Committee gives due-pass to St. LouisCity 2026 HUD action plan; outlines CDBG, HOME, ESG and HOPWA allocations

The St. Louis City Housing, Urban Development & Zoning Committee voted to give Board Bill 84 a due-pass recommendation, forwarding the 2026 annual action plan and authorization to accept Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grant (ESG) and Housing Opportunities for Persons With AIDS (HOPWA) funds to the full City Council. The committees roll call recorded six aye votes and no nays.

The action matter is an annual appropriation presented by Noel Pfeffer, director of the Community Development Administration, who described the measure as "an annual appropriation" and outlined an estimated distribution of 2026 federal grant funds and the local rules that govern them. Pfeffer told the committee the city is anticipating roughly a 5% reduction in its CDBG allocation under current federal budget proposals: "we are estimating approximately a 5% reduction in funding," he said.

Why it matters: the bill authorizes the mayor and comptroller to execute HUD grant agreements and appropriates the citys anticipated federal HUD grants for program year Jan. 1/2026. The funds support housing production, homeowner assistance, public services (including food assistance), economic development, public improvements and planning/administration.

Key details presented at the meeting: Pfeffer said CDBG is the citys most flexible HUD source but that federal rules require at least 70% of CDBG funds benefit low- and moderate-income residents, limit planning/administration to 20% of CDBG and cap public services at 19% of CDBG. Pfeffer outlined the committees proposed local distribution approximately as follows: public services ~19% of CDBG; interim assistance and code enforcement $1,870,000; commercial facade improvements $300,000; homeowner assistance about $3,500,000; housing production and rehabilitation about $3,000,000; economic development $1,700,000; public improvements $500,000; and planning and administration roughly $3,500,000. He said CDA received 96 public-services applications, 64 were complete, and 31 received awards under the agencys scoring and threshold rules.

Discussion and committee questions focused on service gaps and program eligibility. Alderwoman Keyes asked why Legal Services of Eastern Missouri did not receive CDBG funds; Pfeffer said the organization did not submit an application for CDBG this funding round and has historically been funded through nonfederal SLDC sources. Pfeffer said he had proposed the new vacant-building fund as a potential eligible source to support eviction-prevention legal services if the council confirms that use.

Several members inquired about food assistance amid federal benefits uncertainty. Pfeffer said CDBG public-services funding is constrained by the 19% cap but noted CDA added Operation Food Search for tornado-recovery food assistance and that other local sources (ARPA, DHS, the St. Louis Area Agency on Aging and SLDC programs) also support food access. He said some HUD approvals for housing projects are experiencing slower processing because of federal constraints, but that the more immediate impact is on food benefits.

Formal action: a motion to pass Board Bill 84 with a due-pass recommendation was moved and seconded and sustained by roll call (six aye votes). The committee recorded the motion as sustained and forwarded the bill to the full Council with a due-pass recommendation.

Next steps and public participation: Pfeffer said CDA posted the 2026 action plan timeline on July 3, issued an RFP that closed Sept. 5, and will submit the action plan to HUD after the local appropriation. He noted the local public comment period on the action plan runs through Nov. 12, 2025, and the committee advertised a public hearing on Nov. 6, 2025, at 10:45 a.m. at 1520 Market Street and via Zoom. After HUD approval CDA expects subrecipient contracts and program launches in 2026, subject to HUD grant agreement timing.

The committee also reviewed implementation and scoring practices used to allocate public-services awards (three independent CDA staff raters, a 90-point threshold for new awards up to $200,000, and an 80-point threshold to maintain previously funded programs). Director Pfeffer emphasized CDAs role as a funder and administrator and that most service delivery is implemented by nonprofit partners and developers.

The committee adjourned after brief announcements.