Bethlehem council approves submission of 2026 CDBG and HOME action plans to HUD

City Council voted to approve submission of Bethlehem's program-year 2026 Community Development Block Grant and HOME Investment Partnerships annual action plans to the U.S. Department of Housing and Urban Development.

Robert Vidoni, the city's housing and community development administrator, presented the recommended allocations, telling council: "For program year 2026, the city will receive $1,370,309 in CDBG funds and $388,308.10 in HOME money." He described two funding buckets on the allocation spreadsheet: the program-year 2026 awards and reprogrammed prior-year funds used to address project timing and underspends.

Vidoni outlined limits on spending categories required by HUD, noting a 20% cap on program administration and a 15% cap on public-service activities; he said the city calculated the public-service cap at roughly $205,546 and program-administration cap near $274,000. He walked through about two dozen recommended activities, including tenant advocacy, emergency sheltering, housing counseling, owner-occupied rehabilitation grants, facility upgrades for nonprofit partners and a proposed 60-unit mixed-income Gateway on 4th rental project. Vidoni also said the total dollar figure shown in the action plan packet is approximately $1,488,173.14.

Council members asked for details about the applicant pool and funding changes. Vidoni said there were three new CDBG applicants this cycle and two new programs received funding, and he characterized the year's reductions as tied to small federal allocation decreases: "our 2026 CDBG award decreased by about 3% and our HOME award decreased approximately 7% from the prior program year." He added that HUD's formulas use multiple weighted factors and federal funding levels affect city allocations.

The resolution approving the submission was sponsored by Councilmembers Raymond and Laird and passed on a recorded vote (6-0). Vidoni said the next steps, if HUD accepts the plans, will be executing agreements with nonprofit partners and beginning project implementation once funds arrive, likely in the fall or winter.

The action plan packet includes detailed, itemized narratives and an 11x17 allocation spreadsheet that staff distributed to council and the public. Staff urged applicants who were not funded this cycle to reapply in future rounds and emphasized the administrative burden of federal grants and the importance of nonprofit partners in delivering services.

Council did not take any funding votes during the informational public hearing; the action on submission is an approval to forward the plan and required certifications to HUD for review.