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City adopts draft 2025–26 CDBG annual action plan with contingency language
Summary
Traverse City commissioners voted to adopt the 2025–26 Community Development Block Grant annual action plan using an estimated HUD allocation and contingency language that would proportionally adjust budgets when the final federal allocation is announced.
Traverse City commissioners on Tuesday adopted the city’s 2025–26 Community Development Block Grant annual action plan using an estimated allocation and contingency language to match the final U.S. Department of Housing and Urban Development (HUD) award.
The vote adopted a plan that uses a working estimate of $365,324 in CDBG funds for the 2025–26 program year and includes contingency language stating proposed activity budgets would be proportionally adjusted to match the actual HUD allocation once that amount is announced. Leslie Sick German, the city’s deputy planner, told the commission HUD allocations had not yet been released and the estimate is based on the prior year’s award.
Why it matters: The CDBG annual action plan directs federal block-grant spending for housing, public services and small capital projects that serve low- and moderate-income residents. The commission’s adoption lets staff finalize and submit the city’s plan to HUD while reserving the ability to scale budgets up or down when the federal allocation is known.
City staff explained limits embedded in federal rules and in the contingency language. Sick German said the city may use up to 20% of the full allocation on staffing time for homeless services; the draft adds $50,000 this year toward staffing for homeless services. Staff also noted federal limits on administration and public-service spending: the city may not exceed a percentage cap on administrative spending and must observe the cap on public-service staffing in line with HUD guidance, which staff summarized for commissioners.
Commission discussion touched on how specific line items relate to pending local projects. Commissioner Anderson asked whether a referenced “affordable housing assistance and development” allocation meant a new development at Front and Cass; staff said the line is written broadly to address gaps and could support that project if it is eligible, but there is no confirmed new project at that site. The public hearing for the plan was opened and closed with no speakers.
A motion to adopt the annual action plan was made by Commissioner Treadwell and supported by Commissioner Anderson. The motion carried and staff said they would finalize signatures and submit the adopted plan with the May 16 date as the plan adoption date. City staff will proportionally adjust budgets after HUD announces the exact allocation.
Details and next steps: The adopted plan remains subject to final HUD figures; staff said contingency language (noted on page 16 of the executive summary) will be used to make proportional adjustments and to keep the city within HUD program limits. The city will send the signed plan to HUD by the Friday following the meeting.
