental units, constructing 382 rental units, achieving 106.11% of the strategic goal. However, homeowner rehabilitation efforts fell short, with 24 homeowner housing rehabilitations completed, achieving 20% of the program-year goal. Direct financial assistance to homebuyers supported 3 households, reaching 100% of the strategic goal. While rental housing initiatives have shown progress, homeownership opportunities and rehabilitation efforts remain a challenge. Moving forward, Phoenix will need to accelerate its efforts in housing development and rehabilitation to fully meet its five-year affordable housing objectives. Public Facilities and Improvements: Phoenix made substantial advancements in public facilities and infrastructure, benefiting 2,448 individuals in low- and moderate-income communities, exceeding the program year goal of 1,410 individuals. Additionally, 42,185 individuals benefited from public service activities linked to public facility investments, for the program year, achieving over 5000% of the five-year goal. With these achievements, the City far exceeded its five-year goals for public facility improvements, continuing its commitment to strengthening infrastructure in underserved areas. Public Services: The City remained committed to expanding public services that support low- and moderate-income individuals, including homelessness outreach, youth programs, senior services, and job training. Public service activities benefited 1,517 individuals, slightly exceeding the annual goal and contributing to the City’s success in surpassing its five-year public service targets. Phoenix has made significant progress in delivering essential resources to residents in need and remains dedicated to providing ongoing support for vulnerable populations. Annual Action Plan 2026 4 OMB Control No: 2506-0117 (exp. 09/30/2021) Homelessness Assistance: Phoenix continued investing in homelessness prevention, emergency shelters, and rapid rehousing programs. The City provided 1,972 individuals with emergency shelter services. A total of 121 justice involved individuals were provided navigation and wrap around services. Homelessness prevention efforts assisted 249 individuals. Additionally, 54 households received rapid rehousing assistance. Although certain homelessness prevention measures have not met initial projections, Phoenix’s broader shelter and rehousing initiatives have significantly advanced. With continued collaboration and investment, the City is striving to close the gap and make meaningful progress toward fulfilling its five- year homelessness assistance objectives. 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. 5. Summary of public comments This could be a brief narrative summary or reference an attached document from the Citizen Participation section of the Con Plan. 6. Summary of comments or views not accepted and the reasons for not accepting them 7. Summary Annual Action Plan 2026 5 OMB Control No: 2506-0117 (exp. 09/30/2021) PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency CDBG Administrator PHOENIX City of Phoenix Neighborhood Services Department HOPWA Administrator PHOENIX City of Phoenix Housing Department HOME Administrator PHOENIX City of Phoenix Housing Department ESG Administrator PHOENIX City of Phoenix Office of Homeless Solutions Table 1 – Responsible Agencies Narrative (optional) The City’s Neighborhood Services Department (NSD) is the lead agency and is responsible for HUD entitlement grants which includes CDBG, HOME, ESG, and HOPWA. NSD is also responsible for the preparation of the Consolidated Plan, Annual Action Plan, and Consolidated Annual Performance Evaluation Report (CAPER). Additionally, NSD staff also administer the Request for Proposal (RFP) process and oversees the selection of CDBG subrecipients for City Council’s consideration. The City’s Housing Department administers HOME and HOPWA. HOME is the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households. HOPWA is an entitlement grant dedicated to assisting communities to provide affordable housing opportunities and related supportive services for low-income persons living with HIV/AIDS and their families. The City’s Office of Homeless Solutions administers ESG. ESG assists individuals in quickly regaining permanent housing stability after Annual Action Plan 2026 6 OMB Control No: 2506-0117 (exp. 09/30/2021) experiencing a housing crisis and/or homelessness and can be used for emergency shelter, street outreach, rapid re-housing, Homeless Management Information System (HMIS) costs, homelessness prevention, and for administration and planning costs. During the first year Annual Action Plan, the City solicited input from other governmental agencies as well as various public and private agencies providing housing, social services, and other community development activities within the community. The City will continue to form new partnerships with non-profit organizations, the private sector, and other local resources. Consolidated Plan Public Contact Information Spencer J. Self Neighborhood Services Director phone: 602-262-7494 email: spencer.self@phoenix.gov Contingency Provision for PY 2026 Grant Allocations At this time HUD has not yet announced the PY 2026 CDBG, HOME, ESG and HOPWA grant allocations. The grant allocations of $14,389,727 for CDBG, $5,123,745 for HOME, $5,586,702 for HOPWA and $1,271,028 for ESG are only an estimate of the anticipated PY 2025 grant allocations based on prior year awards. The City of Phoenix has a contingency provision per HUD notice CDP-25-02 to align final allocations with actual funding. Activity budgets will be proportionally adjusted to match the announced allocation while ensuring compliance with grant regulations. • For CDBG, the allocation of funds will be 20% for admin, no more than 15% for public services (including homeless services), and the balance of funds for affordable housing, public facilities and infrastructure improvements, and economic development. • HOME funds will be allocated 10% for admin, 15% for CHDO housing developments as required by the program, and the balance of funds for non-CHDO housing developments including multi- family rental development, down payment assistance and housing rehabilitation. • HOPWA funding will allocate 3% for admin, and the remaining balance to Project Sponsors delivering housing subsidy and supportive services activities. • ESG will fund admin at 7.5%, homeless prevention and rapid rehousing at 32.5% and emergency shelter services at 60%. Annual Action Plan 2026 7 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-10 Consultation – 91.100, 91.200(b), 91.215(l) 1. Introduction In the coming year, Phoenix will remain focused on serving vulnerable individuals and families with children experiencing homelessness through collaboration with other funders and partnerships with essential public and private systems of care including health and behavioral health care; public safety; education; and employment providers. The City will continue to lead efforts in providing outreach and services to Veterans, seniors, unaccompanied youth, and families with children and other individuals experiencing homelessness or chronic homelessness through participation in targeted initiatives and support to community-based providers. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l)) The City of Phoenix enhances coordination between public and assisted housing providers, private entities, and governmental health, mental health, and service agencies. Phoenix maintains strong partnerships with housing providers through collaborative initiatives that expand affordable housing and address diverse community needs. The City’s Housing Department administers the federal Housing Choice Voucher (Section 8) program, offering rental assistance to very low-income families, older adults, and individuals with disabilities. These programs promote long-term stability for Phoenix’s most vulnerable residents. Additionally, Phoenix allocates Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds to support nonprofit and service agencies assisting individuals experiencing homelessness, housing insecurity, and financial hardship. Through the Maricopa Regional Continuum of Care (CoC), Phoenix collaborates with mental health providers, shelters, service agencies, and regional organizations to provide coordinated homelessness assistance. The City’s Office of Homeless Solutions operates outreach and engagement programs to connect unhoused individuals to housing resources, behavioral health services, employment programs, and case management. Phoenix also leverages general funds for transitional housing, emergency shelters, and eviction prevention, ensuring residents have access to both immediate and long-term housing solutions. Phoenix participates in the Homeless Management Information System (HMIS) as part of the Maricopa Regional CoC, which tracks homelessness trends, measures service outcomes, and enhances coordination among providers. The City’s outreach teams, shelters, and service providers utilize HMIS to assess client needs, prevent duplication of services, and improve case management. HMIS data informs funding decisions and strengthens Phoenix’s ability to address homelessness with evidence-based strategies. Annual Action Plan 2026 8 OMB Control No: 2506-0117 (exp. 09/30/2021) To bridge the digital divide, Phoenix partners with internet providers, community organizations, and technology firms to expand digital connectivity for low- and moderate-income households. The City has collaborated with providers to implement low-cost internet programs, ensuring residents have affordable broadband and mobile services. Phoenix Public Libraries and digital inclusion initiatives offer technology lending, digital literacy training, and online learning resources, supporting economic opportunities and educational advancement. Phoenix works with local, regional, and federal agencies to strengthen emergency preparedness, hazard mitigation, and disaster response. The City collaborates with the Maricopa County Department of Emergency Management and participates in the Maricopa County Multi-Jurisdictional Hazard Mitigation Plan to assess risks and develop response strategies. Additionally, Phoenix partners with the Maricopa County Community Organizations Active in Disaster (MCCOAD) to coordinate emergency relief efforts, streamline response operations, and enhance community resilience. To address flood risks, Phoenix partners with the Maricopa County Flood Control District to implement mitigation projects, improve stormwater management, and protect neighborhoods. These efforts reduce flood damage, enhance infrastructure resilience, and ensure public safety. Phoenix advances sustainability and climate resilience through partnerships with the Arizona Department of Environmental Quality (ADEQ) and the Maricopa County Air Quality Department. The City is committed to reducing emissions, improving air quality, and promoting sustainable infrastructure projects to ensure long-term environmental resilience and energy efficiency. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The City has been an active member of the Maricopa Regional Continuum of Care (CoC) since its inception. The Director of the City of Phoenix Office of Homeless Solutions serves as co-chair on the CoC Board and many staff are active participants in CoC collaboratives, workgroups, and activities. Currently, the City is combining outreach, housing stabilization, and public and assisted housing resources to support programs which move chronically homeless individuals and families, Veterans, unaccompanied youth, and seniors from the street to housing as quickly as possible. The City also supports emergency shelter for single individuals and families with children. The City provides emergency shelter, housing stabilization, and rapid rehousing services to seniors, families, single adults, and medically vulnerable individuals in order to help provide supports to end homelessness. The City is a key partner in Pathways Home, a Regional Homelessness Action Plan for local and tribal governments. The three-step action plan has a goal of reducing homelessness by 25 percent by 2027. These steps include committing to work together throughout the region, increasing safe housing options, and supporting diverse partnerships to address homelessness. Together, these steps can Annual Action Plan 2026 9 OMB Control No: 2506-0117 (exp. 09/30/2021) strengthen the regional infrastructure to address homelessness. This plan represents the first time local and tribal governments of all sizes have come together to address homelessness with a robust, regional approach. Local and tribal governments created this action plan with community partners to build a stronger regional infrastructure to address homelessness. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City of Phoenix Office of Homeless Solutions Director serves as co-chair on the Maricopa County Regional Continuum of Care (CoC) Board. The Continuum of Care Board is the decision-making body for the CoC. This position represents the ESG formula recipients, and actively participates in collaboratives, workgroups, and activities of the CoC. The City is also an active member of the Maricopa Association of Governments Data Collaborative, CoC Collaborative, Local Jurisdiction Collaborative, Coordinated Entry Collaborative, and the ESG Collaborative, which is a workgroup formed by the CoC to develop regional strategies and practices for the comprehensive implementation of ESG eligible services across Maricopa County. The Maricopa County Continuum of Care Community Adopted Best Practices are a set of performance and quality standards for each of the Continuum’s primary engagement/housing interventions. The community adopted best practices were developed to serve as a guiding document for all homelessness programs to achieve the highest service standards for people being served in our community. The Best Practices include a framework that applies to the Continuum’s full continuum of services, including Outreach, Encampments, Coordinated Entry and Assessment, Emergency Shelter, Transitional Housing, Rapid Rehousing, and Permanent Supportive Housing. The shared best practices may be applied to any program, including non-HUD funded projects. (street outreach, emergency shelter, transitional housing, rapid re-housing, permanent supportive housing), developed in partnership by the population specific work groups (Street Outreach Collaborative, Chronic Homelessness, Collaborative Outreach, Coordinated Entry, Ending Veteran Homelessness, Emergency Solutions Grant, Shelter Prioritization) and approved by the CoC Governing Board. The Best Practices were approved by the CoC Board after being developed in collaboration with people experiencing homelessness, service providers, and funders as a statement of what the community strives for in program design, operation, and outcomes. The Best Practices promote a common language and understanding of program components and expectations, and subsequently a framework for evaluating program efficacy and determining level of need. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities Annual Action Plan 2026 10 OMB Control No: 2506-0117 (exp. 09/30/2021) Table 2 – Agencies, groups, organizations who participated 1 Agency/Group/Organization Maricopa Association of Governments Agency/Group/Organization Type Regional organization Planning organization Housing Phoenix Plan What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Maricopa Association of Governments is the lead agency of the Maricopa Regional CoC. The City of Phoenix has been an active member of the CoC since its inception. As a member of the CoC Board and active participant in CoC collaboratives, workgroups, and activities, the City plays a leadership role in the implementation of efforts to end homelessness across the region. The CoC provided information on CoC operations and homelessness needs in the community to inform future funding priorities. 2 Agency/Group/Organization City of Phoenix Equal Opportunity Department Agency/Group/Organization Type Services - Housing Service-Fair Housing What section of the Plan was addressed by Consultation? Housing Need Assessment Public Housing Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Equal Opportunity Department/Fair Housing Section provided information and data for the Consolidated Plan, pertaining to the Fair Housing needs within the city and is a part of the strategies within the Analysis of Impediments to Fair Housing Choice. The Department was also consulted through the online stakeholder survey. Annual Action Plan 2026 11 OMB Control No: 2506-0117 (exp. 09/30/2021) 3 Agency/Group/Organization City of Phoenix Human Services Dept. Agency/Group/Organization Type Services - Housing Services-Children Services-Elderly Persons Services-Victims of Domestic Violence Services-homeless Services-Employment What section of the Plan was addressed by Consultation? Homeless Needs - Chronically homeless Homeless Needs - Families with children Homelessness Needs - Veterans Homelessness Needs - Unaccompanied youth Homelessness Strategy Anti-poverty Strategy Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Human Services Department via the Office of Homeless Solutions administers ESG funding and monitors sub-recipients. Information was provided on ESG operations and homelessness needs within the city to inform future funding priorities. 4 Agency/Group/Organization City of Phoenix Housing Department Agency/Group/Organization Type Housing PHA Services - Housing Services-Persons with HIV/AIDS Services - Narrowing the Digital Divide Planning organization What section of the Plan was addressed by Consultation? Public Housing Needs HOPWA Strategy Housing Phoenix Plan Annual Action Plan 2026 12 OMB Control No: 2506-0117 (exp. 09/30/2021) Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The Housing Department is the Public Housing Authority for the City of Phoenix. The Housing Department administers the HOME Program, HOPWA, Housing Choice Vouchers, The Housing Phoenix Plan, and oversees the Choice Neighborhoods Grant. 5 Agency/Group/Organization City of Phoenix Office of Emergency Management Agency/Group/Organization Type Agency - Emergency Management What section of the Plan was addressed by Consultation? Public Housing Needs Resiliency Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The City of Phoenix Office of Emergency Management is dedicated to promoting a safer, more resilient city by coordinating and integrating all activities necessary before, during and after any natural disasters, acts of terrorism, or other man- made disasters. This office is focused on assuring continuity of city government and readiness for emergency operations with the safety and well-being of citizens of the City of Phoenix in the forefront of our operations. 