Missoula city staff review CDBG and HOME year‑end report, warn federal funding uncertain

City staff on Monday presented the City of Missoula’s consolidated annual performance and evaluation report (CAPER) for federal Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds for program year July 1, 2024–June 30, 2025, and described projects funded and potential federal budget risks.

Kendra (last name given in the meeting as Kendra, grants administrator) and Lisa Bauer, grants administrators in the city’s Community Development Division, told the council that the city received about $350,000 in HOME funds and $533,000 in CDBG funds for the year and used the dollars for homeowner rehabilitation, accessibility modifications and preservation of affordable rental units.

The programs “are federal funds, and they don't come out of the city's budget,” Kendra said during the staff presentation, noting the city is an entitlement jurisdiction that must prepare the CAPER each year.

Why it matters: CDBG and HOME dollars pay for capital repairs and services that preserve affordability and help people with low and moderate incomes remain housed. Staff said the city and local nonprofit partners used the funds for several multi‑household rehabilitation projects and individual household supports during the year.

Most important details: Staff reported the city used CDBG to preserve and rehabilitate existing affordable housing and to support home accessibility. Examples cited in the presentation included Priority Rehab at Homeward’s Orchard Gardens (replacement of heat pumps, flooring and a water heater), an owner‑occupied rehabilitation loan program that has assisted three homeowners with capacity for about four additional households, and an accessibility program that has installed 18 wheelchair ramps with capacity for roughly 10 more households. HOME funds supported rehabilitation at Firewood Court (a 12‑unit affordable rental complex) and are being applied to exterior rehabilitation and system replacements at Creekside Apartments (a project that will benefit 161 households) in partnership with Homeward.

Staff also summarized program outcomes and cautioned that future funding is uncertain because of federal appropriations processes. “Both the House and the Senate versions of the FY26 budget, as of today, have kept the CDBG program. The House, however, is proposing getting rid of the HOME program completely in line with the president’s proposed budget. The Senate has proposed keeping it,” Lisa said, describing differing congressional proposals and a draft House bill to revise HOME program requirements.

Council and public response: Councilors asked whether local developers or project partners were pausing projects because of federal uncertainty. Kendra said some developers have pursued alternatives but, as of the meeting, staff had not seen projects canceled solely because of the funding debate. Councilor Stacy Anderson asked staff to notify council if partners change plans because of funding volatility; Mayor Andrea Davis said she has sent letters to the city’s federal delegation and received a response from Congressman Zinke’s office and will continue outreach.

Public comment included Parisa Trujillo, executive director of Homeward, who praised staff and the city’s use of federal funds for capital repairs that allow nonprofits to maintain lower rents. “These funds really make a big difference when it comes to those larger capital improvement projects that we need done on these properties where we're bringing in lower rents so that we can keep those rents affordable for our neighbors,” Trujillo said.

Process and outcome: The presentation occurred during a required public hearing on the CAPER. Staff confirmed the hearing is informational; no council vote was required on the CAPER itself. Councilor Gwen Jones made a motion to set the public hearing and allow public comment; that motion served to open the required hearing but was not a final funding action. Staff encouraged residents with questions to contact the Community Development Division by the email addresses on the presentation.

Background and next steps: The CAPER is the city’s annual reporting document to HUD for CDBG and HOME entitlement funds. Staff said the city has received signed grant agreements from HUD for the current year but that Congress’ FY26 appropriations debate could change future funding levels. The city will continue to monitor congressional actions and report back to council if local plans or partner projects change.

Ending note: Staff asked residents with questions or comments to email the Community Development Division or scan the QR code shown during the presentation; they said they will keep council updated if partners alter project timelines because of federal funding uncertainty.