Title
Public Hearing on the Program Year 2026 Community Development Block Grant Annual Action Plan
Recommended Action
Committee Recommendation:
The Community Livability and Public Safety Committee recommends holding a public hearing on the Program Year 2026 Community Development Block Grant Annual Action Plan.
City Manager Recommendation:
Hold a public hearing on the Program Year 2026 Community Development Block Grant Annual Action Plan.
Report
Issue:
Whether to hold a public hearing on 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):
Anastasia Everett, Senior Housing Program Specialist
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 27th. The Committee voted to move the recommendations forward to the full Council for consideration of approval. The City is required by our Public Participation Plan to hold a 30-day public comment period and public hearing for the Annual Action Plan prior to 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 Draft Program Year 2026 Annual Action Plan.
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. Project descriptions are attached to this staff report, 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.
Timeline and Next Steps
The public comment period for the Annual Action Plan is open from June 8th to July 9th. Consideration of Council approval for the Annual Action Plan is scheduled for the July 14th regular City Council meeting. The plan is due to HUD no later than July 17th.
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. Hold the public hearing
2. Reschedule the public hearing for another Council meeting and risk noncompliance with HUD regulations.
3. Do not hold a public hearing.
Attachments:
Draft Program Year 2026 Annual Action Plan
Public Summary of the Annual Action Plan
Federal Funding Risks
CDBG Program Information