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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: January 28, 2026
SUBJECT:
A Resolution Authorizing Approval of the 2026 Annual Action Plan and Substantial Amendment 2026-#1.
PURPOSE:
Staff requests approval of the City’s 2026 Annual Action Plan; approval of Substantial Amendment 2026-#1 to amend the City’s 2021, 2022, 2023, 2024, and 2025 Action Plans (reallocating unexpended 2021-2025 funds); and approval of proposed funding recommendations for submission to the U.S. Department of Housing and Urban Development (HUD) for the following federal programs: Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and HOME Investment Partnerships Program - American Rescue Plan (HOME-ARP). The 2026 Annual Action Plan “(2026 Action Plan”) is part of the 2025-2029 Consolidated Plan, which helps states and local jurisdictions assess affordable housing and community development needs and market conditions and make data-driven, place-based investment decisions. Substantial Amendment 2026-#1 will reallocate unexpended funds from prior years’ Annual Action Plans (2021-2025) to new activities.
The 2026 Action Plan stresses the following objectives:
1. Expand and Maintain the Affordable Housing Stock.
2. Ensure the Housing Stock is Safe, Healthy, and Accessible for all Residents.
3. Public Service Assistance.
4. Enhance and Improve Access to Amenities
5. Program Administration (CDBG and HOME)
In addition to the 2026 Action Plan (EXHIBIT G), the City also completed or is in the process of finalizing multiple planning documents to assist in making project recommendations. These include:
|
Plan |
Date Completed |
|
HOME-ARP Needs Assessment |
2023 |
|
O.N.E. Aurora 2025-2030 Affordable Housing Plan |
2024 |
|
2025-2029 - Department of Housing and Urban Development Consolidated Plan |
2025 |
|
O.N.E Aurora Homelessness Strategy |
Pending completion - 1st Quarter 2026 |
In each of these planning documents, research, analysis, and best practice reviews from across the country were incorporated into the planning with significant opportunities for stakeholder engagement to assist in drafting these planning documents.
Annually, the City receives approximately $1.2 million dollars in CDBG and $525,000 in HOME funds that are used to provide decent, safe, and sanitary housing and provide services and projects to low-to-moderate income persons (defined as earning at or below 80% of the Area Median Income, or approximately $95,900 for a family of four in 2025). Residents that meet HUD’s definition of extremely low-income (defined as earning at or below 30% of the Area Median Income, or approximately $35,950 for a family of four in 2025) will also primarily benefit from the findings of the 2026 Action Plan.
Under Substantial Amendment 2026-#1(EXHIBIT H), Staff also requests approval of proposed funding recommendations utilizing prior year CDBG funds as well as the City’s HOME Investment Partnerships Program (HOME) and HOME American Rescue Plan (HOME-ARP) funding. In 2021, the City received a one-time HOME-ARP grant of $2,726,703 from the American Rescue Plan to create affordable housing and provide supportive services for people experiencing or at risk of homelessness, survivors of gender- and sexual-based violence, and families facing severe housing insecurity.
Additionally, the City must also modify its 2021, 2022, 2023, 2024, and 2025 Action Plans identified as Substantial Amendment 2026-#1 to reallocate CDBG, HOME, and HOME-ARP funding to new and/or existing projects.
BACKGROUND:
During 2025, the City released a call to solicit applications for 2026 CDBG, HOME, and HOME-ARP proposals. The application cycle opened on September 9, 2025 and closed on October 10, 2025. City staff outreach efforts included notifications to prior and current recipients of funding and prospective first-time applicants. The following table outlines the City’s outreach efforts:
|
Outreach Opportunity |
Date |
|
Pre-Application Announcement Email - Notice #1 |
8-26-2025 |
|
Beacon Newspaper Advertisement |
8-17-2025 |
|
Community Resource Team Email Release |
8-29-2025 |
|
Community Resource Team Social Media Post |
8-29-2025 |
|
Pre-Application Announcement Email - Notice #2 |
8-29-2025 |
|
Beacon Newspaper Advertisement |
8-17-2025 |
|
Pre-Application Announcement Email - Notice #3 |
9-04-2025 |
|
Pre-Application Virtual Workshop |
9-09-2025 |
|
Final Reminder Regarding Application Due Date |
10-06-2025 |
|
Application Due Date |
10-10-2025 |
Under each email notification, an estimated 560 representatives from non-profit agencies, elected officials, advisory boards, interested businesses, and residents of the City were provided with information regarding the City’s grant opportunities. The City also contacted other area grant providers via email to share the City’s grant opportunities and published an advertisement and press release in The Beacon News. An estimated 120 attendees participated in the non-mandatory pre-application virtual workshop. The workshop was recorded and posted on the City’s website along with the workshop’s presentation slides.
The 2026 CDBG, HOME, and HOME-ARP rounds closed on October 10, 2025, with seventeen (17) applications requesting $4,628,495 million dollars.
