Missoula reviews CDBG and HOME year‑end report as staff warn of federal funding uncertainty

Missoula City Council opened a public hearing Sept. 22 on the city’s Consolidated Annual Performance and Evaluation Report (CAPER) for federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) funds covering the program year July 1, 2024–June 30, 2025. Grants administrators Kendra Laysom and Lisa Bauer presented outcomes and project updates and answered council questions.

Laysom said the city received about $350,000 in HOME funds and roughly $533,000 in CDBG for the 2024 program year. She described eligible HOME activities such as homeowner rehabilitation, homebuyer assistance, rental development and rental subsidy. HOME funds supported one HOME project in 2024 and ongoing work on a large 2023 rehab project.

Bauer described projects funded with HOME and CDBG. Firewood Court, a 12-unit affordable rental complex, received rehabilitation including exterior lighting, fencing, water‑heater and furnace repairs and other improvements; Bauer said Firewood Court benefits 12 households and the work completed earlier in the month. Creekside Apartments, a larger rehabilitation originally funded in 2023, began construction in June 2025 and will include exterior repair and replacement of AC units and water heaters; staff said the Creekside project will benefit about 161 households. CDBG funds were also used for priority rehabilitation at Homeward’s Orchard Gardens affordable apartments, for a homeowner rehabilitation loan program (three homeowners assisted so far, capacity for up to four more), installation of wheelchair ramps (18 installed so far, capacity for roughly 10 additional households) and acquisition of one single-family home to place into a community land trust to ensure permanent affordability for one household, with potential to develop two additional homes on the lot.

Laysom stressed these are federal funds that do not come from the city’s general budget and said HUD had signed grant agreements covering support through June of the coming fiscal year, but she warned the long-term picture for HOME funding is unclear. Laysom summarized ongoing congressional debate: "Both the House and the Senate versions of the federal FY '26 budget bill as of today have kept the CDBG program. The House, however, is proposing getting rid of the HOME program completely in line with the president's proposed budget. Senate has proposed keeping it though, so it's really unclear where it's gonna go from here in terms of middle ground and the future of HOME programming." She noted a draft House bill revising HOME program requirements could also change how the program operates.

Carissa Trujillo, executive director of Homeward, spoke during public comment and thanked the city and CPD staff: "These funds really make a big difference when it comes to those larger capital improvement projects that we need done on these properties... we will continue to say these funds really make a big difference." Mayor Andrea Davis also said she had sent letters to the city's federal delegation about Missoula’s accomplishments using these funds and had received a response from Congressman Zinke’s office.

Councilors asked staff about how developers and partners are responding to federal funding uncertainty. Laysom said some projects have pursued Low-Income Housing Tax Credit (LIHTC) or other paths and that she had not seen a widespread pipeline collapse tied directly to the HOME/CDBG uncertainty but stressed the situation remains fluid.

The public hearing was informational; city staff told council the public hearing is requested by HUD and that no council vote is required on the CAPER. The record shows staff accepted public comment, answered questions and will continue to monitor federal funding developments.