Lenor council unanimously approves FY2026 HUD action plan for CDBG and HOME programs

Lenor — The Lenor City Council voted unanimously on Tuesday to approve the city’s FY2026 action plan required by the U.S. Department of Housing and Urban Development, authorizing use of Community Development Block Grant (CDBG) and HOME funds for the coming federal fiscal year.

The plan, presented to council members during the May 19 meeting by the region’s planning staff, allocates $118,886 in CDBG funds to the city for public facility improvements and related activities. The Unifor Home Consortium, for which Lenor serves as lead entity, will receive $976,597.50 for HOME-authorized activities that staff said will include down-payment assistance, financing support for multifamily projects and funding for community housing development organizations (CHDOs).

City staff recommended approval and described the HOME program components the consortium typically uses: a countywide down-payment assistance program that can provide up to $20,000 as a zero-interest, deferred loan with partial forgiveness after 10 years; developer support for multifamily projects using low-income housing tax credits; and CHDO-led development activities.

The council did not request further changes and approved the plan by motion. According to staff, HOME and CDBG funds will flow through the city, which acts as the fiscal agent for the four-county consortium; program income and loan repayments are then recycled into future projects.

Why it matters: The approved plan sets how federal housing and community-development dollars will be used locally for the next 12 months, including assistance aimed at low- and moderate-income households and financing mechanisms that support larger multifamily and senior housing projects.

Next steps: Staff will submit the action plan to HUD for its review and approval, and council members said they expect project-level recommendations and contract details to return to the council as projects are selected and scoped.