Committee preliminarily approves 2026–27 CDBG partner allocations, preserves Pillars funding

The Community Development Committee on Jan. 14 approved preliminary Community Development Block Grant (CDBG) allocations for the 2026 program year, endorsing the advisory board's recommendations while reserving final adjustment until the city's actual HUD award is known.

Community development specialist Diane Gallion summarized the process the advisory board used to score applications and develop preliminary recommendations, saying the city estimated a 2026 allocation of about $576,096 and preliminarily set aside $480,717 for core and city projects. "we based our estimated allocation amount of, dollars 576,096 on our prior year's, allocation amounts," Gallion said, and the remaining funds left for external projects were about $95,379.

Gallion told the committee one external application (a public-service project) was removed from consideration because the city had already reached its public-service cap for the year, and one applicant, First 5 Fox Valley, was disqualified from award consideration because it had already begun asbestos remediation on its site prior to project approval.

Committee members and advisory-board representatives said the advisory board prioritized fully funding one external project (Pillars) and distributing remaining funds proportionally among other eligible applicants. An advisory-board member told the committee the goal was to "fully fund 1 of the projects," which is why Pillars was listed as the fully funded applicant in the recommendations.

Vice Chair Denise Fenton and staff explained that if HUD's final award differs from the estimate, staff will adjust allocations proportionally but attempt to hold Pillars at its targeted amount and keep Habitat Assistance at no less than the advisory board's stated minimum. Staff also said the community resource navigator position is counted under core city projects and that the public-service cap will be adjusted as needed to maintain the 15% target.

The committee moved, seconded and approved the advisory board's preliminary allocations as presented (vote recorded as passing 3-0). Staff emphasized the awards are preliminary and that the final allocation amounts will return to the committee and full council for final action when HUD issues the city's actual grant amount.

What happens next: staff will receive the city's final CDBG award from HUD, adjust preliminary allocations per the advisory-board guidance if needed, and present final award amounts to the Community Development Committee and City Council for formal approval.