By Sara Beth Williams–CDBG funds are federal funds from the US Department of Housing and Urban Development, or HUD. There is no anticipated impact on the city’s General Fund. While the exact grant amount will not be confirmed until mid-2026, staff estimates the city will receive $600,000 in block grant entitlement funds for the 2026 program year.
Fifteen percent, or $90,000, of the $600,000 is available for public services; 20 percent, or $120,000, is available for administration; and $390,000 is available for capital and housing activities.
Over $110,000 in funding was requested from four nonprofit organizations, but the city is only allowed to allocate up to $90,000 for public services.
The Quality of Life committee, which reviews submitted grant requests, recommended Meals on Wheels and Community Link Capital Region and Project Sentinel, receive the full amounts requested. Meals on Wheels requested $16,000, and Project Sentinel requested $24,444. In contrast, the city recommended a $20,000 allocation to Campus Life Connection, which requested $28,000, and a $29,556 allocation to Sunrise Christian Food Ministry, which requested $42,840.
The city is also recommending an estimated $390,000 to fund block grant-eligible capital improvements associated with the city’s Pavement Resurfacing Project. In partnership with the General Service Department, the project will consist of accessibility improvements to sidewalks, such as installing ADA-compliant pedestrian ramps, installing missing or repairing damaged sidewalks, and relocating drainage inlets as necessary at various locations yet to be determined.
The city also anticipates receiving $50,000 in program income funds from loan repayments next year. If the draft action plan is approved, 80 percent of program income generated from loan income repayments would be allocated to the city’s Revolving Loan Fund, which supports the housing repair program for low- and moderate-income households, and 20 percent would be allocated to general planning and administrative activities to support the effective management of the CDBG program.
Representatives from all four nonprofits spoke Wednesday night, expressing their gratitude to the city and council for the planned allocation of funds.
If the city receives a higher dollar amount than estimated, funds will be distributed equally between several nonprofits already receiving funding, the city said Wednesday.
“These activities are designed to address local community needs and include a range of eligible uses such as public service programs that support low- and moderate-income residents, public infrastructure improvements to enhance accessibility, and planning and administrative efforts necessary to ensure effective management and compliance with federal requirements,” the city said in its staff report.
A second public hearing will be held on Nov. 12 during the city’s next regular City Council meeting at 6 p.m. at City Hall, in which the 2026 draft action plan will be reviewed for a final time and officially submitted to the City Council or approval.
Once the plan is adopted, the action plan will be submitted to HUD for review and final approval.
All comments submitted during the public comment period will be reviewed and incorporated into the Citizen Participation section of the final plan, as required by HUD guidelines, the city said.
