AGENDA ITEM EXECUTIVE SUMMARY
ITEM TITLE*
title
Recommended 2026-27 Community Development Block Grant Annual Action Plan
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 adopt the 2026-27 CDBG Annual Action Plan.
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ACTION/DECISION POINTS*
1. Adopt the attached resolution approving the recommended 2026-27 Community Development Block Grant Annual Action Plan for use of $605,595
2. Authorize the Town Manager to submit the Plan to the U.S. Department of Housing and Urban Development (HUD) as the second annual update to the 2025-2029 Consolidated Plan
3. Enact the attached project ordinance to establish the CDBG budget for the 2026-27 program
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.
The Annual Action Plan describes how the Town will use CDBG funding during the next program year. Council must approve the Annual Action Plan before they can be submitted to HUD for approval. The deadline for submission of the Plan to HUD is June 8, 2026.
BACKGROUND AND CONTEXT*
The Town held the first public forum on assessing community needs for the 2026-2027 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 are recommending seven for funding, in addition to one Town program. The Town held a second public forum on April 15, 2026 and a 30-day public comment period between April 1 and April 30, 2026 to receive any public comments about the draft 2026-27 CDBG Annual Action Plan. The Town has not received any comments.
A summary of the final recommended funding plan is included in the attached Summary of 2026-27 CDBG Funding Requests and Funding Recommendation.
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. This year’s grant allocation is $432,113.
In addition to the annual grant allocation, the 2026-27 CDBG Annual Action Plan also includes $173,482 in reallocated funding from previous program years. Since the grant total is not changing for the 2022-23 and 2025-26 grants, project ordinance amendments are not needed to repurpose the project funds.
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 funding set aside to support 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 2026-27 CDBG Annual Action Plan on April 1, 2025. The public comment period closes on April 30, 2025. In addition, the Town held public hearings on the housing and community development needs assessment on November 12, 2025 and on the draft 2026-27 CDBG Annual Action Plan on April 15, 2026.
ATTACHMENTS
Resolution Approving the 2026-27 CDBG Annual Action Plan
Project Ordinance Establishing the 2026-27 CDBG Budget
Summary of 2026-27 CDBG Funding Requests and Funding Recommendation
2026-27 CDBG Annual Action Plan Draft <https://www.chapelhillnc.gov/files/assets/town/v/1/housing/documents/affordable-housing/april-2026-cdbg-public-comment-period/2026-aap-v02.pdf>
25-29 CDBG Quick Reference <https://www.chapelhillnc.gov/files/assets/town/v/1/housing/documents/affordable-housing/april-2026-cdbg-public-comment-period/25-29-cdbg-quick-reference.pdf>
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