6 Agency/Group/Organization City of Phoenix Neighborhood Services Department Agency/Group/Organization Type Services - Housing Services-Children Services-Elderly Persons Services-Victims of Domestic Violence Services-homeless Other government - Local What section of the Plan was addressed by Consultation? Housing Need Assessment Market Analysis Annual Action Plan 2026 13 OMB Control No: 2506-0117 (exp. 09/30/2021) Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The City of Phoenix Neighborhood Services Department is committed to partnering with residents in building to preserve, enhance and engage Phoenix neighborhoods. This department was consulted through the online stakeholder survey. Identify any Agency Types not consulted and provide rationale for not consulting No single agency or organization was purposely excluded from providing input on the Annual Action Plan. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Maricopa Association of Governments The City and the Maricopa Association of Governments share the same goal to eliminate or reduce homelessness in Phoenix. Housing Phoenix Plan City of Phoenix, Housing Department The Housing Phoenix Plan identified the need for affordable housing. The goals of the plan helped to inform the housing goals in the plan. Strategies to Address Homelessness Plan City of Phoenix, Office of Homeless Solutions The Homelessness Plan helped to identify homelessness needs and strategies in Phoenix. The goals of the plan helped to inform the homeless service goals in the plan. The Office of Homeless Solutions is currently refreshing its strategic plan for 2026-2029. Table 3 – Other local / regional / federal planning efforts Narrative (optional) The City of Phoenix has been an active member of the Maricopa County Continuum of Care (CoC) since its inception. As a member of the CoC Board and active participant in CoC collaboratives, workgroups, and activities, the City plays a leadership role in the implementation of efforts to end homelessness across the region. The CoC provided information on CoC operations and homelessness needs in the community to inform future funding priorities. Annual Action Plan 2026 14 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation – 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal-setting Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comments not accepted and reasons URL (If applicable) Table 4 – Citizen Participation Outreach Annual Action Plan 2026 15 OMB Control No: 2506-0117 (exp. 09/30/2021) Expected Resources AP-15 Expected Resources – 91.220(c)(1,2) Introduction The City of Phoenix receives an annual allocation of funds from four federal formula grant programs: the Community Development Block Grant (CDBG), the HOME Investment Partnerships (HOME), Housing Opportunities for Persons Living With AIDS (HOPWA), and the Emergency Solutions Grants (ESG) programs. These grant funds support various initiatives, including community development programs, affordable housing development and preservation, housing subsidy programs and supportive services for individuals with HIV/AIDS and their families, and efforts to address homelessness. Program Year 2026 is the second year of the Five-Year Consolidated Plan for 2025-2029, and the City anticipates Annual Action Plan 2026 16 OMB Control No: 2506-0117 (exp. 09/30/2021) receiving similar allocation amounts each year throughout this period. Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG public - federal Acquisition Admin and Planning Economic Development Housing Public Improvements Public Services 14,389,727.00 600,000.00 21,892,029.00 36,881,756.00 43,169,181.00 FY26 is the second program year of the Con Plan. The funds expected for the remainder of Con Plan is 3x more years of the annual allocation and program income. Annual Action Plan 2026 17 OMB Control No: 2506-0117 (exp. 09/30/2021) Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ HOME public - federal Acquisition Homebuyer assistance Homeowner rehab Multifamily rental new construction Multifamily rental rehab New construction for ownership TBRA 5,123,745.14 10,165,006.00 0.00 15,288,751.14 30,495,019.00 FY26 is the second program year of the Con Plan. The funds expected for the remainder of the Con Plan is 3 more years of the annual allocation and program income. Annual Allocation ($5,123,745.14) + PI ($10,165,006) x3 years = ($ 30,495,019.14). Annual Action Plan 2026 18 OMB Control No: 2506-0117 (exp. 09/30/2021) Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ HOPWA public - federal Permanent housing in facilities Permanent housing placement Short term or transitional housing facilities STRMU Supportive services TBRA 5,586,702.00 0.00 0.00 5,586,702.00 16,760,106.00 FY26 is the second program year of the Con Plan. The funds expected for the remainder of Con Plan is 3x more years of the annual allocation. Annual Action Plan 2026 19 OMB Control No: 2506-0117 (exp. 09/30/2021) Program Source of Funds Uses of Funds Expected Amount Available Year 1 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ ESG public - federal Conversion and rehab for transitional housing Financial Assistance Overnight shelter Rapid re- housing (rental assistance) Rental Assistance Services Transitional housing 1,271,028.00 0.00 0.00 1,271,028.00 5,084,112.00 FY26 is the second program year of the Con Plan. The funds expected for the remainder of Con Plan is 3x more years of the annual allocation. Table 5 - Expected Resources – Priority Table Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied The CDBG program does not require matching funds; however, it provides opportunities to leverage private, local, state, and other federal funds for public service activities. To maximize the effectiveness of the formula grant funding, the City partners with various nonprofit organizations, private lending institutions, and other federal programs to enhance program funding. Annual Action Plan 2026 20 OMB Control No: 2506-0117 (exp. 09/30/2021) The HOME program requires a matching contribution of at least 25% of the funds spent on affordable housing. The City utilizes a combination of federal, state, and local funds, as well as other non-federal resources, to fulfill this matching requirement. Examples of these funds include tax- exempt General Obligation Bond funds, tax-exempt bonds, and tax credits. The State of Arizona also plays a significant role in providing affordable housing in Phoenix through various means. This includes offering funding to applicants from the HOME Program and the Housing Trust Fund, as well as managing the distribution of tax-exempt development bonds and tax credit allocations. The state offers a State Low- Income Housing Tax Credit program designed for both 4% metro projects and 9% rural projects. The City of Phoenix will continue to encourage the State to take a more active role in addressing the demand for affordable housing. Additionally, the City will explore and promote opportunities for the State to offer tax incentives, such as tax credits and property tax waivers, for lands and structures that support affordable housing initiatives. The City promotes the involvement of private businesses and nonprofit organizations in creating affordable and assisted housing. This is achieved by utilizing funds from the National Affordable Housing Act, Community Development Block Grant (CDBG) funds, and the HOME program. Additionally, the City will continue to use funds from its General Obligation Bond Program, when available, to implement comprehensive revitalization strategies in neighborhoods. ESG has a 100% match requirement, which means funds must be matched dollar for dollar. The City of Phoenix fulfills ESG match funds with the City’s General Purpose funds. HOPWA does not have a match requirement. Continued in Discussion below: Annual Action Plan 2026 21 OMB Control No: 2506-0117 (exp. 09/30/2021) If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The Housing Phoenix Plan documents the findings of the city's Affordable Housing Initiative, which launched in 2019 with the goal of completing a housing needs assessment and establishing policy recommendations to address the city's current housing challenge. Through extensive research and community outreach, the plan identifies the community's housing needs, documents the housing gap, compiles nationwide best practices, and recommends nine policy initiatives to reach the goal of creating a stronger and more vibrant Phoenix through increased housing options for all. As the fifth largest city in the country, Phoenix has experienced consistent population growth which has outpaced the growth of the housing market. This nine-point initiative plan was created to establish zoning incentives for affordable housing developers, create allowances for accessory dwelling units, redevelop city-owned land with housing, increase resources, streamline processes, and establish an education campaign. The City has properties set aside for public and private partnership in direct support of activities such as the CDBG Slum and Blight Acquisition, Infill Program. This program will allow new construction of single- and or multifamily homes on vacant lots within residential neighborhoods located in neighborhood initiative and redevelopment areas. In addition, the City will provide CDBG funds for homebuyer assistance to low- and moderate-income homebuyers. As part of the Housing Phoenix Plan, the Housing Department has identified underutilized parcels within the City’s portfolio. These parcels will be made available to non-profit and for-profit developers through a Request for Proposal (RFP) process for redevelopment that would result in increased affordable housing units throughout the City of Phoenix. Progress has been made in 2025 to issue multiple RFPs, and award an additional site to a non-profit development partner. The most recent RFPs released by the Neighborhood Services Department include four parcels along 16th Street and Broadway Road and 38 parcels in the Isaac Redevelopment Area, both issued December 30, 2025. Additionally, the Neighborhood Services Department released an RFP for two parcels for the development of affordable housing in the Oakland Historic District which was awarded by Council on June 18, 2025 and for 8 parcels in the Sunnyslope/Village Center which closed on March 14, 2025 and is pending Council approval. To date, approximately 66% of the approved parcels slated for residential use have been released via RFP and due diligence for additional releases is underway. Projects underway as a result of this initiative include 80 units of affordable senior housing next to one of the City’s senior center, 250 units of affordable housing along with a medical clinic in the Midtown area in addition to affordable homeownership opportunities in several neighborhoods throughout the city. The City of Phoenix regularly commits publicly owned land or property to induce the development of desired affordable housing, supportive housing, homeless, economic development and neighborhood Annual Action Plan 2026 22 OMB Control No: 2506-0117 (exp. 09/30/2021) revitalization projects and programs. The commitment of such resources is executed through development agreements typically executed with development entities selected through a competitive process. Discussion On June 7, 2022, the Phoenix City Council approved an allocation of American Rescue Plan Act (ARPA) funds for Affordable Housing Programs - gap financing and a Community Land Trust (CLT). $6 million in funding was allocated for the acquisition, rehabilitation, and/or new construction of affordable housing units to help fill financing gaps and encourage projects to stay on track toward completion. The Phoenix City Council allocated $5 million in APRA funds toward a CLT program with the goal of funding an all- inclusive CLT. A CLT looks to ensure permanent affordability by holding the land in a trust and selling the home to an eligible low-income home buyer. Through this funding, at least 25 new homeownership opportunities will be provided, with future sale proceeds being reinvested back into the city. To date, 10 homes have been rehabilitated and sold. On June 14, 2023, the Phoenix City Council approved gap financing for four affordable housing developments that will support the creation of 544 affordable housing units and a CLT program administrator. Additionally, Council allocated ARPA funds towards a landlord incentive program to incentivize participating in the Housing Choice Voucher Program which sunseted in Fall of 2024 and brought more than 900 new landlords to the voucher program. Annual Action Plan 2026 23 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 1A Develop & Preserve Affordable Housing 2025 2029 Affordable Housing Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza- Grant Park Choice Neighborhoods Affordable Housing CDBG: $6,396,390.00 HOME: $10,165,006.49 Rental units constructed: 412 Household Housing Unit Homeowner Housing Rehabilitated: 76 Household Housing Unit Direct Financial Assistance to Homebuyers: 6 Households Assisted Housing Code Enforcement/Foreclosed Property Care: 30 Household Housing Unit Annual Action Plan 2026 24 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 2 2A Public Services for LMI & Special Need 2025 2029 Non-Housing Community Development Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza- Grant Park Choice Neighborhoods Public Services CDBG: $2,158,459.00 Public service activities other than Low/Moderate Income Housing Benefit: 4010 Persons Assisted Public service activities for Low/Moderate Income Housing Benefit: 385 Households Assisted 3 3A Improve Public Facilities & Infrastructure 2025 2029 Non-Housing Community Development Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza- Grant Park Choice Neighborhoods Public Facilities & Infrastructure Investment CDBG: $1,218,084.00 Public Facility or Infrastructure Activities other than Low/Moderate Income Housing Benefit: 1000 Persons Assisted Public Facility or Infrastructure Activities for Low/Moderate Income Housing Benefit: 30000 Households Assisted 4 4A Economic Development 2025 2029 Non-Housing Community Development Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza- Grant Park Choice Neighborhoods Economic Development CDBG: $302,900.00 Facade treatment/business building rehabilitation: 2 Business Businesses assisted: 25 Businesses Assisted Annual Action Plan 2026 25 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 5 5A Removal of Slum & Blight 2025 2029 Economic Development Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza- Grant Park Choice Neighborhoods Removal of Slum & Blight CDBG: $809,951.00 Buildings Demolished: 4 Buildings Housing Code Enforcement/Foreclosed Property Care: 40 Household Housing Unit 6 6A Homeless Housing & Services 2025 2029 Homeless Citywide Low/Mod Eligible Housing & Services for the Homeless ESG: $1,271,028.00 Public service activities for Low/Moderate Income Housing Benefit: 3000 Households Assisted Tenant-based rental assistance / Rapid Rehousing: 50 Households Assisted Homeless Person Overnight Shelter: 2000 Persons Assisted Homelessness Prevention: 200 Persons Assisted Annual Action Plan 2026 26 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 7 7A Housing & Supportive Services for People Living with HIV/AIDS 2025 2029 Non-Homeless Special Needs HOPWA EMSA Housing & Supportive Services for People Living with HIV/AIDS HOPWA: $5,419,101.00 Public service activities other than Low/Moderate Income Housing Benefit: 835 Persons Assisted Tenant-based rental assistance / Rapid Rehousing: 165 Households Assisted Homelessness Prevention: 85 Persons Assisted HIV/AIDS Housing Operations: 120 Household Housing Unit 8 8A Effective Program Administration 2025 2029 Non-Housing Community Development Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza- Grant Park Choice Neighborhoods HOPWA EMSA Effective Program Administration CDBG: $2,877,945.00 HOPWA: $167,601.00 HOME: $512,374.51 Table 6 – Goals Summary Goal Descriptions Annual Action Plan 2026 27 OMB Control No: 2506-0117 (exp. 09/30/2021) 1 Goal Name 1A Develop & Preserve Affordable Housing Goal Description Promote and fund new affordable housing development such as homeownership opportunities for low- and moderate- income households; development of new rental housing inventory; homeowner housing rehabilitation activities; and CHDO affordable housing development activities in the City. Code enforcement activities will revitalize communities and help improve the health and safety of low/mod neighborhoods. 2 Goal Name 2A Public Services for LMI & Special Need Goal Description Provide for supportive services for low- to moderate-income and special need populations. Services for LMI will include youth programs, health services, employment training, housing information and referral services and other eligible services under the CDBG program. Public services assisting special needs populations may include homeless programs, senior services, services for persons with a disability, services for victims of domestic violence. 3 Goal Name 3A Improve Public Facilities & Infrastructure Goal Description Provide funds to improve and expand public facilities and infrastructure such as neighborhood facilities, parks and rec centers, water/sewer systems, sidewalks, and streets. Public facility improvements may also help special need groups and may be directed towards homeless shelters, senior centers and community centers. 4 Goal Name 4A Economic Development Goal Description Provide support for activities and promote job retention or creation for low- and moderate-income residents. Activities may include financial aid and technical assistance. There is also a need to provide support for façade improvements to commercial sites located in low/mod areas in Phoenix. 5 Goal Name 5A Removal of Slum & Blight Goal Description Provide support for the removal of slum and blight in low/mod areas in Phoenix. Demolition activities of aging and dilapidated structures will encourage revitalization efforts, and help improve the health and safety of these areas. Annual Action Plan 2026 28 OMB Control No: 2506-0117 (exp. 09/30/2021) 6 Goal Name 6A Homeless Housing & Services Goal Description Provide support for overnight shelter services for individuals and families experiencing homelessness. Emergency shelter will include wraparound services that help individuals and families gain self-sufficiency. The City will also provide homeless prevention services for those at-risk of homelessness, and rapid rehousing assistance to homeless individuals and families with the goal of eliminating or reducing homelessness in the City. 7 Goal Name 7A Housing & Supportive Services for People Living with HIV/AIDS Goal Description Provide funding support for housing subsidy activities for people living with HIV/AIDS, which include Transitional Housing, Tenant-Based Rental Assistance (TBRA), Short-Term Rent, Mortgage and Utility (STRMU) Assistance and Permanent Housing Placement (PHP). Several supportive services activities address the needs of eligible clients, increase accessibility to medical care and other vital resources. 