TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA - Economic & Community Development Director
Albert Baker - Assistant Economic & Community Development Director
Jacqueline Abbott - Community Relations Manager
DATE: April 6, 2026
RE:Title
2026-2027 Proposed Annual Action Plan for Community Development Block Grant, HOME Investment Partnerships Program, and Emergency Solutions GrantsTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal I: The City of Fayetteville will be a safe and secure community.
Objective 1.4: To engage citizens in community watch and safety events.
Goal II: The City of Fayetteville will have a responsive city government supporting a diverse and viable economy.
Objective 2.1: To ensure a diverse City tax base.
Objective 2.2: To invest in community places to ensure revitalization and increase quality of life.
Objective 2.3: To leverage partnerships for job creation and retention, with a focus on local and regional workforce to increase per capita income.
Objective 2.4: To sustain a favorable development climate to encourage business growth.
Goal IV: The City of Fayetteville will be a highly desirable place to live, work and
Recreate.
Objective 4.2: To enhance diverse recreation, leisure, and cultural opportunities.
Objective 4.4: To provide a clean and beautiful community with increase green spaces.
Objective 4.5: To ensure a place for people to live in great neighborhoods.
Objective 4.6: To reduce poverty and homelessness.
Goal V: The City of Fayetteville will be a financially sound City providing exemplary City services.
Objective 5.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Objective 5.3: To promote an organizational climate that fosters an exceptional diverse, engaged, and healthy workforce that delivers excellent services.
Goal VI: The City of Fayetteville will continue to have a collaborative citizen and business engagement base.
Objective 6.2: To ensure trust and confidence in City government through transparency and high-quality customer service.
Objective 6.3: To inform and educate about local government by enhancing public outreach and increasing community dialogue, collaboration, and empowerment.
Executive Summary:
City Council is asked to review and consider the proposed 2026-2027 U.S. Department of Housing and Urban Development (HUD) Annual Action Plan (AAP), which guides the implementation of the Community Development Block Grant (CDBG), the HOME Investment Partnerships Program (HOME), and the Emergency Solutions Grants (ESG) programs. This plan, developed through extensive community outreach, outlines priority needs, funding allocations, and key actions to address community and economic development goals. Staff developed the plan with recommendations from the Fayetteville Redevelopment Commission (FRC), following the Citizen Participation Plan. Additionally, staff consulted with the Fayetteville-Cumberland County Continuum of Care on Homelessness regarding appropriate uses for the City’s Emergency Solutions Grants allocation. A Public Hearing will be held before Council considers adoption at the April 27, 2026 regular meeting.
Background:
The City is required to prepare an Annual Action Plan each year to align with the goals and objectives of the Five-Year Consolidated Plan. This plan outlines specific projects, activities, and funding allocations for the upcoming fiscal year, detailing how available federal and non-federal resources will be used to address economic and community development goals. The Consolidated Plan is implemented through these Annual Action Plans, which provides a concise summary of actions, activities, and specific federal resources.
To ensure community involvement in developing the 2026-2027 Annual Action Plan, staff held four citizen participation meetings across various neighborhoods to encourage full engagement. Additionally, staff collaborated with local agencies and city stakeholders to assess needs, gather feedback, and discuss priorities.
A draft of the plan was made available for public review and comment from February 8 through March 10, 2026, online. Comments were also accepted via email at econcommdev@fayettevillenc.gov during the 30-day comment period. A presentation of the proposed budget and activities was shared at public meetings for citizen input. The Fayetteville Redevelopment Commission (FRC) held a public hearing on December 3, 2025 to receive community feedback on needs and funding priorities. The FRC reviewed the plan and formally voted in support of them on April 1, 2026. Council is being presented this plan at the April 6, 2026, Council Work Session for feedback before the final consideration, after a public hearing, during the April 27, 2026, City Council regular meeting.
Issues/Analysis:
The City has not yet received an award notice from HUD, and so the plan uses the current level of funding. Currently, the CDBG allocation projected for next year is $1,748,202 and program income is budgeted at $40,000. The HOME allocation projected for next year is $882,051 and program income is budgeted at $710,648 with a required local match of $220,513. ESG allocation is projected at $150,188 with a required local match of $11,264. If allocations are announced prior to the Public Hearing or Budget Adoption, staff will adjust the amounts accordingly. If they are announced after the start of the new Fiscal Year, staff will return with a budget amendment.
|
Consolidated Plan Strategy Allocations |
2026-2027 |
|
Affordable Housing |
$2,060,563 |
|
Public Services |
262,230 |
|
Neighborhood Revitalization |
334,776 |
|
Economic Development |
451,000 |
|
Nonprofit Capacity Building |
55,000 |
|
Addressing Homelessness |
138,924 |
|
Effective Program Management |
460,373 |
|
Total New Resources |
$3,762,866 |
Four Low Income Housing Tax Credit (LIHTC) projects were submitted for gap financing. This is a competitive process with one or two projects being awarded tax credits from the North Carolina Housing Finance Agency (NCHFA). The City of Fayetteville’s funds are allocated based on the development’s structure that meets the program guidelines for HOME funding in the amount of $400,000 @ 1% interest only per project.
Each development is recommended for a conditional commitment of funds and the official City Council action will take place upon award notification from NCHFA. The details of each development can be found on the table below:
|
Project Name |
Council District |
Total Development Cost |
Number of Units |
|
Aspen Pointe Ph2 |
District 8 |
$19,342,696 |
90 |
|
Victory Pointe |
District 7 |
$18,849,553 |
84 |
|
Covey Apartments |
District 7 |
$15,603,880 |
60 |
|
Rosehill Gardens |
District 2 |
$21,501,563 |
100 |
Budget Impact:
The HOME Investment Partnerships Grant requires a matching contribution of $220,513. The Emergency Solutions Grant (ESG) also requires a 50/50 match, which is primarily passed on to subrecipients of ESG funds. Additionally, ESG administration requires an $11,264 match, which will be met through expenses allocated to support the Homeless Management Information System (HMIS). These expenses include payments to the HMIS software vendor and the HMIS Data Analyst employed by Cumberland County. The estimated annual General Fund expenses for HMIS support exceed the local match requirement.
|
2026-2027 Funding Sources |
|
|
Community Development Block Grant (CDBG) |
$1,748,202 |
|
CDBG Program Income |
40,000 |
|
HOME Investment Partnership (HOME) |
882,051 |
|
HOME Program Income |
710,648 |
|
HOME Local Match |
220,513 |
|
Emergency Solutions Grants (ESG) |
150,188 |
|
ESG Local Match |
11,264 |
|
Total |
$3,762,886 |
Options:
• Provide feedback regarding the proposed 2026-2027 HUD Annual Action Plan, which guides the implementation of the CDBG, HOME, and ESG programs.
Recommended Action::Recommended Action
No action is required. This item is for discussion and to provide feedback in anticipation of the scheduled public hearing and approval at the April 27, 2026 City Council meeting.
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Attachments:
• Program Year 2026-2027 Proposed Annual Action Plan Presentation
• Program Year 2026-2027 Annual Action Plan Summary - Proposed
• Program Year 2026-2027 Competitive Awards - Proposed