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Commission approves 2026 CDBG annual action plan, directs spending to playgrounds and 5th & Leavenworth project
Summary
The City Commission approved the 2026 CDBG Annual Action Plan; staff said HUD flagged surplus funding and the plan prioritizes a $734,000 5th & Leavenworth project plus playground and ADA improvements to spend down funds.
The commission voted 5–0 to approve Manhattan’s 2026 Community Development Block Grant (CDBG) annual action plan and authorized staff to execute HUD agreements and to purchase playground materials for eligible projects.
Planning Director Stephanie Peterson told commissioners that Manhattan is an entitlement community and that HUD has instructed the city to spend down surplus funds. Peterson highlighted a major project at 5th and Leavenworth (about $734,000 of CDBG) and a broader plan to use funds for public facilities, ADA improvements and public services. "We have too much surplus funding right now, and we have to spend that down rather quickly," Peterson said, explaining why the city added a CDBG CIP to keep a pipeline of shovel‑ready projects.
The plan limits grant administration to 20% and public services to 15% of the allocation and allocates a majority of the funds to public facilities and infrastructure projects that yield low‑ and moderate‑income benefits. Commissioners approved the plan and directed staff to coordinate projects and timing so the city meets HUD spending rules.
