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Council authorizes acceptance of more than $8 million in CDBG program income pending HUD approval
Summary
Terrebonne Parish committees voted to accept over $8 million in program income from the Louisiana Office of Community Development Disaster Recovery Unit to add to the parish CDBG allocation, subject to U.S. Department of Housing and Urban Development approval and an amendment to the parish five‑year plan.
The Community Development committee authorized the parish president to sign a cooperative endeavor agreement to accept more than $8,000,000 in program income transferred from the Louisiana Office of Community Development Disaster Recovery Unit, pending approval by the U.S. Department of Housing and Urban Development (HUD).
Kelly Varnadeau, Housing and Human Services director, said the funds originated from HUD disaster grants for Hurricanes Gustav and Ike and that the Office of Community Development generated the program income while closing out those grants. “Typically, they could return those funds to HUD or they could transfer them to a CDBG entitlement community, which we are. So they've agreed to transfer the money to us,” Varnadeau said.
The committee was told HUD must approve the transfer and the parish must amend its five‑year consolidated plan (the 2020–2024 plan listed in the meeting materials) before the money is spent. Varnadeau said once the funds are transferred they will be incorporated into the parish CDBG allocation and subject to HUD requirements.
Council members asked how the money could be used. Varnadeau said the funds could not be used for new construction but are eligible for a wide range of Community Development Block Grant (CDBG) activities so long as they principally benefit low‑ and moderate‑income persons. She confirmed demolition or acquisition connected to condemnation is an eligible activity under HUD rules. A council member asked whether the parish could adopt local criteria to avoid paying for demolitions where owners can pay; staff responded that HUD’s eligibility rules could be used to tailor local policy.
Councilman Clyde Hamner moved the resolution; Councilman Daniel Babin seconded. The committee voted 9–0 to approve the cooperative endeavor agreement and send the matter forward for execution pending HUD approval.
What comes next: staff will prepare the required amendment to the parish five‑year consolidated plan for public review and HUD submission; HUD approval is required before the parish may obligate or spend the transferred funds.
