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Committee reviews HUD FY27 action plan, CDBG allocations and development-activity concerns

Economic Development Committee · March 31, 2026

Summary

Staff reviewed the FY27 HUD Annual Action Plan (last year of the current five-year plan), outlined the CDBG/HOME/ESG allocation schedule and explained contingency adjustments for final federal awards; councilors questioned how development-activity dollars differ from social services and discussed priorities and a summer task force to revisit CDBG allocation policy.

City staff briefed the Economic Development Committee on the FY27 HUD Annual Action Plan, the final year of the city's current five-year consolidated plan. Staff said the plan outlines allocations and activities for the Community Development Block Grant (CDBG), HOME and Emergency Solutions Grant (ESG) programs and that final federal allocation amounts were not yet available; staff recommended including proportional-adjustment authority in council actions to account for any late changes in award amounts.

Committee members examined the list of recommended development-activity awards and questioned whether some items (for example, Greater Portland Family Promise'related housing and a parking-lot repair for the Portland Recovery Community Center) fit the development category versus public/social services. Staff said CDBG rules split the award into three pots (administration up to 20%, public services up to 33%, and the remainder for development activities) and that any reclassification would require reallocating money from other categories.

Councilors discussed possible refinements to scoring and goals for the development-activity category and were informed that a CDBG priority-setting task force will be convened to review allocation processes; staff said the task force is expected to work through the summer and return recommendations in the fall.

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