8 Goal Name 8A Effective Program Administration Goal Description Effective program management of HUD grant programs will ensure compliance with each respective grant and their regulations and that programs meet their established objectives. This includes a range of activities such as general administration and planning of the CDBG, ESG, HOME and HOPWA grant programs, monitoring subrecipients, fair housing activities and keeping strict grant-based accounting. Annual Action Plan 2026 29 OMB Control No: 2506-0117 (exp. 09/30/2021) Projects AP-35 Projects – 91.220(d) Introduction The projects included in this section are designed to address the needs of the Phoenix community as outlined in the Consolidated Plan. CDBG will fund public service programs, public facilities and infrastructure improvements, housing rehabilitation activities, economic development, the removal of slum and blight, and admin of the program. The CDBG program has a 20% grant cap allowed for administrative costs and no more than 15% of the grant may be allocated towards public services. HOME will fund affordable housing development and preservation and Community Housing Development Organization (CHDO) development activities as required under grant guidelines. There is a 10% grant cap for administrative activities and 15% of the total grant is reserved for CHDO activities. ESG will fund homeless programs such as homelessness prevention, rapid rehousing rental assistance, street outreach services and shelter operations. For ESG, there is a 7.5% grant cap for administrative activities, and no more than 60% may be allocated towards emergency shelter operations. HOPWA will fund housing programs and supportive services for eligible people living with HIV/AIDS. Projects are listed by HOPWA Project Sponsors. There is a 3% grant cap for administrative costs. Projects # Project Name 1 CDBG Administration 2 CDBG Affordable Housing 3 CDBG Public Services 4 CDBG Homeless Programs 5 CDBG Public Facilities & Infrastructure 6 CDBG Economic Development 7 CDBG Removal of Slum & Blight 8 HOME Administration 9 HOME CHDO Set-Aside (15%) 10 HOME Projects 11 ESG26 Phoenix 12 2026-2029 City of Phoenix AZH26F001 (COP) 13 2026-2029 Southwest Behavioral & Health Services AZH26F001 (SBH) Annual Action Plan 2026 30 OMB Control No: 2506-0117 (exp. 09/30/2021) # Project Name 14 2026-2029 Area Agency on Aging AZH26F001 (AAA) Table 7 - Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City of Phoenix allocates funds based on the needs identified in the 2025-2029 Consolidated Plan. The priority needs were affordable housing, public services, public facility and infrastructure improvements, economic development opportunities, the removal of slum and blight, housing for homeless and homeless services and addressing the needs of individuals and their families living with HIV/AIDS. Projects funded in PY 2026 will address several of these priorities. Public facilities and infrastructure improvements and expanded access have been identified as a need in Phoenix, specifically in low- and moderate-income areas. These improvements may include activities such as streets, sidewalks, water/sewer systems, neighborhood facilities, parks and rec centers, senior centers and homeless shelters. Public services that provide basic needs for LMI and special needs are a high priority. These services focus on helping individuals and families avoid homeless and gain self-sufficiency. Often times this need exceeds the amount of funds available. CDBG has a 20% admin and 15% public services grant cap. The preservation and development of affordable housing, for both rental and homeownership opportunities, remains one of the highest priorities in the City. These needs are addressed by CDBG and HOME funds as eligible under each grant guideline. Activities include direct financial assistance, rental housing construction, existing homeowner housing rehab, tenant-based rental assistance and other homeownership opportunities. HOME has a 10% admin grant cap and must allocation at least 15% towards CHDO affordable housing development. Economic development to support activities that promote job retention or creation for low- and moderate-income residents in a priority. Activities may include financial aid and technical assistance. There is also a need to provide support for façade improvements to commercial sites located in low/mod areas in Phoenix. Homeless services that work to end homelessness in Phoenix are a priority and this need is addressed through the ESG program. The City will fund programs that help with homeless prevention and rapid rehousing activities to help families avoid homelessness, as well as emergency shelter services for persons experiencing homelessness. ESG has a 7.5% admin grant and shelter services are limited as there is a 60% grant cap allocation for this type of activity. The removal of slum and blight is also a priority for Phoenix. Demolition activities of aging and Annual Action Plan 2026 31 OMB Control No: 2506-0117 (exp. 09/30/2021) dilapidated structures will encourage revitalization efforts, and help improve the health and safety of these areas. Supportive services and housing subsidy programs are vital for individuals and families living with HIV/AIDS as any housing instability may greatly affect the ability for this group to receive the care they need. HOPWA has an admin cap of 3%. Annual Action Plan 2026 32 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-38 Project Summary Project Summary Information Annual Action Plan 2026 33 OMB Control No: 2506-0117 (exp. 09/30/2021) 1 Project Name CDBG Administration Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods HOPWA EMSA Goals Supported 8A Effective Program Administration Needs Addressed Effective Program Administration Funding CDBG: $2,877,945.00 Description National Objective: 24 CFR 570.208(d)(4) Program Administration Matrix Code: 24 CFR 570.206 21A-General Program Admin Funds will be used to administer the CDBG program. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities N/A. Location Description Citywide, eligible. Planned Activities CDBG admin funding covers a broad range of activities to include compliance and reporting activities, neighborhood coordination and support, and neighborhood outreach. Additionally, CDBG admin funds are utilized by partner departments for critical services to include: 1. The Housing Department’s Development Division to oversee critical affordable housing activities. 2 Project Name CDBG Affordable Housing Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported Needs Addressed Funding CDBG: $6,396,390.00 Annual Action Plan 2026 34 OMB Control No: 2506-0117 (exp. 09/30/2021) Description Utilize CDBG current year, prior year, and/or Program Income funds to increase and preserve affordable rental housing and homeowner housing for low- and moderate-income residents. Activities, corresponding National Objectives and matrix codes, that support this project may include:Housing Department:1. CDBG Housing Development Operations, Project Delivery and Request for Proposal - Housing Department, National Objective: 24 CFR 570.208(a)(3) LMH- Low/Mod Housing Benefit, Eligible Activity: 24 CFR 570.02 (a)(1), (b)(1), IDIS Matrix Code: 14B, 14J funds operations costs to support the Housing Department Call for Interest in identifying HOME eligible affordable multi-family housing development projects and project delivery for HOME funded DPA program. Funded with 2025-2026 CDBG funds.Neighborhood Services Revitalization Division:1. Infill Program (Staff and Request for Proposal), National Objective: 24 CFR 570.208(b)(1) SBA-Slum/Blight Area Benefit, 24 CFR 570.208(b)(2) SBS- Slum/Blight Spot Benefit, Eligible Activity: 24 CFR 570.201(a), (b), (d), (i), IDIS Matrix Code: Various 01, 02, 04, 04A, 06, 08, supporting acquisition, disposition, clearance and demolition, relocation to support affordable housing construction.2. Down Payment Assistance, National Objective: 24 CFR 570.208(a)(3) LMH - Low/Mod Housing Benefit, Eligible Activity: 570.201(n), IDIS Matrix Code: 13B Homeownership Assistance-excluding Housing Counseling (Housing Counseling to be reported under 13A as separate activity).3. Housing Counseling, National Objective: 24 CFR 570.208(a)(3) LMH-Low/Mod Housing Benefit, Eligible Activity: 24 CFR 570.201(e), IDIS Matrix Code: 05U.Neighborhood Services Revitalization Division, Housing Rehabilitation Section:1. Owner Occupied Rehabilitation Program, National Objective: 24 CFR 570.208(a)(3) LMH-Low/Mod Housing Benefit, Eligible Activity: 24 CFR 570.202 (a)(1), IDIS Matrix Code: 14A- Rehab.2. Rental Rehabilitation Program, National Objective: 24 CFR 570.208(a)(3) LMH-Low/Mod Housing Benefit, Eligible Activity: 24 CFR 570.202 (a)(1), IDIS Matrix Code: 14A-Rehab.3. Housing Rehab Request for Proposal (ADA Modifications), National Objective: 24 CFR 570.208(a)(3) LMH-Low/Mod Housing Benefit, Eligible Activity: 24 CFR 570.202 (a)(1), IDIS Matrix Code: 14A-Rehab.4. Hardship Assistance Program, National Objective: 24 CFR 570.208(a)(3) LMH-Low/Mod Housing Benefit, Eligible Activity: 24 CFR 570.202(a)(1). Matrix Code: 14A-RehabHardship Assistance Program (HAP).Neighborhood Preservation Division:1. Code Enforcement, National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, Eligible Activity 24 CFR Annual Action Plan 2026 35 OMB Control No: 2506-0117 (exp. 09/30/2021) 570.201(c), Matrix Code: 15-Code Enforcement LMA Low/Mod Area Benefit. 2025-26 Funding Target Date 6/30/2027 Annual Action Plan 2026 36 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Housing Department: 1. CDBG Housing Development Operations, Project Delivery and Request for Proposal - Goal Outcome Indicator: Rental Units Constructed. Quantity: 412. Unit of Measure: Household Housing Unit and Goal Outcome Indicator: Direct Financial Assistance to Homebuyers. Quantity: 6. Unit of Measure: Households Assisted. 1 owner occupied rehab assisted w/HOME Funds. Neighborhood Services Revitalization Division: 1. Infill Program (Staff and Request for Proposal) - Goal Outcome Indicator: Homeowner Housing Added. Quantity: TBD. Unit of Measure: Household Housing Unit. Quantity to be determined if funded. 2. Down Payment Assistance- Goal Outcome Indicator: Direct Financial Assistance to Homebuyers. Quantity: TBD. Unit of Measure: Households Assisted. Quantity to be determined if funded. 3. Housing Counseling - Goal Outcome Indicator: Direct Financial Assistance to Homebuyers. Quantity: 0. Unit of Measure: Households Assisted. Quantity to be determined if funded. Neighborhood Services Revitalization Division, Housing Rehabilitation Section: 1. Owner Occupied Housing Rehab- Goal Outcome Indicator: Homeowner Housing Rehab. Quantity: 50. Unit of Measure: Household Housing Unit 2. Rental Rehab- Goal Outcome Indicator: Homeowner Housing Rehab. Quantity: TBD. Unit of Measure: Household Housing Unit. Quantity to be determined if funded. 3. Housing Rehab Request for Proposal (ADA Modifications- Goal Outcome Indicator: Homeowner Housing Rehab. Quantity: 10. Unit of Measure: Household Housing Unit 4. Hardship Assistance- Goal Outcome Indicator: Homeowner Housing Rehab. Quantity: 15. Unit of Measure: Household Housing Unit Neighborhood Preservation Division: 1. Code Enforcement - Goal Outcome Indicator: Housing Code Enforcement Quantity: 30 Unit of Measure: Household Housing Unit Location Description Citywide, eligible. Annual Action Plan 2026 37 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Planned activities to preserve and develop affordable rental housing and homeowner housing for low- and moderate-income residents may include: Housing Department: 1. Housing Department Development Operations funds the initiation and administration of many diverse housing programs, all of which increase the supply of affordable rental housing or home-ownership opportunities for lower income households. These housing programs concentrate on providing assistance to households with incomes at or below 80% of area median income with HOME funded affordable housing development and Down Payment assistance programs. Neighborhood Services Revitalization Division: 1. Infill Program (Staff and Request for Proposal) conveys previously slum and blighted and or strategically acquired properties to nonprofit agencies and/or for-profit developers through a competitive request for proposals (RFP) process for construction and disposition of single- family homes or multifamily projects. The construction may be funded through private financing and or a combination of federal and private funds. 2. Down Payment Assistance program provides financial homeownership assistance to LMI households purchasing a home after completing housing counseling requirements. 3. Housing Counseling Request for Proposal funds a subrecipient to provide comprehensive housing counseling services to assist homebuyers and homeowners meeting HUD's low-moderate criteria of up to 80 percent Area Median Income (AMI) with HOME funded affordable housing development and Down Payment assistance programs. Neighborhood Services Revitalization Division, Housing Rehabilitation Section: 1. Owner Occupied Rehabilitation Program provides financial assistance (in the form of grants or loans) to eligible low- and moderate-income homeowners for emergency home repairs that address health or safety hazards. The program may also address non-emergency home repairs to stabilize critical home systems (electrical, mechanical, plumbing, roofing), to remediate lead hazards, to improve the homes energy efficiency, and to meet healthy homes standards. Annual Action Plan 2026 38 OMB Control No: 2506-0117 (exp. 09/30/2021) 2. Rental Rehabilitation Program provides flexible financing for the rehabilitation of single family/multifamily rental units intended to be occupied by low- and moderate-income tenants. Owner contribution/matching funds may be required. 3. ADA Home Accessibility Modifications Program Rehab Request for Proposal will fund a subrecipient to perform repairs to improve the accessibility of homes of low- and moderate-income disabled and or elderly residents. 4. Hardship Assistance Program (HAP) provides assistance (in the form of grants or loans) to low- and moderate-income eligible Phoenix homeowners to correct potential or existing exterior violations of the Neighborhood Preservation and Zoning ordinances, and or health and safety codes Neighborhood Preservation Division: 1. Code Enforcement Program focus on addressing common blight violations included in the Neighborhood Preservation Ordinance (high and/or dry vegetation, accumulation of litter/debris, outdoor storage of personal property and inoperable vehicles, unsecured/vacant structures, fences in disrepair, graffiti and vehicles parked on non- dustproof surfaces). 3 Project Name CDBG Public Services Target Area Goals Supported 2A Public Services for LMI & Special Need Needs Addressed Public Services Funding CDBG: $2,158,459.00 Description Target Date 6/30/2027 Annual Action Plan 2026 39 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Housing Department: 1. Family Self-Sufficiency Program - Housing Department - Goal Outcome Indicator: Public service activities for Low/Moderate Income Housing Benefit. Quantity: 300. Unit of Measure: Households Assisted 2. Aeroterra Program – Housing Department – Goal Outcome Indicator: Public service activities for Low/Moderate Income Housing Benefit. Quantity: 65-70. Unit of Measure: Households Assisted 3. Phoenix Starfish Place - Housing Department - Goal Outcome Indicator: Public service activities for Low/Moderate Income Housing Benefit. Quantity: 15. Unit of Measure: Households Assisted Neighborhood Engagement Division: 1. Neighborhood Engagement Coordination (Neighborhood Specialist) - Goal Outcome Indicator: Public service activities other than Low/Moderate Income Housing Benefit. Quantity: 500. Unit of Measure: Persons Assisted. Neighborhood Revitalization Division, Neighborhood Enhancement Section 1. It is estimated that approximately 0 vulnerable individuals will benefit from public service activities funded in FY 25. Location Description Citywide, eligible. Annual Action Plan 2026 40 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Planned public service activities may include: Housing Department: 1. The FSS Program, administered by the City Housing Department, provides direct case management through Housing Department staff to support families in Section 8, conventional, and scattered site housing. The program focuses on identifying and eliminating barriers to self- sufficiency, empowering families to achieve financial independence and long-term stability. 2. The Aeroterra Program, administered by the City of Phoenix Housing Department, is a vital investment in the long-term stability of families transitioning from chronic homelessness. Targeted on-site counseling and case management for youth struggling to adjust to permanent housing significantly increase the likelihood of maintaining stable housing and improving family outcomes. 3. Phoenix Starfish Place is administered by the City Housing Department and is a city owned fifteen-unit apartment complex where victims of sex and human trafficking receive supportive services, direct counseling, assistance developing life and parenting skills, assistance with their educational goals and with gaining meaningful employment. provide direct services in a residential setting to the victims of sex and human trafficking and their immediate families. Neighborhood Engagement Division: 1. Neighborhood Engagement Coordination (Neighborhood Specialists) funds support various neighborhood engagement efforts in low- to moderate-income areas to foster successful coordination and valuable feedback on neighborhood revitalization projects. Neighborhood Revitalization Division, Neighborhood Enhancement Section 1. Public Services Notice of Funding Opportunity and Homeless Services Support. 4 Project Name CDBG Homeless Programs Target Area Citywide Low/Mod Eligible Goals Supported 2A Public Services for LMI & Special Need Needs Addressed Public Services Funding CDBG: $871,000.00 Annual Action Plan 2026 41 OMB Control No: 2506-0117 (exp. 09/30/2021) Description Utilize CDBG funds to assist individuals and families gain stable housing after experiencing homelessness or prevent a housing crisis. Activities, corresponding National Objectives, and matrix codes that support this project may include:Human Services Department:1. Landlord and Tenant Education Program (Staff) - Human Services Department, National Objective: 24 CFR 570.208(a)(2) LMC- Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(e), IDIS Matrix Code: OSK Tenant/Landlord Counseling. Activity is funded with 2025-26 CDBG fund.2. Tenant Emergency Assistance - Human Services Department, National Objective: 24 CFR 570.208(a)(2) LMC- Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(e), 24 CFR 570.207(b)(4) and 24 CFR 570.408(c)(2), IDIS Matrix Code: 05Q Subsistence Payments (emergency payments on behalf of individuals or families). Activity is funded with 2025-26 CDBG fund.Office of Homeless Solutions1. Emergency Shelter - Office of Homeless Solutions, National Objective: 24 CFR 570.208(a)(2) LMC-Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(e), IDIS Matrix Code: 03T- Homeless/AIDS Patients. Activity is funded with 2025-26 CDBG fund.2. Navigation and Wrap Around Services for Justice Involved Individuals Experiencing Homelessness - Office of Homeless Solutions, National Objective: 24 CFR 570.208(a)(2) LMC-Low/Mod Limited Clientele, Eligible Activity: 24 CFR 570.201(e), IDIS Benefit Matrix Code: 05Z-Other Public Services Not Listed in 03T and 05A-05Y. Activity is funded with 2025-26 CDBG fund.3. Rapid Rehousing and Housing Stabilization Support- Office of Homeless Solutions, National Objective: 24 CFR 570.208(a)(2) LMC-Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(e), IDIS Matrix Code: 05Z-Other Public Services Not Listed in 03T and 05A-05Y. Activity is funded with $0 in 2025-26 CDBG funds, if funded, will be funded with prior year funds.4. Outreach and Engagement for Persons Experiencing Homelessness - Office of Homeless Solutions, National Objective: 24 CFR 570.208(a)(2) LMC- Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(e), IDIS Matrix Code: 05Z-Other Public Services Not Listed in 03T and 05A- 05Y. Activity is funded with 2025-26 CDBG fund. Target Date 6/30/2027 Annual Action Plan 2026 42 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Human Services Department: 1. Landlord and Tenant Education Program (Staff) - Human Services Department - Outcome Goal Indicator: Public services activities for Low/Moderate Income Housing Benefit. Quantity: 3,500. Unit of Measure: Persons assisted. 