The City of Waco is proposing how it will spend more than $2 million in federal housing and community development funding during the upcoming program year (October 1, 2026 – September 30, 2027). The plan focuses heavily on affordable housing, homelessness prevention, and services for vulnerable residents.
How Much Funding Is Available?
The City expects to receive:
- $1,357,153 through the Community Development Block Grant (CDBG) program.
- $645,675.74 through the HOME Investment Partnerships Program.
That's a total of $2,002,828.74 available for local programs and projects.
Homeowners Could Receive Help With Repairs
One of the largest investments is aimed at helping residents stay safely in their homes.
The City plans to spend approximately $887,836 on homeowner rehabilitation and roof repair programs, including:
- Roof repairs and replacements
- Major home rehabilitation
- Addressing code violations
- Improving unsafe or substandard housing conditions
The goal is to assist 29 Waco households during the year.
First-Time Homebuyers Can Get Financial Assistance
Residents looking to purchase their first home may qualify for assistance.
The City plans to:
- Help 10 households purchase their first homes.
- Offer down payment assistance of up to $25,000 per homebuyer.
- Continue partnering with Grassroots Community Development's matched savings (IDA) program.
Total funding for these efforts exceeds $124,000.
More Affordable Homes Are Being Built
The plan includes investments to increase Waco's supply of affordable housing.
Highlights include:
- Four Habitat for Humanity Homes
- Four new affordable homes will be constructed.
- Three will be sold to households earning 40–70% of Area Median Income (AMI).
- One will be sold to households earning up to 80% AMI.
- Mixed-Income Neighborhood Development
The City is redeveloping approximately 3 acres of city-owned land into a new neighborhood featuring:
- 24 homes total
- 14 affordable homes reserved for low- and moderate-income buyers
- Infrastructure improvements over the next six years
- Four homes expected to move forward during this Action Plan year.
- Rental Assistance Will Help Prevent Homelessness
The City plans to invest more than $220,000 in rental assistance programs.
This funding is expected to help 20 households:
- Remain housed during difficult times,
- Avoid eviction,
- Prevent homelessness, and
- Maintain stable housing while working toward self-sufficiency.
Funding Will Support Local Nonprofits
Nearly $198,000 is proposed for public services benefiting residents.
Programs include:
- Homeless shelter services
- Homelessness prevention efforts
- Children's services
- Youth skills training
- Childcare assistance
The City estimates these programs will serve approximately 480 residents during the year.
Homelessness Remains a Major Focus
The plan continues support for efforts to reduce homelessness throughout Waco.
Key initiatives include:
- Continued collaboration with the Heart of Texas Homeless Coalition.
- Support for Mission Waco's programs.
- Ongoing use of coordinated intake systems that connect people with housing and services.
- Expansion of permanent supportive housing options.
The document also notes that Phase I of Creekside Community Village was completed on March 31, 2026. Creekside provides tiny-home supportive housing paired with services such as employment assistance, healthcare connections, and case management.
What Residents Said They Need Most
The City surveyed residents and received 174 responses.
Residents identified these as their top priorities:
- Housing
- Rehabilitation of affordable rental housing
- Help buying a home and down payment assistance
- Help for homeowners making repairs
- Homelessness
- Transitional and supportive housing
- Homelessness prevention
- Case management and supportive services
- Public Services
- Childcare services
- Health and mental health services
- Domestic violence services
- Infrastructure
- Street and road improvements
- Sidewalk improvements
- Water and sewer improvements
All public comments received were reviewed and considered during development of the plan.
For residents, this plan translates into real opportunities:
- Seniors and long-time homeowners may receive critical home repairs.
- Families may be able to purchase their first home.
- Renters facing hardship may avoid homelessness.
- More affordable homes will be added to the community.
- Children, survivors of domestic violence, and individuals experiencing homelessness can access supportive services.
The draft plan recognizes that Waco continues to face challenges from rising housing costs, population growth, and limited federal funding. Despite those pressures, the City intends to dedicate at least 81% of its grant funding directly to projects benefiting low- and moderate-income residents, exceeding HUD's minimum requirement.
The proposed 2026 Annual Action Plan is largely about helping Waco residents stay housed, become homeowners, preserve existing homes, expand affordable housing options, and provide support to those facing the greatest challenges. It directs federal funding toward practical programs that residents identified as their highest priorities.