Committee Makes Recommendations on How More than $400,000 From Federal Block Grant Program Should be Spent

The Community Development Advisory Committee has made its recommendations on how to allocate roughly $420,000 the city is expected to receive through the federal Community Development Block Grant (CDBG) program. 

The grant program is intended to uplift and support low-to-moderate-income communities by improving housing and living environments, and expanding economic opportunities. This year, the committee recommended funding agencies like family homeless shelter Haven House, and public projects like expanding the Northern Tier Trail.  

According to the U.S. Department of Housing and Urban Development (HUD), only 15% of CDBG funds can be used towards public services, while up to 20% can be used on costs to administer the program. Most of remaining funds typically go towards public improvement projects.

HUD has not yet informed the city of the exact amount it will be awarded for FY26. Hence, the committee used the FY25 total of $421,420 to draft a budget based on that amount. The total request amount from all the applicants for FY26 is $627,880.

The amount applicants receive will be increased or decreased proportionally when the actual amount the city receives is announced. Typically, the city receives between $400,000 and $500,000 through the CDBG program each year. 

The funds will be split between nine different applicants–six with public service applications and three with public infrastructure projects. The recommendations from the committee will be passed on to City Council for approval.

Public infrastructure Applications

There were three public infrastructure applications requesting a total amount of $490,000. The two major requests came from the city’s Department of Public Works with a $210,000 request, and the city’s Parks and Recreation Department, which requested $250,000. Each is recommended to receive $139,165.

The Department of Public Works Sidewalk Project will upgrade existing sidewalk ramps at five different intersections to ensure they are within full compliance with the Americans with Disabilities Act. The sidewalks are located at Elm St. & Center St., Oak St. & Center St., Elm St. & Beal St., Oak St. & Beal St., and Louis St. & Elm Pl. 

The Department of Parks and Recreation is scheduled to receive funding for the Northern Tier Trail (NTT) Extension project. The trail would run from the East Lansing Soccer Complex to Coolidge Rd. 

The NTT project was awarded a $300,000 grant from the Michigan Natural Resources Trust Fund, as well as $94,500 from the infrastructure allocation of the City’s Income Tax. 

In a phone interview, Community and Economic Development Specialist Matt Apostle said, “The committee ended up providing the same amount of funding to each project because they weren’t going to be able to fund one anywhere near what the total request was, while still giving the other one enough money to reasonably make a dent in their project.”

The last application came from Spartan Housing Cooperative for their Rental Rehabilitation project, which received $20,000, as opposed to their initial ask of $30,000. The funds will help repair the roof of the Apollo House, so solar panels can be added. 

The Apollo House was identified under the EGLE’s Solar Access Grant Program as a strong site for solar panels to be placed. However, the current roof’s condition is not eligible for solar panels due to age. 

The grant is funding phase one of ongoing efforts to decarbonize housing, and the grant provides funding to replace the roof and insulate the attic to enhance the house’s structural integrity. Phase two of the project would enable solar installation. 

Public Service Applications

There were six public service applications, requesting a combined $78,000. The committee allocated $63,210 to these applicants.

East Lansing Department of Parks, Recreation, and Arts received $5,000 in the proposed budget for its Youth Scholarship Program, which allows low-income youth to participate in recreational activities organized by the department. A few of the activities included are swimming, dance and children’s theater. The funding will cover enrollment costs, supplies and associated costs. 

The East Lansing Department of Planning, Building and Development receives $6,000 in the proposed budget to launch a new project called the Successful Leasing Program, which was recommended in the city’s 2023 CDBG Assessment of Fair Housing.

The program would help low income residents, as chosen applicants would receive a minimum of $1,500 to help pay for security deposits and first-month rent.

Haven House is the third applicant, with the committee recommending the family homeless shelter receive $22,000. The funds will be used towards emergency shelter and re-housing, in addition to covering partial salaries for a full-time housing resource specialist and three part-time shelter coordinators. 

MSU Migrant Student Services receives $12,000 in the proposed budget to run a support service aiming to serve 40-60 low-income migrant students. The program will provide a wide range of services, including academic advising, financial assistance, winter apparel and necessities relating to medical, dental and optical.

MSU Safe Place receives $8,210 for the program Shelter & Support, Domestic Violence & Stalking in the proposed budget. This money would provide food for adults and children while they are living in the shelter. At the Jan. 9 Community Development Advisory Committee meeting, MSU Safe Place Associate Director Kathleen Miller and Advocate Alyssa Baumann specified groceries are purchased at Walmart and that they do not purchase any tobacco or alcohol products. 

Lastly, the Tri-County Office on Aging is posed to receive $10,000 for the Meals on Wheels program, aimed at serving seniors over 60 by delivering meals to their homes. Approximately 1,191 meals will be provided in the fiscal year – roughly $8.40 per meal. 

An assessment will determine the specific number of meals needed per day for recipients (up to a maximum of three). In addition, volunteers receive training to check on the participants’ well-being while delivering meals.

Final Committee Discussions 

The Community Development Advisory Committee met on Feb. 13 to have an open discussion about the proposed CDBG drafted budget before sending it to the City Council for approval. 

Committee members were unanimously in favor of the proposed FY26 budget, despite not being in total agreement about each applicant’s funding. Apostle noted general excitement from the applicants regarding the funding, saying there were no negative responses.

Commissioner Jill Steiner noted that there were fewer applicants this year than in the past. 

“It was easier this year because there were fewer applications, and I don’t know if that’s a good thing or not,” she said. “Is there a way we can get some feedback on this?”

Community and Economic Development Administrator Heather Pope noted that staff time to apply and track the grants might play a role in the low number of applicants. 

“We don’t get a large amount of money, and by the time you [participants] pay someone to do the work and cover the reporting required, it may not be worth their time,” Pope said. “We saw quite a drop-off with agencies we funded for several years once our funds kept getting reduced,” 

Pope concluded, “If HUD wants to give us money, we will find a way to spend it.”