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Council adopts 2026 CDBG plan allocating about $778,000 to social services and physical projects
Summary
The Bloomington Common Council unanimously adopted a resolution approving estimated 2026 Community Development Block Grant recommendations totaling about $778,293, with funds split for administration, social services and physical improvements and specific project allocations and contingencies included.
The Bloomington Common Council voted 8-0 on Jan. 14 to adopt Resolution 2026-02, approving recommended uses of an estimated $778,293 in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development for the 2026 program year.
Housing and Neighborhood Development Director Anna Killian Hansen presented the annual allocation and explained HUD’s entitlement formula, which considers poverty, population, housing overcrowding, housing age and metropolitan-area growth. "The Community Development Block Grant is a federal grant distributed via formula from HUD under title 1 of the Housing and Community Development Act of 1974 as amended," she said.
The department recommended allocating 20% ($155,658.60) to administration, 15% ($116,743.95) to social services and 65% ($505,890.45) to physical improvements, based on an estimated $778,293 allocation. Staff emphasized that those numbers are estimates and contingency language is included to adjust awards if HUD’s final allocation differs.
Staff identified specific physical-improvement awards recommended by the Citizens Advisory Committee and the Redevelopment Commission: Boys & Girls Club security/access upgrades (allocated $127,580 of a $169,000 request), Life Designs group home flooring ($19,420), Middle Way House fire panel ($11,334), New Hope for Families basement build-out (allocated $53,000 of a $60,000 request), Reverend Butler playground improvements ($150,000 of a $200,000 request) and My Sister’s Closet renovations ($144,556.45 of a $190,000 request). The presentation listed a contingency order for any additional physical-improvement funds.
On the social-services side, staff recommended awards to Community Kitchen ($25,000), Beacon Inc. for Friends Place Emergency Shelter ($20,000), Hoosier Hills Food Bank ($20,000), Boys & Girls Club Ferguson Crestmont after-school programs ($18,000), New Hope for Families childcare ($18,000) and Middle Way House New Wings emergency shelter ($15,744). Staff also explained an allocation formula to distribute funds if the final award is higher or lower than the estimate and capped individual awards at certain levels when applicable.
Council members asked about the size and membership of the Citizens Advisory Committee and the timeline for recipients to receive reimbursements. Killian Hansen said the CAC and the city’s citizen participation plan set committee makeup and described practical delays such as the need for federal annual action-plan approval, environmental review for ground-disturbing projects and the requirement that CDBG payments are reimbursement-based and subject to regular claim cycles.
The resolution was moved, seconded and adopted by roll call, with the clerk recording the motion as passed 8-0. The city will finalize allocations once HUD’s official grant notice and the administrative steps are complete.
