Council approves 2026 HOME and CDBG budgets; shifts $7,500 to citywide youth softball

The Beloit City Council approved the 2026 HOME Investment Partnership Program budget and the Community Development Block Grant (CDBG) annual action plan and budget during the same meeting, and it approved a small local amendment reallocating funds within the CDBG public-service cap.

Julie, a city staff presenter, told council the HOME budget for 2026 was estimated at $928,004.12 for housing projects with $98,000 earmarked for administration. The proposal included $312,005 for an acquisition/rehab project at 737 Bluff Street, $294,004.31 for the city's housing rehabilitation revolving loan fund (an amount staff said should support roughly 11 projects), and $135,662 for two new-construction projects in partnership with the Wisconsin Partnership for Housing Development to build houses on a vacant double lot in the Merrill neighborhood. The Community Development Authority recommended the HOME budget to council, and council approved it by voice vote.

On the CDBG annual action plan and budget, staff summarized the HUD-required process, local funding priorities and a rubric used by the Community Development Authority to score applications. The staff presentation noted constraints including a 15% cap on CDBG funds used for public services, a 20% cap on planning and administration, and an estimate of roughly $629,782 available for the 2026 program year (an estimate staff said could change once HUD issues final allocations). Staff warned that HUD funding timing requires some subrecipients to begin program activity before final federal disbursements and described the administration's approach to issuing contracts and award letters when the council sets final local priorities.

During discussion, a council member moved to reallocate $7,500 from the Messiah Lutheran food pantry award to the Beloit citywide youth softball program, which councilors described as a program that serves about 300 youth ages 7 to 17 and has high local impact. The motion was seconded and passed by voice vote. Staff will issue award letters reflecting the council-approved allocations but noted adjustments may be necessary if the final HUD award differs materially from staff's estimate.

The CDBG approvals included guidance that staff will use every available dollar within statutory caps and will return to council for any substantial amendments required by a change of more than 15% in the actual HUD allocation for the program year.