Title
2025-2029 Housing & Community Development Consolidated Plan and the 2025-2026 CDBG Annual Action Plan Update
Summary
COUNCIL GOAL: Enhance Quality of Life for McKinney Residents
MEETING DATE: July 15, 2025
DEPARTMENT: Housing & Community Development
CONTACT: Shirletta Best, Community Services Administrator
Margaret Li, Housing & Community Development Director
RECOMMENDED CITY COUNCIL ACTION:
• Receive and File presentation.
• Work session presentation to receive preliminary information on the process, prior to final plan submission in August 2025.
ITEM SUMMARY:
• The City of McKinney is a recipient of federal funds from the U.S. Department of Housing and Urban Development (HUD), for eligible projects and activities under the Community Development Block Grant (CDBG) and the HOME Partnership Investment Program. As a grantee, the city is required to complete a community planning document called the Consolidated Plan (Plan) every five years. This planning document is enhanced through a participatory process with the public and serves to identify housing and community development needs and market conditions, to make data-driven, place-based investment decisions in our community.
• The city has participated as a HUD Entitlement Community since 2003 under the CDBG program and began receiving HOME funds for affordable housing in October 2024. The 2025-2029 Plan will cover program periods from October 1, 2025, through September 30, 2029. Each year of the plan, eligible projects and activities are carried out through the Annual Action Plan for CDBG and HOME: consisting of federal and non-federal resources to benefit predominately low to moderate income McKinney residents. Non-federal resources that are leveraged to benefit McKinney residents include General Funds such as the Community Support Grant and homeless response funding. At the end of each program year, the city will report on performance accomplishments in the Consolidated Annual Performance and Evaluation Report (CAPER) in December. Staff began preparations for the draft Consolidated Plan in October 2024, engaging the public and community leaders to prepare for citizen participation.
• The Plan, as required by Federal regulations, includes prioritized components including but not limited to:
o Needs Assessment: Identifying varied housing challenges, including affordability, availability, accessibility, and variety of housing choice.
o Community Development Needs: Identifying community needs including public services, economic development, neighborhood revitalization, and infrastructure.
o Housing Market Analysis: Assessing local housing impacts and needs, to make investment decisions.
o Citizen Participation: Engaging residents, organizations and other stakeholders, to gather input and reflect community priorities.
o Strategic Plan: Establishing the goals, objectives, and priorities that will be carried out annually through resource allocations and investments.
BACKGROUND INFORMATION:
• Staff conducted multiple presentations with community organizations since October 2024 to begin introduction of the Consolidated Plan process.
• The consultant, Root Policy Research, was selected through the city’s procurement process to prepare the plan, conduct a city-wide housing survey, obtain data and develop the plan, and assist with citizen participation.
• Participation within the process has included city department consultations, community consultations, and a housing survey. The public will have access to review the draft plan and provide comments through August 15, 2025. Additionally, the public will also have access to participate in an open house on the plan at City Hall on August 5, 2025. Public comments gathered from each citizen participation activity will be included in the submission packet to HUD for review and final approval.
• The Community Grants Advisory Commission began the Consolidated Grants process in February 2025 and conducted two public hearings in May 2025. The Commission deliberated in June to determine agency funding recommendations. CDBG funding recommendations and the draft plan will be presented at the final public hearing at the City Council meeting on August 5, 2025. Funding under the HOME program will also be presented. Recommendations under the Community Support Grant are under the General Fund separate from HUD funding, and will be presented in October, upon approval of the city’s budget.
FINANCIAL SUMMARY:
• The city may also consider reallocation of funds from prior years for eligible activities, as available. McKinney will also leverage non-federal resources contingent upon the General Fund budget, under the Community Support Grant. The primary resources to fulfill the Consolidated Plan are CDBG funding and HOME funding.
• Below is the FY 2025-2026 HUD funding allocation for the first year of the Plan:
|
CDBG |
$ 907,326.00 |
|
HOME |
$ 345,211.31 |
|
TOTAL: |
$1,252,537.31 |