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Council approves 2026 CDBG Annual Action Plan and $477,190 HUD allocation
Summary
The City Council approved Bloomington’s 2026 Community Development Block Grant (CDBG) Annual Action Plan and submission to Hennepin County. Staff said the city’s HUD allocation is $477,190 and that the plan uses carryover and program income (rehab loan payoffs estimated around $300,000) for homeowner rehab, public services and acquisition/demolition.
At its April 13 meeting the Bloomington City Council approved the 2026 Annual Action Plan for the Community Development Block Grant (CDBG) program and authorized staff to submit required documents through the Hennepin County consortium.
Assistant Administrator Mr. Palermo presented the program background: CDBG is annual funding from the U.S. Department of Housing and Urban Development that the city uses for homeowner rehabilitation, public services for low‑ and moderate‑income residents, acquisition/demolition of blighted properties, and fair‑housing activities. Staff reported the allocation award this year is $477,190 (higher than their initial estimate) and that the city also has carryover funding and program income from the revolving rehab loan program (estimated program income ≈ $300,000 based on recent loan payoffs). The budget presented increases the public‑services allocation to the 15% cap to respond to demand and adds an acquisition/demolition line to repurpose certain blighted properties.
The council opened the required public hearing; no members of the public offered comment in‑chamber or remotely, and the public‑comment period had closed with no comments. Councilmember D’Alessandro moved to approve the program year 2026 Annual Action Plan and associated budget; Councilmember Rivas seconded. The motion passed by roll call, 6–0.
Staff will submit the plan to Hennepin County (that body is the consortium lead) for May submission and begin program year activities on July 1, 2026.
