Muncie council authorizes mayor to apply for HUD CDBG and HOME grants, amends allocation figures

The Muncie Common Council voted April 6 to authorize Mayor Dan Wirenauer to apply for federal Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds, approving an amendment to the grant amounts and a plan for how the city would use the funds.

Gretchen Cheesman, identified in the meeting as director of community development, told the council the city’s HOME allocation should be changed to $471,998.35 and the CDBG allocation to $1,229,825 (figures based on the 2025 allocation used in the draft). She said the change reflects the amounts the department received that day and asked the council to amend Resolution 6-26 to reflect those numbers; the amendment was moved, seconded and adopted prior to the final vote.

Cheesman outlined program-level uses for the HOME and CDBG funds. HOME program rules limit administrative expenditures to 10 percent; the city plans modest CHODO (community housing development organization) operating support (up to 5 percent, but the city will cap an award at $10,000 in practice) and a CHODO reserve. The city’s housing activities include down-payment and closing-cost assistance, a homebuyer development allocation for single-family homes, and rental-development funding. In the CDBG budget, Cheesman said a 20 percent admin cap applies; the council set the public-service allocation (maximum 15 percent) to prioritize four homeless-serving agencies (A Better Way, Muncie Mission, YWCA and Christian Ministries). Other CDBG uses discussed included blight clearance, homeowner rehabilitation (roofs, accessibility, HVAC) and infrastructure projects such as parks, paving and sidewalks.

Cheesman said the HOME funding represents a roughly 7 percent reduction and the CDBG figure about a 1 percent reduction from the prior year’s allocations; she provided dollar differences to the council (HOME reduction $36,763.76; CDBG reduction $12,298). She noted the department’s action plan is posted on the community development webpage and that the plan is open for public comment through April 20; a public hearing is scheduled for 10 a.m. Friday to review the proposed uses.

Councilmembers asked for clarification on which organizations were already in the pipeline to receive public-service grants and about application deadlines and contractor licensing for homeowner rehabilitation projects. Cheesman said the agencies named had applied and were funded last year (Christian Ministries did not apply last year but is included this year) and that procurement and inspections are handled through the city’s contracting process and Board of Works. She also said the city will publish the legal notice and application deadlines for the next program year as usual.

On a roll-call vote, the resolution to authorize the mayor to apply for HUD funds, as amended, carried with affirmative votes recorded by the council.