Benton Harbor holds public input on shrinking CDBG allocation, priorities for housing and services

CITY OF BENTON HARBOR, Mich. — City staff held a public input session May 26 to solicit comment on the draft five-year consolidated plan and the annual action plan for federal Community Development Block Grant (CDBG) funds, outlining program limits, local needs and a timeline for public review.

The presenter told attendees the city—s HUD 2025 CDBG allocation was $382,893 and that the jurisdiction has seen roughly a 10% reduction in funding in recent years, leaving a smaller pool for public improvements, housing rehabilitation, economic development and public services. "The purpose of this meeting is to provide an opportunity for public input regarding the CDBG program," the presenter said.

Why it matters: The consolidated plan sets priorities that guide how the city spends limited federal funds for the next five years. With smaller annual awards, officials and residents must choose among competing needs such as demolition, home repairs for seniors, public nutrition services and workforce training.

City data cited at the meeting show population and household declines: the presenter said the city population is about 8,953 (down from earlier estimates near 9,100) and cited roughly 3,624 households. Median household income figures and the area median income (AMI) calculation prompted questions because the presenter used figures tied to the Niles, Michigan metropolitan statistical area (MSA). The presenter explained MSA definitions are set at the federal level and may lag after the census.

Housing cost indicators drew sustained attention. The presenter reported a decade-long rise in home values and rents: median home value rose from $47,400 in 2014 to $76,500 in 2024, and median contract rent rose from $434 to $617. Measures of cost burden were noted: about 18.2% of households face a severe burden (paying more than 50% of income on housing) and roughly 64.5% face a total cost burden (more than 30%). The presenter warned these burdens increase the risk of foreclosure and eviction.

Local residents pressed how program rules translate into job training and workforce development. One attendee noted a historical practice that 15% of CDBG public-services dollars were devoted to training and asked how many people could be trained if annual awards fall into the low tens of thousands; the presenter and other participants said that workforce development typically also uses Department of Labor funding and other grants, not only CDBG. "Everybody don't want to live on disability and social security," an attendee said, urging more local job opportunities.

Program uses and prior projects cited at the meeting included: - A cap of 15% on annual CDBG spending for public services (commonly $30,000—$35,000 in recent years); - Roughly $100,000 typically allocated for home rehabilitation for seniors and low-income homeowners; - Recent demolition work: the presenter said the city demolished 10 houses last year using a combination of CDBG and Brownfield funds and cited about $170,000 received from Brownfield for related work; an unspecified recent MOT project was paired with CDBG for streets/signage work on Empire.

Several participants recounted past administrative difficulties that limited the city's ability to spend certain funds, including an earlier period of emergency management and complications that left federal money inaccessible until administrative remedies were completed. One longtime participant said that while he had returned to try to help similar cities for decades, "when our folks have tended to get creative, we've often not done it in the right manner," and described encountering locked HUD funds that required administrative work to unlock.

The draft consolidated plan is available for review and is revisable during the public comment window; key schedule points announced at the meeting: the city expected a 30-day public comment period in spring 2026, HUD submission around June 2, 2026, and the program year start date of July 1, 2026. The presenter invited additional written comments and emphasized the need to balance demolition, rehabilitation and limited public-service dollars to get the most impact from shrinking CDBG awards.

The session included candid exchanges over data sources and past program administration but did not record any formal motions or votes. The city encouraged written input during the comment period before finalizing its annual action plan for HUD review.