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Lacey reviews draft 2026 CDBG plan and proposes Hunter Moore Park sidewalks as first capital priority
Summary
City staff told the council the draft 2026 Community Development Block Grant action plan estimates roughly $343,000 in entitlement funds and proposes allocating about $303,749 to public facility and infrastructure activities, with Hunter Moore Park sidewalks identified as the first capital project and 10% set aside for administration.
Michelle Chavez, human services coordinator for the City of Lacey, presented the draft 2026 Community Development Block Grant (CDBG) annual action plan to the council on July 14, explaining the annual federal entitlement process, outreach and staff recommendations.
Chavez said the city’s estimated 2026 entitlement is approximately $342,945, an amount subject to change when Congress finalizes the federal budget. "We're required to have two public hearings," Chavez said, summarizing that the city held the required hearings and a 30‑day public comment period and received no public comments during the posted period.
Staff proposed allocating $303,749 to public facility and infrastructure activities in line with the city’s consolidated plan and setting aside 10% (about $33,000) for administration and compliance (environmental review, reporting and program management). Chavez identified Hunter Moore Park infrastructure improvements (sidewalks) as the 2026 priority project and said the city currently has enough funding to cover sidewalk work; she listed a senior‑center parking project as a contingency if Hunter Moore cannot proceed.
When asked about the total Hunter Moore project cost, Chavez said the full project is about $2,000,000 and that the current CDBG allocation would cover specific phases such as sidewalks. Chavez explained staff favors a capital‑first approach for the first three years of the plan because HUD rules and litigation have recently changed and capital projects reduce certain programmatic risks.
Council members asked about using CDBG funds as match for other grants; Chavez confirmed CDBG can be used as match and said staff links action‑plan projects to existing city plans to keep projects shovel‑ready. Council agreed to place the annual action plan on the July 21 consent agenda for formal approval and submittal to HUD (HUD typically has a 45‑day review period after submission).
