Anacortes council hears CDBG update; staff recommends public services, shelter HVAC and ADA improvements amid tight funding

Anacortes officials heard a midyear update on the city's Community Development Block Grant program on March 9, where staff recommended using the city's small annual allocation to prioritize public services and urgent facility repairs.

"My name is Stephanie Snyder. I'm the community development coordinator," said Stephanie Snyder, who walked the council through HUD timelines, the city's financials, and staff's draft 2026 allocation. Snyder told the council that Anacortes participates in a regional consortium with Skagit County and Mount Vernon to qualify for entitlement funding and that the city has been drawing down prior-year balances to complete projects.

Snyder said the city's 2025 allocation totaled $108,427 and current HUD balances are low (a reported $1,360), while the total requests submitted for the coming year total about $224,473. To match HUD's requirements and local priorities, staff recommended funding (1) community action of Skagit County for expanded employment services (using the CDBG public-services 15% cap), (2) replacement of a failing HVAC system at the Anacortes Family Center emergency shelter (roughly $46,000), and (3) three ADA-access doors at the Salvation Army location (about $26,000). The city's administrative reimbursement (capped at 20%) was also included to cover staff time.

Council members pressed for clarity on eligibility under recent federal guidance and on the tradeoffs between capital repairs and ongoing services. "We were impacted by the government shutdown last year," Snyder said in response to a question about timing, describing an 8- to 10-week funding delay in a prior year. Planning Director John Coleman and Snyder said staff will check HUD eligibility details and refine justifications before the next hearing.

The council did not take final action at the March 9 hearing. Snyder said staff will prepare a HUD-formatted draft action plan, post it for the required 30-day public comment period that closes April 23, and return the plan to council for a second public hearing and a vote on April 27. If approved by the council, Anacortes will submit the plan to HUD no later than May 15.

The presentation listed recent CDBG-funded local work including roof repairs on affordable housing, pantry improvements and curb ramps, emphasizing that small CDBG investments can leverage larger state grants. Snyder urged the public and prospective grantees to provide feedback during the comment period.