Community Services Department staff reviewed and scored each application to focus on the following criteria:
-Completeness and quality of the application
-Alignment with city goals and strategies
-Budget including sources and uses
-Grant management experience
-Past performance
-Ability to operate or carry on project with a reduced amount of funds
-Performance metrics
-Duplication of services
-Ability to serve Aurora residents
City staff also completed good standing checks with the City’s Division of Revenue and Collections, State of Illinois, Internal Revenue Service, and federal debarment registry to confirm each applicant’s funding eligibility. Pre-application meetings were completed, and additional research was conducted to confirm the accuracy of the applicants’ described service areas and outcomes.
DISCUSSION:
Recommendations for the 2026 Annual Action Plan and Substantial Amendment 2026-#1 are based on staff’s analysis of application alignment with the 2025-2029 Consolidated Plan. In developing the recommendations, staff considered reflect HUD’s regulatory thresholds and funding limitations, staff also considered HUD’s regulatory thresholds and funding limitations, as well as whether proposed activities were better suited for alternative funding sources such as the City’s 2026 Quality of Life (QOL) Fund, the Home Investment Partnerships Program, the Opioid Use Disorder Grant, and the Aurora Affordable Housing Solution Grant
The 2026 CDBG funding recommendations can be found in EXHIBIT A , 2026 HOME recommendations can be found in EXHIBIT C, and HOME-ARP recommendations can be found in EXHIBIT E.
2026 Funding Recommendations
CDBG:
CDBG recommendations (EXHIBIT A) reflect an estimate of funding levels for CDBG and HOME (EXHIBIT C) based on 2026 estimates and prior year available funds. Future Congressional action could result in changes to the City’s anticipated funding levels. Any additional CDBG funding received through program income, an increase in the City’s funding, or completed 2025 and prior year projects that end up under budget will be placed in the Community Amenities Activity. HOME-ARP recommendations (EXHIBIT E) reflect a special one-time allocation in the amount of $2,726,703.
Of note, funds are programmed as “administration” as well as “public service” activities are based upon HUD’s regulatory caps. The CDBG cap is 20%, HOME cap is 10%, and HOME-ARP cap is 15%. Administration funds are used for staff salaries, overhead, training opportunities, planning, and fair housing activities. Administration funds that are not used can be reprogrammed for additional eligible activities by future amendments.
The City received a total of eleven (11) applications for CDBG funding, with nine (9) projects recommended for CDBG funding. Two (2) projects were not recommended for funding. A summary of the CDBG applicants is attached as EXHIBIT B.
CDBG Public Facilities and Infrastructure Improvements:
Two (2) applications were recommended for CDBG funding in the total amount of $425,000. Funding will assist the City’s Engineering Department in the amount of $200,000 as part of the annual scattered site street resurfacing program in CDBG eligible areas (via Substantial Amendment 2026-#1). Funding will not replace, but instead, will increase the budget for street resurfacing in low and moderate income areas. $225,000 will also be awarded to Loaves and Fishes for an expansion of their cold storage portion of the facility.
CDBG Public Services:
The CDBG public services cap is 15% and cannot exceed an estimated amount of $180,000. Public service funds are used to support an agency’s direct service delivery costs (staff time, materials, etc.) specific to a particular CDBG program. In general, CDBG public service activity funds must be expended during the City’s program year and cannot be carried over into another year.
CDBG funding awards in the amount of $180,000 have been recommended for the following four (4) agencies: CASA Kane County ($37,000), Hesed House ($50,000), Mutual Ground ($50,000), Senior Services Associates ($43,000). Services include activities related to child advocacy case management, homelessness prevention, domestic violence prevention, and senior services. Should actual funding be less than anticipated, these projects would take an across the board percentage reduction based on the amount of public service funds actually available.
CDBG Housing:
Two (2) housing activities have been recommended for CDBG funding in the amount of $375,000. The Neighbor Project ($275,000) and Rebuilding Together Aurora ($100,000) provide assistance to income-eligible homeowners for emergency repairs and upgrades to provide ADA improvements such as ramps and accessible bathrooms.
HOME Funds:
As has been past practice by the City, CDD staff recommends that the City’s 2026 HOME funds be allocated as per HUD’s regulatory caps as follows: program administration is 10% ($52,211), direct project activities is 75% ($522,115) and 15% allocated to agencies that qualify as Community Housing Development Organizations ($78,317). Once the CDD receives direct project and CHDO activity proposals, CDD staff will provide specific recommendations to the Block Grant Working Committee and then City Council at a later date. Projects will then move through the City’s Substantial Amendment process for HOME funding approval.
