City of Ithaca struggles with CDBG timeliness test amid sidewalk project delays

In a recent Zoom meeting held by the Ithaca Urban Renewal Agency (IURA), city officials confronted a pressing issue regarding the Community Development Block Grant (CDBG) funds. For the first time, the city has failed to meet the timeliness test set by the U.S. Department of Housing and Urban Development (HUD), raising concerns about the flow of funds into the community.

The timeliness test is a crucial metric that ensures CDBG funds are actively being utilized rather than hoarded for larger projects. This year, the ratio of unspent CDBG funds exceeded 1.5 times the awarded amount, a situation that has never occurred before. Officials emphasized the importance of encouraging local organizations to submit vouchers for their expenses promptly, as slow-moving projects can jeopardize compliance with HUD's requirements.

One specific project highlighted during the meeting was the sidewalk initiative at Cecil Malone Drive. Although the project is under contract, delays in reimbursement requests from the contractor have contributed to the city's current predicament. The contractor is managing multiple projects simultaneously, which has complicated the timeline for this particular initiative.

As the city grapples with this setback, IURA officials are preparing to submit a workout plan to HUD, detailing how they intend to address the issue. The implications of this failure could affect future funding and project timelines, making it imperative for the city to act swiftly and effectively.

The meeting underscored the ongoing challenges faced by local governments in managing federal funds and the critical need for timely execution of community projects. As Ithaca moves forward, the focus will be on ensuring that funds are not only available but also actively contributing to the community's development.