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Portsmouth proposes FY26–27 CDBG and HOME budgets with $1.57M CDBG entitlement and $494K HOME allocation
Summary
City staff presented a proposed FY26–27 Community Development Block Grant (CDBG) and HOME spending plan that funds public services, ADA accessibility improvements, support for Twin Pines redevelopment, and FY27 contributions to affordable housing programs; public hearings were set and staff will submit the plan to HUD.
Dr. Russell and Mr. Kramer presented Portsmouth's proposed FY26–27 Community Development Block Grant (CDBG) and HOME budgets at the April 13 public works session, outlining recommended allocations for public services, administration, housing assistance and capital improvements.
Dr. Russell said the city received an unexpected slight increase in the funding award but planned conservatively because of federal budget uncertainty. "We are recommending CDBG entitlement funds of $1,571,687 for the 26–27 fiscal period," he said, and noted that CDBG rules restrict use of the funding (15% for public services and 20% for administration), leaving 65% available for projects that meet national objectives.
The staff recommendation included $75,000 for a mobile kids meals program; $25,000 for a year-long youth leadership mentorship program; $35,000 toward summer camp subsidies for FY27; $58,000 for workforce development initiatives; and $109,130 for CDBG administration and planning. The proposal also recommends $200,000 in CDBG funds to support development of the city's 2040 comprehensive plan and $150,000 to support the Twin Pines redevelopment through the Portsmouth Redevelopment and Housing Authority. The recommended funding for citywide ADA and handicap-accessibility improvements totals $919,500.
For HOME entitlement funds (HUD's HOME program), staff reported an allocation of $494,000 for FY27. Recommended HOME uses include $186,000 for tenant-based rental assistance in partnership with 4Kids, Inc.; down-payment and closing-cost assistance (estimated at $234,283 through a partnership with the Hampton Roads Planning District Commission); and a $74,141 set-aside to support community housing development organizations (CHDOs).
Dr. Russell and Mr. Kramer said required next steps are two public hearings (one this week and another on April 28), adoption of an annual action plan and then submission of the budget to HUD for implementation on July 1. Councilmembers asked for more granular breakouts (admin vs. assistance), requested the number of households served by down-payment assistance and asked whether elevator/ADA funds would be spent at specific city facilities. Staff said specific building selection for some ADA projects is not finalized and agreed to return with more detail.
Council also discussed flexibility in federal CDBG tools. Mr. Kramer described Section 108 (a loan advance option that lets a locality use future CDBG entitlement to finance larger projects), noting the program can be structured to loan funds to developers or to support redevelopment projects via forgivable or deferred loans.
No formal vote adopting the CDBG/HOME plan occurred at the public works session; staff scheduled the required public hearings and will return to council for final adoption and HUD submission.
