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Fayetteville Council authorizes city participation in Choice Neighborhoods grant application

Fayetteville City Council · February 24, 2026

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Summary

Council authorized the mayor to sign a leverage letter and the city manager to sign a participation agreement for a Choice Neighborhoods grant application that proposes 323 mixed-income rental units, 35 homeownership units and neighborhood improvements; staff said residents would have relocation rights and return options.

City staff presented updates on the Choice Neighborhoods grant application and asked council to authorize two documents: a leverage letter for HUD and a participation/partnership certification describing roles among partners. Staff said the program’s applicant pool was reduced and Fayetteville is in a limited pool of applicants; the draft request to HUD is for $26 million in federal funds as part of an approximately $130 million total leveraged investment.

The presenter summarized project components: about 323 mixed-income rental units, 35 homeownership units (up from a previously cited 25), 35 residential facade upgrades, 30 business facade improvements, trail access and placemaking, and services aimed at economic mobility. The presenter emphasized resident protections: “residents have the right to relocation benefits. They have the right to come back to the new developments,” and said the city would involve residents throughout the process.

The draft partnership roles in the packet list the city as lead, the housing authority as co-lead, a people-focused nonprofit for resident services, and a named developer as co-developer for housing delivery. Council moved to authorize the mayor to sign the leverage letter and the city manager to execute the participation agreement; the motion received a second and council carried the motion that evening.

Council members asked whether the Choice Neighborhoods request would conflict with a separate administrative item on a catalyst site; staff said both items pull in the same direction and that funding existed to pursue both. The council agreed to move a separate administrative report (item 12.01) to a future work session for further consideration.

The council’s authorization lets staff complete legal review and finalize signatures for the grant submission due March 9; the application will proceed through HUD’s selection process.