While Falls officials await word on the approval of funding for their proposed $2.8 million 2026-27 Community Development Action Plan, on Thursday they released a report on how the 2025-26 grant was spent.
Newly appointed city Community Development Director Ian McCully told a gathering of eight residents that the federal block grant funding doesn’t begin to meet all of the city’s needs.
“There’s always much more need than we can provide for,” McCully said.
He said projects funded through his department must comply with guidelines from the U.S. Department of Housing and Urban Development, including primary requirements that they benefit areas with a majority of low- to moderate-income households or that reduce “blight and slums.”
McCully said is funding is allocated to Community Development Block Grants (CDBG), HOME (Investment Partnerships Program) and Emergency Solutions Grants (ESG). CDBG represents the largest funding source year to year, with the most flexibility in how it can be spent.
HOME grants are intended to provide funds earmarked for creating affordable home construction and rehabilitation in low- and moderate-income households. ESG grants are designed to help people “regain stability in permanent housing after experiencing a housing crisis or homelessness.”
“(ESG grants) are our smallest allocation and they must be spent quickly,” McCully said. “They target our most at-risk populations.”
In response to questions about whether ESG grants could be used to relocate residents in areas recently discovered to have potentially high environmental risks, McCully said the funds can only be used in low- or moderate-income neighborhoods.
“We’d like to help all of the city,” McCully said, “but we’re limited by what HUD will allow.”
He also said the lengthy time frame to apply for HUD funding would mean, “it would take years (to determine) if (relocations) were eligible.”
McCully said community development spending is broken down into spending by the city, spending by other governmental agencies and spending by not-for-profits.
City spending in 2025 included more than $813,000 for paving 16 streets and over $102,000 for two demolition projects. Allocations of roughly $47,000 went to the Niagara Falls Housing Authority and $32,000 to the Falls School District.
Not-for-profit allocations included $25,000 for Heart Love & Soul, $47,000 for the Boys and Girls Club, $40,000 to Carolyn’s House and $31,000 to the NOAH Literacy Program, among others.
McCully said work on the city’s 2027-28 grant application is underway, with HUD opening the application window in November. The application is recommended by the mayor and approved by the City Council.
The city’s pending 2026-27 application seeks to address issues such as housing, economic development, community development and homelessness, “with particular attention to the needs of low and moderate-income households in the city.”
It received unanimous support from members of the City Council.
Most of the organizations receiving grant recommendations have previously been funded in the city’s annual action plan. Those tapped for 2026 ESG grants were Heart Love & Soul, $30,000 for its Street Outreach Services, and Community Missions Homeless Prevention Services and Emergency Shelter Services programs for $94,794.
The plan also calls for $50,000 in ESG funding for Pinnacle Community Services Emergency Shelter Services.
HOME recommendations include $203,210 for the city’s Owner Occupied Rehabilitation Program and $197,800 for Niagara Area Habitat for Humanity’s new construction projects.
The action plan recommends Community Development Block Grant (CDBG) funding for Niagara Falls Housing Authority After School program ($50,000), Niagara Falls School District After School Tutoring Program ($35,000), Niagara Falls Boys & Girls Club 716 United Youth Program ($35,000), Parachute Credit Counseling ($22,400), Niagara Area Habitat for Humanity Neighborhood Beautification Program ($18,000), Youth Motivation After School Program ($20,000) and YMCA Youth Services -Carolyn’s House ($45,000).
Say Yes Niagara Falls, a new grantee, is recommended to receive $40,000 for its Youth Program Education Services.
The city’s CDBG requests include $200,000 for the Falls Acquisition of Private Property for Rehabilitation program, $200,000 for the Commercial Exterior Facade Program, $180,000 for the Clean Neighborhood Program and $730,000 for the Road Milling and Paving Program.
The Falls is also seeking $252,063 in funding for its Owner-Occupied Rehabilitation Program. Niagara Area Habitat for Humanity is recommended to receive $150,000 for its Owner-Occupied Housing Rehab program.
The CDBG application also includes $35,000 for Heart Love & Soul’s Daybreak Pantry and Dining Room services, along with $110,000 for the Neighborhood Housing Services Closing Costs Program and $30,000 for its First-Time Home Buyer Workshop.