A federal assistance program to benefit low-to-moderate income residents will help fund a new Marshall homeless shelter and a transitional housing facility.

The city of Marshall said the total amount of funding available in this year’s Community Development Block Grant program is $317,590 compared with $304,234 in 2025.

Public hearings for Marshall’s CDBG program began April 28 and will conclude May 27 at City Hall.

The CDBG program is administered by the U.S. Department of Housing and Urban Development and provides funding to nonprofit organizations serving low-to-moderate income residents.

“Marshall is 50% low-to-moderate income, and we help the low-to-moderate income through 501(c)(3)s,” said Tami Henderson, the city’s CDBG community development coordinator. “501(c)(3)s apply, and if their applications are eligible and they meet the national objective, then they are approved.”

The goal of the CDBG program is to foster Marshall’s development and revitalization by focusing on social services, housing, shelter, and the improvement of facilities and infrastructure, Henderson said.

CDBG applications were accepted in February. After the release of federal funding, budget recommendations were presented to the city’s advisory council in preparation for the public comment period.

“This year, everyone who applied was funded,” Henderson said during the May 4 public hearing. “We only had one that wasn’t able to be funded, but she just withdrew her application. But for the most part, we base it on how much money we have, how much (the nonprofits) were awarded last year, and how we can get it to where we are at our 15% (cap on public services) or at our 20% (cap on administration)” of the CDBG award from HUD.

New applicants

Along with returning applicants for 2026, Henderson said three new applicants applied: New Town Neighborhood Association, Virtual Foundation and Creative Care by C&S Learning Center.

She said Creative Care by C&S Learning Center wasn’t eligible for funding this year, however, because it’s an LLC. The daycare, which serves low-to-moderate income families, sought $10,000 in funding for educational supplies and materials and $15,000 for playground equipment. The daycare has since withdrawn its application due to ineligibility.

Henderson said the New Town Neighborhood Association requested $5,000, which was approved by the advisory committee, for coats, shoes, and school uniforms to work in partnership with school administrators to aid students at Price T. Young Elementary School, which is in the historical New Town area.

She said fellow new applicant, Virtual Foundation, which recently brought mobile shower services to serve Marshall’s homeless residents, requested $125,000 to assist with its shelter services project.

The foundation’s $330,000-project calls for the establishment of a 12-to-16-bed transitional shelter in Marshall designed for 60-90-day stays. The “opportunity shelter” will feature shared living quarters, a kitchen and dining area, common spaces, a dedicated room for case management and essential amenities such as laundry, bathrooms, and storage.

Virtual Foundation sought $100,000 in operating costs, $5,000 in salaries, $10,000 in equipment, and $10,000 in supplies and materials. The city’s CDBG program found the $125,000 request to be reasonable based on the total estimated cost of the project. And while $100,000 of the funds was denoted for the purchase and rehabilitation of the property, the advisory committee ultimately recommended a higher grant amount of $166,434.

Henderson noted the Virtual Foundation additionally requested $135,000 for its Tiny Home Transitional Village. The $310,000-project involves the establishment of an eight-to-10-unit tiny home village for transitional living, complete with a shared service facility. It was noted that the funding plan relies on various sources, with the city’s portion specifically designated for housing construction.

While the $310,000 total seemed low for the project’s overall, it was considered reasonable if development occurs over a two- to five-year period. It was suggested to use the CDBG funding to purchase land — potentially through donation of property with back taxes — and to fund the construction of the initial two houses.

“The Tiny Home Transitional Village is going to take a little bit more time to get off the ground because (the Virtual Foundation administrator) wants to buy property,” Henderson said. “For her ‘opportunity shelter,’ she’s looking into buying a building. And the building that she’s looking for, she’s going to provide services, which would be employment services, mental health services, different services for people who are homeless or are about to be homeless. So it’s a very good idea.

“She’s going to get the $166,434 (for that specific project) and that’s mainly to rehab whatever building she may buy. So it’s a facilities improvement (grant). It’s something that is very much needed.”

Returning applicants

Returning recipients include Boys & Girls Club, Communities in Schools, Mission Marshall, Literacy Council, City of Marshall My Friends Homeless Program, and The Northeast Habitat for Humanity.

Boys & Girls Club requested $27,854 to support the same services as in the past. The CDBG advisory committee recommended the approval of $12,965.

Communities in Schools, which assists at-risk students, requested $15,000 and was approved for $5,293.

Mission Marshall requested $18,000 for its food pantry operations and was approved for $16,675.

The Marshall Harrison County Literacy Council requested $5,250 and was awarded $2,250.

The City of Marshall My Friends Homeless Program requested $8,885 to expand services to homeless residents and received $5,455.

And Northeast Habitat for Humanity requested $172,500 for its housing rehab program, estimated to cost a total of $770,649. Habitat was approved for $100,000 to cover the cost of 10 critical home repairs.

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