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Eau Claire holds public hearing on 2025 CDBG and HOME draft allocations
Summary
City staff presented estimated 2025 Community Development Block Grant (CDBG) and HOME allocations, outlined HUD funding requirements and timelines, and answered council questions about a Chippewa Valley Habitat for Humanity request. A 30‑day public comment period runs through June 9 and the council will consider final approval June 10.
Jessica Olson Bu, the Housing Division manager for the City of Eau Claire and executive director of the Housing Authority, told the council at its May 12 meeting that the city is holding a public hearing on the draft 2025–2029 consolidated plan and on proposed 2025 allocations for CDBG and HOME funding.
Olson Bu said the city has not yet received its official HUD allocation but is estimating funding at levels similar to 2024. “We are estimating based on last year's allocation to receive $560,964 and anticipating program income of approximately $100,000. Our projected total is $660,964,” she said.
The draft presented to the council shows the city’s recommended distribution of CDBG and HOME funds and the review committee’s decisions. Olson Bu told the council that the plan meets HUD requirements: at least 70% of funding will directly benefit low‑ and moderate‑income residents, public services remain within HUD’s 15% cap, and planning and administrative expenses stay within the 20% cap. She also said the HOME program estimate for 2025 is $258,124, again based on last year’s allocation.
Why this matters: CDBG and HOME funds support affordable housing, housing rehabilitation, and related public services that local officials and providers say help low‑ and moderate‑income residents remain in safe housing.
Council members asked for details about a Chippewa Valley Habitat for Humanity request. Vice President Worthman noted Habitat requested $200,000 but was recommended for under 25% of that request. Olson Bu said Habitat applied for a CHDO (Community Housing Development Organization) set‑aside for new construction; the HOME program requires a 15% CHDO set‑aside. She added the review committee also considered unspent balances from prior years and identified about $117,000 in prior HOME allocation funds that remain unspent; the committee proposed a CHDO award while accounting for those remaining balances.
Olson Bu said the official HUD allocation is expected in the coming days. The city opened a 30‑day public comment period that began May 9 with publication in the Leader‑Telegram; that comment period ends June 9. An additional public hearing is scheduled for May 28, and Olson Bu said the council will seek final approval of the grant funding at its legislative session on June 10.
No formal vote on the allocations occurred at the May 12 meeting; the presentation and the public hearing were informational and part of the statutorily required notice and comment process.
Clarifying details mentioned at the hearing include the HUD caps (70% direct benefit, 15% cap on public services, 20% cap on planning/administration), the city’s current estimate of $660,964 total CDBG funding (including program income), and an estimated HOME funding figure of $258,124. The review committee factored prior‑year unspent HOME balances (about $117,000) when recommending awards, including the CHDO set‑aside.
Next steps: public comment runs through June 9; the council is scheduled to consider final approval June 10.
