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Housing advocates press Fargo on using CDBG and HOME funds for housing production; staff cite federal constraints
Summary
During a public hearing on the 2026 HUD action plan, Beyond Shelter urged the city to dedicate more CDBG and HOME dollars to housing development; city staff said federal rules and compliance burdens limit use of funds for new construction.
City staff presented Year 2 of Fargo’s five‑year HUD consolidated plan, covering the Community Development Block Grant (CDBG) and HOME Investment Partnership programs. Nicole Crutchfield said the city proposes a tenant‑based rental assistance program in partnership with SENCA and intends to use much of its CDBG allocation for alley paving in core neighborhoods; the plan continues a public notice and citizen participation process with a June 8 final action on the agenda.
Dan Madler, CEO of the nonprofit Beyond Shelter, urged commissioners to revise the action plan before adoption to dedicate a larger share of its federal allocations to long‑term affordable housing development rather than short‑term rental assistance and infrastructure. Madler cited figures in the meeting packet — about $835,000 in CDBG and roughly $508,000 in HOME funds — and said only a small placeholder amount (he cited about $70,000) was identified for housing production. He argued that rental assistance, once spent, does not create lasting housing assets.
Crutchfield and other staff responded that administrative and compliance requirements, including Section 3 and Davis‑Bacon rules, make using these allocations for large construction projects difficult for the city and its subrecipients. Staff said they will hold follow‑up informational sessions with local partners and that the item will come back for final action on June 8, allowing additional public comment and possible revisions.
No formal vote was taken tonight; staff characterized the presentation as informational and encouraged continued stakeholder engagement before the June 8 decision.
