The Urbana Community Development Commission convened a public hearing at 6 p.m. on Feb. 26 to review the city and Urbana Home Consortium’s draft fiscal-year 2026–27 Annual Action Plan for U.S. Department of Housing and Urban Development (HUD) funds. Nick Olsen, interim grants division manager for the city of Urbana, gave the presentation and answered commissioners’ questions.
The draft plan uses prior‑year allocations as placeholders while HUD’s official allocation is pending. "We are currently budgeting in the draft plan with the amount of $392,195 in CDBG funding and $633,154.18 in HOME funding," Olsen said. The draft also budgets tenant‑based rental assistance (TBRA) at $100,000 and retains HOME set‑asides for CHDO developer support, Olsen said.
Why it matters: The Annual Action Plan identifies the city’s planned use of federal CDBG and HOME funds for the program year July 1, 2026–June 30, 2027, including housing rehabilitation, public services, neighborhood stabilization (acquisition/demolition/new construction in qualifying census tracts) and infrastructure projects. The plan is the one‑year implementation step of Urbana’s 2025–2029 consolidated plan and guides which projects and providers receive federal support.
Olsen described typical uses: CDBG has broad eligible activities including public services and infrastructure in qualifying census tracts; HOME funding is more targeted to affordable housing, including construction, rehabilitation and tenant‑based assistance. He noted the city recently supported emergency rental assistance in partnership with Cunningham Township and funded Habitat for Humanity through a CHDO agreement.
Olsen also explained recent HUD guidance that new action‑plan budgets should not include prior‑year fund balances; prior funds remain bound to their original action plans and are tracked through consolidated performance reports, while new plans should reflect only the expected new allocation. He said staff will update the draft when HUD announces the official allocation and proportionally adjust budgets.
Public participation and next steps: The draft was published for public review starting Feb. 20, and written comments will be accepted through March 23 at 5 p.m. Copies of the draft are available on the city website, at the community development office, the city clerk’s office and the Urbana Free Library; staff are distributing a community needs survey and will email a flyer to commissioners for broader sharing.
Olsen outlined the schedule: the commission will consider a formal vote on the action plan at its regular March meeting, staff expects to present the plan to the City Council in April, and the city aims to submit the final plan to HUD by May 15 (45 days before the July 1 program year start), subject to HUD timing.
No members of the public provided oral comment during the hearing; the presiding official closed the hearing after staff concluded the presentation. At the subsequent regular meeting, the commission approved minutes of its Jan. 27 meeting by voice vote; the transcript records the ayes but does not provide a roll‑call tally.
What’s next: The commission’s March vote and any comments received during the public comment period will determine changes to the draft before staff submits the final plan to HUD.