NOTICE OF HYBRID PUBLIC HEARING AND COMMENT PERIOD 2025 Annual Action Plan – Substantial Amendment AGENCY: North Carolina Department of Commerce, Rural Economic Development Division (REDD) ACTION: This notice serves as notification that the North Carolina Department of Commerce Rural Economic Development Division (REDD) will host an official hybrid public hearing regarding the State of North Carolina's 2025 Annual Action Plan Substantial Amendment. This hearing is open to in-person and virtual attendance for all who wish to learn and provide input about the substantial amendment. The draft substantial amendment may receive updates prior to submission to the U.S. Department of Housing and Urban Development (HUD). The substantial amendment proposes to reallocate $13,403,255.00 in CDBG Economic Development (ED) funds to the CDBG Neighborhood Revitalization (NR) program to assist with housing, neighborhood improvements, and other eligible activities. In addition, the state is proposing to establish a year-round open awards cycle and to award funds with a no maximum award amount, which will allow us to respond dynamically to urgent needs in the CDBG program. SUMMARY The 2025 Annual Action Plan (AAP) establishes federal investments and proposed actions of the four Consolidated Plan partner agencies. The document includes the following programs funded by HUD: Small Cities Community Development Block Grant (CDBG) HOME Investment Partnership (HOME) Emergency Solutions Grants (ESG) Housing Opportunities for Persons with AIDS (HOPWA) Impact on Low- and Moderate-Income Persons and Displacement The reallocated $13.403,255.00 is intended to primarily benefit low- and moderate-income households through eligible activities such as housing rehabilitation, infrastructure improvements, and neighborhood enhancements under the Neighborhood Revitalization program. No displacement of persons or businesses is anticipated. If displacement occurs, the State will comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act and HUD regulations at 24 CFR §570.606(b) to provide appropriate relocation assistance. The proposed year-round open awards cycle and awarding funds with no set maximum award amount will allow the state to respond to needs and amounts needed as projects and activities warrant. AVAILABILITY OF REVIEW MATERIAL A copy of the State's amended 2025 Annual Action Plan Substantial Amendment will be available for public review from August 16, 2026-September 17, 2026. All documents are available on the North Carolina Department of Commerce website (www.commerce.nc.gov). Copies are also available by request from REDD. Contact John Brooks at john.brooks@commerce.nc.gov to receive a copy. PUBLIC COMMENT PERIOD Comments concerning the 2025 Substantial Amendment should be made during the scheduled public comment period or hybrid public hearing. The scheduled comment period is from August 16, 2026, to September 17, 2026. Written comments will be accepted until 5:00 PM EST on the closing date and may be submitted via: Email: john.brooks@commerce.nc.gov Mail: John F. Brooks, Attn: Public Comment, Rural Economic Development Division, 4346 Mail Service Center, Raleigh, NC 27699-4346 Any mailed comments received after the last day of the public comment period must bear a postmark dated on or before September 17, 2026, to be considered. Summary of Comments: All comments received during the public comment period and at the public hearing will be reviewed and considered by REDD. A summary of all comments and the State's responses will be included in the final submission to HUD and posted on the Department's website. HYBRID PUBLIC HEARING An official hybrid public hearing will be held on August 26, 2026, at 10:00 AM: In-Person Location: North Carolina Housing Finance Agency, 3508 Bush Street, Raleigh, NC 27609 · Microsoft Teams meeting · Join: https://teams.microsoft.com/meet/29633517965985?p=PnDHDBDXXCry92hEwP · Meeting ID: 296 335 179 659 85 · Passcode: rb29jS7A · Need help? | System reference · Dial in by phone · +1 984-204-1487,,882427238# United States, Raleigh · Find a local number · Phone conference ID: 882 427 238# · Join on a video conferencing device · Tenant key: ncgov@m.webex.com · Video ID: 117 930 318 4 Accessibility and Language AssistancePersons with disabilities or who otherwise need assistance should contact John Brooks at john.brooks@commerce.nc.gov in advance of the hearing. Accommodation will be made for all who request assistance by 5:00 PM, Tuesday, August 25, 2026. Language Access: Si necesita esta información en español, por favor póngase en contacto con John F. Brooks al 919-814-4663. Additional language assistance is available upon request.