2. Tenant Emergency Assistance - Human Services Department - Goal Outcome Indicator: Public services activities for Low/Moderate Income Housing Benefit. Quantity: 10. Unit of Measure: Persons Assisted Office of Homeless Solutions 1. Emergency Shelter – Office of Homeless Solutions - Goal Outcome Indicator: Homeless Person Overnight Shelter. Quantity: 150. Unit of Measure: Persons Assisted. 2. Navigation and Wrap Around Services for Justice Involved Individuals Experiencing Homelessness - Office of Homeless Solutions - Goal Outcome Indicator: Public service activities for Low/Moderate Income Housing Benefit. Quantity: 100. 3. Rapid Rehousing and Housing Stabilization Support- Office of Homeless Solutions - Goal Outcome Indicator: Public service activities for Low/Moderate Income Housing Benefit. Quantity: TBD. Unit of Measure: Households Assisted. Quantity to be determined once the subrecipient is awarded a contract. 4. Outreach and Engagement for Persons Experiencing Homelessness - Office of Homeless Solutions - Goal Outcome Indicator: Public service activities for Low/Moderate Income Housing Benefit. Quantity: 2,900. Unit of Measure: Households Assisted. Location Description Citywide, eligible. Annual Action Plan 2026 43 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Utilize CDBG funds to assist individuals and families gain stable housing after experiencing homelessness or prevent a housing crisis with activities that may include: Human Services Department: 1. Landlord and Tenant Education Program (Staff) administered by the Human Services Department, provides education and counseling to tenants and landlords via the telephone, e-mails and face to face sessions and also conducts regular educational sessions/workshops on the Arizona Residential Landlord and Tenant Act and the Arizona Mobile Home Act. 2. Tenant Emergency Assistance administered by the Human Services Department, provides emergency one-time assistance to Phoenix tenants whose income is low- and moderate-income and are facing homelessness as a direct result of code enforcement for imminent hazards or other health and safety conditions. Office of Homeless Solutions 1. Emergency Shelter – Office of Homeless Solutions will administer a request for proposal to identify a subrecipient, or subrecipients, for emergency shelter operations and services, for families identified by City Police, Fire and Office of Homeless Solutions Officials. 2. Navigation and Wrap Around Services for Justice Involved Individuals Experiencing Homelessness - Office of Homeless Solutions, a request for proposal will identify a subrecipient, or subrecipients, to support persons experiencing homelessness who become involved in the criminal justice system, within the City of Phoenix. 3. Rapid Rehousing and Housing Stabilization Support- Office of Homeless Solutions, a request for proposal will identify a subrecipient, or subrecipients, to support individuals moving from sheltered or unsheltered homelessness to permanent housing using a Housing First model. 4. Outreach and Engagement for Persons Experiencing Homelessness - Office of Homeless Solutions, a request for proposal to identify a subrecipient, or subrecipients, to support outreach and engagement services for persons experiencing homelessness. 5 Project Name CDBG Public Facilities & Infrastructure Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported 3A Improve Public Facilities & Infrastructure Annual Action Plan 2026 44 OMB Control No: 2506-0117 (exp. 09/30/2021) Needs Addressed Public Facilities & Infrastructure Investment Funding CDBG: $1,844,082.00 Annual Action Plan 2026 45 OMB Control No: 2506-0117 (exp. 09/30/2021) Description Utilize CDBG current year, prior year, and/or Program Income, and/or CDBG-CV funds to foster the development of vibrant and thriving neighborhoods by investing in facilities, infrastructure and addressing blight. Activities, corresponding National Objectives and matrix codes, that support this project may include:Housing Department:1. CDBG Project Delivery, National Objective: 24 CFR 570.208(a)(1) LMA - Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC - Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(c), Matrix Code: 03A Senior Centers, 03B Facilities for Persons w. Disabilities, 03C Homeless Facilitates (not operating costs), 03D Youth Centers, 03E Neighborhood Facilities, 03F Parks, Recreational Facilities, 03G Parking Facilities, 03H Solid Waste Disposal Improvements, 03I Flood Drainage Improvements, 03J Water/Sewer Improvements, 03K Street Improvements, 03L Sidewalks, 03M Child Care Centers, 03N Tree Planting, 03O Fire Stations/Equipment, 03P Health Facilities, 03Q Facilities for Abused and Neglected Children, 03R Asbestos Removal, 03S Facilities for AIDS Patients (not operating costs), 03Z-Other Public Improvements Not Listed in 03A-03S. This activity incorporates staff costs for project management and monitoring of cross cutting requirements.2. Neighborhood Enhancement and Infrastructure Program, National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC - Low/Mod Limited Clientele Benefit, Eligible Activity: Eligible Activity: 24 CFR 570.201(c), IDIS Matrix Code: Various 03A-03S and 03Z Other Public Improvements not listed in 03A-03S. 2024 Funding: $0 will use prior year funds if funded.Neighborhood Preservation Division:1. Graffiti Removal, National Objective: 24 CFR 570.208(a)(1) LMA- Low/Mod Area Benefit, Eligible Activity: 24 CFR 570.201(c), Matrix Code: 03Z Other Public Improvements not listed in 03A-03S. 2025- 26 FundingNeighborhood Services Revitalization Division:1. Strategic Acquisition (Affordable Housing Development, Shelter Support, & other Public Facilities), National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, Eligible Activity: 24 CFR 570.201(a), (c), (d), (i), IDIS Matrix Code: 01, 03C, 03Z, 04, 08, supporting acquisition, clearance and demolition, relocation to support affordable housing development, shelter support and other Public Facilities.Neighborhood Revitalization Division, Neighborhood Enhancement Section1. CDBG Project Delivery, National Objective: 24 CFR 570.208(a)(1) LMA - Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC - Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(c), Matrix Code: IDIS Matrix Code: 01, 02, 04, and 08, 03A through 03S and 03Z. This activity incorporates staff costs for project Annual Action Plan 2026 46 OMB Control No: 2506-0117 (exp. 09/30/2021) management and monitoring of cross-cutting requirements. Funding: $0.00 will use prior year funds if needed.2. Neighborhood Enhancement and Infrastructure Program, National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC - Low/Mod Limited Clientele Benefit, IDIS Matrix Code: Various 03A through 03S and 03Z.3. Public Facilities Notice of Funding Opportunity, National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC - Low/Mod Limited Clientele, IDIS Matrix Code: Various 03A through 03S and 03Z.4. Strategic Acquisition and Disposition (Affordable Housing Development, Shelter Support, & other Public Facilities), National Objective: 24 CFR 570.208(a)(1) LMA- Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC - Low/Mod Limited Clientele Benefit, Eligible Activity: 24 CFR 570.201(a), (c), (d), (i), IDIS Matrix Code: 01, 02, 04, and 08, 03A through 03S and 03Z. Funding: $0.00 willuse prior year funds if funded. Target Date 6/30/2027 Annual Action Plan 2026 47 OMB Control No: 2506-0117 (exp. 09/30/2021) Estimate the number and type of families that will benefit from the proposed activities Housing Department: 1. Project Delivery and Environmental Support - Goal Outcome Indicator: Public Facilities or Infrastructure other than Housing Benefit. Quantity: 200 Unit of Measure: Persons Assisted. 2. Neighborhood Enhancement and Infrastructure Program - Goal Outcome Indicator: Public Facilities or Infrastructure other than Housing Benefit. Quantity: TBD Unit of Measure: Persons Assisted. Neighborhood Preservation Division: 1. Graffiti Removal - Goal Outcome Indicator: Other Quantity: 30,000 Unit of Measure: Other (Households Assisted). Neighborhood Services Revitalization Division: 1. Strategic Acquisition (Affordable Housing Development, Shelter Support, & other Public Facilities) - Goal Outcome Indicator: Other. Quantity: 0. Unit of Measure: Properties acquired. Quantity to be determined if funded. Neighborhood Revitalization Division, Neighborhood Enhancement Section 1. Project Delivery and Environmental Support - Goal Outcome Indicator: Public Facilities or Infrastructure other than Housing Benefit. Quantity: 0 Unit of Measure: Persons Assisted 2. Neighborhood Enhancement and Infrastructure Program - Goal Outcome Indicator: Public Facility or Infrastructure other than Housing Benefit. Quantity: 1000 Unit of Measure: Persons Assisted 3. Public Facilities Notice of Funding Opportunity - Goal Outcome Indicator: Public Facility or Infrastructure activity other than Housing Benefit. Quantity: 0. Unit of Measure: Number of Persons Assisted. 4. Strategic Acquisition and Disposition (Affordable Housing Development, Shelter Support, & other Public Facilities) - Goal Outcome Indicator: Other. Quantity: TBD. Unit of Measure: Properties acquired. Quantity to be determined if funded. Location Description Citywide, eligible. Planned Activities 6 Project Name CDBG Economic Development Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported 4A Economic Development Needs Addressed Economic Development Annual Action Plan 2026 48 OMB Control No: 2506-0117 (exp. 09/30/2021) Funding CDBG: $302,900.00 Description Utilize CDBG funds to enhance the City's economic stability by investing in opportunities to develop and strengthen small businesses and micro- enterprises through activities that may include: Neighborhood Revitalization Division, Neighborhood Enhancement Section: 1. Neighborhood Commercial Rehabilitation (Subrecipient, Operations and Projects), National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, Eligible Activity: 24 CFR 570.202(a)(3), IDIS Matrix Code: Various, 14-E, 16B, 17A through 17D, 18A through 18C,19C and 19E. 2024 Funding: $02. Small Business and Microenterprise Support Programs (Subrecipient, Consultants and Operations), National Objective: 24 CFR 570.208(a)(1) LMA-Low/Mod Area Benefit, 24 CFR 570.208(a)(2) LMC-Low/Mod Clientele Benefit, 24 CFR 570.208(a)(4) LMJ-Low/Mod Job Creation or Retention Activities, Eligible Activity: 24 CFR 570.203(c), 24 CFR 570.201(o), IDIS Matrix Code: 18B and 18C. 2024 Funding: $389,704 Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Neighborhood Revitalization Division, Neighborhood Enhancement Section: 1. Goal Outcome Indicator: Businesses assisted. Quantity: 25. Unit of Measure: Businesses Assisted. 2. Goal Outcome Indicator: Facade treatment/business building rehabilitation. Quantity: 2. Unit of Measure: Business. Quantity to be determined if funded. Location Description Citywide, eligible. Planned Activities Utilize CDBG funds to enhance the City's economic stability by investing in opportunities to develop and strengthen small businesses and micro- enterprises through activities that may include: Neighborhood Revitalization Division, Neighborhood Enhancement Section: 1. Neighborhood Commercial Rehabilitation Programs (Subrecipient, Operations and Projects), including façade improvement for privately owned businesses serving low- income areas and persons. 2. Small Business and Microenterprise Support Programs (Subrecipient, Consultants & Operations), including management technical assistance. Annual Action Plan 2026 49 OMB Control No: 2506-0117 (exp. 09/30/2021) 7 Project Name CDBG Removal of Slum & Blight Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported 5A Removal of Slum & Blight Needs Addressed Removal of Slum & Blight Funding CDBG: $809,951.00 Description The City will fund the removal of slum and blight in low/mod areas in Phoenix. Demolition activities of aging and dilapidated structures will encourage revitalization efforts, and help improve the health and safety of these areas.Neighborhood Preservation Division:1. Demolition, National Objective: 24 CFR 570.208(b)(2) SBS- Slum/Blight Spot Benefit, Eligible Activity: 24 CFR 570.201(d), IDIS Matrix Code: 04-Clearance and Demolition. 2025-26 Funding2. Abatement Coordination, National Objective: 24 CFR 570.208(b)(2) SBS-Slum/Blight Spot Benefit, Eligible Activity: 24 CFR 570.202(a)(1), Matrix Code: 04-Clearance and Demolition. 2025-26 Funding Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Neighborhood Preservation Division: 1. Demolition - Goal Outcome Indicator: Building Demolished Quantity: 4 Units of Measure: Buildings 2. Abatement Coordination - Goal Outcome Indicator: Housing Code Enforcement Quantity: 40 Unit of Measure: Household Housing Unit Location Description Citywide, eligible. Annual Action Plan 2026 50 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Planned activities include: Neighborhood Preservation Division: 1. Demolition Program addresses vacant structures that pose a threat to the health, safety and welfare of residents and adjacent properties through education and enforcement of the Neighborhood Preservation Ordinance, including contractual demolition of deteriorated, unsafe, and uninhabitable vacant structures. 2. Abatement Coordination addresses open and unsecured, vacant structures that pose a threat to the health, safety and welfare of residents and adjacent properties through education and enforcement of the Neighborhood Preservation Ordinance, including contractual board up of deteriorated and unsafe vacant structures. 8 Project Name HOME Administration Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported 8A Effective Program Administration Needs Addressed Effective Program Administration Funding HOME: $512,374.51 Description Administration of the 2026 HOME Program. No more than 10% of the HOME annual allocation may be allocated towards admin costs. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities N/A. Location Description Citywide, eligible. Planned Activities Administration of the HOME 2026 Program. 9 Project Name HOME CHDO Set-Aside (15%) Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported 1A Develop & Preserve Affordable Housing Needs Addressed Affordable Housing Annual Action Plan 2026 51 OMB Control No: 2506-0117 (exp. 09/30/2021) Funding HOME: $768,561.77 Description The City will provide HOME resources to a local certified CHDO to develop affordable housing units for low- to moderate-income households in Phoenix. There is a 15% set-aside of the HOME grant for CHDO development activities. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Rental Housing constructed (CHDO): 56 Household Housing Unit Location Description Citywide, eligible. Planned Activities Planned activities include affordable housing development by a certified CHDO. 10 Project Name HOME Projects Target Area Edison-Eastlake Choice Neighborhoods Citywide Low/Mod Eligible Marcos de Niza-Grant Park Choice Neighborhoods Goals Supported 1A Develop & Preserve Affordable Housing Needs Addressed Affordable Housing Funding HOME: $9,652,631.98 Description The City will fund affordable rental housing development, down payment assistance and housing rehab activities that will benefit low- to moderate-income households Phoenix. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Rental units constructed: 252 Household Housing Unit Direct Financial Assistance to Homebuyers: 8 Households Assisted Homeowner Housing Rehabilitated: 1 Household Housing Unit Location Description Citywide, eligible. Annual Action Plan 2026 52 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Planned affordable housing activities may include acquisition and/or rehabilitation of multifamily projects; new construction of multifamily housing units; special needs multifamily rental housing; owner- occupied housing rehabilitation; homeownership assistance in the form of a direct subsidy to be used to assist homebuyers with down payment and/or closing cost; acquisition and/or rehabilitation of homeownership assistance in the form of a direct subsidy to be used assist homebuyers with down payment and/or closing; acquisition and/or rehabilitation of homebuyer properties; and new construction of homeowner housing. 11 Project Name ESG26 Phoenix Target Area Citywide Low/Mod Eligible Goals Supported 6A Homeless Housing & Services Needs Addressed Housing & Services for the Homeless Funding ESG: $1,271,028.00 Description The City will fund homeless prevention for individual and families at- risk of homelessness, rapid rehousing rental assistance activities, street outreach services and emergency and transitional shelter facilities. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Tenant-based rental assistance / Rapid Rehousing: 50 Households Assisted Homelessness Prevention: 200 Persons Assisted Homeless Person Overnight Shelter: 1850 Persons Assisted Location Description Citywide, eligible. Planned Activities Planned activities include: ESG Program Administration: $95,327 Costs associated with administering the ESG program will be funded at 7.5% of the total grant. Emergency shelter and street outreach services may not exceed 60% of the total ESG annual allocation funding, and the balance of funds will be allocated towards homeless prevention and rapid rehousing activities (32.5%). 12 Project Name 2026-2029 City of Phoenix AZH26F001 (COP) Target Area HOPWA EMSA Annual Action Plan 2026 53 OMB Control No: 2506-0117 (exp. 09/30/2021) Goals Supported 7A Housing & Supportive Services for People Living with HIV/AIDS Needs Addressed Housing & Supportive Services for People Living with HIV/AIDS Funding HOPWA: $3,118,547.00 Description The City will fund Resource Identification for planning and collaboration; Permanent housing through the Tenant-Based Rental Assistance (TBRA) housing program; Short-Term Rent, Mortgage and Utility (STRMU) Assistance to assist with preventing homelessness; Permanent Housing Placement (PHP) funds to assist with move-in housing expenses and associated costs; TBRA Supportive Services and Transitional Housing client related program oversight. The City will also provide funds for the administration and coordination of program management for the HOPWA program, not to exceed 3% of the total grant allocation. