Urbana holds public hearing on draft 2026–27 HUD Annual Action Plan; no spoken public comments

Urbana's Community Development Commission met Feb. 26, 2026, for a public hearing and regular meeting to review the draft 2026'27 Annual Action Plan for Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) program funds from the U.S. Department of Housing and Urban Development (HUD). The commission heard a staff presentation on the plan, asked clarifying questions and approved routine minutes; no members of the public offered spoken comments during the hearing.

Nick Olsen, interim grants division manager for the City of Urbana, said the draft plan describes how the city and the Urbana HOME Consortium (Urbana, Champaign and unincorporated Champaign County) intend to use HUD funds in the program year beginning July 1, 2026. Olsen told commissioners the draft uses last year's allocation as an estimate: "we are currently budgeting in the draft plan with the amount of $392,195 in CDBG funding and $633,154.18 in HOME funding," and he cautioned HUD's final allocation for the next year had not yet been announced.

Olsen summarized eligible uses under each program, noting CDBG can support public services, infrastructure in qualifying census tracts, economic development and housing rehabilitation; HOME is more narrowly targeted to affordable housing activities including tenant-based rental assistance (TBRA) and developer support. He said the draft includes a TBRA line item budgeted at $100,000 and a CHDO set-aside to support capacity and developer activities, and reminded the commission that federal regulations cap planning and administration line items.

On timing and outreach, Olsen said the draft plan is available for public review Feb. 20'Mar. 23, 2026, with written comments accepted through 5 p.m. on March 23 (email: grants@urbanaillinoisurbanail.gov). He outlined the schedule for the commission to vote on the plan at its regular March meeting, for the plan to go to city council in April, and for a planned submission to HUD by May 15 (45 days before the July 1 program year start); he added that meeting the May 15 timeline could depend on when HUD announces final allocations.

Commissioners asked for clarification about the community needs survey's reach and how prior-year unspent funds are treated in plans. Olsen said the survey is open to residents across the consortium area and collects general location information (not specific addresses). On unspent funds, he explained HUD guidance means new action-plan budgets should not include prior-year balances; those prior-year funds remain bound to the earlier action plan but can still be spent down for eligible activities or addressed through a formal amendment process if priorities change.

During the regular meeting that followed, a commissioner moved and another seconded approval of the Jan. 27, 2026 minutes; the commission approved the minutes by voice vote. In his staff report, Olsen also reminded the commission that the community services grants application cycle is open (deadline April 6 at 5 p.m.), noted the city council unanimously approved CHDO funding agreements with Habitat for Humanity, and said the grants manager position has been posted while he continues as interim manager.

The public hearing record will remain open for written comment through March 23; the commission is scheduled to consider a formal vote on the action plan at its March meeting. The meeting adjourned after staff updates and no further business.