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Prescott Council approves $265,856 CDBG plan, backs $50,000 pilot down-payment program for LMI buyers
Summary
The Prescott City Council approved the 2026 Community Development Block Grant Annual Action Plan after a public hearing; HUD allocated $265,856 to the city and staff proposed a $50,000 pilot deferred-payment down-payment assistance program targeted to households at 80% area median income.
The Prescott City Council on May 26 approved the city's Program Year 2026 Community Development Block Grant Annual Action Plan and authorized submission to the U.S. Department of Housing and Urban Development. The council voted 7-0 to close the public hearing and then approve the plan.
Michael McInness, the city's CDBG coordinator, told the council HUD allocated $265,856 for Prescott in 2026 and said the city has run a CDBG program since 2004. McInness said the city received 26 applications requesting nearly $1 million; a citizen advisory committee recommended funding 11 projects within the available allocation.
The plan includes a pilot down-payment-assistance program designed as a deferred-payment, silent second loan with no interest or monthly payments. "Repayments are returned to the program, creating a revolving fund," McInness said, and staff proposed a pilot set at $50,000 expected to assist an estimated three to four households during the initial phase. The program would target first-time homebuyers purchasing a primary residence in Prescott at up to 80% low-to-moderate income (LMI); McInness cited example income thresholds of about $76,000 for a four-person household and about $69,000 for a three-person household for the current year.
Council members pressed staff on administration and workload. McInness said city community development staff will administer the program and that most of the work will occur during the year-one setup: "The heavy lift will really be at the beginning in the first year getting everything in place—the processes, the systems, the partnerships with lenders and inspectors," he said.
The plan also preserves the program's public-service cap and includes grant awards to local nonprofit subrecipients previously funded through CDBG. McInness emphasized the program is 100% federally funded and does not impact the city general fund.
The council closed the public hearing and approved the plan and submission to HUD by unanimous vote. The plan moves forward subject to HUD review and program-setup details that staff said will be refined during implementation.
