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Roswell council approves $400,668 CDBG annual action plan to repay Section 108 loan for housing redevelopment
Summary
Council adopted the 2025 Annual Action Plan and a related budget amendment to set up $400,668 in CDBG funds to repay a Section 108 loan that will support redevelopment of Roswell Housing Authority property; closing and developer plans were discussed.
The Roswell City Council on Aug. 11 voted 6–0 to adopt the city’s 2025 Annual Action Plan for Community Development Block Grant (CDBG) funds and to approve a budget amendment setting up $400,668 for the program.
Chief Financial Officer Bill Gottschall said the $400,668 allocation will be used to repay a Section 108 loan held by HUD that supports the Roswell Housing Authority (RHA) Tel Free Pines redevelopment. The Section 108 loan mechanism lets CDBG recipients leverage annual grant allocations for larger, low‑cost financing; Gottschall said the Section 108 application was submitted in December 2024 and that HUD’s commitment encountered a congressional timing issue but staff expected the commitment to arrive before final closing.
Councilmember Lee Hills, who led the redevelopment effort in council, described the background: the RHA property had deteriorated, the city used CDBG reallocations earlier this year to demolish an unsafe structure, and staff worked with the RHA and a developer (Penrose) to assemble a capital stack. Hills said demolition had already occurred and that Penrose intends to break ground after Labor Day; the new building will replace 40 units with a 102‑unit complex (most single‑bedroom) that includes wraparound services and management improvements. Hills and staff said the project will expand the number of affordable units and that RHA residents displaced by demolition will be prioritized when the new units open.
Gottschall said the required 30‑day public comment period ran June 27–July 28, notices were published and posted, hard copies were available at libraries and City Hall, and no public comments were received. Councilmember Hills moved approval of the resolution and the budget amendment; Councilmember William Mortland seconded the motion and the council approved both items unanimously.
Staff said the city will submit the Annual Action Plan to HUD by the deadline and expects a closing on the Section 108 financing in the weeks that follow, with construction to start shortly thereafter.