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Tenant-Based Rental Assistance (TBRA) : 165 Households Tenant-Based Rental Assistance (TBRA) Supportive Services: 0 Households (program oversight) Transitional Housing Leasing and Operating/Emergency Housing: 0 Households (program oversight) Short-Term, Rent, Mortgage and Utility (STRMU) Assistance: 60 Households Permanent Housing Placement (PHP): 25 Households Location Description Maricopa and Pinal Counties Annual Action Plan 2026 54 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Planned activities include: Grantee Administration (not to exceed 3% of the total grant allocation) Resource Identification Tenant-Based Rental Assistance (TBRA) Tenant-Based Rental Assistance Supportive Services (program oversight) Transitional Housing Leasing and Operating/Emergency Housing (program oversight) Short-Term, Rent, Mortgage and Utility (STRMU) Assistance Permanent Housing Placement (PHP) 13 Project Name 2026-2029 Southwest Behavioral & Health Services AZH26F001 (SBH) Target Area HOPWA EMSA Goals Supported 7A Housing & Supportive Services for People Living with HIV/AIDS Needs Addressed Housing & Supportive Services for People Living with HIV/AIDS Funding HOPWA: $2,182,992.00 Description Southwest Behavioral & Health Services provides Transitional and Emergency Housing for individuals living with HIV/AIDS. Funding will be provided for leasing and operating expenses for persons experiencing homelessness, at risk for homelessness or unstably housed. Both master-leased and agency owned units are utilized for the Transitional Housing program. Transitional Housing Supportive Services are also provided to housed clients. Employment Services are provided to assist persons with preparing for and securing employment. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Transitional Housing Leasing and Operating/Emergency Housing: 120 Households Transitional Housing Supportive Services: 120 households Employment Services: 200 households Location Description Maricopa and Pinal Counties Planned Activities Planned activities include: Transitional Leasing and Operating/Emergency Housing Transitional Housing Supportive Services Employment Services Annual Action Plan 2026 55 OMB Control No: 2506-0117 (exp. 09/30/2021) 14 Project Name 2026-2029 Area Agency on Aging AZH26F001 (AAA) Target Area HOPWA EMSA Goals Supported 7A Housing & Supportive Services for People Living with HIV/AIDS Needs Addressed Housing & Supportive Services for People Living with HIV/AIDS Funding HOPWA: $285,163.00 Description The Area Agency on Aging provides Housing Information Services and Tenant-Based Rental Assistance (TBRA) Supportive Services. The Housing Information Services program assists people living with HIV/AIDS with connecting them to appropriate housing providers in Maricopa and Pinal Counties to meet their needs. The Housing Case Managers provide ongoing supportive services to clients housed through the HOPWA TBRA program. Target Date 6/30/2027 Estimate the number and type of families that will benefit from the proposed activities Housing Information Services: 350 Households Tenant-Based Rental Assistance (TBRA) Supportive Services: 165 Households Location Description Maricopa and Pinal Counties Planned Activities Planned activities include: Housing Information Services Tenant-Based Rental Assistance (TBRA) Supportive Services Annual Action Plan 2026 56 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City of Phoenix identified three target areas where funds will be directed. The first two target areas are the Edison-Eastlake and Marcos de Niza-Grant Park communities. The Edison-Eastlake Community is the target of a Choice Neighborhoods Implementation Grant and is also a Neighborhood Revitalization Strategy Area (NRSA). In 2024, the Housing Department was awarded a $500,000 Choice Neighborhoods Planning Grant to begin a community planning effort with the residents of the Marcos de Niza public and affordable housing community (AMP 22, 374 units, a mix of 281 Public Housing and 93 Section 8 PBV). This began in calendar year 2024 and will focus on completing a community-driven Neighborhood Transformation Plan to guide the revitalization of Marcos de Niza and the surrounding neighborhood. Local City of Phoenix funding will be used for the effort along with Choice Neighborhoods funds and any other sources that are available at the time. The transformation plan will form the basis for future implementation efforts including an application for Choice Neighborhoods Implementation grant funding. The third target area does not traditionally target a certain neighborhood in Phoenix, but expands the reach of programs and services to all low/mod income areas and also directly to eligible low- to moderate- income households in the City. Low/mod areas (LMA) are primarily residential and have at least 51 percent of residents who are considered low- and moderate-income persons as defined by HUD. The boundaries of these areas are defined at the block group tract level. The City also provides assistance to low- and moderate-income individuals and households (LMC/LMH) who earn 80% of the Area Median Income (AMI) or less. This assistance is provided citywide and is based on eligibility. A description of the areas of low-income and minority concentration are located in the “Discussion”. Geographic Distribution Target Area Percentage of Funds Edison-Eastlake Choice Neighborhoods 1 Citywide Low/Mod Eligible 1 Marcos de Niza-Grant Park Choice Neighborhoods 98 HOPWA EMSA 100 Table 8 - Geographic Distribution Rationale for the priorities for allocating investments geographically Funding is generally used throughout the City of Phoenix in low-income areas, however funding may be prioritized for specific targeted areas, such as deteriorated and deteriorating areas for Code Enforcement activities, or as leverage for other funding opportunities, such as the designated area in the Annual Action Plan 2026 57 OMB Control No: 2506-0117 (exp. 09/30/2021) Phoenix Choice Neighborhoods Grant, a Neighborhood Revitalization Strategy Areas (NSRA). Less than 1% of the 2025 CDBG allocation will be expended in each of the Edison-Eastlake and Marcos de Niza- Grant Park Choice Neighborhoods Target Areas. Citywide Low/Mod Eligible For Citywide Low/Mod Eligible, the City of Phoenix does not allocate funding based solely on geographic areas. Most of the funding from the HUD Federal programs are available for use in any of the targeted low/mod income neighborhoods or citywide, depending on the specific activities. Direct services such as public services and affordable housing benefits are based on household income eligibility rather than area benefit. Improvements to public facilities and infrastructure have a low/moderate income benefit across a wider area, and the distribution of funds is based on need within eligible target areas. ESG funds may target those experiencing homelessness or at risk of homelessness citywide. HOPWA funding is available for individuals living with HIV/AIDS across the two-county HOPWA EMSA area, Maricopa and Pinal Counties. The City of Phoenix will continue to allocate HOPWA resources to serve clients meeting the program requirement of being at or below 80 percent of the Area Median Income who reside in the EMSA. The funding that will be allocated to each HOPWA program will be dependent on the demonstrated need, identified gaps in services and feedback from the community outreach. In particular to CDBG, when planned activities are intended to serve individuals or households directly (LMC/LMH), beneficiaries must meet income qualifications, as well as residency requirements (residing within the City), in order to receive assistance from the program. In these instances, City staff and/or one of its partner agencies will complete an eligibility status review of the applicant before the activity is initiated. The City has also identified infrastructure and public facility improvement activities. In which case, the planned activities will serve a low/mod community or neighborhood (LMA). These activities are said to have an “area-wide” benefit. Per HUD requirements, these areas must be within an eligible Low/Mod Block Group Tract, as defined by HUD-CDBG regulations, whereby the majority of the residents are low- to moderate-income (or 51%). Public improvements which target special need groups such as the homeless, elderly or persons with a disability will be reported using the LMC designation. To determine LMI tracts the City utilizes HUD’s CDBG Low Mod Income Summary Data (LMISD) from the HUD Exchange website, which has defined the eligible block group tracts within the jurisdiction. The Annual Action Plan 2026 58 OMB Control No: 2506-0117 (exp. 09/30/2021) tracts can be at: https://www.hudexchange.info/programs/acs-low-mod-summary-data/. Discussion Low-Income Households Households earning less than 80% of the area median income (AMI) are considered low-income. To be considered a tract with a concentration of low-income households, the tract's median household income is less than 80% of the area’s median household income. The City’s AMI is $77,041, and at 80% AMI, low income is estimated at $61,633. Based on this criteria, the majority of tracts with a concentration of low-income households are scattered in and around the downtown areas of the City. There are also a few tracts with a concentration just north of Pima Freeway, and running north and south along Black Canyon Freeway. Minority Concentrations: For the purposes of this analysis, a concentration is any Census tract where the racial or ethnic minority group makes up 10% more than the Citywide average. Data was taken from the most recent 2019-2023 ACS. Minority groups that made up less than 1% were not included in this analysis. Black and African American, non-Hispanic persons comprise of an estimated 7.4% of the population in Phoenix, and a tract with a concentration is 17.4% or more. The majority of tracts with a concentration of this minority group is located in the southwest part of Phoenix. American Indian and Alaska Native, non-Hispanic persons are 1.4% of the population, and a tract with a concentration is 11.4% or more. There are four tracts with a concentration, with three located in the downtown area (04013110600, 04013113000 & 04013113900), and one located centrally in the City (04013103702) just south of East Thunderbird Rd and in between North 7th St. and North Cave Creek Rd. Asian, non-Hispanic persons make up an estimated 3.8% of the population in Phoenix, and a tract with a concentration is 13.8% or more. The majority of tracts with a concentration of this minority group are located in scattered tracts in the northern part of the City. Finally, persons that are ethnically Hispanic make up 41.8% of the City's total population. This would make a tract with a concentration 51.8% or more. The vast majority of tracts with a concentration of Hispanic persons is located in the southwest part of the City, from the downtown area to the western Annual Action Plan 2026 59 OMB Control No: 2506-0117 (exp. 09/30/2021) city limits. Annual Action Plan 2026 60 OMB Control No: 2506-0117 (exp. 09/30/2021) Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction The need for affordable housing in Phoenix for lower-income persons with a broad range of needs is well documented. The City is planning to utilize HOME funds for rental housing development activities to assist LMI households attain affordable housing and to avoid homelessness. Funds will also support homeowner opportunities such as rehabilitation and downpayment assistance. As per HOME grant regulations, the City has set aside 15% for CHDO development activities for eligible LMI households. CDBG funds will support owner-occupied housing rehabilitation activities. The annual goals listed in the AP-20 specify the following goals and outcomes for affordable housing assistance for non-homeless populations. The terms for affordable housing are defined in 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership. This section only reports grant program activities under the CDBG and HOME programs. One Year Goals for the Number of Households to be Supported Homeless 0 Non-Homeless 266 Special-Needs 153 Total 419 Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 418 Rehab of Existing Units 1 Acquisition of Existing Units 0 Total 419 Table 10 - One Year Goals for Affordable Housing by Support Type Discussion Rental units constructed: 412 Household Housing Unit Rental units rehabilitated: 15 Household Housing Unit (Housing Dept/HOME = 0) Homeowner Housing Rehabilitated (CDBG & HOME): 76 Household Housing Unit Created (75= CDBG Annual Action Plan 2026 61 OMB Control No: 2506-0117 (exp. 09/30/2021) NSD /1 = HOME Housing Dept) Direct Financial Assistance to Homebuyers (HOME): 6 Households Assisted (HOU Dept. ) Housing Dept Total = 419 (356 New rental const, 56 CHDO New rental const, 6 DPA, 1 Homeowner Occupied Housing Rehab) Annual Action Plan 2026 62 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-60 Public Housing – 91.220(h) Introduction Unlike most areas in the country, Phoenix's Public Housing Authority (PHA) operates within the governmental structure of the City of Phoenix (CoP) and is known as its Housing Department (HOU). The majority of HOU's activities are similar to those of a traditional PHA. Currently, HOU administers 1023 traditional public housing units and 7,740 Housing Choice Vouchers (HCV). The Housing Department Director reports to an executive in the City Manager’s Office who then reports to the City Manager. All Housing Department employees, including those who provide public housing services, are hired in accordance with the City's civil service rules and regulations. Contracting and procurement by the HOU is also accomplished through the City's Administrative Rules. Any federal considerations are incorporated into the contracting and procurement processes. Services benefitting the Housing Department and its tenants that are funded by the City of Phoenix include various recreation programs through the Parks and Recreation and Library departments and case management services from the Human Services Department. Any proposed development sites, which are selected in accordance with the relevant policies in the Consolidated Plan, must be approved by the City Council before they are purchased. The City's Five-Year and Annual Public Housing Authority (PHA) Plan is also approved by the City Council. Actions planned during the next year to address the needs to public housing For the 25-26 FY, COP HOU will submit an allocation plan to HUD for the Capital Fund Program formula grant for $2,713,865. Funding will support the Rental Assistance Demonstration (RAD) conversions at Aeroterra II and Aeroterra III. This is a HUD program that will convert Aeroterra II and Aeroterra III from public housing to a Section 8 Project-Based property. This is a more sustainable funding source that is long term and allows more flexible funding options when the property needs capital improvements in the future. In 2018, HOU was awarded a $30 million HUD CN Implementation Grant to revitalize the Edison-Eastlake Community (EEC) located east of downtown Phoenix. In 2023, HOU was awarded a $10 million CN Supplemental Grant, and in 2024, was awarded an additional $2.5 million in Supplemental Grant funds to further support the development of replacement housing in conjunction with the EEC’s Transformation Plan. During Fiscal Year 2026-27, the following developments, as part of the third and fourth phases will be underway and/or completed: Construction of Horizon on Villa, a 109- unit community that will include the historic preservation of five historic buildings repurposed into a Family Resource Center, commenced construction in December 2025. The fourth phase includes the demolition and redevelopment of Sidney P. Osborn into a 364-unit apartment community named “Girasol”, to be Annual Action Plan 2026 63 OMB Control No: 2506-0117 (exp. 09/30/2021) developed in three phases. Construction of Girasol Phase One (115 units) commenced in February 2025 while construction on Phase II (109 units) began in May 2025. Girasol Phase III (140 units) is expected to commence in late 2026 and will include the redevelopment of an existing on-site park. CN multi-family redevelopment projects will include Section 8 project-based vouchers, LIHTC Credits and market-rate units. All multi-family communities will incorporate public art to contribute to neighborhood beautification/revitalization. Lastly, construction is anticipated to begin in early 2027 on the 44-unit mixed-income homeownership townhome community: 29 will be affordable, 15 market-rate. In 2024, the Housing Department was awarded a $500,000 Choice Neighborhoods Planning Grant to begin a community planning effort with the residents of the Marcos de Niza public and affordable housing community (AMP 22, 374 units, a mix of 281 Public Housing and 93 Section 8 PBV). This began in calendar year 2024 and focuses on completing a community-driven Neighborhood Transformation Plan to guide the revitalization of Marcos de Niza and the surrounding neighborhood. Local City of Phoenix funding will be used for the effort along with Choice Neighborhoods funds and any other sources that are available at the time. The transformation plan will form the basis for future implementation efforts including an application for Choice Neighborhoods Implementation grant funding. Actions to encourage public housing residents to become more involved in management and participate in homeownership The City is increasing homeownership activities with the Section 32 Program that will assist approximately 10 first-time homebuyers through the purchase of their first home. The Housing Department has been approved to sell two hundred ninety-nine (299) homes from the City of Phoenix public housing portfolio to low-income first-time homebuyers through the Section 32 Program. As part of this program, families must maintain the home as their permanent residence for ten (10) years to receive a forgivable down payment assistance loan equal to a 20% discount off the home’s appraised value. The Housing Department is planning to sell fifty (50) homes during FY 2026-2027. During FY 2026- 2027, the Housing Department anticipates selling seven (7) homes through the Section 32 Program and fifty (50) homes through the Section 18 Program. The City’s Housing Department is dedicated to providing a variety of programs designed to empower residents of public and assisted housing with economic opportunities and avenues for developing social support. Current activities and initiatives include: The Family Self-Sufficiency (FSS) program offers long- term case management services to assist low-income households living in subsidized housing. Its goal is to help these households overcome barriers to self-sufficiency and achieve financial independence. FSS participants can access educational training, job training, job coaching, life skills training, and facilitated employment opportunities for up to seven years. The Jobs Plus Program—locally known as iWORK (Improving Work Opportunities and Resident Knowledge)—previously operated in partnership with City of Phoenix ARIZONA@WORK. Although the Annual Action Plan 2026 64 OMB Control No: 2506-0117 (exp. 09/30/2021) Jobs Plus grant has concluded, the iWORK team continues to provide employment-focused services at the Marcos de Niza housing site as part of the Choice Neighborhoods planning grant. The iWORK team remains committed to supporting residents through job-driven strategies that strengthen earnings and improve employment outcomes. Services include work readiness training, employer connections, job placement assistance, educational advancement opportunities, technology skills development, and financial literacy education. Together, these activities help expand long-term economic mobility and future homeownership prospects for public housing residents. The ROSS Service Coordinator Program offers on-site service coordination at Aeroterra and Henson Village Communities. These coordinators collaborate with the CSP to deliver case management and facilitate access to resources, including financial education, college readiness programs, post-secondary financial aid, digital literacy education, health and wellness initiatives, including food distributions, and programs aimed at enhancing education and self-sufficiency. The HIVE, powered by IDIA - Institute for Digital Inclusion Acceleration, located at both Aeroterra and Community Training and Education Center (CTEC), is a pioneering institute dedicated to advancing digital inclusion and bridging the digital divide. Through innovative programs, research, and strategic partnerships, HIVE empowers underserved communities with access to technology, digital literacy, and economic opportunities. The institute focuses on accelerating digital adoption by fostering education, entrepreneurship, and workforce development in the digital economy. The Hive is outfitted with computers, 3D printers, interactive sensory tools, and Digital Navigators who provide onsite digital skills training. The goal of the space is to help close the digital divide and ensure access to tech support and digital skill-building. