Title
Conduct a Public Hearing to Consider/Discuss/Act on Administrative and Allocation Adjustments to the FY 2025-2026 Annual Action Plan and the FY 2026-2027 Community Support Grant Application Scope
Summary
COUNCIL GOAL: To Improve Quality of Life in McKinney
MEETING DATE: February 26, 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 FY 2025-2026 Annual Action Plan and the FY 2026-2027 Community Support Grant (CSG) Application Scope.
ITEM SUMMARY:
• The proposed adjustments includes 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
o 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 Community Support Grant (CSG) do not require a 30-day comment period.
§ CDBG Financial Amendment: Currently, the CDBG program will be using a total not to exceed (NTE) of $321,000 in grant funds from previous years (2019-2022) for eligible community development activities, including: microenterprise, façade improvements, workforce development (job training/job creation), and small business support. Funding will be 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. In addition, Staff will reallocate the remaining $402,636 to other eligible CDBG uses - excluding administration and public services - for additional city administered programs and subrecipients such as acquisition and infrastructure.
§ CDBG Program Amendment: There are two amendments. 1) Staff is proposing 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 change will begin with the current Annual Action Plan. 2) Expend remaining CDBG-CV funds to assist unhoused residents through subrecipients by September 30, 2026.
§ 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 approved funding to The Samaritan Inn.
• FY 2026-2027 CSG Application Scope:
o 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. Applicants may apply for funding through April 3, 2026. The CGAC will conduct public hearings scheduled for April 24 and May 16, 2026. Funding approval from the City Council will be completed in October 2026.
FINANCIAL SUMMARY:
• The following summary details the financial amendment per program for FY 2025-2026:
|
Grant Year |
Available Funds |
Current Use |
Proposed Amendment |
|
2019 |
$1,035.57 |
$1,035.57 |
|
|
2021 |
$227,316.44 |
$227,316.44 |
|
|
2022 |
$495,283.99 |
$92,647.99 |
$402,636 |
|
Total |
$723,636 |
$321,000 |
|
o CDBG
§ Allocate the remaining 2022 funds of $402,636 to eligible community development activities.
o CSG
§ Transfer of $40,000 to the Samaritan Inn for the Food Pantry and Emergency Housing Assistance Programs.
BOARD OR COMMISSION RECOMMENDATION:
• The CGAC will conduct a public hearing on the proposed adjustments within the 30-day public comment period.
• Following the CGAC public hearing, the City Council will conduct a public hearing to act upon the recommendations within the next 60 days.