The City received a total of two (2) applications for HOME funding, with one application recommended for funding: Habitat for Humanity, Northern Fox Valley. Via Substantial Amendment 2026-#1, the City will allocate prior year HOME funds in the amount of $560,000 to Habitat for Humanity, Northern Fox Valley. A summary of the HOME Applicant Summary is attached as EXHIBIT D.
HOME-ARP Funding:
The City received a total of four (4) applications for HOME-ARP funding, with two (2) projects recommended for a combined total of $325,000 in HOME-ARP funding to the following agencies: The Association for Individual Development (AID) ($175,000) and VNA Healthcare ($150,000). Two projects were recommended to be moved to the Aurora Affordable Housing Solutions Grant - Hope Fair Housing ($55,000) and Stable-Able Housing ($25,000). Funds will be allocated via Substantial Amendment 2026-#1.
A summary of each application is included as EXHIBIT F. Projects include street outreach services and healthcare for the unhoused. If approved, a reserve balance in the amount of $858,642 remains and all funding must be expended by September 30, 2030.
2026 Annual Action Plan and Substantial Amendment 2026-#1 Schedule:
Staff is preparing the 2026 Action Plan and Substantial Amendment 2026-#1 to its 2021, 2022, 2023, 2024, and 2025 Action Plans for submittal to the U.S. Department of Housing and Urban Development. HUD has advised that the City should not submit its 2026 Action Plan until actual amounts are formally announced by HUD. Currently a continuing resolution has been passed by Congress and more details on 2026 funding should be outlined by the end of February 2026. The City will finalize its 2026 Action Plan and move forward with the City’s funding recommendations once the City is notified by HUD as to its actual allocations. Unlike the 2026 Action Plan, the City may move forward in committing its 2026-#1 Substantial Amendment funds following City Council approval.
For reference, the following documents are attached:
EXHIBIT A - CDBG Recommendations
EXHIBIT B - CDBG Applicant Summary
EXHIBIT C - HOME Recommendations
EXHIBIT D - HOME Applicant Summary
EXHIBIT E - HOME-ARP Recommendations
EXHIBIT F - HOME-ARP Applicant Summary
EXHIBIT G - Draft 2026 Annual Action Plan
EXHIBIT H - Draft 2026-#1 Substantial Amendment
In accordance with the City of Aurora’s Citizen Participation Plan and the requirements of the U.S. Department of Housing and Urban Development Department, the 30-day notices for the 2026 Action Plan and Substantial Amendment (2026-#1) were posted in the Beacon News on January 18, 2026. Each document was also made available on the City's website and at the City’s three library branches. A public hearing will be conducted on January 30, 2026 at 1:00 p.m. to provide the public with an opportunity to comment on the 2026 Action Plan and Substantial Amendment 2026-#1 Amendment (EXHIBIT H).
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested over $57 million dollars in the City of Aurora. These funds have supported a wide range of community needs, including public facility improvements, housing development, job training, youth programming, domestic violence services, homelessness prevention, historic preservation, and senior services. Since becoming an entitlement community under the HOME program 15 years ago, the City has allocated approximately $9 million in HOME funds to rehabilitate its aging housing stock, create affordable rental housing units, and explore additional uses of HOME funds to further expand affordable housing throughout the City. HOME-ARP funds support investments in affordable housing opportunities and supportive service activities for residents who are homeless or at risk of homelessness.
RECOMMENDATIONS:
Staff recommends approval of the request authorizing approval of the 2026 Action Plan and Substantial Amendment (2026-#1). Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Director of Community Services, or their designees to execute any contracts as well as any other documents associated with the 2026 Action Plan and Substantial Amendment (2026-#1) including but not limited to HUD's program administration requirements.
Please do not hesitate to let me know if you have any questions, 630-256-3321 or ragonac@aurora.il.us.
cc: Public Health, Safety and Transportation Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Approval of the 2026 Annual Action Plan and Substantial Amendment 2026-#1.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, he City of Aurora's Block Grant Working Committee recommended adoption of the 2026 Annual Action Plan, and Substantial Amendment 2026-#1 at its January 15, 2026 meeting; and
WHEREAS, the 2026 Annual Action Plan, and Substantial Amendment 2026-#1 will define priorities for community development funding; and
WHEREAS, funding will be available in the 2026 City Budget CDBG program account (221-1330-801-43-series), HOME program account (213-1330-801-43-series); HOME-ARP program account (213-1330-331.11-19-series), HOME-ARP program account (213-1330-801.44-60 series), and HOME-ARP program accounts (213-1330-801.44-55 and 213-1330-801.44-61 series).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby approves a resolution authorizing the 2025-2029 Consolidated Plan, 2025 Annual Action Plan, Neighborhood Revitalization Strategy Area Amendment, and Substantial Amendment 2025-#1, and authorizes the City's Mayor, Chief Community Services Officer, Community Development Manager, or their designees to execute any contracts as well as any other documents associated with these approvals, including but not limited to HUD's program administration requirements