Pharr staff say CDBG operations continuing despite federal shutdown; city to seek Section 108 loan for fire station or utilities project

At a meeting of the City of Pharr grants board, Napalione Coca, CDBG assistant director, said the city’s Community Development Block Grant program is still operating despite a federal government shutdown and that staff plan to submit two Section 108 loan proposals to the U.S. Department of Housing and Urban Development (HUD).

“There's a current active government shutdown. We just want to share that, for our grant, the Community Development Block Grant, we're still operating,” Napalione Coca said. He told the board Pharr can continue drawdowns to reimburse partner organizations and that previously obligated funds would let CDBG programs operate even if the shutdown lasts months.

The update matters because HUD approval is required before Section 108 loan funds can be received. Coca said the city intends to propose two Section 108 uses to the HUD field office in San Antonio: replacing Fire Station 1 near LBJ Middle School, and a public‑utilities project. He estimated the loan request would be in the $5 million to $6 million range, noting the city can borrow up to five times its annual CDBG allocation.

Coca also reported the city submitted its annual action plan on time and that HUD requested corrections that were provided; the plan is currently under HUD review. He said the consolidated annual performance and evaluation report (CAPER) for the fiscal year that closed Sept. 30 is being prepared and is due to HUD by Dec. 31.

On homelessness prevention, Coca said he and Sandra Regalado, the CDBG manager, attended training in Austin to pursue the Emergency Solutions Grant (ESG). He described ESG as a grant that “allows us to serve the people that are at risk of becoming homeless,” including residents behind on rent or utilities, and said Silver Ribbon Community Partners in McAllen currently provides eviction‑prevention assistance for qualifying Pharr residents.

No formal vote or action on Section 108 borrowing or ESG application was taken at the meeting; the items were presented as staff updates and plans. Coca said staff will return with detailed project information before sending formal proposals to HUD.

Board members asked for location details on the fire‑station proposal; Coca said the intended site is Fire Station 1 on 495, just east of LBJ Middle School, and that staff believe the existing building would need to be demolished and replaced. He did not provide a construction timeline or a HUD approval schedule.

The board received the CDBG update as informational. Staff indicated the city has obligated funds in place that allow operations to continue while HUD reviews the action plan and while the federal appropriation process is unresolved.

Pharr staff said they will share project details with the board before submitting Section 108 proposals to HUD and will provide follow‑up information on the action plan and CAPER as it becomes available.