Title
RESOLUTION AUTHORIZING A REQUEST FOR U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”) FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2026 PROGRAM YEAR, AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.
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CITY PROPOSAL:
WHEREAS, City Council Resolution No. 26-0045R, adopted January 26, 2026, approved the 2026 Action Plan
WHEREAS, the secretary of HUD is authorized to make grants to cities and/or counties to finance local community development programs, approved in accordance with the provisions of Title I of said Act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended (the Emergency Solutions Grant - ESG - program);
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth in Attachment 1.
BE IT FURTHER RESOLVED, that the following are hereby designated as the financial resources for the programs listed in Attachment 1:
SOURCE OF FUNDING
Year 2026 CDBG Grant - city $ 2,351,000
Total $ 2,351,000
BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.
BE IT FURTHER RESOLVED, that the proper city officials are authorized to execute the appropriate agreements with these agencies upon receipt of HUD funds.
BE IT FURTHER RESOLVED, that the Community Development Committee approved a contingency plan on December 16, 2025 stating that if there should there be a higher level of CDBG funding allocated to the city for 2026 than estimated, such funding shall be distributed proportionally using the scores as a guide, rounded to the nearest thousand dollar to previously recommended projects that were not recommended to receive full funding, up to 3% of the final allocation, and if less funding is allocated, all projects shall be reduced proportionally rounded to the nearest whole dollar up to 3% of the final allocation. If the final allocated amount varies by more than 3% of the estimated amount then the community development committee shall reconvene and revise the funding recommendation and submit it to the City Council.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution reflects the recommendations of the Community Development Committee (CD committee) with concurrence of the Planning and Development manager. The CD committee solicited comments from organizations and citizens as related to the proposed 2026 funding for the Community Development Block Grant (CDBG). The recommendations contained in this resolution were developed based on consideration of citizen comments, the public hearing held on November 18, 2025, and the deliberations of the CD committee. There was a 30-day public comment period from November 15, 2025, to December 16, 2025, on the 2026 annual action plan, which also includes recommended funding for the 2026 CDBG, HOME and ESG programs. The CD committee held a public hearing on November 18, 2025, to hear comments on the funding recommendations and approve a contingency plan if the allocated funding was altered by more than 3%.The CD committee’s recommendations were adopted on December 16, 2025, with the concurrence of the Planning and Development Manager.
Source of Funds:
$2,351,000 in new 2026 HUD CDBG Funds
The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
(a) Allocates funds by project for 2026 CDBG Program.
(b) Authorizes contracts for the activities listed in Attachment 2 upon receipt of the funding contract and completion of the environmental review process. Housing contracts will include addendums that require affordability restrictions in accordance with HUD regulations. Attachment 2 contains the CDBG program descriptions.