St. Cloud Approves $670,000 in Federal Grants for Housing and Community Programs

(KNSI) – The St. Cloud City Council has approved a plan to distribute $670,000 in federal Community Development Block Grant (CDBG) funds for 2026, adopting the spending recommendations put forward by the city’s planning commission last month.

Council President Mike Conway acknowledged the difficulty of the process. “It’s a limited amount of funds for very deserving programs,” he said. “It’s the hardest thing because we never have enough funds.”

Nine programs requested a combined $1.5 million this year, far exceeding what was available.

The largest allocations go to housing-related initiatives. The St. Cloud Housing and Redevelopment Authority will receive $164,500 for single-family homeowner rehabilitation, and Central Minnesota Habitat for Humanity will receive $200,500 to fund infrastructure development in the Westwood neighborhood, paving the way for 14 new single-family homes.

Place of Hope Ministries will receive $79,000 for its overflow compassion shelter. Smaller allocations include $11,000 for Tri-County Action Program’s Project Homeless Connect and $10,000 for Lutheran Social Services’ St. Cloud Area Crisis Nursery program. An additional $130,000 will go toward program administration.

For the first time, YouthSet will receive $75,000 to help refurbish a gymnasium.

Conway noted the council’s appreciation for both familiar and new recipients. “We have our usual suspects. Groups like the HRA and Place of Hope, who do phenomenal work. But we were also able to expand the program to a new group this year.”

Several applicants will go unfunded, including 180 Degrees Inc., Central Minnesota Housing Partnership, and Stepping Stone Emergency Housing. The Center for African Immigrants and Refugees Organization (CAIRO) and Homeless Helping Homeless withdrew their requests before the meeting.

The council approved the plan 6-1. Council Member Dave Masters cast the dissenting vote, citing concerns about YouthSet’s funding since the organization currently leases rather than owns its space. YouthSet has stated it hopes to purchase the building in the future.

The spending plan must be submitted to the U.S. Department of Housing and Urban Development by May. The CDBG program provides annual federal funding to address housing and community development needs, with a focus on benefiting low- and moderate-income residents.

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