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HHSC Memorandum Neighborhood Resources - Memo No. NR26-009 Date: March 04, 2026 To: Housing and Human Services Commission Thru: Riann Balch, Neighborhood Resources Director From: Karin Bishop, Community Development Senior Program Manager Subject: Public Hearing on 2026 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) Funds for Fiscal Year (FY) 2026-2027. Background: Each year, the City of Chandler receives federal CDBG funds from the United States Department of Housing and Urban Development (HUD), and HOME funds, administered by HUD, through the Maricopa HOME Consortium. CDBG funds support a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services benefiting households with low and moderate income. HOME funds are utilized to increase housing opportunities for households with low and moderate income. As a prerequisite for receiving these federal funds, the City of Chandler is required to prepare and submit a Five-Year Consolidated Plan and subsequent Annual Action Plans (AAPs) for HUD approval. The AAP serves as the formal application for the use of entitlement funds that are received by the City of Chandler. The AAP defines one-year activities in relationship to the five-year goals and objectives of the City's 2025-2029 Consolidated Plan that was approved by City Council on April 24, 2025. The FY 2026-2027 AAP is the second year of the current Five-Year Consolidated Plan. The City is a member of the Maricopa County HOME Consortium and receives HOME Investment Partnerships (HOME) Program funds through the HOME Consortium. Chandler HOME-funded activities are included in Maricopa County’s Annual Action Plan. In developing the FY 2026-2027 Annual Action Plan, the City of Chandler conducted a survey for a period of 21 days and was available to the public and key stakeholders to identify community development and housing needs in Chandler. The survey (available in English and Spanish), along with its associated QR code was promoted and distributed Memo No. NR26-009 March 4, 2026 Page 2 widely through mechanisms including the city’s website, public facilities such as libraries, city clerk’s office, recreation centers, as well as public housing and housing choice voucher resident emails, and a PHA Resident Advisory Board meeting held on January 28, 2026. The survey was also distributed to community partners including the Chandler Unified School District, non-profit organizations serving households with low and moderate income, and Maricopa Association of Governments (MAG). A total of 113 surveys were received. Survey responses were received from households with a wide range of incomes, with 68% of respondents reporting a household income of less than $45,000. Responses helped guide the City in developing the Annual Action Plan for FY 2026-2027. The five (5) goals identified in the 2025-2029 Consolidated Plan were prioritized (High to Low) by survey respondents. Two of the goals emerged as the top priority: Preserve and Develop Affordable Housing through assistance to homeowners with low and moderate income in addressing emergency or minor repairs necessary to maintain decent, safe, and sanitary living conditions; and Providing Public Services by delivering basic needs to individuals and families with low and moderate income, persons at risk of or experiencing homelessness and persons with special needs. In compliance with HUD regulations and the Citizen Participation Plan, the City is holding a 30-day public comment period regarding the draft FY 2026-2027 Annual Action Plan, which includes CDBG funding recommendations based on anticipated formula funding for FY 2026–2027, as well as HOME funding recommendations included in Maricopa County’s Annual Action Plan. The public comment period began Monday, March 2, 2026, and ends on Thursday, April 2, 2026. In addition, a public hearing was held on February 11, 2026, during the development of the FY 2026-2027 Annual Action Plan, and a second public hearing is scheduled for March 4, 2026, to ensure multiple opportunities for input from the community regarding the draft FY 2026–2027 Annual Action Plan. The draft FY 2026-2027 Annual Action Plan is available for review on the city’s website at: https://www.chandleraz.gov/ residents/ neighborhood-resources/community-development/plans-and-reports. Hardcopies of the annual action plan are also available upon request. Public comments received during the public comment period will be included in the finalized report submitted to HUD. Discussion: To date, HUD has not released the FY 2026-2027 annual allocation to Grantees. At HUD’s guidance, the City of Chandler has prepared CDBG funding recommendations, and a contingency plan based on the formula funding that it received in the prior fiscal year. A total of $1,486,156 in CDBG funding recommendations are included in the FY 2026- 2027 Annual Action Plan. The city will utilize $297,231 for program administration, $222,923 for Public Services, and $966,002 for Capital Projects, Housing, and Neighborhood Memo No. NR26-009 March 4, 2026 Page 3 Revitalization. The contingency plan states that any increase or decrease in CDBG funding for FY 2026-2027 will be applied to the City of Chandler’s Housing and Redevelopment - Public Housing Youth Program, adhering to the fifteen percent statutory cap for public service activities. An increase in CDBG funds will be applied to the City of Chandler’s Community Development and Resources - Homeowner Rehabilitation Program. A decrease in CDBG funds will be applied to Public Facility Infrastructure Improvements. The formula amount for program administration will also be adjusted based on the total CDBG allocation to the city. The City of Chandler has prepared HOME funding recommendations, and a contingency plan based on the formula funding that it received in the prior fiscal year and submitted this information for inclusion in the Maricopa County Annual Action Plan. The City of Chandler recommends funding in the amount of $386,715 to continue to support the City of Chandler’s Housing and Redevelopment - Tenant-Based Rental Assistance (TBRA) Program, housing individuals and family households experiencing homelessness in Chandler, and utilize $25,781 for program administration. The contingency plan states that any increase or decrease in HOME funding for FY 2026-2027 will be applied to the City of Chandler’s Housing and Redevelopment - Tenant-Based Rental Assistance Program. The formula amount for program administration will also be adjusted based on the total HOME allocation to the city.