Council approves CDBG and HOME plans; city agrees HOME contribution toward 111-unit affordable project and signs funding agreement with housing authority

Melbourne — The City Council on June 10 approved the city—s 2025-26 action plan for Community Development Block Grant (CDBG) funds, authorized staff to finalize subrecipient agreements for public-service activities, and approved the city—s HOME-program recommendation that helps support a planned 111-unit affordable rental development.

CDBG: public services and housing rehab - The city—s 2025-26 CDBG entitlement is $603,059. Staff and the Citizens Advisory Board reviewed applications and set a $20,000 minimum threshold for public-service awards to focus funds on substantial programs. Council approved the action plan and authorized the city manager to execute necessary documents and subrecipient agreements. - Recommended uses include public-service grants to nonprofit agencies (four highest-scoring agencies were funded up to the 15% public-service cap), homeowner-occupied rehabilitation (to preserve housing for low- and moderate-income residents), and program administration and fair-housing activities coordinated with the county.

HOME: proposed contribution to enable 111-unit project - As part of the Brevard County HOME consortium, Melbourne—s HOME allocation and available reallocated HOME dollars allowed staff to recommend local contributions toward rental development. The City identified $460,000 as the minimum local contribution needed to support a Low-Income Housing Tax Credit (LIHTC) application for a proposed 111-unit development at the former Old Florida Marketplace site (approximate address: 1450 S. Babcock). The Melbourne Housing Authority agreed to provide the remaining local gap funding. - Council approved the proposal to include the contribution in the consortium consolidated action plan and authorized the city manager to submit the city—s HOME activity to the Brevard County HOME consortium.

Funding agreement and contingencies - The council approved a funding agreement assigning a Melbourne Housing Authority contribution (documented in the meeting as $90,857.58) to support the developer—s LIHTC application; the agreement contains contingencies. If the developer does not receive LIHTC awards, or if HOME funds for the year are not available, the agreement is void and the city—s HOME funds would be reallocated to other eligible activities (for example, homeowner rehabilitation), per federal rules.

Why it matters: Council and staff described the actions as part of a multi-year strategy to preserve and expand affordable rental and owner-occupied housing in Melbourne. HOME funds are allocated through the county consortium; HOME and CDBG funds carry federal restrictions and reporting requirements. Council members noted the scarcity of local subsidies needed to make large rental projects viable in competitive tax-credit rounds.

Votes and next steps - Council approved the CDBG 2025-26 action plan and the HOME recommendation and substantial amendment reallocation to rental development. Council also approved the funding agreement with the Melbourne Housing Authority. The city will finalize subrecipient agreements and the consortium action-plan submission, and will report back if the tax-credit award is successful or if HOME funds must be reallocated.

Speakers and presenters - Abby Johnson (Housing and Urban Improvement staff) presented the CDBG recommendations and walked the council through the public-service ranking, homeowner rehabilitation program results and the draft action plan. - Johnson and city planning staff presented the HOME recommendation and explained the developer—s LIHTC application requirements and the conditional nature of the local contribution.