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DISCUSSION As a condition of receiving its annual allocation of federal CDBG funds, the City is required to submit an annual "Action Plan" to HUD. The Action Plan includes a listing of projects and activities to be funded with CDBG funds as well as an annual assessment of the City's progress toward meeting its goals for housing and community development. Every five years, the City must also submit afive-year "Consolidated Plan" which is required to include a statement of its local goals and objectives related to housing and community development. The five-year Consolidated Plan was completed and submitted two years ago at this time. As the Council is aware, the City is a member of the Alameda County HOME Consortium which makes Pleasanton eligible to receive an annual allocation of federal HOME funds in addition to its CDBG allocation. The Consortium coordinates the submittal of a composite Action Plan to HUD; however, each City member of the Consortium is required to submit its own section of the Plan. The proposed annual Action Plan for the City of Pleasanton for Fiscal Year 2007 (2007/08) is attached to this report. In August 2004, staff members from the cities of Pleasanton and Livermore collaborated to organize several meetings to develop goals and objectives for the new five-year Consolidated Plan. Amulti-jurisdictional task force was established which included members from the housing and human services commissions from both cities. Over the course of several workshops, the task force developed an updated set of priorities related to human services, housing and community development. The resulting priorities were incorporated into the Consolidated Plan that was submitted two years ago. These same priorities are carried forward in this year's annual Action Plan. The attached draft Action Plan is similar in format and content to the plan that was submitted last year. In addition to the input from the multi-jurisdictional task force (described above), staff incorporated the goals, policies, and programs from the City's Housing Element which was adopted in June 2003. Staff believes that the resulting document is a reasonable expression of the City's goals and objectives for human services, housing and community development, particularly as they relate to the needs of the City's lower income population. Staff recommends that the Council provide comments on the attached draft annual Action Plan for fiscal year 2007 as deemed appropriate, listen to any public testimony regarding the annual Action Plan, and approve the document for submission to HUD by the applicable deadline. Staff will forward the final document to Alameda County for incorporation into the composite annual Action Plan for the Consortium to be submitted to HUD in late May. Page 2 of 3