Council identifies preliminary CDBG and HOME project allocations; staff plans down-payment assistance for ‘Hundred Homes’ phase 2

Jackson City Council on Feb. 25 approved preliminary allocations for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) projects for fiscal years 2025 and 2026 and directed staff to incorporate the allocations into the annual action plan and a five-year consolidated plan.

City staff said the allocations will fund common activities such as demolitions, rehabilitation projects, street lighting and streetscaping. Staff also described a new emphasis in the HOME section: down payment assistance for homebuyers. The city plans to use unallocated HOME funds the city has been holding and new HOME entitlement funds to offer down payment assistance for a planned Hundred Homes Phase 2 project.

A city staff speaker explained that the HOME program has income limits tied to area median income (AMI) and that HOME-funded projects typically have an 80% AMI cap. Staff said that because current mortgage interest rates remain high, the amount of down payment assistance needed to bridge the affordability gap is likely to rise; staff estimated that the current $25,000 per-unit down payment assistance concept would probably need to increase but did not propose a final figure at the meeting. Staff indicated the council can expect proposals within 9 to 12 months showing revised assistance amounts based on updated financial data.

Council was told the draft annual action plan and five-year consolidated plan would be available in about 30 days for review. The clerk recorded a unanimous vote on the preliminary allocations.