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Dothan commission rejects update to CDBG allocation process after debate
Summary
On March 3, 2026 the Dothan City Commission declined Resolution 2026-39, a proposal to update the competitive process for allocating Community Development Block Grant funds, after commissioners raised concerns about the plan allowing city projects to receive a share of CDBG money.
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The Dothan City Commission on March 3 rejected Resolution 2026-39, a proposal to supersede a 2007 policy and adopt a revised competitive process for allocating Community Development Block Grant (CDBG) resources.
Mayor Mark introduced the resolution, which staff said removes static maps and tables from the old document and formalizes a process for reviewing applications. The city manager said the changes "meet all of the new regulations that HUD has for CDBG, so none of that's changing." He also explained staff will screen applications for HUD compliance and present eligible projects to the committee for recommendation to the commission.
Several commissioners said they were concerned the updated process could allow city-initiated projects to receive CDBG funding at the expense of outside applicants. "I would have loved to see some type of cap in the resolution where it make it where maybe 25% of those CDBG funds can be used for or mandated for city projects and then 75% is still left for everyone else to apply for," Commissioner Kersey said.
In response, staff reiterated that HUD rules limit certain uses of funds and that administrative and operating requests are capped by HUD; the city manager noted the committee has long reviewed applications and will continue to recommend awards to the commission. After discussion and a voice vote, the mayor announced the resolution "fails, as proposed." The motion to approve did not carry.
The item had been tabled at the commissions Feb. 17 meeting and required a motion to remove it from the table before the current vote. No new timeline for returning a revised proposal was given at the meeting.
What happens next: commissioners raised the possibility of adding formal limits in the text to restrict how much of annual CDBG funding could be allocated to city-led projects; staff said applications will continue to be screened for HUD compliance and the commission retains final approval authority on awards.

