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Council approves recommended CDBG allocations; member objects to Catholic Charities funding

3196213 ยท April 3, 2025
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Summary

Council approved staff and advisory-board recommendations for Community Development Block Grant (CDBG) allocations after public hearings, but a split 3-2 vote reflected objections from one council member to awarding funds to Catholic Charities over concerns raised about that organization's broader activities.

Palm Bay City Council approved staff and Community Development Advisory Board recommendations for the cityโ€™s annual Community Development Block Grant (CDBG) allocations after the required public hearing, but the vote was split and included objections about one recipient.

The council held the first required public hearing on the draft action plan and accepted recommendations to fund nonprofit public services (including Catholic Charities, Club Esteem and a palmโ€‘bay busโ€‘pass program) and capital projects and parks improvements (Victoria Playground shade, Liberty Park and Driscoll Park restrooms). Multiple city staff and applicant representatives described the review process: the city had issued a request for applications and routed proposals to the advisory board, which evaluated service targets and the cityโ€™s consolidated plan priorities.

Why it mattered: CDBG funding is federal entitlement money administered by the city and is tied to documented outputs for lowโ€‘ and moderateโ€‘income residents (housing rehabilitation, public services and playground/park improvements). One council member asked to remove Catholic Charities from the recommended list, saying federalโ€‘level criticisms of the organization justified withholding local CDBG support. That attempt failed; the council voted 3โ€“2 to advance the recommendations with Catholic Charities included.

Clarifying details: Staff emphasized this is the first of two public hearings; final allocations will be adjusted at the second hearing when the city receives the final HUD entitlement figure and after final review of applications. The advisory board recommended funding public service agencies and capital projects; staff noted the city uses the prior-year entitlement when awards are made before HUD confirms the upcoming allocation.

Outcome and next steps: Council approved moving the advisoryโ€‘board recommendations forward. Members who opposed the Catholic Charities award requested additional time to review material and suggested staff consider alternate local agencies at the final hearing; staff noted there will be a final hearing when HUDโ€™s allocation is confirmed and that monitoring requires grantees to document Palm Bay beneficiaries for reimbursement.

Ending: The item will return for a final public hearing once HUD issues the cityโ€™s final entitlement amount, at which time council may adjust allocations.