HomeMy WebLinkAboutA032 - Proposed 2026/27 Annual Action Plan Projects for Community Development Block Grant (CDBG) and HOME ProgramsITEM #:36
DATE:04-14-26
DEPT:P&H
SUBJECT:FOLLOW UP OF PUBLIC FORUMS AND 2026-27 PROPOSED ANNUAL
ACTION PLAN PROJECTS FOR COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) AND HOME PROGRAMS
COUNCIL ACTION FORM
BACKGROUND:
As part of the City’s approved 2024- 29 Five-Year Community Development Block Grant
(CDBG) and HOME Consolidated Plan, the City must prepare an Annual Action Plan that
outlines the proposed activities and budget to be implemented in the upcoming year, which
addresses the needs of low- and moderate-income households as well as the needs of non-
low- and moderate-income households in the community. Those activities should be
consistent with the goals and priorities identified in the Consolidated Plan.
The Annual Action Plan can address one or all of the goals and priorities of the housing and
community development needs identified in the Consolidated Plan. The goals and priorities
the City identified in its 2024-29 Consolidated Plan are outlined in Attachment 1.
Prior to proposing activities for the Annual Action Plan, staff review the following HUD
guidelines that outline the following key steps:
•Determine if the proposed activity is included in the list of eligible activities.
•Determine if the proposed activity meets the City’s Consolidated Plan priority goals for
addressing the needs of low- and moderate-income persons within the community;
•Determine if the proposed activity can meet one or more National Objectives.
•Ensure that carrying out the activity will meet HUD’s requirement that 70% of the grantee’s
CDBG expenditures, over a three-year period, will be on activities that benefit low- and
moderate-income persons; and
•Meet the performance measurements requirements.
HUD regulations require that Annual Action Plans be submitted for approval within, at least, 45
days before the beginning of the program fiscal year (i.e., for the City of Ames, that would be
by May 17, 2026). However, final funding allocations have just recently been provided to the
City and, as a result, staff has requested an extension to finalize the Plan and provide public
notice before final Council approval later this summer.
On March 10th, the City Council reviewed a proposed list of programs and projects and
funding for the projects. At that meeting, Council directed staff to proceed with seeking public
input on the draft programs and projects
On March 25, 2026, City staff hosted two in-person public forums to gather input on potential
projects for the 2026-27 CDBG/HOME Annual Action Plan. Nine (9) persons attended the in-
person forums. Attendees included representatives from Good Neighbor, The Bridge
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Home/CISS, Christ Community Church, Heartland of Story County, Friendship Ark, ACCESS,
and Pathway to Home.
The following agenda was presented, and the forum attendees were given the opportunity to
participate in a group discussion regarding the agenda items:
1. Basic overview of the CDBG, HOME, and HOME-ARP Programs
2. Review of the Consolidated Planning Requirements.
3. Overview of the Five-Year Goals and Priorities created for 2024-29
4. Proposed 2026-27 Annual Action Plan Projects
5. Group feedback and
6. Tentative Timeline for next steps
The 2026-27 Annual Action Plan PowerPoint presentation recording has also been made
available on the Housing Division’s website, at www.cityofames.org/housing.
Staff did not receive any comments regarding the proposed FY 2026-27 action plan
activities.
At the March 10, 2026, City Council meeting and at the March 25, 2026, Public Forums, the
FY 2026-27 CDBG and HOME funding allocations for entitlement cities had not yet been
announced. Therefore, staff had to project the 2025-26 CDBG Allocation of $552,927 and
HOME Allocation of $278,382 for the proposed budgeted activities, with the hopes that
notifications would be announced soon.
The good news is that on April 3, 2026, HUD released the FY 2026-27 CDBG/HOME
Allocations and the final budgeting can now be completed.
The City of Ames was awarded the following amounts:
CDBG: $547,112 = $5,805 decrease from the projection;
HOME: $270,579.98 = $7,802.28 decrease from the projection.
CDBG:
Staff has updated the proposed budget project activities with the updated FY 2026-27
CDBG/HOME allocations that were presented at the March 10th City Council meeting (See FY
2026-27 Proposed Budget Attachments) as follows:
Homebuyer Assistance Program citywide $160,000;
Disposition of Properties $12,000;
Public Facilities Rehabilitation Program for area non-profit organizations funded through
ASSET $222,923.
As a result of the proposed Substantial Amendment to FY2025-26 Action that will
incorporate the S. Maple water main project, staff proposed to substitute a different
public improvement project. This project will also be within Census Tract 10 and is street
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rehabilitation project for Washington Ave estimated at $405,300.
The total budget to implement these projects is approximately $800,223 (including
administration). See attachment budget.
HOME:
For the FY 2026-27 HOME Program, based on the reduced FY 2026-27 Allocation, staff is
proposing a decrease to the following project for FY 2026-27:
• New Single Family Home Construction— $895,732
This proposed budget would assist in the construction of approximately three (3) of the
remaining six (6) affordable lots in the Baker Subdivision. (see attached budget)
Once the City Council provides direction for the proposed FY 2026-27 Annual Action Plan
projects, staff will proceed with preparing the Annual Action Plan for the 30-day public
comment period and return for final Council approval.
