Albany CDC Allocates CDBG Grants, Shifts Program Income, and Outlines Housing Fund Rules

Albany's Community Development Commission (CDC) meets on July 20, 2026, to process several structural pieces of local housing and civic grant administration.

The meeting packet details how the city is allocating $395,432 in Federal Program Year 2026 Community Development Block Grant (CDBG) funds, reallocating revolving loan program income following a partner program pause, setting contingency plans for local business counseling, and reviewing state statutory guidelines for local housing development.

Here are the key takeaways and records questions from the CDC packet.

1. Federal CDBG Grant Allocations and HUD Cap Compliance

The City of Albany received its official federal award letter for Program Year 2026 in the amount of $395,432. HUD regulations cap Public Services at 15% ($59,300) and Planning and Administration at 20% ($79,000).

The CDC recommended distributing the $59,300 in Public Service funds across four local service providers:

• Jackson Street Youth Services: $25,000 for Next Steps transitional living case management for youth ages 18–24.
• Boys & Girls Club of Albany: $15,000 for youth summer program scholarships.
• Young Roots Oregon: $15,000 for supportive services for young parents.
• Oregon Cascades West Council of Governments (OCWCOG): $4,300.

Staff noted during preliminary discussions that while Young Roots verified it could accept a reduced award, scalability remains a factor in how those funds are deployed compared to original application projections.

2. DevNW Rehab Program Pause and Revolving Loan Transfer

The non-public service portion of Albany's CDBG allocation totals $257,132, alongside accumulated program income from housing rehabilitation revolving loans.

The packet reveals that local housing partner DevNW has placed a pause on its home rehabilitation program due to high administrative costs. DevNW holds a remaining balance of approximately $14,000, while the city holds roughly $80,000 in repaid loan program income.

Because revolving loan repayments must remain dedicated to housing rehabilitation programs under HUD regulations, the CDC voted to allocate all revolving loan program income and the remaining DevNW balance to Albany Area Habitat for Humanity, the sole active provider offering home repair services in Albany.

Records to watch: updated subrecipient monitoring agreements, HUD IDIS reporting entries, and formal accounting transfers between DevNW, Habitat for Humanity, and the City of Albany.

3. LBCC SBDC Contingency and Economic Opportunity Funding

The CDC voted to allocate $200,000 in CDBG Non-Public Service funds to the Albany Partnership for Housing and Community Development to fully fund its request.

The remaining balance of $57,132, plus $15,000 in unspent prior-year Family Connections funds, was designated for the Small Business Development Center (SBDC) through Linn-Benton Community College (LBCC).

However, staff reported that LBCC is no longer supporting the local SBDC office in Albany, moving instead toward a regional representative model. Because economic opportunity is a primary goal of Albany's Consolidated Plan, the CDC adopted a 7–0 contingency motion: if LBCC/SBDC cannot accept or utilize the funds under the new structure, the $72,132 will be split evenly between Albany Area Habitat for Humanity and the Albany Partnership.

4. Albany Housing Fund Rules and Construction Excise Tax Guidelines

The packet outlines the statutory structure governing the Albany Housing Fund, financed by the local Construction Excise Tax (CET) under ORS 320.195 and ORS 197A.465.

Oregon law mandates specific revenue distribution ratios for residential CET:

• 50% must fund developer incentives for affordable housing pursuant to ORS 197A.465.
• 35% may be used flexibly by the city for affordable housing programs serving households at or below 80% Area Median Family Income (MFI).
• 15% flows to Oregon Housing and Community Services (OHCS) for homeowner down payment assistance programs dedicated to Albany buyers.

Commercial and industrial CET revenues carry different requirements: 50% must support housing-related programs as defined by the city, while the remaining 50% is unrestricted and may fund infrastructure, system development charge (SDC) waivers, or parks serving housing developments.

Under ORS 197A.465, any local mandatory inclusionary housing requirements apply only to multifamily structures containing at least 20 units, cap mandatory affordable units at 20%, and require cities to provide developers an in-lieu fee option alongside financial or regulatory incentives.

5. Subrecipient Progress Reports

Quarterly reports included in the packet show varying service volumes across CDBG-funded activities:

• Boys & Girls Club of Albany: Offered summer scholarships to 67 unique youth (exceeding its goal of 30), expending $2,055 in CDBG funds during the first two weeks of the summer program.
• Albany Area Habitat for Humanity: Submitted 5 homes for repair assistance; 4 were approved and are receiving critical health, safety, and accessibility repairs.
• Jackson Street Youth Services: Served 2 unduplicated young adults experiencing housing instability in its Next Steps Transitional Living program, providing case management within 72 hours of entry.

Sources

• City of Albany Community Development Commission July 20, 2026 Agenda Packet (PDF)
• City of Albany Community Development Commission Group Page
• City of Albany Community Development Commission Approved Minutes (April 20, 2026)
• Oregon Revised Statutes: ORS 320.195 (Construction Excise Tax) & ORS 197A.465 (Local Affordable Housing Requirements)