Davis, CA — As Davis faces mounting pressure from a severe housing affordability crisis, city officials are preparing to adopt a comprehensive five-year plan aimed at directing federal housing funds toward the city’s most pressing needs.
The 2025–2029 HUD Consolidated Plan and accompanying Year One Annual Action Plan outline how Davis will spend an anticipated $1.06 million in Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding to address affordable housing, homelessness, and economic opportunity.
The plan comes at a time when Davis residents are increasingly cost-burdened, with an estimated 5,000 to 6,800 households lacking access to affordable housing—and only 921 affordable units in the pipeline, far short of projected demand.
“This plan lays bare what many residents already feel: Davis is increasingly unaffordable, especially for students, seniors, and working-class families,” said a representative from the Social Services Commission, which unanimously approved the draft plan last month.
According to the plan’s needs assessment, 17% of Davis households—roughly 4,411 households—earn $25,000 or less annually. Among these, 84% are either under 25 or over 65, pointing to a dramatic affordability gap impacting both younger and older residents. The rent burden, defined as spending more than 30% of income on rent, has spread beyond just the lowest-income households. Even renters earning over $35,000 are increasingly unable to find affordable housing.
Data from the American Community Survey show a 48% increase in median household income in Davis between 2015 and 2022, yet housing costs have outpaced these gains. The Plan warns that rising housing prices are exacerbating vulnerability even among middle-income earners. Roughly 44% of renters now pay at least $2,000 per month.
The Consolidated Plan identifies ten priority needs, with housing taking center stage. Core goals include:
- Increasing affordable and attainable housing options
- Preserving existing housing stock
- Supporting seniors and people with disabilities
- Reducing homelessness and housing insecurity
- Combating housing discrimination through fair housing services
The City also added economic development as a new CDBG-eligible category this year, focusing on business incubation, façade improvements, and workforce training to support lower-income residents and revitalize downtown corridors.
The City expects to receive approximately $720,157 in CDBG funding and $342,202 in HOME funds. However, final amounts are pending federal confirmation. Within the CDBG allocation, 20% is set aside for program administration, 15% for public services (mirroring FY 2024–25), and 65% for housing, economic development, and ADA-compliant infrastructure projects.
Key public service recipients include Davis Community Meals, Yolo Crisis Nursery, STEAC, Meals on Wheels, and Yolo Food Bank. The plan continues support for these agencies as frontline responders to food insecurity, homelessness, and elder care.
City staff emphasized that, given the risk of HUD penalties for unspent funds, this year’s allocations are structured for swift implementation, prioritizing shovel-ready projects.
Despite several affordable housing developments in progress or potentially in progress, the plan acknowledges that current and planned inventory falls well below demand. New HOME funds will be used to support developers in assembling capital stacks needed to move stalled projects forward, especially as state funding grows more competitive.
One major challenge cited is the lack of affordable housing accessible to students, young workers, and seniors. “Over 3,000 households earning under $25,000 are made up of individuals under 25,” the plan notes. “This is a crisis of opportunity for the next generation.”
The plan’s data show that households earning up to $93,000 may still experience rent burden—a reflection of the city’s disproportionately high housing costs relative to income.
The Consolidated Plan was shaped by community surveys, public hearings, and focus groups, including input from seniors, renters, people with disabilities, and those experiencing homelessness. According to staff, outreach efforts emphasized elevating underrepresented voices, particularly those navigating housing insecurity.
The Social Services Commission, which held two public hearings on the plan, praised the document’s thoroughness and alignment with regional strategies such as the Yolo County Plan to Address Homelessness and the city’s own Homelessness Strategic Plan.
On April 15, the Davis City Council is expected to hold a public hearing to adopt the Five-Year Consolidated Plan and Year One Action Plan. If approved, the plan will be submitted to HUD by May 15, with funding contracts executed after the Council’s FY 2026–27 budget adoption in June.
Given current budget uncertainties and proposed federal HUD cuts, the plan warned that all contracts will include contingency language based on available funding.
“17% of Davis households—roughly 4,411 households—earn $25,000 or less annually. Among these, 84% are either under 25 or over 65, pointing to a dramatic affordability gap impacting both younger and older residents.”
This sounds so alarming but aren’t most of the under $25,000/yr college students?
How many of the over 65 year olds live in homes that are paid off?
Offhand without better data I can only speculate but given those numbers I don’t think that figure include students. If it did, you’d expect it to be way more than 4000+ people