St. Louis County board approves 2026 HUD Action Plan, designates roughly $2.7 million for CDBG, HOME and ESG programs

Brad Gustafson, director of St. Louis County’s Community Economic and Community Development Office, told the county board that the recommendations for the 2026 HUD entitlement Action Plan cover the portion of St. Louis County outside the city of Duluth and reflect modest reductions from 2025. “This is the final step in our 2026 annual HUD entitlement Action Plan,” Gustafson said, noting an overall program total of roughly $2.7 million across Community Development Block Grant (CDBG), HOME Investment Partnerships and Emergency Solutions Grant (ESG) funds.

Gustafson described program details and recommended awards: a HOME down‑payment/closing cost assistance program offering up to $8,000 per eligible first‑time buyer (administered locally) with a roughly $341,000 award to support an estimated 40 households; CDBG awards to first‑time applicants including Western Lake Superior Habitat for Humanity ($15,000 for two lots in Floodwood) and a $74,000 award to the Floodwood Area Emergency Ambulance Service for ADA‑compliant showers and staff spaces; Cook sanitary sewer rehabilitation recommended at $150,000; public service recommendations included just over $20,000 for a Carefree Clinic program to assist roughly 700 underinsured people and nearly $12,000 for United Way dental access for about 70 people.

Gustafson said the county will roll in unspent prior allocations and program income — for example, single‑family rehab mortgage repayments — and that the county received a small amount of program income for CDBG. He also noted a roughly $101,000 unspent project from Babbitt rolling into 2026 after environmental review.

The chair opened and then closed a public hearing on the plan; following the presentation the board moved to adopt the Action Plan and authorize submission of the recommended projects to HUD for final review and contracting. The chair announced the motion carried.

Why it matters: the Action Plan directs federal housing and community development dollars to specific local projects and programs for the coming year and starts the contracting process with HUD. The plan’s awards target housing assistance, public‑service providers and infrastructure projects outside Duluth, and the board’s approval allows staff to finalize agreements and begin distribution of funds to grantees.

What’s next: county staff will submit the plan to HUD for final review, proceed with contracting where required, and begin implementing the funded activities. The public comment period for the plan was noted as a 30‑day window that ended the day of the meeting.