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance The PHA is not designated as troubled. Discussion The Housing Supportive Service (HSS) Program is committed to programs that promote economic opportunity and social integration for residents of public/assisted housing. HSS’s Housing Coalition of Service Providers (CSP) consists of over 100 partner agencies that provide or offer social services, education, employment, health care, youth, and elderly care service providers to assist residents in becoming self-sufficient and enhance their quality of life. These centers offer technology enrichment resources for households that do not have personal access to a computer/internet such as open lab, tutoring, and employment assistance. The Family Self-Sufficiency (FSS) Program provides dedicated case management services that connect families to resources that support economic mobility and long-term financial independence. Among all Annual Action Plan 2026 65 OMB Control No: 2506-0117 (exp. 09/30/2021) case closures in 2024 and 2025, the program achieved a 77% graduation rate, with 87 participants successfully completing the program and 8 individuals achieving homeownership. Participant earned income increased nearly threefold from enrollment to graduation, rising from approximately $1.4 million to $4.1 million. In addition, the program disbursed $1,153,949 in escrow funds to graduating participants, reflecting the program’s continued impact on household financial stability. The Permanent Supportive Housing (PSH) Youth Program provides intervention and prevention services for the children in families living at Aeroterra’s PSH units. This includes individual case management, counseling and afterschool programming with homework assistance, Science, Technology, Engineering, Arts and Math (STEAM) activities, Kids Cafe meals and daily rotations to the HIVE technology center. The program serves approximately 65 to 70 youth to ensure youth remain successfully in school. Phoenix Starfish Place converted to a Transitional Housing Model effective January 2024 to provide more comprehensive services to the participants. The program serves fifteen households of women who have been sexually trafficked, and their children. Two full-time case managers provide trauma informed case management and support services on-site to resident households. The first three successful participants will graduate in Winter/ Spring 2026. The Senior Service Coordination Program provides Service Coordinators located onsite at each Senior Housing facility to assist elderly and disabled residents in maintaining independent living. Coordinators work with local community resources to provide medical and behavioral health care; wellness and prevention services; meals/food boxes; counseling; transportation; nutrition; financial assistance; and housekeeping services. Services are available for up to 612 Senior Participants at the various locations. The iWORK (Improving Work Opportunities and Resident Knowledge) Center offers sustainability services post-Jobs Plus grant, providing residents access to health, nutrition, education, youth programming, financial literacy, and employment opportunities. ARIZONA@WORK delivers employment services on-site weekly, while additional partnerships with local organizations offer personalized support to enhance quality of life, job readiness services, self-sufficiency, technology skills, and financial literacy. Marcos de Niza is a Choice Neighborhoods Planning Grant site, engaging residents in the process. The 2017/18 Choice Neighborhoods People component delivers comprehensive case management and coordinated services to support families in the Edison Eastlake community. This initiative is dedicated to enhancing residents' quality of life by improving economic stability, employment opportunities, health outcomes, and educational success. Serving families, individuals and youth, over 557 families have been provided services. Annual Action Plan 2026 66 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction The City of Phoenix is actively involved in local and regional planning efforts aimed at reducing and ultimately ending homelessness. This is achieved through collaborations and partnerships with both internal and external organizations from various sectors. Internally, multiple City departments—including Housing, Human Services, Neighborhood Services, Police, Fire, Parks and Recreation, Library, and Court—work together to coordinate services and maximize resources. On a regional level, the City participates in the Continuum of Care coordinated by the Maricopa Association of Governments and collaborates with numerous external organizations, including state and county governments, private and non-profit organizations, and the faith community, to create a collective impact. Services and support to combat homelessness are provided directly by City staff and through contracts with sub-recipient organizations. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City of Phoenix established the Office of Homeless Solutions (OHS) in 2022 to enhance and implement initiatives related to homelessness within the city. OHS operates under the City Manager’s Office and demonstrates the City’s commitment to increasing transparency and direct outreach to the community. OHS is the largest funder of street outreach in the region. The office includes 16 positions focused on community-facing activities, such as outreach caseworkers, PHX C.A.R.E.S. workers, and Homeless Liaisons. Additionally, OHS provides funding to partners for rapid rehousing, temporary emergency shelter, shelter operations, navigation services, and behavioral health support. OHS is dedicated to assisting individuals experiencing homelessness and is committed to ending homelessness through a comprehensive regional approach. This includes providing shelter and heat relief, outreach, supportive and behavioral health services, homelessness prevention, and housing solutions. The office has primarily focused on creating new indoor shelter beds through significant capital investments and offering heat relief during the hot summer months. The City has restructured its services and outreach efforts to make them more effective and to reduce barriers that prevent people from accepting assistance, which is a major reason why individuals are now more willing to seek help. The City now offers shelters that allow pets, spaces where couples can stay together, and storage options so that individuals can keep their belongings when entering a shelter. Additionally, City staff provides direct outreach and engagement services through an innovative partnership called Phoenix C.A.R.E.S. This initiative brings together the Office of Homeless Solutions, Annual Action Plan 2026 67 OMB Control No: 2506-0117 (exp. 09/30/2021) Police, Neighborhood Services, Street Transportation, Parks and Recreation and Public Works departments to address the increasing number of homeless encampments throughout the city. This collaborative team, in partnership with community-based crisis intervention and outreach providers, works together to eliminate homeless encampments and reconnect individuals to housing and services through a combination of support, enforcement, and abatement strategies. Finally, the City collaborates with the Maricopa County Outreach Collaborative to develop and implement regional best practices for street outreach services. This partnership also coordinates outreach activities and initiatives across the region. Addressing the emergency shelter and transitional housing needs of homeless persons The City is committed to supporting emergency shelter services for individuals and families through various contracts with non-profit providers. These include Saint Vincent de Paul (for single adults), United Methodist Outreach Ministries (for single women and families), and Chicanos Por La Causa (for families). Funding for these services comes from Emergency Solutions Grant (ESG) and Community Development Block Grant (CDBG) funds. Additionally, the City is using General Funds and American Rescue Plan Act funds to support new City-owned shelter projects in the area. These projects will provide accommodations for seniors, single adults, and family units. The City remains dedicated to ensuring that vulnerable residents stay stably housed once they secure housing. HUD launched the Emergency Housing Voucher (EHV) program in July 2021 to assist individuals and families who were homeless, at risk of homelessness, fleeing domestic violence or human trafficking, or recently homeless and in need of rental assistance. Originally expected to be funded through September 2030, HUD later announced that EHV funding would end by 2026. In response, and following HUD guidance and an approved waiver, the City successfully transitioned all Phoenix EHV households into the Housing Choice Voucher program effective November 1, 2025. This proactive step ensured that every family retained housing assistance and avoided instability. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again The City of Phoenix has been focused on increasing the number of available shelter beds in the region while also providing homelessness prevention services, street outreach, and rapid re-housing programs. Additionally, the city is emphasizing the impact of innovative collaborations and partnerships aimed at Annual Action Plan 2026 68 OMB Control No: 2506-0117 (exp. 09/30/2021) achieving regional results. By working with the Continuum of Care, the region is aligning contracted services for Emergency Shelter, Outreach, and Rapid Re-Housing through the ESG Collaborative. This alignment will enhance regional reporting and enable service providers to use consistent measurements, ensuring that they report the same outcomes regardless of the funding source. Ultimately, this will allow for the ability to "right size" interventions and ensure that resources are allocated where they are needed most. The Maricopa County region has established a Coordinated Entry System aimed at prioritizing resources for the most vulnerable individuals and reducing the length of time spent in homelessness. This system includes five primary points of entry: 1. The Family Hub, dedicated to families with children. 2. The Welcome Center, serving single men and women. 3. Centralized Screening for victims of domestic violence. 4. An entry point for unaccompanied youth. 5. A specific entry point for US military veterans. The City of Phoenix's Human Services and Housing Departments have collaborated to provide permanent supportive housing for 33 chronically homeless individuals and families, with a preference for veterans, at a new public housing site called Aeroterra. Previously known as Luke Krohn, Aeroterra is a unique, affordable master-planned housing development that accommodates individuals and families from mixed income levels, including seniors. The 33 chronically homeless individuals and families are identified and referred through the regional Coordinated Entry System established by the Maricopa Association of Governments Regional Continuum of Care. In addition to offering permanent supportive housing, Aeroterra provides on-site intensive case management services to the households to ensure that these individuals and families receive the necessary support and resources to successfully transition from homelessness to stable and thriving homes and that the youth remain successfully in school. In 2023, the Housing Department invested HOME-ARP funds to expand noncongregate shelter capacity, including $2 million to create 20 new units at UMOM, which opened in 2024 and has served more than 309 individuals. In 2025, the department awarded $8 million to the Salvation Army to develop a new 12- unit facility with beds for up to 60 individuals, increasing capacity for an additional 36 families and serving an estimated 173 people annually for 10 years. Additionally, $2.3 million was awarded to Tanner Community Development Corporation (TCDC) and $3.4 million to Housing for Hope to create permanent supportive housing. Respectively, these investments will deliver 37 new tiny homes for veterans at TCDC's Tanner Thomas Village and 11-units at St. Catherine Manor for qualifying HOME-ARP and low- income senior households, each with a minimum 15-year affordability period. The City has also increased affordable units by overcoming barriers that limited the City from certain acquisition opportunities through the creation of the Phoenix Residential Investment Development Effort (PRIDE) Board, a 501c3 nonprofit agency. PRIDE was created by the City to pursue development or acquisition opportunities to increase the supply of affordable housing for low- and moderate income families. As a non-profit entity, PRIDE is able to access various funding sources not directly available to Annual Action Plan 2026 69 OMB Control No: 2506-0117 (exp. 09/30/2021) the City or to acquire/construct single and multi-family housing. Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The Human Services Department addresses emergency housing and service needs through a variety of programs and services. Three Phoenix Family Services Centers operate year-round, offering case management, navigation, and financial assistance to clients by utilizing a diverse range of funding resources. Through this direct service system, staff at the Family Services Centers help clients prevent eviction and foreclosure, as well as assist families in moving to more affordable or suitable living environments by covering move-in deposits and providing rental and utility assistance. Additionally, the department collaborates closely with organizations that offer behavioral health and detox services for individuals and families in crisis. Discussion The focus of the 2026-27 year for the City of Phoenix is to increase the number of shelter beds available in the region, provide homelessness prevention, street outreach, and provide rapid re-housing programs. In addition, the City of Phoenix is the impact of innovative collaboration and partnerships focused on regional impact. Through work with the Continuum of Care, the region is aligning contracted services for Emergency Shelter, Outreach and Rapid Re-Housing through the ESG Collaborative. This alignment will improve regional reporting and will enable providers to utilize consistent measurements and report the same outcomes regardless of the funding source. This alignment will ultimately lead to the ability to “right size” interventions and ensure resources are utilized where they are needed most. During fiscal year 2026-27, the Housing Department will implement the following: By October 1, 2026, or HUD extension date, Housing Quality Standards (HQS) will be replaced with National Standards for the Physical Inspection of Real Estate (NSPIRE) for the housing choice and project-based voucher programs. The Housing Department HCV program will comply with all Housing Opportunity through Modernization Act (HOTMA) requirements pending HUD’s anticipated compliance date during fiscal year 2026- 2027. Currently, HUD does not have a secure systems software program ready and is also still working Annual Action Plan 2026 70 OMB Control No: 2506-0117 (exp. 09/30/2021) with the software vendors for HOTMA implementation. Program highlights and success during fiscal year 2025-26 were as follows: In July 2025, the Housing Department was notified of an award of 100 additional vouchers for Veterans through HUD’s 2024 Registration of Interest. The successful award of Veterans Affairs Supportive Housing (VASH) vouchers increased Phoenix’s allocation to 1,003 vouchers, the first VASH increase since 2016. This achievement reflects the success of the VASH Efficiencies Strategic Plan, which, in partnership with the Department of Veterans Affairs (VA), enhanced leasing processes and improved retention rates. As a result, Veteran exits from the program have decreased by nearly two-thirds, allowing more Veterans to remain stably housed through a faster, more responsive, and Veteran- centered approach. Effective November 2025, the Housing Department successfully transitioned all Phoenix Emergency Housing Voucher (EHV) households into the Housing Choice Voucher (HCV) program. HUD originally launched the EHV program in 2021 to support individuals and families experiencing or at risk of homelessness, fleeing domestic violence or human trafficking, or recently homeless. Although the program was expected to be funded through 2030, HUD later announced that funding would end by 2026. Following HUD guidance and with an approved waiver, the City took proactive steps to transition every EHV family to the HCV program, ensuring they retained rental assistance and avoided any disruption in housing stability. To modernize how utility allowance payments are issued to participants, the Housing Department’s HCV program transitioned more than 2,200 households to U.S. Bank reloadable debit cards. These cards allow families to receive their monthly