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CDA director reports modest HUD increase, HOME cuts and affordable‑housing project setback
Summary
City staff told the Janesville Community Development Authority that CDBG funding rose slightly for 2025 while HOME funding for Rock County fell; a proposed affordable‑housing development lost a surplus‑land designation and is unlikely to proceed at that site, putting county funds at risk.
City staff told the Janesville Community Development Authority that Janesville's federal housing funds for 2025 will change modestly: a small increase in the city’s CDBG award and a reduction in HOME Program funds for the county consortium.
"We will be receiving a slight increase, an increase of 24,570 or 5.8% increase over our '24 allocation," Jennifer told the CDA during the director's report. She said that the HOME Investment Partnerships Program (HOME) allocation for Rock County had been reduced by about $299,005.89 (approximately 5.4%), and that Janesville's local HOME allocation would fall by just over $10,000.
Jennifer said the city had not yet received the executed HUD contract for 2025; staff are using the allocation notice as the basis for budget decisions. She emphasized that the reduction in HOME funds would be managed with savings from prior grants and would not affect other funded activities for 2025.
The CDA was also informed that a proposed multifamily affordable‑housing project being pursued by Bare Development (identified in the staff materials as a developer partner) will not move forward at the originally proposed site after the plan commission voted unanimously against a surplus‑land designation. Jennifer said Bare Development "does not intend to pursue the development at that location due to the unanimous vote against the surplus land designation by the plan commission and the feedback received from plan commission members." Staff said it is exploring alternate sites but cautioned that meeting tax‑credit and funding criteria on short notice would be challenging.
Members were told the CDA has reserved a pool of HOME funds and CDBG funds for affordable housing development — roughly $1,000,000 in HOME funds and $290,000 in CDBG — and had discussed committing $500,000 toward the proposed project. Jennifer said Rock County had also allocated $1,500,000 to the project; staff reported those county funds are at "significant risk" if the developer does not advance a shovel‑ready project quickly.
Jennifer warned CDA members that federal budget uncertainty complicates planning for 2026. She said the presidential budget proposal would eliminate CDBG and HOME funding in its current form and significantly change Housing Choice Voucher funding, but she noted that Congress ultimately decides funding levels. "We will continue to monitor that situation," she said.
What the CDA heard
- CDBG: a modest increase for 2025 ($24,570, about 5.8% over 2024). - HOME: Rock County's allocation down roughly $299,005.89 (about 5.4%); Janesville's HOME allocation down a bit more than $10,000. - Affordable housing project: Bare Development's surplus‑land designation was removed from the council agenda and the developer does not intend to pursue the site; county funds ($1.5 million) previously earmarked for the project may be at risk.
Next steps
Staff said it will continue to pursue alternate sites, keep the developer application open on the city website for new proposals, and plan for 2026 activities while monitoring federal budget and HUD contract developments.
