TO: Mayor and City Council
THROUGH: Krishna Namburi, City Manager
FROM: Kristin Retherford, Director, Community Planning and Development
SUBJECT:
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PY26 Annual Action Plan for HUD CDBG and HOME Funds
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Welcoming and Livable Community.
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SUMMARY:
summary
City of Salem has drafted its Program Year 2026 (PY26) Annual Action Plan for HUD CDBG and HOME Funds for Public Comment and Council Approval. The City’s total CDBG Award for PY26 is $1,456,548 and total HOME Award is $678,183.
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ISSUE:
Shall City Council approve the PY26 Annual Action Plan for submission to the HUD Portland Field Office?
RECOMMENDATION:
recommendation
Approve the PY26 Annual Action Plan for submission to the HUD Portland Field Office.
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FACTS AND FINDINGS:
In PY25, the City of Salem successfully passed the timeliness test associated with CDBG funds for the first time in five years, securing the entirety of the City’s HUD CDBG grant funds for PY26.
The City has several commitments continuing from the PY25 Annual Action Plan approved by Council last July.
These include completion of the Voyagers Village and Macleay Community Land Trust (CLT) affordable housing projects, commitment of funds for a Downpayment Assistance project in association with Macleay CLT, and commitment of both CDBG and HOME funds for the planned renovation of the Southview Terrace and Englewood West apartment buildings, which are SHA owned affordable housing projects for senior citizens. It also includes completion of Center for Hope and Safety’s advocacy office repairs, WestCare veteran’s housing rehabilitation, and Hispanic Business Chamber of Commerce’s Microenterprise training.
The City has budgeted $3 Million for the SHA Rehab project ($2 Million HOME and $1 Million CDBG) and $300,000 for the Macleay CLT Downpayment Assistance Project ($95,500 HOME and $204,500 CDBG). The CDBG Downpayment Assistance Project will absorb the City’s PY26 Public Service funds. DevNW, the City’s Community Housing Developerment Organization is allocated 5% ($33,910) of the HOME grant for its capacity building needs.
This Plan reserves $110,000 of CDBG funds for as-of-yet undetermined project in the ”Public Facilities” category, $90,000 of CDBG funds for a potential Economic Development project, $749,265 (HOME/CDBG combined) for an opportunity project, and a total of $364,130 ($296,310 CDBG and $67,820 HOME) for the Administration of Federal Funds.
BACKGROUND:
The City must submit an Annual Action Plan (AAP) to receive CDBG and HOME entitlement funds from the U. S. Department of Housing and Urban Development. (Attachment 1). The AAP identifies resources and proposed expenditures of the CDBG, and HOME funds administered by HUD. HUD requires a public comment period prior to a public hearing and City Council adoption of the AAP.
The City published a notice of the hearing in the Salem Reporter on April 25, 2026. The comment period ends on May 25, 2026. Any comments received will be acknowledged at the hearing.
Eric Lowe
Federal Programs Manager
Attachments:
1. Draft PY26 AAP