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AGENDA RECOMMENDATION |
Public Hearings 7.A.
City Council Regular Meeting
- Meeting Date:
- 06/08/2026
Agenda Item:
Resolution adopting the City of Mankato 2026 Community Development Block Grant (CDBG) Annual Action Plan.
Recommendation/Action(s):
Adoption of attached resolution.
Summary:
On May 27, 2025, the City Council adopted the City of Mankato 2025-2029 Consolidated Plan for the utilization of Community Development Block Grant (CDBG) funding. The plan details how the expected annual funding from the U.S. Department of Housing and Urban Development (HUD) will be used in conformance with CDBG guidelines and guides the use of funds for each annual action plan. The first year of the plan ends on June 30, 2026, and the City is required to adopt a new Annual Action Plan to guide CDBG utilization for the next program year, which begins on July 1, 2026.
The City of Mankato is an entitlement grantee for the CDBG program, and receives an annual allocation of funds from HUD. Activities must primarily benefit low and moderate income (LMI) residents of Mankato, which is defined as having an income equal to or less than 80 percent of the area median income, adjusted for household size.
The funding level for the 2026 program year is $415,169. The table below summarizes the funding and proposed activities:
Proposed activities within the 2026 Action Plan are similar to previous years. For housing rehabilitation activities, dwelling units will be located within targeted areas. The targeted areas were determined based on the slum and blight analysis that was prepared in 2022. The targeted areas are neighborhoods with the highest population of low to moderate income households and with older housing stock, which have a greater need for rehabilitation compared to newer homes. There continues to be a need for housing rehabilitation.
HUD requires a 30-day public comment period and a public hearing to occur prior to approving the Action Plan. The 2026 CDBG Action Plan was posted for public comment May 8, 2026, through June 7, 2026. All comments received will be taken into consideration. At the time this memo was written, no public comments were received. Any additional comments made at the public hearing can still be considered by the City Council and if it is determined that a change to the plans is warranted, City staff will modify the plans prior to submission to HUD.
The City of Mankato is an entitlement grantee for the CDBG program, and receives an annual allocation of funds from HUD. Activities must primarily benefit low and moderate income (LMI) residents of Mankato, which is defined as having an income equal to or less than 80 percent of the area median income, adjusted for household size.
The funding level for the 2026 program year is $415,169. The table below summarizes the funding and proposed activities:
| 2026 Action Plan Activity | Use | CDBG Funding |
| Owner-Occupied Housing Rehabilitation | It is proposed to complete 4 units of owner-occupied housing rehabilitation. | $179,169 |
| Rental Housing Rehabilitation | It is proposed to complete 2 units of rental housing rehabilitation. | $24,000 |
| Affordable Housing | It is proposed to support affordable housing projects by providing leverage towards site acquisition costs for projects that create additional affordable housing units or projects that preserve existing affordable housing units. | $100,000 |
| Public Services | Similar to past years, would be awarded through requests for proposals for public service activities that meet a community need as identified during the public engagement for the Consolidated Plan and that also primarily benefit low to moderate income households. The CDBG program limits funding for public service grants to 15 percent of the total grant collection. | $62,000 |
| Administration and Planning | Costs associated with administering the CDBG program, along with possible consultant fees. This may include preparation of required reports, completing environmental reviews, fees to publish required public notices, and preparation of plans to support goals identified in the 2025-2029 Consolidated Plan. | $50,000 |
| TOTAL | $415,169 |
Proposed activities within the 2026 Action Plan are similar to previous years. For housing rehabilitation activities, dwelling units will be located within targeted areas. The targeted areas were determined based on the slum and blight analysis that was prepared in 2022. The targeted areas are neighborhoods with the highest population of low to moderate income households and with older housing stock, which have a greater need for rehabilitation compared to newer homes. There continues to be a need for housing rehabilitation.
HUD requires a 30-day public comment period and a public hearing to occur prior to approving the Action Plan. The 2026 CDBG Action Plan was posted for public comment May 8, 2026, through June 7, 2026. All comments received will be taken into consideration. At the time this memo was written, no public comments were received. Any additional comments made at the public hearing can still be considered by the City Council and if it is determined that a change to the plans is warranted, City staff will modify the plans prior to submission to HUD.