City of Lacey to hold final public hearing on 2026 CDBG Annual Action Plan 

Lacey residents and community members are going to have a final opportunity to comment on a proposed federal Community Development Block Grant (CDBG) spending plan for 2026. 

The Lacey Human Services Commission will hold its second and final public hearing on the 2026 CDBG Annual Action Plan at Lacey City Hall on Thursday, July 2, at 5:30 p.m. The hearing is a federally required step in the approval process. 

The action plan outlines how the city intends to spend its CDBG allocation for the year. The U.S. Department of Housing and Urban Development (HUD) awards CDBG funds to local governments for projects that benefit low- and moderate-income people. 

The City of Lacey is expected to receive $337,498 in CDBG funding for the program year beginning on Sept. 1. Lacey became a direct HUD entitlement recipient in 2024. Before that, the city received federal community development funds through Thurston County. 

The proposed spending plan allocates $303,749 for public facilities and infrastructure improvements, and the remaining $33,749 for administration and planning. 

The primary project is Huntamer Park, a 1.5-acre civic space in the Midtown District. The park has not received major upgrades since 2005, even as the surrounding neighborhood grew with new mixed-use and residential development. 

The CDBG funding is earmarked for sidewalk repairs and accessibility improvements. The full renovation is estimated to cost about $1.6 million, with other city funds covering the remaining expenses, according to a draft plan. 

In addition, city staff proposed a backup project. The parking lot at the Virgil S. Clarkson Senior Center regularly fills during events, leaving older adults to either park far away or skip attendance. Staff proposed expanding the lot by about 50 spaces, including Americans with Disabilities Act accessible parking. The project is estimated to cost between $1 million and $2 million. 

Federal law requires CDBG funded projects to meet at least one of three national objectives: benefiting low- and moderate-income persons, preventing or eliminating slum and blight, or addressing an urgent community development need. 

Lacey's plan projects all 2026 funds will go toward low- and moderate-income benefit, above HUD's minimum threshold of 70%. 

The city also has $348,393 in prior-year CDBG resources available, bringing the total funding pool to $685,891 for the program year. 

For more information on the 2026 CDBG Annual Action Plan or to find out how to submit comments, visit the City of Lacey's website.