ALTERNATIVES:
1. City Council can adopt a Resolution to approve the proposed 2026-27 Annual Action
Plan Program Projects and estimated budget.
2. City Council can adopt a Resolution to approve the proposed 2023-24 Annual Action
Plan Program Projects and estimated budget (Attachment II)with modifications.
3. Refer this item back to the staff with further direction.
CITY MANAGER'S RECOMMENDED ACTION:
Now that the FY 2026-27 allocations have been announced, the draft of the City’s
Annual Action Plan can be prepared for the required 30-day public comment period. All
of the projects will continue to help address the needs identified in the 2024-29 Five-
Year Consolidated Plan. Therefore, it is the recommendation of the City Manager that the
City Council adopt Alternative #1.
ATTACHMENT(S):
Attachment 1 Five-Year Goals and Priorities.pdf
HOME 2026-27 Proposed Budget 3-3-26.pdf
CDBG 2026-27 Proposed Budget-4-10-26-R.pdf
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ATTACHMENT 1
2024-29 Strategic Plan Goals and Priorities for
Low and Moderate-Income Persons
1. Utilize and leverage CDBG and HOME Funds through “private, non-profit,
and public” partnerships to create and expand sustainable, affordable
housing for low- and moderate-income households through:
• Increase supply of single-family and/or multi-family housing for ownership in
the Neighborhood Revitalization Strategy Area (NRSA) and citywide;
• Reduce the cost burden for low-income households to access or
maintain rental housing citywide;
• Increase the affordability, quality, density, and availability of owner housing
for homeowners citywide.
2024-29 Strategic Plan Goals and Priorities for
Non-Low and Moderate-Income Persons
1. Utilize and leverage CDBG* and HOME Funds through “private, non-profit,
and public” partnerships to create, sustain, and expand housing for
non-low- and moderate-income households through:
• Integrate affordable and market-rate residential developments;
• Remove blight and deteriorated housing to reuse into new housing;
• Support and address code enforcement of deteriorated housing;
• Remove blight and deteriorated housing in floodplains and other hazardous
areas.
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2026-27 HOME
Budget Allocation
2026-27 HOME Anticipated Proposed HOME Program
270,579.98$ 1,035,038.00$ 1,305,617.98$
(27,058.00)$ (152,920.00)$ (179,978.00)$
(40,587.00)$ (189,320.00)$ (229,907.00)$
202,934.98$ 692,798.00$ 895,732.98$
202,934.98$ 692,798.00$ 895,732.98$
202,934.98$ 692,798.00$ 895,732.98$
270,579.98$ (67,645.00)$ 202,934.98$
270,579.98$ (67,645.00)$ 202,934.98$
1,269,492.00$ (342,240.00)$ 927,252.00$
(234,454.00)$ -$ (234,454.00)$
1,035,038.00$ (342,240.00)$ 692,798.00$
1,305,617.98$ (409,885.00)$ 895,732.98$
Less: CHDO (15%)
New Single Family Home Construction
PROPOSED HOME 2026-27 Action Plan Expenditure Budget:
2026-2027 Proposed HOME Projects
Less: HOME Administration (10% Cap)
Total Anticipated 2026-27 HOME Balance
PROPOSED 2026-27 Action Plan Revenue Budget:
2024-25 Estimated Remaining Expenses
Total Anticipated 2025-26 Allocation Balance
2026-27 HOME Allocation (Actual Allocation)
2024-25 Remaining Total Balance
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2026-27 CDBG
Budget Allocation Program Income Totals
(109,422)$ (90,633)$ (200,055)$
160,000$ -$ 160,000$
222,923$ -$ 222,923$
12,000$ -$ 12,000$
42,767$ 362,533$ 405,300$
547,112$ (109,422)$ 437,690$
100,000$ (20,000)$ 80,000$
353,166$ (70,633)$ 282,533$ 2026-27 Anticipated Program Income (Sale of Six Market Rate Lots, Avg Sale Price $58,861)*
Total Anticipated 2026-27 Allocation Balance
Program Totals
PROPOSED 2026-27 Action Plan Revenue Budget:
2026-27 CDBG Allocation (Based on 2025-26 Allocation)
2026-27 Anticipated Program Income (Sale of Two Habitat Houses)
Public Facilities Rehabilitation Program (Non-Profits)
Disposition of Properties (1107 Grand, 621 Grand, 1514 Duff, Baker Subdivision)
Public Infrastructure Improvements (Street Improvement-S. Washington)
2026-27 PROPOSED Action Plan Expenditure Budget:
2026-2027 Proposed CDBG Projects
Total Allocations
Less: CDBG Administration (20% Cap)
Total Allocations for Programming
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