Staff outlines CDBG and HOME funding recommendations; some programs reduced or not recommended

City staff presented draft recommendations for the FY 2025–26 Community Development Block Grant (CDBG) and HOME budgets and outlined next steps including a public hearing and HUD submission requirements.

Dr. Rhonda Russell, community development staff, told council the FY25–26 CDBG entitlement used for initial planning is the city’s current allocation and program income; staff estimated roughly $1.78 million would be available for the program year including program income. She reviewed statutory caps for CDBG‑eligible activities (public services capped at 15 percent of CDBG; administration and planning capped at 20 percent) and presented staff funding recommendations for a range of applicants.

Staff recommended partial funding or continuation for a number of programs and declined other requests on programmatic or unit‑cost grounds. Examples included staff recommending $75,000 for the Parks & Recreation mobile kids meals program (the applicant requested about $146,000); funding a youth leadership program at roughly the requested level; not recommending funding for a senior transportation request because staff found overlap with HRT paratransit; recommending $58,000 for an economic workforce program that requested $100,000; and recommending smaller amounts for the Independence Center and for tenant‑support programs. Dr. Russell said the Portsmouth Redevelopment and Housing Authority’s housing rehab program would receive a recommended $200,000 allocation, which staff estimated would support about seven emergency rehabilitation units (roughly $20,000 per unit). Staff also recommended $55,000 for playground equipment replacement at Lexington Square.

Dr. Russell said some outside proposals were not recommended because the organization proposed to use funding largely for out‑of‑jurisdiction staffing or facility costs (an example she cited was Upwork Care, not recommended) or because unit costs were judged high. She said HOME funding estimated at about $455,398 would be used for homebuyer assistance, tenant‑based assistance and CHODO (Community Housing Development Organization) activities; staff recommended approximately $201,238 for HRPDC down‑payment assistance and identified $68,309.75 as the CHODO set‑aside amount that can be amortized over multiple years.

Next steps: staff said council would hold the advertised public hearing on the draft action plan and budget at the upcoming regular meeting, adopt the year‑two action plan if council approves, and then submit the documents to HUD for approval. Dr. Russell emphasized HUD approval is required before disbursing funds because CDBG/HOME funds are reimbursable and cannot be released to subrecipients until HUD signs off.

Council members asked questions about overlap among eviction‑prevention and tenant‑assistance programs, whether previously funded eviction prevention programs remain available, and whether CHODO partners would focus on new construction versus rehab. Staff cited ongoing coordination with HRPDC, Habitat for Humanity and local partners and offered to provide follow‑up information on program definitions and referral pathways.