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Commission approves 2026 CDBG annual action plan, prioritizes 5th & Leavenworth and park projects
Summary
Manhattan approved its 2026 CDBG Annual Action Plan and authorized HUD agreement execution and playground purchases; staff said the city must spend surplus CDBG funds quickly and earmarked large funds for a 5th & Leavenworth project and ADA‑related park work.
The commission unanimously approved Manhattan27s 2026 Community Development Block Grant annual action plan on May 5 and authorized the mayor and city administration to execute the HUD agreement and associated activity agreements.
Planning Director Stephanie Peterson told commissioners the city is an entitlement community and currently holds surplus CDBG funds that must be spent down under HUD rules; the draft action plan earmarks a substantial portion of the funds for a 5th & Leavenworth public‑facilities project (about $734,000) and identifies playground replacement, ADA door upgrades and smaller infrastructure projects as near‑term uses.
"We have way more than what we need just for that project," Peterson said of the combination of the 5th & Leavenworth project and the city27s surplus; she explained HUD27s holding limit is 1.5 times the annual allocation and outlined a pipeline process to keep eligible projects ready so funds can be spent promptly.
Peterson also described eligible categories (public facilities/infrastructure, public services and HMIS) and clarified that CDBG funds cannot be used on routine repairs or on general government buildings. Commissioners voted 5–0 to approve the action plan and related authorizations.
Next steps: staff will submit the annual action plan to HUD by the June 1 administrative deadline and initiate projects identified in the plan, with additional project details to follow.
