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Board reviews CDBG priorities and a proposed Drayton Plains Section 108 loan fund to spur local redevelopment
Summary
Staff outlined the township’s draft 2026/27 CDBG priorities and resources and described a proposed Section 108–backed loan program to leverage up to $1.81 million for small business and redevelopment projects in the Drayton Plains subarea.
Community Development Block Grant Coordinator Scott Alef presented the township’s draft Consolidated Plan priorities and an outline for the 52nd Program Year (July 1, 2026 start). The draft priorities include housing rehabilitation, code enforcement/blight remediation, public facilities and infrastructure, removal of unsafe structures, fair housing efforts, administration and planning, and public services. Estimated new HUD allocation is approximately $362,163 supplemented by an anticipated $30,000 in program income.
Alef also described a proposed Drayton Plains Business & Economic Development Loan Fund that would use HUD Section 108 loan guarantees to leverage up to $1.81 million in loan funds for eligible projects. Typical loans would be up to $50,000 for small- and medium-sized businesses; select “cornerstone” projects could be considered for larger loans (up to $500,000). Programs would require adherence to HUD national objectives and at least 70% of funds benefiting low- and moderate-income persons. A Loan Review Board and underwriting consultant would evaluate applications; the proposal is intended to catalyze private investment and job creation in the Drayton Plains subarea.
The Board opened and closed the public hearings on the CDBG program and the Drayton Plains proposal with no public speakers at those hearings. Staff said a final action plan adoption is expected at a later hearing likely in April or May after public input is incorporated.
