Title
Conduct a Public Hearing to Consider/Discuss/Act on a Resolution Approving the 2025-2026 Annual Action Plan
Summary
COUNCIL GOAL: Goal 5: Enhance the Quality of Life in McKinney
MEETING DATE: August 5, 2025
DEPARTMENT: Housing & Community Development
CONTACT: Shirletta Best, Community Services Administrator
Cristel Todd, Affordable Services Administrator
Margaret Li, Community Development Administrator
RECOMMENDED CITY COUNCIL ACTION:
• Conduct a Public Hearing to approve the Resolution approving the 2025-2026 Annual Action Plan for CDBG and HOME funding.
ITEM SUMMARY:
• The City of McKinney receives Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funding from the U.S. Department of Housing and Urban Development (HUD) to principally benefit low-to-moderate income households and persons. The city has participated as a HUD Entitlement Community since FY 2003; activities and programs are available city-wide to eligible beneficiaries, with emphasis of participation within census tracts 309, 308, 307 or 306. The city anticipates receiving an allocation of $907,326 in CDBG and $345,211.31 in HOME funds for the reporting period of October 1, 2025, to September 30, 2026.
• The city is required to complete an Annual Action Plan for each year under the Consolidated Plan for all HUD programs. The Annual Action Plan has been completed with support from the Community Grants Advisory Commission (CGAC), which conducts public hearings and meetings, and prepares funding recommendations for the City Council.
BACKGROUND INFORMATION:
• The 2025-2029 Consolidated Plan, a planning document for the city, is currently in development with public input support to help identify eligible housing and community development needs.
• Annually, an Annual Action Plan for each program year is created, consisting of a summary of eligible programs and activities, with specific federal and non-federal funding resources, requirements, and amendments, as such, to address those needs.
• The city conducted pre-application meetings on February 28 and March 3, 2025, for funding under the CDBG and Community Support Grants (CSG), known collectively as the Consolidated Grants Application Process. Technical assistance support for applications was available through April 2, 2025. The grant application deadline was April 3, 2025. The CGAC conducted two public hearings of public service agency requests, CDBG and HOME activities on May 14 and 15, 2025. The CGAC met on July 10, 2025, to determine public service funding recommendations and obtain public input on city administered programs. A public hearing for CDBG, HOME, and the Consolidated Plan update was held on July 10, 2025. An additional public hearing will be held on August 5, 2025. All meetings and public hearings were open to the public and legal notices were provided to the public.
• The city promoted the process in the city newsletters, legal notices, flyers, city website, press releases, social media, and held a community input meeting on August 5, 2025, to obtain public input on the funding resources, the overall draft Consolidated Plan and proposed activities and programs. The 30-day public comment period of July 15, 2025 to August 15, 2025, additionally allows the option to provide input before the city submits the plan to HUD for review and final approval.
FINANCIAL SUMMARY:
• The city anticipates receiving an allocation of $907,326 in CDBG and $345,211.31 in HOME funds for the reporting period of October 1, 2025, to September 30, 2026.
o CDBG Funds:
§ 15% of the funds are used for public services, totaling $136,098
§ 20% used for grant administration, $181,465
§ 65% for housing and community development activities, including the city’s housing rehabilitation program. $589,763
§ Amended available funds at the close of the current year may be reallocated for community development activities.
o HOME funds:
§ HUD allocation of $345,211.31, with a local match of $154,591, to meet regulatory threshold of $500,000. Funds will be used for Tenant Based Rental Assistance.
BOARD OR COMMISSION RECOMMENDATION:
• The CGAC deliberated on July 10, 2025, to determine public service funding recommendations. Funding recommendations for city administered programs are included within the overall city budget and were included for public input during the CGAC meeting, however funding for city administered programs is not determined by the CGAC. The program and fiscal year begin October 1, 2025. The CGAC’s recommendations for CDBG public service funding include a total of $136,098, and are as follows:
|
Community Development Block Grant (CDBG) |
Amount |
|
Community Food Pantry (Customer experience parking site remodel) |
$15,000 |
|
CASA Collin County |
$25,000 |
|
Hope’s Door New Beginning Center |
$15,000 |
|
Meals on Wheels Collin County |
$25,000 |
|
Wellness Center for Older Adults - Neighbors Helping Neighbors |
$10,000 |
|
Samaritan Inn - Gateway Transitional Housing |
$0 |
|
Samaritan Inn - INNspire Transitional Homeless Shelter |
$25,000 |
|
Samaritan Inn - Supportive Services Homeless Response |
$10,000 |
|
The Salvation Army - Food Pantry |
$11,098 |
|
Public Services - Total |
$136,098 |
|
CDBG City Administered Programs |
Amount |
|
Housing Rehabilitation Program |
$589,763 |
|
Grant Administration |
$181,465 |
|
Administered- Total |
$ 771,228 |
|
|
|
|
Amended Previous Funding for Housing, Community Development |
$321,000 |
|
|
|
|
HOME Investment Partnership Program |
$345,211.31 |
|
Tenant Based Rental Assistance (TBRA) * |
|
|
* City will provide local match to meet required threshold. |