Staff recommends FY25-26 allocations for CDBG, HOME, ESG and human-services funds; HUD allocations still pending

Michelle Pillsbury told the Mesa City Council at its March 17 study session that staff are recommending funding allocations for fiscal year 2025-26 for Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), Emergency Solutions Grants (ESG) and city human-services programs.

Pillsbury opened by noting the federal budget uncertainty: "on Friday of last week, there was a continuing resolution that was passed, which will continue through September 30. Now that doesn't include any new funding. It's just to keep the government going. However, for our programs, we have already been allocated those dollars to get us through the rest of the fiscal year. But for these dollars, we haven't had any notification of what the budget is yet." She said staff will continue the normal nine-month funding process and will return to council if allocations are cut significantly; for cuts of about 10% or less staff would make administrative adjustments.

Pillsbury summarized program rules and recommendations: CDBG public-services spending is capped at 15%…