Title
Resolution approving the 2026 Annual Action Plan for the use of federal block grant funds (CDBG, HOME, and ESG) provided through the U.S. Department of Housing and Urban Development.
Presenter:
Aimee Cox, Chief Housing and Homelessness Officer
Barb Van Hoy, Policy, Planning and Engagement Coordinator
Housing and Homelessness Response Department
Body
Summary:
Approval of the 2026 Annual Action Plan for HUD, which identifies funding allocations and planned activities for the 2026 program year (Apr 1, 2026 through Mar 31, 2027).
Background:
The City of Colorado Springs is a U.S. Department of Housing and Urban Development (HUD) entitlement grantee and receives annual allocations under the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) program. These funds support activities that benefit low- and moderate-income residents, address homelessness, expand affordable housing, and improve conditions in qualifying neighborhoods.
To remain eligible for these funds, the City must submit an Annual Action Plan identifying planned activities for the upcoming program year. The 2026 Action Plan represents year two of the 2025-2029 Consolidated Plan, which established the City’s priority housing and community development needs.
This item supports the City’s strategic goals to increase housing choices, address homelessness, and improve public safety and neighborhood conditions.
Previous Council Action:
N/A
Financial Implications:
The 2026 Action Plan is based on estimated funding levels, consistent with Congressional action to date and the City’s adopted 2026 budget. HUD permits grantees to proceed using estimates while federal appropriations are pending.
Once final allocations are announced, HUD allows 60 days to update the plan. Any changes in the allocations will be applied on a pro rata basis to each of the three programs prior to final submission to HUD. It is unlikely final allocations will exceed estimates; however, if they do, staff will request a supplemental appropriation. No General Fund impact is anticipated.
Estimated resources include:
• CDBG: $3,054,333.00
o $2,854,333.00 HUD
o $200,000.00 program income
• HOME: $1,501,273.63
o $1,401,273.63 HUD
o $100,000.00 program income
• ESG: $261,284.00 (HUD)
Total HUD Funds: $4,516,889.63
Total Program Income: $300,000.00
Plan Total: $4,816,889.63
All activities are consistent with the highest-priority needs identified in the Consolidated Plan, with a particular emphasis on homelessness response and affordable housing.
The final plan will be posted online following submission to HUD.
City Council Appointed Board/Commission/Committee Recommendation:
On January 20, 2026, the Community Development Advisory Committee unanimously recommended approval.
Stakeholder Process:
Public and stakeholder engagement began in early 2025 and included consultations with service providers, housing partners, neighborhood advocates, the Pikes Peak Continuum of Care, City departments, and other community stakeholders. Input from broader City engagement efforts, including the Mayor’s Report Out Tour, Southeast Strong, the Housing Needs Assessment, and the Homelessness Solutions Team, was also incorporated.
The Department held two public meetings in November 2025 and provided a 30-day public comment period from December 16, 2025 through January 15, 2026. A public hearing was held on January 7, 2026, and all public comments and responses are summarized in the plan and appendices.
Alternatives:
Council may decline to approve the Annual Action Plan, which would forgo approximately $4.5 million in annual HUD funding.
Recommended Action
Proposed Motion:
Move to approve the 2026 Annual Action Plan for HUD as presented.
Summary of Ordinance Language
N/A