Title
Conduct a Public Hearing to Consider/Discuss/Act on Administrative and Allocation Adjustments to the Fiscal Year 2025-2026 Annual Action Plan and the Fiscal Year 2026-2027 Community Support Grant Application Scope
Summary
COUNCIL GOAL: To Improve Quality of Life in McKinney
MEETING DATE: March 17, 2026
DEPARTMENT: Housing and Community Development
CONTACT: Shirletta Best, Community Services Administrator
Margaret Li, Housing and Community Development Director
RECOMMENDED ACTION:
• Conduct a public hearing for administrative and allocation adjustments to the FY2025-2026 Annual Action Plan and the FY2026-2027 Community Support Grant (CSG) Application Scope.
ITEM SUMMARY:
• The proposed adjustments include allocating additional CDBG funds to eligible community development activities; expansion of eligible recipients for CDBG Housing Rehab funds; and reallocating existing CSG funds for FY 2025-2026.
• In addition, the proposed amendments would add a new category under the CSG program for FY 2026-2027 to provide additional opportunities for Nonprofit Capacity Building.
BACKGROUND INFORMATION:
FY 2025-2026 Annual Action Plan
• The FY 2025-2026 Annual Action Plan was approved by City Council on August 5, 2025, and subsequently approved by HUD in September. Under Community Development Block Grant (CDBG) regulations, if there are significant adjustments to the scope of work or funding allocation, a substantial amendment is required with a 30-day public comment period, before review and approval from HUD. General funds used by the CSG do not require a 30-day comment period.
• Currently, the CDBG program, under the approved Annual Action Plan, is using $321,000 of approved grant funds from previous years (2019-2022) for eligible housing and community development activities. The Annual Action Plan also includes microenterprise, façade improvements, workforce development (job training/job creation), and small business support as eligible activities. Funding is limited to qualified applicants that are able to demonstrate support for low income (0 to 80% Area Median Income) households; or provide an area benefit through job creation or retention.
o CDBG Financial Amendment: Staff are proposing two financial amendments.
• Reallocate the remaining $402,636 of approved grant funds to other eligible CDBG uses - excluding administration and public services - for additional city administered programs and subrecipients such as acquisition and infrastructure.
• Reallocate the remaining $8,417.10 CDBG-CV funds to assist unhoused senior residents through the subrecipient Wellness Center for Older Adults and administrative reporting by September 30, 2026.
o CDBG Program Amendment: Staff proposes to expand the Housing Rehabilitation Program to include subrecipients, to expand the community’s ability to provide repairs to low-to-moderate income households. Currently, the city is the only eligible recipient to use these funds. The proposed program amendment would be implemented under the current Annual Action Plan.
o CSG Financial Amendment: Community Lifeline Center was approved for funding totaling $40,000 under the CSG program for FY 2025-2026; however, the nonprofit ceased active operations as a nonprofit entity in November 2025, and programming was transferred to The Samaritan Inn which acquired the food pantry and emergency rental and utility assistance programs. Staff is proposing to transfer the funding from Community Lifeline Center to The Samaritan Inn. The Community Grants Advisory Commission (CGAC) conducted a public hearing on February 26,2026 to forward this recommendation to City Council.
FY 2026-2027 CSG Application Scope:
• Due to budget line-item changes and to provide greater transparency, Staff is proposing a policy amendment, to include the category of Nonprofit Capacity Building under the CSG program. The new category will provide eligible applicants with the opportunity to apply for grant funding for the following purposes: technology planning, strategic planning, evaluation, board and staff development and communications. These funds will further assist nonprofit’s organizational capacity to serve McKinney residents and foster stronger volunteer and program support. The new category will amend the most recent CSG resolution of 2025-03-39 and will be applicable for the FY 2026-2027 grant process.
o If approved, applicants may submit proposals for this category from March 4 - April 3, 2026; and the CGAC will conduct public hearings scheduled for April 30 and May 14, 2026, to provide funding recommendations to City Council.
FINANCIAL SUMMARY:
The following summary details the financial amendment per program for FY 2025-2026:
|
Grant Year |
Available Funds |
Current Allocation |
Proposed Amendment |
|
2019 |
$1,035.57 |
$1,035.57 |
|
|
2020 |
$8,417.10 (CDBG-CV) |
- |
$8,417.10 |
|
2021 |
$227,316.44 |
$227,316.44 |
|
|
2022 |
$495,283.99 |
$92,647.99 |
$402,636.00 |
|
Total |
$732,053.10 |
$321,000.00 |
$411,053.31 |
• CDBG: Allocate the remaining 2022 funds of $402,636 to eligible housing and community development activities. The city will conduct a total of two public hearings (CGAC and City Council) before submittal to HUD requesting use of funds within the current program year. The CDBG-CV funds are approved for use within FY25-26; the Wellness Center for Older Adults will utilize funding.
• CSG: Transfer of $40,000 to the Samaritan Inn for the Food Pantry and Emergency Housing Assistance Programs.
BOARD OR COMMISSION RECOMMENDATION:
• The CGAC conducted a public hearing on February 26, 2026, for the proposed adjustments within the CDBG 30-day public comment period. The public hearing also included the organization, The Samaritan Inn, who provided additional details regarding the food pantry and emergency housing assistance program merger.