Kenai seeks CDBG funding for water, sewer and access road to support low-income and senior housing

Kenai' City planning staff briefed the council Nov. 5 on a Community Development Block Grant (CDBG) application the city is pursuing to fund infrastructure near Redoubt Avenue.

Planning director Kevin Buettner explained CDBG is federal funding managed by the Alaska Department of Commerce and can fund water and sewer systems, local service roads, docks, ADA accessibility and some fire-related equipment depending on state rules. Buettner said Alaska's per-community maximum is up to $850,000 per funding round and that matching funds (commonly 25%) may be encouraged but are not mandatory in Alaska; in-kind matching can be used in some cases.

The city's proposed project would install new water and wastewater mains along what will be 6th Street north of Redoubt Avenue and build a local service road to access newly proposed low-income and senior housing developments. Buettner said those lots have been conditionally donated and the project is designed to loop water mains back to 5th Street to avoid long dead-end service lines.

Council members asked about eligibility, match requirements, timing and whether the 6th Street project would consume the full award. Buettner said the 6th Street proposal is likely to take the full $850,000 allocation for a round and that the state historically runs a single round per year with an October opening and December closing window. He described program restrictions (no regular operations or political activities) and explained targeted areas must include at least 51% low- and moderate-income residents; Buettner said areas west of the airport met that threshold under current census data.

Next steps: public hearings required by the program (today was one of two), and staff will pursue formal application and, if awarded, return with implementation details and community updates.