SAN MARCOS — The City Council agreed to allocate over $1 million in federal Community Development Block Grant funds last week toward public service and housing affordability programs and facility and infrastructure improvements in the upcoming fiscal year.
The U.S. Department of Housing and Urban Development allocates Community Development Block Grant (CDBG) funds annually to jurisdictions across the country for projects and programs that benefit low- and moderate-income residents.
San Marcos will receive $685,579 in CDBG entitlement funding for the 2026-27 fiscal year, in addition to $496,937 in reinstated prior-year funds for a total of $1.18 million. The City Council approved the spending plan at its April 28 meeting.
“We do recognize that the need will exceed the funds available. This is our attempt for funding this gap with CDBG funding, but overall, we’re looking at other resources for future housing and neighborhood services funds,” said Housing and Neighborhood Services Manager Sylvia Daniels.
Funds will be used for programs and projects benefiting lower-income residents in the central and northern parts of the city, including neighborhoods surrounding Richmar Avenue.
San Marcos will allocate $102,500 for public services. This includes $30,000 for senior rental assistance and wraparound support; $25,000 for youth and family rental assistance and housing stabilization; $18,500 for meal delivery for seniors; $14,000 for food distribution services to youth and families; and $15,000 for senior transportation services.
This public services funding is expected to benefit between 500 and 700 lower-income residents in the city. Rental assistance specifically will be provided on a short-term emergency basis to qualifying households, with payments made directly to landlords or service providers.
“The housing stabilization, rental assistance, that is such a great program. I think it helps people from becoming homeless, in the fact that, you know, sometimes you lose a job suddenly or you have a medical expense that you weren’t expecting,” said Mayor Rebecca Jones.
Other CDBG allocations include $100,000 for housing affordability programs, including owner-occupied rehabilitation, accessibility improvements, and housing preservation assistance. These programs will benefit four to six lower-income households.
Just under $500,000 will go toward local infrastructure improvements, including neighborhood lighting enhancements, ADA accessibility upgrades, and recreational facility improvements. Specific projects will include the Richmar Park Phase 2 project, which will add new park amenities, shade structures, site infrastructure, and accessibility improvements, and Bradley Park improvements.
The city will also allocate $137,000 toward CDBG program administration and Fair Housing.
Lastly, $346,079 will go toward HVAC improvements at the Senior Activity Center, facility accessibility, and system upgrades.
“I really like when we’re able to kind of spread our grant funding across the community. As you went through the list, you hit everything you want to hear,” said Deputy Mayor Mike Sannella.
The CDBG funding plan also included amendments to prior CDBG budgets to redirect funds toward more shovel-ready projects and reflect increased project costs. The city added $360,224 for the Richmar Park Phase 2 project and $343,101 for the Senior Center HVAC project, and removed $250,000 in funding from the Bradley Park Master Plan.
The city allocated the funds through a competitive application process, according to a staff report, but did not disclose the names of specific providers who will carry out the programs.
City Councilmember María Nuñez said she was glad to see CDBG funds being used to support residents with rent and food at a time when many are struggling.
“I’m also glad to see that we are taking into account some of the pressing needs of our residents,” Nuñez said.
CDBG funds will become available for reimbursement on July 1. The funding will be incorporated into San Marcos’ 2026-27 annual budget.
