Title
RESOLUTION AUTHORIZING A REQUEST FOR U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (“HUD”) EMERGENCY SOLUTIONS GRANTS PROGRAM (ESG) FUNDING FOR THE 2026 PROGRAM YEAR, AUTHORIZING CONTRACTS, AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.
Body
CITY PROPOSAL:
WHEREAS, City Council Resolution No. 26-0045R, adopted January 26, 2026, approved 2026 Action Plan; and
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 Grants program [ESG]);
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 is hereby designated as the financial resource for the above program:
Source of Funding
2026 ESG Grant $207,000
Total $207,000
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 approval 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 Emergency Solutions Grants Program (ESG). 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 community development committee (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 2025 CDBG, HOME and ESG programs. The CD committee’s recommendations were adopted on December 16, 2025, with the concurrence of the planning and development manager The CD committee held a public hearing on November 18, 2025, to hear comments on the funding recommendations and approved 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:
$207,000 in new 2026 HUD ESG 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 ESG Program.
(b) Authorizes contracts for the activities upon receipt of the funding contract and completion of the environmental review process. Attachment 2 contains the ESG program descriptions.