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Community Development Block Grant (CDBG) FY26 Annual Action Plan Amendment #2 Copyrighted May 18, 2026 City of Dubuque CONSENT ITEMS # 11. City Council ITEM TITLE: Community Development Block Grant (CDBG) FY26 Annual Action Plan Amendment #2 SUMMARY: City Manager recommending City Council approve the FY2026 Annual Action Plan Amendment #2 as recommended by the Community Development Advisory Commission. RESOLUTION Adopting the Fiscal Year 2026 (Program Year 2025) Community Development Block Grant (CDBG) Annual Action Plan Amendment #2. SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo Community Development Block Grant (CDBG) FY26 Annual Action Plan Amendment #2 2. Staff Memo 3. Resolution 4. FY26 CDBG Annual Action Plan-Amendment 2 Page 417 of 890 Dubuque THE CITY OF � uhA�eMa cin DuB E ; . � , I � � I. Maste iece on the Mississi t 2oo�•zoiz•zois �P Pp zoi�*zoi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Community Development Block Grant (CDBG) FY26 Annual Action Plan Amendment #2 DATE: May 11, 2026 Housing & Community Development Director Madeline Haverland is recommending City Council approve the attached resolution adopting the FY2026 Annual Action Plan Amendment #2 as recommended by the Community Development Advisory Commission. The Community Development Advisory Commission reviewed and unanimously approved this amendment at their April 22, 2026, meeting and recommends City Council adoption of the amended changes. Amendment #2 reflects the responsible allocation of increased program income and ensures that CDBG resources continue to support housing quality, neighborhood stability, and access to essential services. These adjustments also ensure that the program has sufficient administrative capacity to meet federal compliance and oversight requirements. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Madelin Haverland, Housing & Community Development Director Mary Bridget Corken-Deutsch, Community Development Grants Monitor Page 418 of 890 Dubuque THE CITY OF � All•Merioa Ciry DuB E a� r�� ; � ��► � � Maste iece on the Mississi i zoo�.zo�z�2013 �`p pp 2017*2019 TO: Michael C. Van Milligen, City Manager FROM: Madeline C. Haverland, Housing & Community Development Director SUBJECT: Community Development Block Grant (CDBG) FY26 Annual Action Plan Amendment #2 DATE: May 11, 2026 Introduction The memorandum transmits information on the Community Development Block Grant (CDBG) Annual Action Plan Amendment #2. Discussion Since adoption of the FY26 Annual Action Plan, the City has received an additional $175,000 in CDBG Program Income. Under CDBG regulations, this increase results in a corresponding $11,298 increase to the administrative cap, bringing the total to $237,416. These administrative funds support overall program administration and compliance activities. A portion will be used for chargeback time associated with the Interim Community Development Director, reflecting the management oversight required during the interim leadership period. Administrative funds also support a grant monitor responsible for compliance and monitoring activities. While this position has primarily charged time to another grant program in FY26, a small portion of time is appropriately allocated to CDBG administration. Under Housing Development, Rental Rehabilitation is being added as an eligible activity within Housing Activities. The Housing Activities allocation will remain at $250,000. Adding the Rental Rehabilitation program will support improvements to rental housing units, helping preserve safe and affordable housing while addressing housing quality issues in the community. Under Neighborhood Development, funding adjustments are proposed for both Zoning Enforcement and Housing Enforcement. Funding for Zoning Enforcement will increase by $8,710, bringing the total to $17,420, to support enforcement activities for the remainder of the program year. The initial allocation of$8,710 was fully expended during Quarters 1 and 2, when a significant share of enforcement activity occurred in CDBG-eligible areas. Approximately 58% of cases in Quarter 1 and 48% in Quarter 2 Page 419 of 890 were located in these areas. Based on this level of activity, the increase will ensure Zoning Enforcement remains funded through the end of the fiscal year. Funding for Housing Enforcement will also increase to $10,000. These funds will support housing inspection staff time associated with Elevated Blood Lead (EBL) cases that do not proceed through the City's Lead Hazard Reduction Grant Program. In these cases, staff time is still required to investigate and enforce housing code compliance to address potential lead hazards. Under Public Facilities, the Annual Action Plan includes funding for Crescent Community Health Center's Mobile Dental Unit and Imaging Room and Equipment project. This $413,119 investment will expand access to healthcare services for low- and moderate-income residents and improve the ability to deliver medical services throughout the community. Amendment #2 reflects the responsible allocation of increased program income and ensures that CDBG resources continue to support housing quality, neighborhood stability, and access to essential