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Council starts 2026 CDBG application process; advisory committee recommends open application window
Summary
City staff asked the committee to begin the 2026 Community Development Block Grant application process earlier than in prior years to address HUD concerns about timeliness; the Community Advisory Committee recommended not setting narrow priorities to allow flexibility in applications.
City staff told the Committee of the Whole the city is initiating the 2026 Community Development Block Grant (CDBG) application process earlier than usual at HUD’s suggestion to avoid timeliness issues. Staff said the entitlement funding estimate for 2026 was lowered to $4.25 million (staff estimate) and that approximately $400,000 is expected to be available for competitive bricks-and-mortar capital grants. The Community Advisory Committee recommended an open application process without narrow priorities, citing a rapidly changing funding landscape among federal and nonprofit partners. Staff noted that the five-year consolidated plan still governs broader objectives (affordable housing, public facilities that benefit low- and moderate-income persons), but the committee favored seeing what applications arrive before setting more-specific priorities. Council members discussed the balance between awarding funds to larger organizations and supporting smaller local nonprofits; staff clarified that CDBG grants are federal funds awarded on a reimbursement basis and that funds stay local when used for local projects. The committee approved beginning the 2026 application process under the advisory committee’s recommended approach. Staff said they will accept applications from eligible nonprofit agencies and that staff will verify local expenditure and project eligibility during the reimbursement process.
