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Council hears staff presentation on HUD action plan R2026‑26; resolution to return for July vote to meet HUD deadline
Summary
City staff presented the HUD‑mandated 2026–27 annual action plan (R2026‑26), describing a $256,925 allocation split across CDBG and HOME programs with an emphasis this year on public infrastructure and a pilot of owner‑occupied home rehabilitation; a councilor disclosed a conflict and the resolution will return to the July regular meeting for approval to meet an August 15 submission deadline.
WINCHESTER — City staff outlined R2026‑26, the HUD‑mandated annual action plan for 2026–27, at a Winchester City Council work session and asked councilors for direction so staff can present the resolution for formal approval at the July meeting.
"This annual action plan... focuses on the two usual elements, the Community Development Block Grant side of things and the HOME Investment Partnership program," Mike Ruddy told the council, and he said the city’s allocation for the program year is $256,925.
Ruddy said the proposed eligible activities for the current program year emphasize public facilities and improvements and a renewed focus on home rehabilitation within a qualified census tract (identified in the documents as census tract 1.02). "We're still using the consolidated plan that was adopted in 2023," he said, and the annual action plan is intended to implement that five‑year strategy in the near term.
At the start of the item a councilor disclosed a personal conflict under the Virginia Conflict of Interest Act, saying they provide services to Blue Ridge Habitat for Humanity and would disqualify themself from voting or participating in closed sessions or discussions related to the transaction. The disclosure was recorded in the work session.
Councilors asked about what projects qualify for the funds. Staff clarified that purely aesthetic repairs — for example a fence in and of itself — generally do not qualify unless the work advances housing outcomes or accessibility. "If you were to do a fence that was part of the handicap accessible [work], that might be permitted," a staff member said. Staff also noted it is common to set aside roughly 15% of funds for a qualified housing development organization as a subrecipient to administer certain housing activities.
Ruddy described the HOME program as more administratively intensive and said the city would pilot owner‑occupied rehabilitation this year to test policies and procedures before expanding or regionalizing the approach in the next consolidated plan cycle. He emphasized the need to move funds quickly after award under HOME rules and to maintain thorough documentation to survive potential HUD audits.
Councilors asked for examples of recent uses of CDBG funds. Ruddy listed recent public infrastructure projects in Ward 2, including East Piccadilly sidewalks, Friendship Fire Company equipment, Norris Village investments and the Taylor Hotel renovation work done in prior years.
On scheduling, staff said the effective deadline for submission is August 15 and that the council should act at its July meeting if it wants the city to receive the funds. Councilors asked staff to return the resolution to the July regular meeting for a formal vote to meet HUD timelines.
No final vote on R2026‑26 occurred during the work session; staff will return with the resolution for the July meeting so the council can vote before the reported August 15 deadline.
