Adopting a Resolution approving the 2027 Annual Action Plan, as required by the United States Department of Housing and Urban Development for the receipt of Community Development Block Grant (CDBG) funds.

On September 21, 2026, the Council opened the public comment period on the 2027 Annual Action Plan (AAP). The AAP is a summary of the actions, activities, and specific federal and non-federal resources that can be used to address the priority needs and specific goals identified in the 2025-2029 Consolidated Plan. The 2027 AAP covers activities planned for program year 2027.

The public comment period closes at the November 2, 2026, Council meeting. Since the opening of the comment period, the APP has been available on the City's website for public review and comment. An open house was held on Tuesday, September 29, 2026, to gather feedback on the proposed 2027 AAP. One individual attended the open house, and there was a general discussion on CDBG funding.

At this time, the Council is being asked to close the public comment period and approve the 2027 Annual Action Plan. Any changes to the 2027 allocations can be made when the Council closes the public comment period, and any comments received will be noted in the final document submitted to the United States Department of Housing and Urban Development (HUD). The City needs to have adopted the Annual Action Plan no later than November 15th.

Due to the length of the 2027 Annual Action Plan, the document can be found on the City's website: Community Development Block Grant (CDBG) | Rochester, MN

The recommended 2027 CDBG activities and their respective funding amounts, as outlined in the 2027 Annual Action Plan, are shown in the attached exhibit.

Allocation of received funding from the U.S. Department of Housing and Urban Development (HUD) through the CDBG program goes toward activities that meet the priorities established by the City in its Consolidated Plan. The Consolidated Plan is a five-year plan that is submitted by the City to HUD outlining the goals and vision for actions to be accomplished with CDBG funds. Five components make up the Consolidated Plan: a description of the lead agency, a housing and homeless needs assessment, a housing market analysis, a strategic plan, and an annual action plan. Annual goals and benchmarks for these goals are included in the Consolidated Plan. Priority needs found in the 2025-2029 Consolidated Plan are the following: Access to Affordable Housing, Access to Public Services, Non-Housing Community Development, Affirmatively Furthering Fair Housing, and Planning and Administration. Each activity must meet one of the following national objectives for the program: benefit low- and moderate-income persons, prevent or eliminate slums or blight, or meet an urgent community need that threatens the health or welfare of the Community.

July 17, 2026: Notice of 2027 CDBG application period sent to organizations

July 18, 2026: Notice of 2027 CDBG application period published in the Post Bulletin

July 22, 2026: Press release issued regarding 2026 CDBG application period

July 22, 2026: Open house held for questions regarding the 2027 application

August 31, 2026: Steering Committee review of the 2027 applications

September 14, 2026:  AAP public input session at the library

September 21, 2026: Council Meeting - Opened the public comments on the 2027 AAP

September 29, 2026: AAP open house to gather public comment on the 2027 AAP

Funding is received is from the Department of Housing and Urban Development.

No alternative action is suggested at this time.