utility allowance directly and use the funds to pay their utility bills. This replaced roughly 1,850 manual checks each month, eliminated stale checks, reduced reprocessing time, and made payments far more convenient, especially for participants without bank accounts. Annual Action Plan 2026 71 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-70 HOPWA Goals– 91.220 (l)(3) One year goals for the number of households to be provided housing through the use of HOPWA for: Short-term rent, mortgage, and utility assistance to prevent homelessness of the individual or family 60 Tenant-based rental assistance 165 Units provided in permanent housing facilities developed, leased, or operated with HOPWA funds 25 Units provided in transitional short-term housing facilities developed, leased, or operated with HOPWA funds 120 Total 370 Annual Action Plan 2026 72 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-75 Barriers to affordable housing – 91.220(j) Introduction: Public policies at the local, regional, and state levels have unintentionally created barriers to affordable housing development and residential investment in Phoenix, Arizona. The following highlights key areas where such policies have negatively impacted housing affordability: • Insufficient Funding and Incentives: State-level policies in Arizona limit funding mechanisms for affordable housing initiatives. For example, while local governments are allowed to charge impact fees, these funds cannot legally be used for affordable housing purposes. This restriction, highlighted by the Morrison Institute, reduces the financial resources available for creating affordable housing, forcing Phoenix to rely on limited federal programs to fill the gap. • Community Opposition (NIMBYism): Community resistance to affordable housing, known as NIMBYism, often delays or prevents developments in Phoenix. This resistance is frequently based on misconceptions that affordable housing will negatively impact property values or neighborhood character. Reports from The State Press indicate that this opposition influences local decision-making, creating additional challenges for securing approvals for affordable housing projects. • Preemption of Local Authority: Arizona’s state preemption laws prevent cities like Phoenix from implementing rent control or other housing policies to address affordability issues locally. As reported by AZ Mirror, this restriction limits Phoenix’s ability to adopt tailored solutions to its housing affordability crisis, leaving the city reliant on state-led initiatives that may not adequately address local needs. • Gentrification and Displacement: Urban revitalization efforts in Phoenix, while intended to promote economic growth, often lead to increased property values and the displacement of low-income residents. According to the Phoenix New Times, without proper safeguards such as rent protections or affordable housing requirements, these policies disproportionately harm vulnerable populations, exacerbating housing affordability challenges. Addressing these challenges requires strategic policy reforms, such as revising zoning and funding mechanisms, enhancing local authority to implement housing solutions, and implementing safeguards against displacement. Continued from narrative above Actions planned: Development of affordable housing requires additional subsidies to ensure long-term affordability. This can be achieved through grants, loans, and tax programs or can be achieved through a reduction of other costs associated with development or operating affordable housing such as pre-development design costs and permitting fees. There are continual efforts to discover alternative funding sources to help aid in the reduction of planning and permitting fees, along with plans to increase public support for and developer interest in affordable housing. In November 2024, the Housing Department was awarded Annual Action Plan 2026 73 OMB Control No: 2506-0117 (exp. 09/30/2021) a Technical Assistance Grant to assist in continuing a targeted education campaign to provide residents and developers with essential information on affordable housing in Phoenix. This will be an ongoing effort throughout 2025. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment The City may undertake any of the following actions to help foster the removal of barriers for affordable housing production. Actions to implement the strategies may vary during this reporting year: • Ongoing availability of down payment and closing costs assistance for 1st time homebuyers at or below 80% area median income. • Ensure housing needs of special needs populations are met by setting aside funding for specialized projects • Competition for Low-income Housing Tax Credits (LIHTC) for the purpose of replacing aging public housing units with new, energy efficient units • Acquisition of properties by the City through its non-profit organization, Phoenix Residential Investment Development Effort (PRIDE) • Inclusion of a refinancing option using HOME funds for non-profit developers/owners of affordable housing who include major rehabilitation to the property • Willingness to provide loan modifications for City loans when cash flow problems are not caused by poor financial or property management • Provide HOME and CDBG funds for aging properties with rent restricted units which need major rehabilitation • Participation in Choice Neighborhoods Program by which public housing units can be increased and replaced with updated units • Utilize the RAD program to redevelop Public Housing units • Identification of underutilized Public Land for housing redeveloped by non-profit and for-profit developers • Project-based Section 8 Housing Choice Vouchers and public housing units • Utilization of VASH Vouchers The implementation of the nine policy initiatives included in the Housing Phoenix Plan will establish zoning incentives for affordable housing developers, create allowances for accessory dwelling units, increase resources (such as grants and loans for affordable housing developers), streamline processes, and continue to implement an education campaign to help communicate the importance of housing in our community. Updating zoning regulations will make it easier and cheaper to build or preserve a variety of housing Annual Action Plan 2026 74 OMB Control No: 2506-0117 (exp. 09/30/2021) options while preserving the character of the neighborhood. The Accessory Dwelling Units (ADU) text amendment (TA) was approved by City Council on September 6, 2023, to help increase the overall supply of housing as well as offer an additional housing option within a neighborhood, and updates have been approved to address state statute changes. The Walkable Urban Code (WU) text amendment was approved by City Council on February 2, 2022, to create the opportunity for more flexible infill development and adaptive reuse without requiring the property owner to complete the rezoning process. Two out of the three Mobile Home text amendments proposed were approved by City Council on June 28, 2023, to aid in affordable housing choices. The first text amendment added definitions for the different mobile home models and revised the ordinance to outline offsite manufactured home developments while the second text amendment allows existing mobile home developments to expand the number of units through an administrative review. A multifamily parking text amendment was approved by Council on January 24, 2024, which decreased the minimum number of required parking spots per unit, to eliminate possible barriers to housing development. Additional text amendments are being evaluated to help facilitate more housing options in the city such as the Affordable Housing Framework text amendment that was initiated by the Planning Commission. For the 26-27 Fiscal Year, Aeroterra II and Aeroterra III will continue to pursue conversion through the RAD Program without any rehabilitation. This will convert the properties subsidy from Public Housing to Project-Based Section 8 which is a more sustainable long term funding source and provides more flexibility for future capital improvements. Discussion: The Open Doors Down Payment Assistance (DPA) is a City-wide program targeting first-time homebuyers. Eligible families receive direct subsidy of down payment and/or closing costs assistance through a zero percent interest forgivable loan. The home must be used as their primary residence during the period of affordability. The Housing Department has contracted with HUD approved Housing Counseling Agencies (HCA) to administer the program and assist families through the close of escrow. Housing Department received approval from HUD to utilize a waiver on the Maximum Purchase Price for the DPA Program. The Housing Department is currently utilizing this waiver. Redevelopment of the former Sidney P. Osborn site, now known as Girasol, egan in FY 2024-25 as Phase One (115 units) commenced design in February 2025. During 2026-2027, the following developments, as part of the third and fourth phases will be underway: Demolition of the former A.l. Krohn (ALK) site was completed to make way for Horizon on Villa, a 109-unit mixed-income community. Construction on Horizon on Villa began in December 2025. The fourth phase includes the demolition and redevelopment of the former Sidney P. Osborn site into a 364-unit apartment community, now known as Girasol, to be developed in three phases: Phase One construction of 115-units, began in February 2025. Construction on Phase II, to include 109 units began in May 2025, and Phase III with 140 units is expected to commence in late 2026. The CN multi- family redevelopment projects will include Section 8 project- based vouchers, Low Income Housing Tax Credits and market-rate units. Lastly, construction of the 44- unit mixed-income homeownership townhome community (29 affordable and 15 market-rate) is Annual Action Plan 2026 75 OMB Control No: 2506-0117 (exp. 09/30/2021) anticipated to begin in the first quarter of 2027. Neighborhood: Planned improvements include new and expanded parks featuring shade and modern family-friendly amenities. Construction of the Edison Park Expansion and new Linear Park projects commenced in February 2026, while the redevelopment of Kana Park as part of the SPO/Girasol Phase Three housing community is expected to begin in early 2027. Other neighborhood improvements include open space; bike lanes, pedestrian safety upgrades; beautification; public art; Wi-Fi; and digital literacy. In addition, targeted demolition of the former Crippled Children’s Hospital into the Edison Impact Hub (to be renamed “Thash Mahd”) started in October 2023. The rehabilitation of the property began in March 2025 and is anticipated to be completed in July 2026. Thash Mahd will house a behavioral and health clinic, community kitchen, workforce development center, digital literacy lab, office space, and classrooms/meeting rooms. People: Supportive services that are being offered include case management; relocation assistance; workforce/employment; healthy living and educational needs; youth services; and resident and community engagement. The Aeroterra Community Center, located within the EEC, was the first HUD- approved EnVision Center in Arizona, where public-private and nonprofit partners provide services designed to assist residents in achieving self-sufficiency. Annual Action Plan 2026 76 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-85 Other Actions – 91.220(k) Introduction: This section outlines how the City of Phoenix is addressing the needs of the community through additional actions not previously described in the Annual Action Plan. The actions and activities described here enhance the programmatic response to support those who are identified as underserved. Actions planned to address obstacles to meeting underserved needs The City of Phoenix Housing Department is facing a great challenge in serving families at 0% to 50% of median income. The City‘s wait lists for all its assisted housing properties – public housing, senior housing, affordable housing and the Housing Choice Voucher program – have many more families than can be served in a reasonable length of time. Currently there are over 133,000 households on the waitlist. According to the 2025 “State of Housing in Arizona” report out of the Morrison Institute in partnership with ASU, the typical value of a home increased by 62% from 2019 to 2024, to $428,156. “High mortgage interest rates also may have prompted a slowdown in home purchases; mortgage rates in December 2024 were the highest since 2010. From 2020 to 2024, the national average mortgage rate climbed from a low of 2.67% to 6.85%.” Arizona’s population growth has outpaced the growth of all types of housing. Since 2010, the population has grown by 25% but housing units have increased by only 14%. Since 2010, a renters' monthly housing costs (including estimated utilities) have consistently outpaced their income where rent has increased 36% while income has increased 27%.. In 2024, minimum wage workers earning $14.35 per hour would need to work 119 hours per week or have 2 and a half full-time jobs to afford a 2-bedroom home with rent of $1,700 per month. In 2024, more than half of all renters were cost-burdened, the highest percentage of cost burden since 2010. As of 2023, it was estimated that Arizona had a deficit of 138,227 affordable and available rental units for extremely low-income households and a deficit of 198,422 affordable and available rental units for low income households. The City’s housing affordability issue is well documented and is highlighted in the Needs Assessment (NA) of the 2025-2029 Consolidated Plan. The NA identified that cost burden is the most significant housing problem in the City, defined as households paying at least 30% of their income towards housing costs. Approximately 22% of homeowners with a mortgage and 54% of renters are considered cost burdened. The availability of affordable housing for very-low-income individuals on minimum wage or living on SSI Annual Action Plan 2026 77 OMB Control No: 2506-0117 (exp. 09/30/2021) payments is quickly diminishing. This unavailability of affordable housing at the very-low-income level can only exacerbate the problem of homelessness. To enhance the delivery system and address any service gaps, the City will promote private participation through nonprofit organizations and seek additional funding sources. Furthermore, the City will continue to establish partnerships with other government agencies and municipalities that are confronting these regional challenges. The availability of affordable housing for very-low-income individuals on minimum wage or living on SSI payments is quickly diminishing. This unavailability of affordable housing at the very-low-income level can only exacerbate the problem of homelessness. To enhance the delivery system and address any service gaps, the City will promote private participation through nonprofit organizations and seek additional funding sources. Furthermore, the City will continue to establish partnerships with other government agencies and municipalities that are confronting these regional challenges. Actions planned to foster and maintain affordable housing The City utilizes HOME and CDBG funds for the acquisition, construction, and rehabilitation of affordable rental housing units. Each year, a public Call for Interest is issued to encourage the affordable housing development community to apply for funding. Additionally, the City collaborates with the Phoenix Industrial Development Authority, which offers tax-exempt bond funding, as well as the Arizona Department of Housing, which provides Low-Income Housing Tax Credits to help create affordable housing opportunities in Phoenix. Affordable Housing program goals include: Preservation of Housing Department (HD) investments & continued affordability; improvement of distressed/foreclosed properties; creation and expansion of long-term affordability; investment in location-critical properties, such as those near employment and transportation centers as well as in areas lacking affordable rental units; leveraging federal funding with private equity and investment. The HD administers a down payment assistance program for first-time homebuyers. Eligible families receive down payment assistance in the form of a zero-interest due on sale loan as long as the home remains the family’s principal residence during the affordability period. The City also funds homeownership programs that: construct new homes in neighborhoods undergoing revitalization; utilize mortgage financing to lower interest rates and increase overall community participation in developing homeownership opportunities. Phoenix City Council unanimously approved the first-ever housing policy plan, the Housing Phoenix Plan, in 2020. As one of the fastest growing cities in the nation, this initiative works to address our many housing needs and recommends solution-oriented policies to create a better Phoenix. The HPP Annual Action Plan 2026 78 OMB Control No: 2506-0117 (exp. 09/30/2021) documents the findings of the city's Affordable Housing Initiative, which launched in 2019 with the goal of completing a housing needs assessment and establishing policy recommendations to address the city's current housing challenge. Through extensive research and community outreach, the plan identifies the community's housing needs, documents the housing gap, compiled nationwide best practices and recommended the following nine policy initiatives to reach the goal of creating a stronger and more vibrant Phoenix through increased housing options: 1. Prioritize New Housing in Areas of Opportunity 2. Amend Current Zoning Ordinance to Facilitate More Housing Options (Affordable Housing Developer Incentives, Accessory Dwelling Unit Allowances, Expand the Walkable Urban Code) 3. Redevelop City-Owned Land with Mixed Income Housing (City Council approved parcel list) 4. Enhance Public-Private Partnerships and Increase Public, Private, and Philanthropic Financing 5. Building Innovations and Cost Saving Practices (Assigned Review Teams with the Planning and Development Department, Affordable Housing Advocacy, Infrastructure Fund for Affordable Housing Developers, Continuing Ongoing Research into cost-saving practices) 6. Increase Affordable Housing Developer Representation (Boards, Commissions and Committees such as Planning Commission and Village Planning Committee) 7. Expand Efforts to Preserve Existing Housing Stock (Strategic Acquisitions, Community Land Trust, Expand Landlord Incentive Program, Expand Rental Rehabilitation Program). 