St. Louis committee recommends 2026 HUD action plan, allocating CDBG, HOME, ESG and HOPWA funds

The St. Louis Housing, Urban Development and Zoning Committee voted to give Board Bill 84 a do-pass recommendation to authorize the mayor to submit the city's 2026 Annual Action Plan to the U.S. Department of Housing and Urban Development and to execute HUD grant agreements for CDBG, HOME, ESG and HOPWA funding.

Noel Pfeffer, director of the Community Development Administration, told the committee that the action plan follows the city's five-year consolidated plan and the annual process of soliciting proposals, scoring applications and appropriating funds. "This is an annual appropriation," Pfeffer said, summarizing the presentation.

Why it matters: the plan sets how the city will spend federal entitlement dollars in 2026 and includes funding for housing production and preservation, homeowner assistance, public services and neighborhood improvements. Pfeffer warned that federal uncertainty could reduce the city's CDBG allocation by roughly 5% based on Senate proposals and a paused federal appropriations process.

Key allocations and program limits - CDBG (most flexible): roughly $17.5 million (estimate), with statutory requirements that at least 70% benefit low- and moderate-income (under 80% AMI) households and limits on administrative and public-services spending. - HOME: roughly $3.0 million; HOME funds may only be used to produce housing. - ESG and HOPWA: targeted to serve people experiencing homelessness or people living with HIV/AIDS; ESG administered by the Department of Human Services and HOPWA by the Department of Health. - Pfeffer noted legal caps under HUD rules: up to 20% of CDBG may go to planning and administration and up to 19% to public services.

Detailed line items Pfeffer described include approximately $1.87 million for interim assistance and code enforcement (including LRA property maintenance and Operation Brightside), about $300,000 for the commercial façade program, roughly $3.5 million for homeowner assistance (including down-payment assistance and home repair), about $3.0 million for housing production and rehabilitation, $1.7 million for economic development, and $500,000 for public improvements. Pfeffer said roughly $3.5 million (about 20%) is budgeted for planning and administration.

Public services, selection process and new awards Pfeffer said the 2026 process drew more applications than usual: 96 submitted, 64 complete, and 31 public-service awards made. Each eligible application was independently scored by three CDA staff; awards were set by thresholds (applicants scoring 90+ points were eligible for awards up to $200,000; previously funded programs could retain funding at a lower 80-point threshold). Two organizations received CDBG awards for the first time this cycle: Operation Food Search for tornado-recovery food assistance and Peter & Paul Community Services for the Eugene shelter at the Little Sisters of the Poor.

Local impact and limits on food assistance Questions from committee members highlighted food access and potential interruptions to SNAP benefits. In response, Pfeffer said the city increased funding for food assistance but is constrained by HUD rules limiting public-service spending under CDBG to no more than 19% of the CDBG allocation. "We are very constrained on the public services side," Pfeffer said, adding that the city and partner agencies are also using ARPA funds and other local sources to bolster food access.

Legal-services funding Alderman Browning asked why Legal Services of Eastern Missouri did not receive CDBG funds. Pfeffer replied that Legal Services had not submitted a CDBG application and historically has been funded through SLDC with non-federal funds. He said CDA had proposed evaluating the recently established vacant building fund as a possible alternative source to support eviction-prevention legal services, subject to eligibility and council confirmation.

Housing and economic development Pfeffer described housing-program specifics: $172,500 set for down-payment assistance; a maintained home-repair loan pool supporting Mission St. Louis and the building division; and a combined CDBG+HOME allocation of about $4.3 million for housing production and preservation, to be awarded by NOFA in spring 2026. Economic development funding continues to support SLDC programs and Justine Petersen's microloan work; new awards will support small businesses and childcare providers through T Rex and Upwards Care. A façade program will continue to offer grants up to $50,000.

Public process and next steps Pfeffer said the city is in a 30-day public comment period that ends Nov. 12, 2025, and scheduled an additional public hearing on Nov. 6, 2025, at 10:45 a.m., 1520 Market St.; written comments may be submitted to cdbg@saintlouis-mo.gov. Following appropriation, CDA will submit the action plan to HUD (the action plan must be submitted 45 days before the program year), await a grant agreement and then implement awards; HUD reimbursement to the city generally follows the city's reimbursement-based draws.

Vote and committee action A motion to pass Board Bill 84 with a do-pass recommendation was made on the floor. At roll call the clerk recorded six "aye" votes and no objections; the committee sustained the motion and recommended the bill for passage to the full council.

What the article does not assert This article reports only actions and statements made during the committee meeting. It does not assume final HUD award amounts, final federal appropriations, or that proposed uses of other local funds (for example, the vacant building fund) will be eligible or approved; those items remain subject to later determinations and formal legislation.