AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Public Hearing: 2026-27 CDBG Annual Action Plan Draft
presenter
RESPONSIBLE STAFF, TITLE, DEPARTMENT*
Loryn Clark, Deputy Town Manager and Interim Director, Housing and Community Development (HCD) Department
Emily Holt, Assistant Director of Affordable Housing, HCD Department
Melissa Peters, Funding Programs Coordinator, HCD Department
STAFF RECOMMENDATION*
Staff recommends that the Council open the hearing, receive comments on the draft 2026-27 CDBG Annual Action Plan.
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ACTION/DECISION POINTS*
Open the public hearing 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 hearings 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 hearings. The review of outcomes will occur during this hearing.
This year’s Annual Action Plan is the second year of the 2026-2030 5-Year Consolidated Plan, which is submitted yearly by the County as part of their role as head of the Local Government Affordable Housing Collaborative.
The Annual Action Plan describes how the Town will use CDBG funding during the next program year. The final Annual Action Plan is submitted by Orange County along with the Consolidated Plan to HUD. The Plan will include all comments received in writing and at public hearings.
BACKGROUND AND CONTEXT*
The Town held the first public hearing on assessing community needs for the 2026-27 CDBG Annual Action Plan on November 12, 2025. Since then, the Town released a Request for Proposals for anticipated 2026-27 funding needs and continued to evaluate the community development and affordable housing funding needs of the Town. The Town received and reviewed 11 applications that were eligible for CDBG funding and recommends 7 for funding, in addition to one Town program.
Council will act on the recommended 2026-27 CDBG Annual Action Plan in May.
FINANCIAL IMPACT
This 2026-27 Annual Action Plan includes a total of $605,595 in CDBG funding. The Town of Chapel Hill is a CDBG Entitlement Community and receives an annual CDBG allocation from HUD. HUD released the formula grant allocation on April 6, 2026. The Town’s 2026-27 CDBG allocation will be $432,113, which is similar to the 2024-25 grant amount of $437,331 and higher than last year’s grant of $415,188.
In addition to the annual grant amount, the 2026-27 Annual Action Plan also includes $173,481.50 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. If the Council approves the proposed program, with the exception of program administration, 100% of program funds would 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 2026-27 CDBG Annual Action Plan and prior amended Action Plans on April 1, 2026. In addition, the Town held a public hearing on the housing and community development needs assessment on November 12, 2025.
ATTACHMENTS
CDBG Public Hearing 2026 PPT
2025-2026 CDBG-Funded Program Performance
Summary of AAP Amendments <https://www.chapelhillnc.gov/files/assets/town/v/1/housing/documents/affordable-housing/april-2026-cdbg-public-comment-period/2026-aap-summary.pdf>
Summary of 2026-27 CDBG Funding Requests and Funding Recommendation
25-29 CDBG Quick Reference <https://www.chapelhillnc.gov/files/assets/town/v/1/housing/documents/affordable-housing/25-29-cdbg-quick-reference.pdf>
2026 CDBG Annual Action Plan
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