Winchester committee forwards HUD-mandated 2025–26 Annual Action Plan to full council

The Winchester City Finance Committee voted to forward to the Common Council a recommendation to approve the U.S. Department of Housing and Urban Development (HUD)‑mandated 2025–26 Annual Action Plan.

City housing and grants staff told the committee the plan outlines how Winchester and the regional HOME consortium will spend federal Community Development Block Grant (CDBG) and HOME program funds in the coming program/fiscal year. "This is our annual Action Plan that's required by HUD," the presenter said, summarizing program sources and eligible activities.

Why it matters: the plan sets how federal housing and community development money is allocated locally and regionally. Committee members pressed staff on income‑eligibility rules, the size and source of available funds, and how federal rules and administrative capacity shape what projects can be completed.

Key facts and committee discussion

- Funding amounts: Staff said the city itself is scheduled to receive about $249,000 in CDBG funds for the coming year and that the HOME consortium received about $603,000. The presenter also said the city has approximately $333,000 in previously allocated but unspent CDBG funds.

- Planned CDBG allocation: The action plan included a $532,626 CDBG set‑aside for improvements at a property repeatedly referred to in the discussion as "3 Battle Drive." Committee members asked for clarification about eligible uses; staff said CDBG funds would support public facilities and public improvements related to that site and could also be used for planning and staff costs tied to the project.

- HOME and HOME‑ARP: Staff described HOME program set‑asides for down‑payment assistance and Community Housing Development Organization (CHDO) operating and development costs. They also said about $2,000,000 in HOME‑ARP funds remain at the regional level and are designated for non‑congregate shelter uses; staff noted HOME‑ARP rules limit eligible uses and include programmatic and compliance requirements.

- Eligibility and income limits: Committee members questioned which area median income (AMI) figures apply. Staff said the plan must use HUD income limits and noted that AMI calculations vary across the consortium and adjacent counties (for example, some counties fall under a different metropolitan statistical area), which affects eligibility and program targeting.

- Implementation constraints: Staff emphasized federal compliance requirements that can deter some local providers, including environmental reviews, Davis‑Bacon/Department of Labor wage rules, domestic sourcing requirements, and other HUD conditions. They also said some regional nonprofits lack experience completing construction projects subject to federal requirements, which has limited prior use of HOME funds in the region.

- Financing tools: Staff said the city could seek a Section 108 loan from HUD to increase available funds for rehabilitation and that such loans can be repaid using future CDBG allocations. Staff characterized typical Section 108 terms as lower than market but did not provide a specific interest rate.

Committee action

Councilor Roger moved to forward the Finance Committee's recommendation of approval to the Common Council; a second was recorded and the committee approved the motion by voice vote.

What remains unresolved

Staff said the detailed program design and selection of nonprofit or for‑profit partners for projects at 3 Battle Drive remain under development. They also noted that public participation for the annual action plan had been limited despite public posting and outreach, and that nonprofits continue to ask for plan materials.

Next steps

The Finance Committee's recommendation will appear on a future Common Council agenda for a final vote. Staff said implementation of HUD‑funded projects will require environmental reviews and compliance steps before construction or rehabilitation work begins.

Sources: presentation and Q&A from city housing/grants staff and Finance Committee discussion at the Winchester City Finance Committee meeting. Direct quotes are attributed to meeting speakers.