City Council approves HUD annual action plan; staff and nonprofits to shape proposed shelter at former YDC site

Winchester City Council on Tuesday approved the HUD-mandated 2025–26 Annual Action Plan, authorizing staff to submit the city’s Community Development Block Grant (CDBG) and HOME program allocations and to begin a procurement process for proposed homelessness services at the site council has discussed previously.

The plan sets out how the city intends to use federal CDBG and HOME funds in the coming program year. City staff told council the city’s entitlement for the coming year is approximately $249,133; the HOME consortium that covers the broader Northern Shenandoah Valley is expected to receive about $603,000. Council approved the resolution after staff and councilors discussed deadlines and the risks of missing HUD’s summer submission window.

Why it matters: HUD deadlines and program rules are strict; failure to submit an annual action plan can risk funds. Council members said approving the plan now preserves the city’s eligibility while leaving room for amendments later in the year.

What the council approved and next steps Staff recommended submission now and the use of a competitive request-for-proposals (RFP) process to determine how federal funds might support nonprofit-operated shelter and services at the former YDC site if council later chooses that direction. The RFP will ask nonprofits to outline how they would operate emergency shelter, medical services and workforce development at the site and to explain programmatic and financial sustainability. Council members said the proposals will be reviewed publicly and that any subrecipient work remains subject to federal rules and city oversight.

Several councilors and members of the public urged prioritizing existing providers and local nonprofits—Watts, Lowell Center, Rescue Mission and Blue Ridge Habitat were cited by speakers—rather than creating a city-run shelter. Staff and the city attorney explained that CDBG and HOME funds carry federal requirements (for example, CDBG generally requires that a large share of funds benefit low- and moderate-income persons) and that the city retains responsibility for compliance even when funds go to subrecipients.

A public commenter raised concerns about whether CDBG/HOME money should be used to purchase or operate a shelter, advocating instead that the city fund existing nonprofit services or capital projects such as sidewalks. Councilors said the action they took preserves flexibility: the plan can be amended later, and the RFP process is intended to let nonprofits propose detailed operational plans.

What the vote did and did not do The adopted resolution approves submission of the annual action plan to HUD and authorizes staff to proceed with administrative steps, including issuing an RFP for nonprofits if council decides to pursue programming at the site. Council discussion made clear that final program decisions, potential property acquisition or long-term commitments would return to council for separate approval.

Looking ahead Staff said they will issue the RFP to nonprofit organizations, accept proposals, then return any recommended subrecipient agreements and proposed site uses to council with public hearings. Councilors emphasized that the city must balance urgency to secure federal funds with careful review of nonprofit proposals and program safeguards to avoid federal compliance problems.