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Kenai approves CDBG participation to extend water, sewer and road to support nearby housing project
Summary
The council authorized participation in a CDBG application that would extend water, sewer and a local service road to Sixth Street to support a housing development led by KPHI; planning staff will draft the grant and Public Works will handle infrastructure design.
The Kenai City Council adopted Resolution 2025-61 on Oct. 15 authorizing the city to participate in the current federal Community Development Block Grant (CDBG) solicitation to extend water, sewer and local roads to Sixth Street.
City Manager Terry Eubank explained the city was approached by KPHI, a nonprofit developer that has received conditional donations of city parcels and is building low-income and senior housing nearby. Because KPHI is not an eligible direct CDBG grantee, the city will act as grantee/co-applicant to allow CDBG funds to pay for utility and road extensions that support the developer’s project.
Planning Director Budner was identified in the meeting as writing the grant application. Eubank said the project will provide utilities to KPHI’s under-construction units, may reduce the developer’s costs and will also extend utilities to a larger city-owned tract behind the properties.
Council adopted the resolution by unanimous consent and directed Planning and Public Works to prepare and submit the application. The administration will return with application materials and updates to the council as the grant process advances.
