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HUD deadlines threaten millions in community funding

October 01, 2024 | Clark County, Washington


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HUD deadlines threaten millions in community funding
In a recent government meeting, officials discussed ongoing challenges related to the timeliness of Community Development Block Grant (CDBG) projects, highlighting a concerning trend of delays that have persisted for three years. The U.S. Department of Housing and Urban Development (HUD) has introduced new timeliness requirements, prompting local officials to attend a workshop on October 17 to better understand these changes and their implications.

The meeting revealed that the local government is currently preparing a narrative report to explain the reasons for their delays and outline a plan to improve timeliness. However, officials expressed skepticism about meeting the upcoming deadline in May 2025, which would mark four consecutive years of untimeliness. This situation poses a significant risk of losing CDBG funding, a concern that will be further addressed during the upcoming workshop.

Financial data presented during the meeting indicated that there are substantial amounts of allocated but unspent funds across various project categories. Specifically, $1.4 million is earmarked for public facility and neighborhood improvement projects, while $2.8 million is allocated for asset and economic development initiatives. The report also categorized pending projects by their status, revealing that approximately $624,000 is classified as \"very late,\" with another $1.5 million deemed \"late.\"

Among the projects discussed, the Battle Ground Southeast Clark Avenue project, linked to the Weaver Creek initiative, has been notably delayed. Officials indicated that they are taking steps to ensure future projects do not tie up funds unnecessarily, which has contributed to the current timeliness issues. Other projects, such as the Proud Ground Homebuyer program, are beginning to show progress, with two of four houses expected to close soon.

As the local government grapples with these challenges, the upcoming workshop with HUD is anticipated to provide critical guidance on how to navigate the new requirements and improve project execution moving forward.

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