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Ames approves draft CDBG/HOME 2025–26 action plan and asks staff to explore shelter options with HOME‑ARP funds
Summary
Council approved the city's proposed CDBG and HOME projects for 2025–26 May 13 and asked staff to explore whether the city could use HOME‑ARP and other program funds to support shelter property acquisition or rehabilitation. Staff said they will return with options and noted federal timing and environmental reviews constrain what can be
The Ames City Council on May 13 approved the city's proposed 2025–26 Community Development Block Grant (CDBG) and HOME program projects and asked staff to return with options for using HOME‑ARP and other available funds to support shelter or non‑congregate emergency housing acquisition or rehabilitation.
CDBG program: Housing and community development staff outlined a draft annual action plan built from the city’s five‑year consolidated plan. Because federal allocations were delayed, staff submitted a plan based on the 2024–25 budget assumptions but requested an extension for formal submission while awaiting federal numbers. The staff package proposes prioritizing public infrastructure work in a low‑income census tract (water replacements and sidewalks on South Russell and South Riverside) to help meet HUD's 70 percent benefit requirement for low‑ and moderate‑income persons and address the city's timeliness test for spending.
Staff also proposed continuing renter‑assistance activities, a homebuyer assistance program and a housing rehab program, and adding a nonprofit public‑facilities rehab program to help community organizations repair roofs, upgrade accessibility or make other facility investments; staff said such projects would include recorded recapture provisions to ensure the public benefit is maintained.
HOME program: Staff outlined HOME activities focused on in‑house construction of single‑family homes on Baker Subdivision lots and a possible tenant‑based rental assistance (TBRA) pilot to provide temporary rent subsidies for eligible households. Staff noted the city’s HOME entitlement allocation has declined since the program began and that program income projections include sales of city-owned lots and Habitat units in Baker.
Council questioned whether CDBG and HOME funds could be used to purchase or rehabilitate a shelter property and whether HOME‑ARP funds could support operations. Staff said CDBG can finance acquisition/rehab of facilities but cannot replace ongoing operating funds (those typically must come from asset funders or other partners). HOME‑ARP (a separate, one‑time allocation) and other city home funds could help support capital for shelter facilities, but staff said any acquisition would require thorough environmental review, procurement and partner operations planning. The council asked staff to return with an options memo explaining how CDBG, HOME and HOME‑ARP could be used for potential shelter property acquisition, rehab or development and identify steps and timing needed to comply with HUD and state rules.
Council approved the proposed action plan and directed staff to bring back more information on HOME‑ARP and shelter acquisition/rehab options.
