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Shoreline council adopts 2026 CDBG plan, directs funds to minor home repairs and affordable-housing acquisition
Summary
The Shoreline City Council voted 4–1 to adopt the city's 2026 Community Development Block Grant funding plan and reprogram $50,909 from prior-year CDBG funds, directing most new money to the Minor Home Repair program and a small allocation to an affordable-housing acquisition project.
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The Shoreline City Council voted 4–1 to adopt its 2026 Community Development Block Grant (CDBG) funding plan and to reprogram $50,909 in uncommitted CDBG funds from 2025, approving the staff-recommended allocation that prioritizes restarting the Minor Home Repair program.
The action matters because CDBG dollars are federal funds governed by U.S. Department of Housing and Urban Development (HUD) rules and an interlocal agreement with King County. Council and staff framed the vote as an attempt to restart a program that helps low-income homeowners with essential repairs while also supporting a nonprofit’s affordable-housing acquisition project that would use a state tax-exemption to preserve units as affordable.
Staff told the council there is an estimated $320,000 available for CDBG in 2026, with roughly $153,600 available for local programming after required set-asides (25% for the major home repair loan program, 5% for housing stability, 12% for King County administration, and 10% for city planning/administration). The staff recommendation adopted by the council (staff called this “Option 1”) allocates the local programming remainder as follows: $130,000 for the Minor Home Repair program and $23,600 to a nonprofit affordable-housing acquisition project (described in the staff report as an acquisition of about 110 units to be deed-restricted to 60% AMI for at least 10 years). Of the $50,909 in reprogrammed 2025 funds, staff recommended adding $40,000 to the 2025 Minor Home Repair contract and adding $10,909 to the 2026 Minor Home Repair allocation.
In presenting the recommendation, staff said the Minor Home Repair provider had paused or reduced services this year because of exhausted funds: the program served 43 households in 2024 and had served 49 already by July of the current year before pausing. Council members raised concerns about demand for other financial assistance programs, particularly rental and utility support provided by Hopelink. Councilmember Ramsdell said the need "far outstrips our ability to meet those needs financially" and questioned whether shifting more CDBG funds to direct financial-assistance providers would better address eviction risk. Staff responded that King County’s interlocal and HUD rules constrain how prior-year reprogrammed dollars can be spent and that changing the allocation would require amending the county's comprehensive plan and would be administratively difficult on the current timeline.
Several council members said they planned to pursue additional assistance for rental and utility needs outside of CDBG — for example by proposing mid-biennial budget amendments or using general funds — because those sources carry fewer federal programmatic restrictions than CDBG.
A motion to adopt the staff recommendation (Option 1) carried on a 4–1 vote: Ayes — Mayor Roberts; Councilmember Scully; Councilmember Ademasu; Deputy Mayor (voting aye). Nay — Councilmember Ramsdell. The council recorded no abstentions.
The approved allocations and the council discussion make clear the city’s short-term priority is to restore Minor Home Repair services, even as some council members pressed for more funding for direct financial-assistance programs to prevent eviction.
Looking ahead, staff said the city could request additional local financial assistance funding during the mid-biennial budget process. The affordable-housing acquisition project remains contingent on the nonprofit owner gaining access to a state tax exemption and completing its acquisition; the city’s contribution under the adopted plan is a modest, one-time CDBG amount.
Votes at a glance
- Motion: Adopt 2026 CDBG plan and reprogram $50,909 in 2025 funds as presented in staff Attachment A. Mover: Deputy Mayor (mover announced from the dais); Second: council member (second announced). Outcome: Passed 4–1.
What the vote changes
- Minor Home Repair: $130,000 allocated for 2026; $40,000 of reprogrammed 2025 funds added to the 2025 contract; $10,909 of reprogrammed funds added to 2026. (Staff characterized this as sufficient to restart services but said ongoing demand may outpace the new funding.) - Affordable housing acquisition (nonprofit): $23,600 from 2026 CDBG local programming; staff noted this small city contribution helps the project leverage a state RCW-authorized tax exemption for the nonprofit owner.
Funding and program notes
- Staff reported an estimated $320,000 in CDBG entitlement for 2026; required set-asides reduce the locally programmable amount to roughly $153,600. - The city’s use of CDBG funds is governed by HUD rules and an interlocal agreement with King County; staff emphasized that moving funds among categories may require County plan amendments and additional administrative work.
Council members asked staff to pursue supplemental funding for rental and utility assistance through other city budget mechanisms to address immediate gaps in community need. The council did not adopt a separate funding amendment at this meeting.
