CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the Community Development Block Grant (CDBG) Program Year 2026 Annual Action Plan allocating $535,000 (Item 2 of 2)
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DEPARTMENT: Community Services
SUBMITTED BY: Miranda Barfuss, Community Grants Manager
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The U.S. Department of Housing and Urban Development (HUD) requires that the City develop a Consolidated Plan every five years and an Annual Action Plan each program year. The Consolidated Plan summarizes Naperville’s housing and non-housing community development needs and provides a strategic plan for how CDBG funds will be spent over the next five years to meet these needs. The Annual Action Plan (AAP) describes how funds will be spent during the specific program year and how the expenditure contributes to meeting the overall goals of the Consolidated Plan.
The City of Naperville is part of the DuPage County Consortium and the Program Year 2026 AAP represents the second year of the DuPage County Consortium 2025-2029 Consolidated Plan. Program Year 2026 begins April 1, 2026 and ends March 31, 2027. The attached AAP outlines how CDBG funds will be spent in Program Year 2026 and how these projects meet the objectives of both the CDBG program and the 2025-2029 Consolidated Plan.
For Program Year 2026, the City of Naperville estimates that it will receive approximately $535,000 in CDBG funds from HUD. When the exact allocation amount is made available by Congress, the City will adjust the awards based on the Contingency Provisions discussed below.
DISCUSSION:
The 2025-2029 Consolidated Plan proposes nine overall goals for the City of Naperville CDBG Program that will inform the selection and funding of projects from April 1, 2025 through May 31, 2030:
1) Affordable Rental Housing: To preserve and increase the quality of affordable rental housing through rehabilitation, acquisition and construction
2) Affordable Owner-Occupied Housing: To preserve and increase the quality and affordability of owner-occupied housing through rehabilitation and other assistance
3) Homeless Housing and Supportive Services: To support essential services, facility improvements and facility development to enable homeless and at-risk individuals to access suitable living environments
4) Special Needs Housing and Supportive Services: To support essential services, facility improvements and facility development to enable people with special needs to access suitable living environments
5) Non-Housing Community Development - Accessibility: To enhance the accessibility of public facilities by eliminating architectural barriers and ensuring ADA compliance
6) Non-Housing Community Development-Homeless: To reduce the incidence of poverty and homelessness by providing public services to prevent homelessness and assist homeless and at-risk individuals to become self-sufficient
7) Non-Housing Community Development-Public Services: To assist low-income households, reduce the incidence of poverty and avoid job losses by providing public services to individuals to enhance life skills and self-sufficiency
8) Non-Housing Community Development-Public Facilities: To maintain a viable and sustainable urban community through needed public facility improvements
9) Administration & Planning: Administration of the CDBG program and planning for community development needs
To distribute Program Year 2026 CDBG funding, the City held a Call for Projects and opened applications for funding from September 11, 2025 to October 24, 2025. The City received 14 applications requesting a total of $3,772,403. All applications were evaluated and scored by a multi-disciplinary team consisting of representatives from the Human Rights & Fair Housing Commission, the Accessible Community Task Force, the Senior Task Force, and staff from the Community Services Department.
Recommended Program Year 2026 AAP Awards/Allocations:
Affordable Rental Housing
1) Little Friends - Replace Doors at Katharine Manor Apartment Complex $40,000
These funds will be used to replace 18 apartment doors at a complex housing individuals with physical disabilities located at 1141 Iroquois Avenue. The old and damaged doors will be replaced with new commercial wood doors with fire tags.
2) Naperville Elderly Homes - Reliable Energy Efficient Building Heating System $140,000
These funds will be used to replace the boilers in the original section of Martin Avenue Apartments located at 310 West Martin Avenue, a 190-unit apartment complex providing affordable rental housing for low and moderate income seniors.
Affordable Owner-Occupied Housing
1) Rebuilding Together Aurora - Single-Family Home Rehabilitation Program continued
Funding allocated in previous program years will continue to be used to rehabilitate owner-occupied single-family homes within the municipal boundaries of Naperville occupied by low and moderate income residents who are elderly or disabled and requiring home modifications and/or repairs they are unable to perform on their own due to financial or physical constraints.
Homeless Housing and Supportive Services
1) Bridge Communities - Rehabilitation of Apartment Units $100,000
These funds will be used to completely rehabilitate 3 units in a transitional housing building located at 1329 Crab Apple Court, by replacing cabinetry, countertops, light fixtures, exhausts and sinks in the kitchens, replacing the flooring throughout each unit, installing closet organizers, replacing the vanity, sink, fans, shower/tub and fixtures in the bathrooms, and repainting each unit. These improvements will maintain these units as quality, affordable transitional housing for homeless and at-risk families.
Special Needs Housing and Supportive Services
1) Ray Graham Association - Starling CILA Renovation Project $45,000
These funds will be used to rehabilitate a Community Integrated Living Arrangement (CILA) housing 4 adults with disabilities located at 52 Starling Lane by repairing the outside retention wall and drainage, replacing kitchen lighting, replacing flooring throughout the home, and replacing the HVAC system.
Non-Housing Community Development: Accessibility
1) YMCA of Metropolitan Chicago - Fry Family YMCA Bathroom Renovation $9,750
These funds will be used to rehabilitate 2 gender neutral bathrooms at the Fry Family YMCA located at 2120 95th Street. Improvements will replace flooring, fixtures, and door operators to increase ADA access and durability of fixtures.
Non-Housing Community Development: Homeless
1) Loaves & Fishes Community Services - Emergency Assistance Program $57,250
These funds will be used for homelessness prevention through temporary rent and utility assistance, and counseling services benefiting approximately 45 households.
Non-Housing Community Development: Public Services
1) DuPagePads - Olympus Place PSH Program $23,000
These funds will be used for on-site services for approximately 10-20 formerly chronically homeless residents now living in permanent supportive housing (PSH) at 5 Olympus Place Drive.
Non-Housing Community Development: Public Facilities
1) Loaves & Fishes Community Services - Hub 2.0 Cold Storage Expansion $65,000
These funds will be used to expand cold storage capacity at the Food Distribution Hub located at 580 Exchange Court, Aurora, IL 60504, adding and installing permanently affixed large refrigeration and freezer systems.
Administration and Planning
1) City of Naperville - Grant Administration $55,000
These funds will be used to fund salary/administration costs for the Program Year 2026 CDBG Program.
Funding Contingencies:
Contingency Action #1:
If the final grant allocation is more than $535,000, the City will make the following changes in proposed activities:
1) Add additional funding for CDBG-eligible public services with the total allocation to remain within the 15% HUD cap on public service activities: (a) Loaves & Fishes Community Services Emergency Assistance Program, (b) DuPagePads Olympus Place PSH Program
2) Proportionally increase funding for projects that received less than full funding
Contingency Action #2:
If the final grant allocation is less than $535,000, the City will proportionally reduce the proposed funding amounts for all activities to match the actual allocation amount.
Public Comment:
The AAP was made available for public comment starting December 31, 2025 and concluding with a public hearing at the February 3, 2026 City Council meeting. Copies of the plans are available at the Community Services Department, Naperville Public Libraries and on the City’s website. To date, no comments have been received.
FISCAL IMPACT:
Allocation of $535,000 in CDBG Program Year 2026 funds