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HomeMy WebLinkAboutA031 - Hearing for approval of 2026-2027 Annual Action Plan for the City's Community Development (CDBG) and HOME ProgramsITEM #:30 DATE:07-28-26 DEPT:P&H SUBJECT:HEARING FOR APPROVAL OF 2026-2027 ANNUAL ACTION PLAN FOR THE CITY'S COMMUNITY DEVELOPMENT (CDBG) & HOME PROGRAMS COUNCIL ACTION FORM BACKGROUND: As part of the City’s approved 2024-28 Five-Year Community Development Block Grant (CDBG) and HOME Consolidated Plan, the City must submit an Annual Action Plan that outlines the proposed activities and budget to be implemented in the upcoming year. Action Plan activities should be consistent with the goals and priorities identified in the Consolidated Plan. The Consolidated Plan goals address support for creating and sustaining affordable housing for low- and moderate-income households, as well as for non-low- and moderate-income households, with specified outcomes related to each goal. For FY 2026-27 CDBG/HOME Allocations, and the City was awarded the following amounts: CDBG: $547,112 HOME: $270,579.98 These funds are combined with rollover funds and projected program income to create the total planned budget for the proposed Annual Action Plan. PUBLIC FORUM INPUT: 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 individuals attended the in- person forums. Attendees included representatives from Good Neighbor, The Bridge Home/CISS, Christ Community Church, Heartland of Story County, Friendship Ark, ACCESS, and Pathway to Home. Additionally, the draft proposed 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 during the public forums. At the April 14, 2026, City Council meeting, staff presented the public forum comments and proposed projects for the 2026-27 Proposed Draft Annual Action Plan (see Attachments A & B). City Council directed staff to finalize the Plan and make it available for public comment. 1 For the FY 2026-27 CDBG Program , the following projects were proposed: CDBG (Attachment A): Homebuyer Assistance Program--$160,000 Public Facilities Rehabilitation Program (Non-Profits)--$222,923 Disposition of Properties (1107 Grand, 621 Grand, 1514 Duff, Baker Subdivision)-- $12,000 Public Infrastructure Improvements (Street Improvement-S. Washington)--$405,300 TOTAL PROPOSED CDBG BUDGET--$800,233 (not including administration)   HOME (Attachment B): For the FY 2026-27 HOME Program, the following project was proposed: New Single Family Home Construction— $895,732 (not including administration) This proposed budget would assist in constructing approximately three of the remaining six affordable lots in the Baker Subdivision (see attached budget). The proposed plan was made available for public comment from June 24, 2026, through July 23, 2026. The following comment was received during the comment period (see Attachment C). ALTERNATIVES: 1. Approve the proposed 2026-27 Annual Action Plan Program Projects and budget (Attachments A and B) and authorize the submittal of the plan to HUD on or by August 16, 2026. 2. A p p r o v e modified 2026-27 Annual Action Plan Program Projects and budget (Attachments A and B) and authorize the submittal of the plan to HUD on or by August 16, 2026, with modifications. 3. Request more information from staff and consider approval on August 11. CITY MANAGER'S RECOMMENDED ACTION: All of the proposed projects will continue to help address the needs identified in the 2024-28 Five-Year Consolidated Plan. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above. ATTACHMENT(S): CDBG_2026-27_Proposed_Budget-4-10-26-R.pdf HOME_2026-27_Proposed_Budget_3-3-26.pdf 30-Day Comment.pdf 2 2026-27 CDBG Budget Allocation Program Income Totals (109,422)$ (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 $58,861)* Total Anticipated 2026-27 Allocation Balance Program Totals PROPOSED 2026-27 Action Plan Revenue Budget: 2026-27 CDBG Allocation (Based on 2025-26 Allocation) 2026-27 Anticipated Program Income (Sale of Two Habitat Houses) Public Facilities Rehabilitation Program (Non-Profits) Disposition of Properties (1107 Grand, 621 Grand, 1514 Duff, Baker Subdivision) Public Infrastructure Improvements (Street Improvement-S. Washington) 2026-27 PROPOSED Action Plan Expenditure Budget: 2026-2027 Proposed CDBG Projects Total Allocations Less: CDBG Administration (20% Cap) Total Allocations for Programming ATTACHMENT A 3 2026-27 HOME Budget Allocation 2026-27 HOME Anticipated Proposed HOME Program 270,579.98$ 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 ATTACHMENT B 4 ATTACHMENT B 30-day Public Comments From: Debbie Carter <debbielanp@aol.com> Sent: Saturday, July 11, 2026 2:29 PM To: Baker-Latimer, Vanessa <vanessa.bakerlatimer@cityofames.org> Subject: RE: Input Sought for CDBG/HOME Annual Action Plan Dear Vanessa Baker-Latimer: Please submit my request and comments for consideration in regard to the CDBG/HOME Annual Action Plan 2026/2027 annual grant. I request that the city strengthen existing neighborhoods and improve public facilities by implementing grants or cost-sharing for sidewalk and alley improvement programs in moderate income census tracts, or for moderate income residential property owners in any census tract, or in cases that the improvement is best done by government such as in the pavement of a gravel alley. In cases where sidewalk improvement costs are prohibitive or excessive for the homeowner, a 50/50 cost sharing program might also offer necessary relief. Thank you for your consideration. And, Vanessa, thank you for visiting with me about the CDBG/HOME Annual Action Plan! Best wishes! Debbie Carter 709 Douglas Avenue Ames, IA. 50010 Phone: 515-708-6351 5