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Council agrees to pursue FY2026 Small Cities Development Program application for Slayton
Summary
After a DSI briefing on the city’s closing SCDP grant, the council voted to begin interest statements and move toward a preliminary FY2026 application; DSI reported the recent round met owner-occupied goals and left limited local matching funds.
The Murray County Council voted to pursue an interest statement and preliminary application for the U.S. Department of Housing and Urban Development’s Small Cities Development Program (SCDP) for FY2026 after a briefing from DSI’s community development staff.
DSI community development director Jessie told the council the city’s current SCDP grant will close at the end of September. "We received 28 owner-occupied applications and 19 of them will be rehabilitated," Jessie said, adding that the program also received 11 single-family rental applications (four rehabilitated) and four commercial applications, of which three completed work.
The numbers met the owner-occupied goal written into the current grant, Jessie said. She described changes to the program’s repayment tiers: owners under 50% area median income (AMI) qualify for a 100% deferred amount over 10 years; households between 51% and 80% AMI now face an 80/20 split (80% deferred over 10 years and 20% repayable at 2% interest, with a $50-per-month minimum payment if repaid). For commercial projects DSI described a 60/20 split with a 5-year deferment on the deferred portion and a 20% owner match at contract signing.
Staff reported roughly $15,000 remains in the city’s local program fund after the recent round. Council members asked about the nine owner-occupied files closed without completion; Jessie said four were over income limits, one was an ineligible mobile home and two applicants withdrew or did not complete their applications.
Council members voted, by voice, to proceed with interest statements and to move toward filing a preliminary application in November 2025. Jessie said final applications are typically due in April 2026, with award notifications around September 2026 and actual program work — including environmental reviews and applicant outreach — likely starting in 2027 if the city receives funding.
The council’s action directs staff to begin community interest statements citywide and return with results before committing to a full application.
