Grand Junction council hears staff plan to steer 2025 CDBG funds toward housing, parks and administration

Grand Junction city staff on Monday presented a draft plan for the city’s 2025 Community Development Block Grant funds, recommending that the bulk of next year’s allocation be used for affordable housing incentives while preserving funds for administration, parks and homelessness services.

The Community Development Department said the federal CDBG program requires each entitlement community to adopt a five‑year consolidated plan and an annual action plan for spending. Ashley Chambers, the city’s housing manager, told council the city expects roughly the same federal allocation as last year — about $398,577 — plus roughly $3,400 in prior‑year carryover, for an estimated total of just over $401,000.

Staff recommended using the maximum allowable 20 percent of the allocation for administrative costs to cover environmental reviews, supervision and training; setting aside $50,000 for a parks and recreation capital project to be selected during the 2026 budget process; allocating approximately $212,491 for an affordable housing incentive program that would subsidize water and sewer taps for qualifying affordable units; and reserving up to the 15 percent maximum (about $60,000) for homeless services and capital expenses. Chambers also said staff will propose using part of the administration allocation as a match for a housing needs assessment tied to a recently referenced state law, identified in the presentation as Senate Bill 204‑174.

Chambers said the affordable housing incentive program waives sewer and water tap fees for ownership units at or below 100 percent of area median income and provides tiered fee reductions for rental units at lower AMI thresholds; approved projects typically attach long‑term affordability covenants for 30–40 years. She added that CDBG compliance requires significant reporting and environmental review and that new staff training can take nearly two years.

Council members asked about trade‑offs between parks and housing funds. Councilmember Scott noted parks equipment and accessibility needs raised by local disability advocates and said the $50,000 could be quickly consumed by single purchases such as specialty swings; others suggested reallocating part of that amount into the affordable housing pot to cover likely sewer and tap fee demand from several anticipated projects. Chambers and the city manager said the $50,000 is a placeholder to be prioritized in the 2026 budget process and can be redistributed later if the council directs.

Staff said the next steps are two public hearings required by HUD: a first public hearing scheduled for June 4 and a final public hearing and adoption scheduled for July 16, with the city’s program year beginning Sept. 1. Chambers said the annual action plan must be submitted to the U.S. Department of Housing and Urban Development shortly after council approval.

The council did not take a formal vote at the workshop; staff said they heard general consensus to move the recommendations forward to the June agenda for the required public hearing and will return in July for final action.

Why it matters: CDBG is federal entitlement funding dedicated to benefiting low‑ and moderate‑income households. Decisions about how the city allocates a relatively modest annual award shape local assistance for housing production, homelessness services, park accessibility projects and the staffing capacity needed to administer the program.

What’s next: Staff will post required legal notices, present the recommendation at the June 4 hearing, then bring a final action item on July 16, and submit the adopted annual action plan to HUD so the program year can start on Sept. 1.