AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Hold a Public Forum on the draft 2025-26 CDBG Annual Action Plan and 2025-29 5-Year Consolidated Plan.
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Sarah Osmer Viñas, Director, Affordable Housing and Community Connections (AHCC) Department
Emily Holt, Affordable Housing Manager, AHCC Department
Melissa Peters, Funding Programs Coordinator, AHCC Department
STAFF RECOMMENDATION*
Staff recommends that the Council receive comments on the draft 2025-26 CDBG Annual Action Plan and 2025-29 5-Year Consolidated Plan.
body
ACTION/DECISION POINTS*
Open the public forum to receive comments. No formal Council action required.
LEGISLATIVE CONTEXT*
The Town of Chapel Hill receives an annual allocation of Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to address community development and affordable housing needs.
HUD requires communities that receive federal CDBG funds to hold two public forums during the development of its Annual Action Plan to receive feedback on the use of CDBG funds. HUD also requires grantees to review outcomes for the current program year during at least one of the public forums. The review of outcomes will occur during this forum.
The Town is part of the HOME Consortium called the Local Government Affordable Housing Collaborative (LGAHC) alongside Orange County and the Towns of Carrboro and Hillsborough. Orange County administers the HOME funding on behalf of the LGAHC, including the funding allocation process and the creation of the 5-Year Consolidated Plan.
The Annual Action Plan describes how the Town will use CDBG funding during the next program year. The 5-Year Consolidated Plan will determine County and Town priorities for federal funding over the next five years of funding. The final Annual Action Plan and Consolidated Plan submitted to HUD will include all comments received in writing and at public forums.
BACKGROUND AND CONTEXT*
The first public forum on assessing community needs for the 2025-2026 CDBG Annual Action Plan and 2025-29 5-Year Consolidated Plan was on November 13, 2024. Since then, the Town released a Request for Proposals for anticipated 2025-26 funding needs and continued to evaluate the community development and affordable housing funding needs of the Town. The Town received and reviewed 12 applications that were eligible for CDBG funding and are recommending 7 for funding, in addition to two Town programs.
Council will act on the recommended 2025-26 CDBG Annual Action Plan in May, once HUD releases the 2025-26 CDBG grant amounts.
FINANCIAL IMPACT
This 2025-26 Annual Action Plan includes a total of $718,999 in CDBG funding. The Town of Chapel Hill is a CDBG Entitlement Community and receives an annual CDBG allocation from HUD. Last year’s grant amount was $437,331. Based on the Continuing Resolution passed by Congress on March 14, 2025, Town staff anticipate a similar level of funding for 2025-26. HUD typically notifies the Town of their grant allocation within a few weeks of adopting their budget.
In addition to the estimated annual grant amount, the 2025-26 Annual Action Plan also includes the following funding:
• $21,199 in program income from the payoff of a loan made in 2008 to support development of the Dobbins Hill Low-Income Housing Tax Credit community.
• $260,469 in reallocated funding from previous program years.
The Town allocates a portion of its CDBG funding to internal programs and administrative costs and a portion to local partners that implement approved programs and services through performance agreements.
Community Impact
CDBG funding is intended to develop viable urban communities primarily for low- and moderate-income people by providing decent housing, suitable living environments, and economic opportunities. Except for program administration, the Town intends to allocate 100% of program funds to benefit low- and moderate-income individuals and households in Chapel Hill.
COMMUNITY ENGAGEMENT
The Town opened a 30-day public comment period on the draft 2025-26 CDBG Annual Action Plan and 2025-29 5-Year Consolidated Plan on April 1, 2025. In addition, the Town held a public forum on the housing and community development needs assessment on November 13, 2024.
The Town also coordinated with Orange County, NC on the design and implementation of a community engagement effort intended to inform the development of the 5-Year Consolidated Plan for the County HOME Consortium, which determines the funding priorities for the Town’s 2025-29 CDBG Annual Action Plans. The County leads the Consortium and manages the preparation of the 5-Year Consolidated Plan. The engagement process included:
• A needs assessment survey (133 respondents)
• 5 In-person community meetings (55 participants)
34.6% of participants in these engagement efforts were Chapel Hill community members.
ATTACHMENTS
Summary of 2025-26 CDBG Funding Requests and Funding Recommendation <https://www.townofchapelhill.org/home/showpublisheddocument/57024/638791169426965352>
2025-26 CDBG Annual Action Plan <https://www.townofchapelhill.org/home/showpublisheddocument/57022/638791168653533754>
Town of Chapel Hill CDBG Quick Guide <https://www.townofchapelhill.org/home/showpublisheddocument/55671/638472260022070000>
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