8. Support Affordable Housing Legislation 9. Education Campaign Actions planned to reduce lead-based paint hazards The reduction of Lead-Based Paint (LBP) hazards remains a top priority in Phoenix. Housing rehabilitation programs funded by HUD assist homeowners and landlords in protecting children and their families from the dangers of lead-based paint and other health and safety hazards in the home. Initially, EPA-certified LBP inspectors conduct inspections and assessments to identify lead hazards in properties built before January 1, 1978. If lead hazards are found, EPA-certified lead abatement contractors are brought in to perform remediation and abatement while residents are temporarily relocated until the unit passes the required clearance. Additionally, EPA-certified housing rehabilitation specialists prepare scopes of work and monitor all the work performed. Lead-safe housing units are listed on a publicly accessible rental registry website. The City implements a two-tiered educational program in collaboration with its partners. This program is designed for parents of high-risk children and leaders in communities at elevated risk for lead poisoning. Additionally, it includes professional education for physicians, nurses, housing staff, teachers, landlords, and other key individuals. The goal is to reduce children's exposure to lead hazards by promoting Annual Action Plan 2026 79 OMB Control No: 2506-0117 (exp. 09/30/2021) interventions that parents can carry out and encouraging the safe maintenance of lead paint in older homes. The City works together with County and State health service departments to provide education for parents and caregivers of children with elevated blood lead levels. For children identified with moderate to severe blood lead levels, a comprehensive environmental investigation is conducted. Additionally, data is shared with the City, including blood lead level results, sources of unusual lead exposure, and areas with high rates of lead poisoning. These collaborations aim to promote policies and programs that will reduce lead exposure and completely eliminate environmental lead hazards in Arizona. Actions planned to reduce the number of poverty-level families The City of Phoenix Human Services Department’s Volunteer Income Tax Assistance (VITA) Program is dedicated to helping low-to-moderate income households by providing free tax preparation services, including assistance with filing for the Earned Income Tax Credit (EITC). EITC is recognized as one of the largest and most effective anti-poverty programs in the nation. The tax refunds generated not only offer financial relief to recipients but also provide economic benefits to the entire community. Additionally, our volunteers offer financial education related to the income tax filing process, aiming to raise awareness and understanding of tax preparation. The Human Services Department’s Family Services Centers provide a variety of social services to low- income households facing crises. These services are offered through three centers located throughout the city. Each center assists Phoenix residents with urgent needs, including utility support, eviction prevention, rent or mortgage payments, and move-in costs. Additionally, caseworkers offer guidance in employment, budgeting, and social and life skills development through case management. These services help families and individuals identify and overcome current barriers, ultimately leading them toward self- sufficiency. The City of Phoenix will provide Rapid Re-housing Services to those clients who meet the Category 1 definition of Homeless by targeting chronically homeless, as well as other homeless individuals and families. Actions planned to develop institutional structure The City of Phoenix works closely with its public nonprofit and private partners in order to develop institutional structure. The opportunities described below will be explored to further develop the institutional structure: • Explore alternative funding sources to tackle priorities set out in the Consolidated Plan. • Deliver focused technical assistance to encourage affordable housing for lower income persons in addition to special needs and homeless persons as well as priority community development Annual Action Plan 2026 80 OMB Control No: 2506-0117 (exp. 09/30/2021) needs. • Continue to foster the participation of an increasing number of private and non-profit entities to deliver affordable and special needs housing. Increase and fortify partnerships with the development community to focus and innovatively attend to affordable housing needs and issues. • Utilize public funds with other private, non-profit, foundation and other alternative sources to stimulate affordable housing, homeless and special needs housing production as well as neighborhood revitalization and stabilization. • Work cooperatively on homeless and supportive housing issues through the 'continuum of care' process. • Pursue local sources of financing for priority affordable and special needs housing production, neighborhood preservation and community development. Actions planned to enhance coordination between public and private housing and social service agencies The City’s Housing Department conducts regular public forums to receive input from private and nonprofit housing developers. A List-Serve has been established to communicate with the housing community any updates, regulatory changes, available funding for housing development and public meetings related to housing development or services. Housing Supportive Services (HSS) has established a Housing Coalition of Service Providers, which consists of education, employment, health care, youth, and elderly care service providers to help connect low-income residents to services and resources. This Coalition has grown to over 100 different programs and agencies. A subcommittee of this Coalition is the Early Childhood Action Team (ECAT) comprised of agencies serving children ages 0-5 and elementary school aged children. Quarterly meetings are held with each group’s members. The method for selecting HOPWA Project Sponsors is to conduct an open, competitive Request for Proposal (RFP) process. This includes providing full access to community-based nonprofit organizations and public agencies providing HID/AIDS services. Prior to the issuance of a RFP, community outreach, meetings and communication through email occurs to ensure community organizations are aware of the upcoming RFP and to receive feedback on current services and/or gaps in services. Discussion: Foster and Maintain Affordable Housing: A central element of the Housing Phoenix Plan was a goal to create or preserve 50,000 housing units by 2030, which the City reached at the end of 2024 – five years ahead of its goal. Throughout 2025, the City has continued to track units and implement the nine initiatives included within the Plan. As of December 2025, more than 64,000 housing units have been created or preserved. Progress reports will be provided Annual Action Plan 2026 81 OMB Control No: 2506-0117 (exp. 09/30/2021) quarterly at the following website: https://www.phoenix.gov/housing/plan. For years, the City has prioritized increasing the supply of housing for all income levels and family sizes to create a stronger and more vibrant city. The initiatives helped to accelerate action to address the City’s housing needs and aimed at ensuring housing is affordable and attainable. Of the more than 64,000 units created or preserved to date, almost 12,000 (20.1%) are considered affordable units, and about 16,000 (25.0%) are considered workforce units, resulting in nearly half of all new or preserved homes in the city geared toward households earning 120% or less of the area median income. Housing affordability is a complex issue impacting cities across the country, and influenced by many factors outside of cities’ control, including population growth, the pace of housing construction, mortgage rates, costs of labor and materials, supply chain, and the proliferation of investor-owned short-term rentals. Annual Action Plan 2026 82 OMB Control No: 2506-0117 (exp. 09/30/2021) Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction: This section provides program specific requirements for the CDBG, HOME, ESG and HOPWA programs. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0 5. The amount of income from float-funded activities 0 Total Program Income: 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income.Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 70.00% HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is Annual Action Plan 2026 83 OMB Control No: 2506-0117 (exp. 09/30/2021) as follows: Not Applicable. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: The City conducts homebuyer activities solely through its Open Doors Down Payment Assistance Program. This program provides direct subsidies to low-income households in the form of a forgivable loan used for down payments and closing costs. The City utilizes a recapture method for this program through a forgivable loan which offers a pro rata reduction of the loan balance during the period of affordability. As long as the borrower is able to own, occupy and use the property as their principal residence, the loan balance is partially forgiven over time until it is fully released at the end of the period of affordability. These requirements as well as the forgiveness schedule are stated in the down payment assistance loan documents and secured through a recorded deed of trust on the property as well as a recorded affordability covenant running with the land. Period of affordability is as follows: 1. 5-year period of affordability for loan amounts up to $25,000 2. 10-year period of affordability for loan amounts of $25,001 to $50,000 3. 15-year period of affordability for loan amounts over $50,000. The following forgiveness schedule is used for this program: 4. Loans of $25,000 or less - 25% of the loan is forgiven each year beginning on the second anniversary/year of the recording of the Deed of Trust 5. Loans $25,001 to $50,000 - 20% of the loan is forgiven annually beginning on the sixth anniversary/year of the recording of the Deed of Trust 6. Loan amounts over $50,000 - 10% of the loan is forgiven annually beginning on the sixth anniversary/year of the recording of the Deed of Trust. If, during the period of affordability, the borrower ceases to own, occupy and use the property as their principal residence, the City will recapture either all or a portion of the original loan amount. If the borrower voluntarily or involuntarily transfers their interest in the property (e.g., the property is sold or foreclosed upon), the City will recapture the loan amount less any forgiveness in accordance with the loan agreement. These funds will be recaptured from available net proceeds. Net proceeds are defined as the sales price minus superior loan repayment (other than HOME funds) and any closing costs. If the borrower continues to own the property but ceases to occupy and use the property asthe borrower’s principal residence (e.g., the property is rented or vacant), the borrower Annual Action Plan 2026 84 OMB Control No: 2506-0117 (exp. 09/30/2021) will pay an immediate recapture amount of the full original loan balance. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: The HOME multifamily program ensures affordability by placing a land use restriction on the property/land that is recorded with the Maricopa County Recorder's Office. This restriction assists in securing the affordable HOME units for the required affordability period. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The Housing Department may consider a citywide refinancing program, as an investment strategy for acquisition and/or rehabilitation of affordable rental projects sponsored by nonprofit housing developers with a minimum HOME investment of $1,000 per unit. All rehabilitated units must be located within Phoenix City Limits and meet the City of Phoenix Minimum Property Standards. Priority will be given to projects already supported by City funds. While refinancing may be an eligible activity in the preservation of affordable rental housing, it will not be eligible as the primary purpose of the Department’s refinancing investment strategy. “Taking out” or “cashing out” by developer/borrower of capital equity will not be permitted under the Department’s refinancing investment strategy. Nonprofit housing developers may be eligible to refinance existing debt using Housing Department funds when rehabilitation of the project and refinancing is necessary to create or continue long- term affordability rental restrictions. Through an application process, projects must provide a management plan and 15-year proforma. City staff will review and underwrite the project to determine feasibility. Aspects such as property management, financial need, long term financial feasibility, market demand and level of rehabilitation will be reviewed to determine the project feasibility. Housing Department funds utilizing federal block grant funds such as HOME Investment Partnerships Program cannot be used to refinance FHA loans and/or multifamily mortgage loans made or insured by any federal program including the Community Development Block Grant Program (CDBG). Projects must be developed by a nonprofit agency and located jurisdiction wide (anywhere within the City of Phoenix). The new investment must create additional affordable units and/or be used to maintain current affordable units. All projects are subject to long-term affordability restrictions which limit resident incomes and rents based on levels of area median income (AMI) established annually by the U.S. Department of Housing and Urban Development (HUD). All units receiving Department refinancing assistance must be reserved for households below 60% of AMI. An affordability restriction of at least 30 to 40 years will be required on all units assisted through the refinancing investment strategy. Specific Annual Action Plan 2026 85 OMB Control No: 2506-0117 (exp. 09/30/2021) projectrequirements will determine period of affordability restriction. 5. If applicable to a planned HOME TBRA activity, a description of the preference for persons with special needs or disabilities. (See 24 CFR 92.209(c)(2)(i) and CFR 91.220(l)(2)(vii)). N/A. The City’s Housing Department does not plan to fund TBRA with HOME funds. 6. If applicable to a planned HOME TBRA activity, a description of how the preference for a specific category of individuals with disabilities (e.g. persons with HIV/AIDS or chronic mental illness) will narrow the gap in benefits and the preference is needed to narrow the gap in benefits and services received by such persons. (See 24 CFR 92.209(c)(2)(ii) and 91.220(l)(2)(vii)). N/A. The City’s Housing Department does not plan to fund TBRA with HOME funds. 7. If applicable, a description of any preference or limitation for rental housing projects. (See 24 CFR 92.253(d)(3) and CFR 91.220(l)(2)(vii)). Note: Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by the laws listed under 24 CFR 5.105(a). In accordance with 24 CFR 92.253(d)(3), an owner of rental housing assisted with HOME funds must comply with the affirmative marketing requirements established by the City of Phoenix, which is the participating jurisdiction (PJ) pursuant to 24 CFR 92.351(a). The owner of the rental housing project must adopt and follow written tenant selection policies and criteria, which include that it may give a preference to a particular segment of the population if permitted in its written agreement with the PJ such as persons with a disability or other special needs. However, at this time there is no limit to eligibility or preference given to any particular segment of the population with rental housing projects funded by the City’s HOME program funds. HOME funds must however target low- to moderate- income households. The City does not discriminate and provides equal access to all eligible households. Emergency Solutions Grant (ESG) Reference 91.220(l)(4) 1. Include written standards for providing ESG assistance (may include as attachment) The City of Phoenix utilizes the Maricopa Regional Continuum of Care Community ESG Written Standards developed and approved through the Maricopa Regional CoC in the direct provision of ESG assistance. Likewise, the City contractually requires sub recipients to provide ESG assistance in alignment with applicable standards. 2. If the Continuum of Care has established centralized or coordinated assessment system that Annual Action Plan 2026 86 OMB Control No: 2506-0117 (exp. 09/30/2021) meets HUD requirements, describe that centralized or coordinated assessment system. The CoC operates a Coordinated Entry (CE) system for all people experiencing homelessness. The Access Points use a common assessment tool to determine the housing intervention that is best suited for the client(s). The assessment tool is then utilized to determine if domestic violence is a factor and if so, the victim’s immediate safety is subsequently assessed. Client(s) may then be referred to the DV Centralized Screening (CS) system, the parallel system for victims of domestic violence. Once safety is addressed, then the housing assessment tool is administered by CE and referrals are made based on the substantiated need. Client choice is also considered when making a referral as many housing options are presented and the client choice is paramount to the success of the intervention. Many DV providers were involved in the development of the CE system to ensure that survivor remains safe and connection to the DV system as well as the variety of housing options. 3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations). Current City of Phoenix ESG subrecipients were granted awarded through a Request for Qualifications (RFQ) process in FY 2025 to establish a Qualified Vendor List (QVL). Contracts are awarded based on program or project need and proposal response. Contracts are monitored annually for progress towards performance outcomes and compliance with federal, state, and local regulations. The City works closely with subrecipients to provide training, technical assistance, and ongoing support as needed. 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. The City intentionally includes persons who are homeless or formerly homeless when considering policy and funding decisions. City Council meetings, community meetings, surveys and town halls are all methods that have been utilized to allow opportunities for participation. Once recent example in 2025 was the updating of the strategic plan where interviews were conducted with people with lived experience to ensure their perspective was captured as the plan framework was developed. 5. Describe performance standards for evaluating ESG. Performance standards are included in the Maricopa Regional Continuum of Care Community Performance Measures approved by the Maricopa Regional CoC and required for all ESG assistance activities. Subrecipients provide monthly demographic reports and quarterly performance reports to track progress towards annual outcomes. Annual Action Plan 2026 87 OMB Control No: 2506-0117 (exp. 09/30/2021) HOPWA Selection of Project Sponsors Project Sponsors submitted proposals for a Request for Proposals (RFP) in March 2023. Project Sponsors were selected through this RFP process in which experience; qualifications; methodology; design and capacity were among criteria considered during the evaluation process. New housing and service contracts began on July 1, 2023. Prior to the issuance of the most recent RFP, community outreach occurred to all agencies providing HIV/AIDS services to ensure all were aware of the upcoming RFP. Annual Action Plan 2026 88 OMB Control No: 2506-0117 (exp. 09/30/2021)