Fiscal Note
The proposed resolution approves the City of Madison's submission of its 2026 Annual Action Plan (AAP) to HUD. The AAP outlines the City's planned activities funded through federal formula grants for the 2026 calendar year. The specific federal funding sources, announced by HUD on April 3, 2026, and outlined in the AAP, total $3,568,296 and include up to $2,041,348 in Community Development Block Grant (CDBG) funds, up to $1,347,208 in HOME Investment Partnerships Program (HOME) funds, and up to $179,740 in HEARTH/Emergency Solutions Grant (HESG) funds, and are supplemented by program income as well as other State and local funding sources, ESG/HPP/HAP ("EHH") grant funds, and Housing Cost Reduction Initiative (HCRI) grant funds. The Community Development Division’s (CDD) 2026 Adopted Operating Budget includes estimates of these funding sources in the Community Development Grants fund, primarily as intergovernmental revenue ($7,256,051), and authorizes the expenditure of these funds, primarily in Purchased Services.
No additional City appropriation is required. The projected figures the CDD used in its 2026 budget development (Munis Fund 1205, Subfund 12101) were at or above actual allocation levels received from HUD.
Title
Adopting the City of Madison’s required 2026 Annual Action Plan (AAP) and approving submission of the Plan to the U.S. Department of Housing and Urban Development (HUD). (Citywide)
Body
Background
The U.S. Department of Housing and Urban Development (HUD), as a condition of awarding federal funding to the City of Madison through the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and HEARTH/Emergency Solutions Grant (HESG) Programs, requires the City to submit an Annual Action Plan (AAP) describing how the City will use those funds. The AAP must also describe how supplemental funds from State and local sources will be used to further the same or similar goals and objectives. The goals and objectives upon which the AAP is developed are anchored in HUD priorities established for these program funds, including housing, economic development and neighborhood revitalization, and are more specifically articulated within the City's HUD-approved 2025-2029 Consolidated Plan. Each expenditure of these funds is subject to approval by the City's CDBG Committee and the Common Council. The City of Madison's Community Development Division administers the funds.
HUD announced Grantees’ final FY26 formula grant allocation figures on April 3, 2026. The final version of the City’s 2026 AAP will be submitted to HUD for review and approval, following a period of public comment on the posted draft 2026 AAP.
Action
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires that each Entitlement community Grantee submit an Action Plan annually to receive federal funds; and,
WHEREAS, the City of Madison receives funding from HUD and is obligated to adhere to established rules and regulations regarding its use; and,
WHEREAS, the Community Development Division developed the City's 2026 Annual Action Plan (AAP) consistent with the City's adopted 2025-2029 Consolidated Plan; and,
WHEREAS, the CDBG Committee held public hearings on February 6, 2025, and June 4, 2026, to seek public input and advice from community organizations, service providers and other stakeholders with respect to the City's use of federal funds generally and, more specifically, with regard to the City's published draft 2026 AAP; and,
WHEREAS, the Community Development Division is charged with carrying out the goals and objectives in the Plan to include housing, economic development, and neighborhood revitalization activities;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council hereby adopts and authorizes the submission to HUD of the 2026 AAP in its final form, and authorizes the Mayor and City Clerk to sign any agreements necessary to accept the allocation of 2026 federal funds up to the figures cited herein, and enter into any requisite agreements needed to implement the AAP's articulated goals and objectives.