Title
Approval of the Program Year 2026 Community Development Block Grant Annual Action Plan
Recommended Action
Committee Recommendation:
The Community Livability and Public Safety Committee recommended approval of the Program Year 2026 Community Development Block Grant Annual Action Plan.
City Manager Recommendation:
Move to approve the Program Year 2026 Community Development Block Grant Annual Action Plan.
Report
Issue:
Whether to approve the Program Year 2026 Community Development Block Grant Annual Action Plan.
Staff Contact:
Anastasia Everett, Senior Housing Program Specialist, Community Planning & Economic Development, 360.753.8277
Presenter(s):
None - consent calendar item.
Background and Analysis:
The City of Olympia is an entitlement community for the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program. More information about the CDBG program is available as an attachment to this staff report, titled CDBG Program Information. Each year the City must prepare an Annual Action Plan to identify projects funded with available resources and associated goals.
Staff presented recommendations for the Program Year 2026 allocations at the Community Livability and Public Safety Committee on May 27. The Committee voted to move the recommendations forward to the full Council for consideration of approval.
A draft of the Program Year 2026 Annual Action Plan, including proposed subrecipients of CDBG funding and proposed award amounts, is attached as Program Year 2026 Annual Action Plan. The City held the required public hearing the June 23 City Council meeting and the public comment period was open from June 8 - July 9.
Available resources for Program Year 2026 include an entitlement award of $376,415 proposed reallocation of $35,176 of revolving loan funds, and $250,000 of revolving loan funds allocated to the current rental rehabilitation project underway, bringing the total available resources to $661,591.
The Program Year 2026 projects are as follows:
• Rebuilding Together Thurston County - Critical Home Repair
• Enterprise for Equity - Microenterprise Assistance
• South Puget Sound Habitat for Humanity - Critical Home Repair
• South Puget Sound Habitat for Humanity - Energize Thurston
• City of Olympia - Planning & Administration
• City of Olympia - Rental Rehabilitation Program
Detailed project descriptions are in the attachment titled Public Summary of the Annual Action Plan.
There are risks associated with the Program Year 2026 award. More information can be found in the attachment to this staff report titled Federal Funding Risks.
Climate Analysis:
CDBG is a flexible grant that can be used to support the City’s climate goals. Activities proposed in the Program Year 2026 award such as Energize Thurston decrease carbon emissions. No activities presented are expected to increase carbon emissions.
Equity Analysis:
CDBG funds must primarily benefit 80% or under Area Median Income (AMI) persons. Most of the Program Year 2026 funding is dedicated to activities to help achieve housing preservation goals outlined in our Consolidated Plan, Housing Action Plan, and One Community Plan. Activities funded provide ways to keep low-income households stably housed in safe and healthy housing. Improvements funded by CDBG are free or very low cost to homeowners. There are statistically major disparities in income that are tied to marginalized groups in our community. More information about disparities can be found in the City’s Assessment of Fair Housing.
Neighborhood/Community Interests (if known):
CDBG funding is used to support Olympia residents with incomes at or below 80% of the Area Median Income. Supporting low- and moderate-income Olympia residents is a high priority for the community, and CDBG funded projects help meet many of the City’s goals outlined in the One Community Plan.
Financial Impact:
The PY26 entitlement award is $376,415 and the proposed reallocation of unspent Revolving Loan Fund (RLF) is $35,176. $250,000 of revolving loan funding is proposed to remain allocated for the current rental rehabilitation project underway. The CDBG program can anticipate collecting between $50,000 and $250,000 in Program Income during the program year, increasing the funding available for proposed contingency activities. Local funds are used to pay for approximately half of 1 FTE’s salary and benefits.
Options:
1. Move to approve the Program Year 2026 Community Development Block Grant Annual Action Plan.
2. Move to approve, with amendments, the Program Year 2026 Community Development Block Grant Annual Action Plan.
3. Do not approve the Annual Action Plan and risk noncompliance with HUD submittal requirements.
Attachments:
Program Year 2026 Annual Action Plan
Public Summary of the Annual Action Plan
Federal Funding Risks
CDBG Program Information