services. These adjustments also ensure the program has sufficient administrative capacity to meet federal compliance and oversight requirements. Per the Citizen Participation Plan, this reallocation of funds is considered a Substantial Amendment and must be adopted by City Council resolution following review and recommendation by the Community Development Advisory Commission. The Community Development Advisory Commission reviewed and unanimously approved this amendment at its April 22, 2026, meeting and recommends City Council adoption of the proposed changes. Recommendation I respectfully request the City Council approve the attached resolution adopting the FY2026 Annual Action Plan Amendment#2, as recommended by the Community Development Advisory Commission. Prepared by: Mary Bridget Corken-Deutsch, Community Development Grants Monitor Page 420 of 890 Prepared'by Mary Bridget Corken-Deutsch,Community Development Specialist,350 W.6th St, Dubuque,IA 52001,(563)690-6094 Return to Adrienne N.Breitfelder,City Clerk,50 W. 13th St.,Dubuque, IA 52001,(563)589-4100 RESOLUTION NO. 181-26 RESOLUTION ADOPTING THE FISCAL YEAR 2026 (PROGRAM YEAR 2025) COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ANNUAL ACTION PLAN AMENDMENT#2 Whereas, the City of Dubuque, through a series of public meetings and hearings, proposed a Fiscal Year 2026 (Program Year 2025) Community Development Block Grant Annual Action Plan for inclusion in the City Budget addressing housing and non-housing needs in the community; and Whereas, the Community Development Advisory Commission held a public meeting and public hearing on April 22, 2026, to receive community input on the Second Amendment to the Fiscal Year 2026 (Program Year 2025) Community Development Block Grant Annual Action Plan; and Whereas, the Community Development Advisory Commission unanimously recommended the City Council approve Amendment#2 to the Fiscal Year 2026 (Program Year 2025) Community Development Block Grant Annual Action Plan on April 22, 2026. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the Community Development Block Grant Fiscal Year 2026 (Program Year 2025) Annual Action Plan Amendment #2, attached hereto and by this reference made a part hereof, is hereby approved. Section 2. The City Manager or his designee of the City of Dubuque is hereby authorized to direct staff to prepare and submit to the United States Department of Housing and Urban Development the Fiscal Year 2026 (Program Year 2025) Annual Action Plan Amendment #2 with all related documents, for the use of Community Development Block Grant funds based on this adopted budget and execute standard contracts and agreements. Passed, approved, and adopted this 18th day of May 2026. dad . Cavanagh, Mayor Attest: Trish L. Gleason, Assistant City Clerk Dubuque THE CTTY OF � All-A�eriea Ciry DuB E ;� � , I � � I� Maste iece on the Mississi i zoo�•zoiz.zois rP pp zoi��zoi9 Amendment #2 FY 26 ANNUAL PLAN Actual Allocation FOR USE OF PROGRAM YEAR 2025 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS For Inclusion in the Fiscal Year 2026 City Budget. PREPARED BY THE CITY OF DUBUQUE HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT Page 422 of 890 2 CITY OF DUBUQUE, IOWA FY 2026 ANNUAL ACTION PLAN FOR THE USE OF PROGRAM YEAR 2025 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The City of Dubuque distinguishes between four different but complementary areas of program development in its overall CDBG program: Administration, Housing Development, Neighborhood Development, and Public Facilities. The following description of activities summarizes the projects to be completed in the FY 2026 Annual Action Plan with the use of CDBG funds. RESOURCES CDBG Entitlement FY 2026 $1,037,080 CDBG Entitlement Unexpended Funds $764,116 Program Income $175,000 Program income projections are based on forecast for loan repayments based on the loan portfolio and program income generated from CDBG funded programs. TOTAL RESOURCES �1.976.196 ADMINISTRATION $237,416 CDBG regulations limit expenditure on planning and administrative funds to 20%of the current year program income plus the current entitlement. The proposed resources for administration support the plan's current requirements. CDBG Planning,Monitoring,&Budgeting $21,416 Staff support for general management. Oversight and coardination of the Communiry Development Block Grant program; assures compliance with federal regulations and reporting requirements. Housing& Community Development Administration $216,000 On-going staff support for general management,oversight,and coordination of the Community Development Block Grant housing programs. Priority: High Objective/Outcome: Provide Decent Affordable Housing/Affordability HOUSING DEVELOPMENT $1,029,732 Housing Activities $250,000 This project includes residential repair and rehab for low-and moderate-income homeowners and renters. Potential Activities include homeowner rehab,roof replacement,and accessibility improvements. National Objective: Low-and Moderate-Income Housing Location: City wide Proposed Accomplishments: 20 Housing Units Priority: High Objective/Outcome: Decent Housing/Affordability Lead&Healthy Homes Grant Match(2021) $79,222 Provides activities in support of