Sarah Delozier, a city grant writer, told the Hot Springs Board of Directors the city plans to submit a fiscal year 2026 Emergency Solutions Grant (ESG) application to the Arkansas Development Finance Authority in the amount of $230,000 to fund phase 2 renovations at the Community Resource Center (CRC). Delozier said the requested funding would support adding bathrooms, showers and laundry to make the CRC “fully operational and capable of serving individuals experiencing homelessness.”

Delozier said the ESG program requires a 1:1 cash match. The city plans to meet the match by leveraging approximately $200,000 in eligible costs from the anticipated FY26 CRC operating budget (excluding the CRC director’s salary, which Delozier said is not an allowable match). She said a $25,000 contingency has been added to the project budget because construction costs increased beyond original projections and volunteer hours cannot be used as in‑kind match.

Delozier said the city also submitted a similar request to the Arkansas Community Assistance Grant Program (submitted before the July 31 deadline) and that, if both grants are awarded, staff would coordinate with ADFA to explore expanding ESG scope to cover other critical CRC needs, such as a backup generator. City Manager Bill Burrow said he has opened dialogue with Entergy about a program that might supply a generator; Burrow named Marshunda Jones as an Entergy contact he will follow up with.

Delozier said the ESG application must be pre-reviewed by the balance-of-state office this week and will be due to ADFA on Aug. 14; she said applicants typically hear decisions in late fall. The city’s FY25 ESG award of $59,974 (for phase 1 kitchen renovations, street outreach and HMIS participation) was cited as background. The resolution to authorize filing and acceptance is scheduled for board action on Aug. 5.