Kenai weighs federal housing funds for Sixth Street water and sewer work

Kenai would tap federal housing dollars to help pay for water, sewer and street construction on Sixth Street under an ordinance the City Council takes up Wednesday.

The money comes from a U.S. Department of Housing and Urban Development Community Development Block Grant — federal funding for housing and infrastructure that passes through the state and, here, the Kenai Peninsula Housing Initiative. HUD allows the grants to cover water and sewer work, and the agency requires a written release before the money can be spent. The agenda doesn't list a dollar amount.

The same meeting includes a presentation of the 2026 Housing Assessment Report by Kenai Peninsula Economic Development District economist Andy Wink. The city has separately proposed a 4% water and sewer rate increase to address aging infrastructure. The council holds a public hearing on the funding ordinance; the meeting starts at 6 p.m.