efforts to reduce lead paint hazards in housing,including assessment and lead paint reduction or abatement,with forgivable loans to low-and moderate-income residents. This assistance is for the Lead and Healthy Homes grant awarded in 2021. National Objective: Low-and Moderate-Income Housing Page 423 of 890 3 Location: Citywide Proposed Accomplishments: 20 Housing units Priority: High Objective/Outcome: Decent Housing/Affordabiliry(DH3) Lead&Healthy Homes Grant Match(2024) $100,000 This project includes residential repair and rehab for low-and moderate-income homeowners and renters. Potential activities include lead assessment and lead paint reduction of abatement with forgivable loans to low-and moderate-income residents. This activity is match funding for the Lead and Healthy Homes Grant awarded in FY25. National Objective: Low-and Moderate-Income Housing Location: City wide Proposed Accomplishments: 20 Housing units Priority: High Objective/Outcome: Decent Housing/AfFordabiliry Healthy Homes Grant Match(2024) $100,000 This project includes residential repair and rehab for low-and moderate-income homeowners and renters. Potential activities include roof replacement with forgivable loans to low-and moderate-income residents. This activity is match funding for the Healthy Homes Grant awarded in FY25. National Objective: Low-and Moderate-Income Housing Location: City wide Proposed Accomplishments: 20 Housing units Priority: High Objective/Outcome: Decent Housing/AfFordabiliry Aousing Rehabilitation Services and Staff $150,000 This project includes staff support for program management activities,technical assistance,and loan packaging for the city's Community Development programs. Priority: High Objective/Outcome: Decent Housing/Affordability Purchase/Rehab/Resale $350,510 Provides funding to address the redevelopment of sub-standard and vacant/abandoned city-owned properties. Properties acquired,rehabbed,and sold to low-and moderate-income homebuyers or to properry owners maintaining affordable rents. National Objective: Low and Moderate-Income Housing Location: Citywide Proposed Accomplishments: 3 Housing Units Priority: High Objective/Outcome: Decent Housing/Affordabiliry(DH2) NEIGHBORHOOD DEVELOPMENT $133,940 Public Services activities are restricted to 15%of the previous year program income and the current year entitlement. Public Service activities in this plan represent 15%of the proposed expenditures. Neighborhood Recreation Programs-Public Services $97,120 This project includes enhanced recreation programing offered in low-and moderate-income areas and to low and moderate income residents.Potential activities include expanded after-school programs, community partnerships,and scholarships. National Objective: Low-and Moderate-Income Benefit Location: City wide Proposed Accomplishments: 300 Persons Priority: High Objective/Outcome: Suitable Living/Accessibiliry Page 424 of 890 4 Zoning Enforcement $17,420 This project provides funding for inspection/enforcement staff services to low/mod income areas for zoning ordinance infractions and to provide support for neighborhood clean-up efforts. Potential activities include staff enforcement for zoning ordinance infractions,and/or housing inspection staff. National Objective: Low-and Moderate-Income Benefit Location: City wide,Low and Mod Area Proposed Accomplishments: 100 Housing Units Objective/Outcome: Suitable Living/Sustainability Housing Enforcement $10,000 This project provides funding for housing inspection staff time associated with Elevated Blood Lead (EBL)cases that do not proceed through the City's Lead Hazard Reduction Grant Program and are low- and moderate-income areas for housing. National Objective: Low and Moderate-Income Benefit Location: City wide,Low and Mod Area Proposed Accomplishments: 5 Housing Units Objective/Outcome: Suitable Living/Sustainability ZTM Sober Living $9,400 This project provides funding for operarion and maintenance of the public service facility serving low and moderate income. National Objective: Low and Moderate-Income Benefit Location: Citywide Proposed Accomplishments: 36 People Priority: High Objective/Outcome: Suitable Living/Accessibility PUBLIC FACILITIES $433,707.12 Low-Mod Area Park Updates $20,588.12 New playground equipment at low-and moderate-income area parks based on community input. National Objective: Low-and Moderate-Income Benefit Location: Low-and Moderate Residenrial Areas Proposed Accomplishments: Park Design Priority: High Objective/Outcome: Suitable Living/Accessibility Crescent Community Health Center $413,ll9 This project provides funding for Mobile Dental Unit and Imaging Room and Equipment. National Objective: Low-and Moderate-Income Benefit Location: City wide,Low and Mod Area Proposed Accomplishments: Public Health Services Priority: High Objective/Outcome: Suitable Living/Sustainability CDBG Revolving Application Fund $141,401 This fund is available for local nonprofits and organizations to apply for assistance to expand or increase their services or reach to benefit low-and moderate-income people,households,or businesses. National Objective: Low and Moderate-Income Benefit Location: Citywide Grand Total: CDBG Funding Proposed for FY 2026 $1,976,196 Page 425 of 890