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Board approves prioritized CDBG project list, recommends funding housing and ready-to-go projects

2845294 · April 2, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The board unanimously accepted the Community Development Advisory Committees prioritized list for the 2025 Community Development Block Grant action plan, with CDAC recommending partial funding for Habitat for Humanity acquisition and abatement projects and prioritizing ready-to-start housing projects.

The Hot Springs Board of Directors approved the Community Development Advisory Committee's recommendations for the city's 2025 Community Development Block Grant (CDBG) Annual Action Plan, endorsing a prioritized list that emphasizes housing projects and projects ready to proceed when federal allocations are announced.

Why it matters: Hot Springs is an HUD entitlement grantee; CDBG funds are intended for community development, housing and public services for low- and moderate-income residents. The board's prioritized list will be used to prepare the annual action plan HUD requires within 60 days of an allocation announcement.

CDAC recommended prioritizing two Habitat for Humanity projects (property acquisition and ‘‘spotlight abatement’’) at 50% of requests, citing the board's housing goal and Habitat's capacity to spend funds quickly. CDAC also recommended partial funding for sidewalk work in the Palmetto/ Wade Street Park area and recommended that two public-service applicants share the CDBG public-services cap if funds are available.

Planning and Development Director Kathy Selman said preliminary estimates put Hot Springss 2025 allocation near $375,000, while applicants requested approximately $901,339. Selman explained HUD caps program administration at 20% and public services at 15% of the grant; if the city receives $375,000, public services would be capped at $56,250 and CDAC recommended splitting that amount between two applicants.

At the public hearing, Habitat for Humanity representatives said acquisition is their major barrier to accelerating construction. Cindy Wagstaff, executive director of Garland County Habitat for Humanity, said the organization asked for more funding than usual because property costs now limit its ability to reach organizational capacity: "Property is our biggest obstacle." Habitat asked for funds flexible enough to purchase identified lots when acquisition opportunities arise.

CDAC also recommended reduced or no funding for some applications that were concept-stage or duplicates of recent funding, and it proposed contingency instructions for the board if HUD grants a different amount than the working estimate. Selman told the board that if the actual HUD allocation differs from the $375,000 estimate, staff will fund projects down the priority list and return to the board with recommendations on how partial awards would be allocated.

Votes and follow-up: The board approved the priority list as presented. Selman and staff will finish the annual action plan and submit it within HUD's required timeframe once the federal allocation is announced. The board asked staff to continue working with applicants to fill documentation gaps before contracts are executed.

Quote

"The need is very, very great and the funds as always are quite limited," Planning and Development Director Kathy Selman said during the presentation.

Ending

The prioritized list signals the board's intent to steer limited federal dollars primarily to housing and shovel-ready projects; staff will return with final contract and implementation details once HUD announces the city's 2025 allocation.