Council briefed on housing funds; federal CDBG cap limits supportive-services spending
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Summary
Officials said the city has limited federal flexibility for homeless-supportive services under CDBG rules, listed specific $25,000 allocations to local providers and reserved a $25,000 unencumbered county allocation in the budget for housing needs and public-private partnership authority in the CIP.
Fond du Lac staff told the City Council on Sept. 17 that federal Community Development Block Grant rules limit supportive-services spending to 15% of the program, and that the city has maximized that cap in its current consolidated plan allocations. Diane (staff) said the city used CDBG funds to provide $25,000 each to the Saint Catherine Drexel Center and to the warming shelter, and that the 15% supportive-services cap prevents additional CDBG funding for homeless services beyond that cap.
"Under the federal grant guidelines, no more than 15% can be allocated towards supportive services and we maximize that 15% towards supportive services. So we're at our cap in terms of how much we can use to support our homeless programs," Diane said.
Council discussion also noted a separate $25,000 allocation in the proposed budget from Fond du Lac County sales tax revenue that is currently unencumbered and available to address housing-related needs. City Manager Joe Moore said the CIP includes "a couple of million dollars" allocated to continue public-private partnership opportunities for residential development, citing projects off Highway K and near Aurora and Holy Family as examples of the types of partnerships the city may support.
Why it matters: The federal limit on supportive-services spending constrains how the city can use CDBG funding for homelessness-related programs, and council members were told the city has limited additional federal CDBG capacity for those services. The county sales-tax allocation and CIP authority provide some local flexibility but are modest relative to the needs discussed.
Ending: Staff said they would continue to refine budget materials and that the council has time for additional questions before the public hearing in October.