City staff outline CDBG rules and $364,000 funding pot as HUD delays shift schedule

City staff briefed the Housing and Development Commission that the city’s federal Community Development Block Grant (CDBG) funding round will focus on public facility projects and rental acquisition, with applications due Aug. 4 and an approximate total allocation of $364,000. Staff described eligible uses including nonprofit acquisition of single‑family rental housing restricted to income‑eligible tenants and public facility improvements for shelters or neighborhood centers that serve low‑ and moderate‑income residents. “The purpose of these funds is to serve low to moderate income individuals,” a city staff member said while reviewing program rules and reporting requirements. Why it matters: CDBG funds come with detailed federal rules and multi‑year reporting obligations. Staff said HUD was slow in issuing allocations this year, forcing the city to set subcategory budgets and submit an action plan before typical public discussion timelines. Staff said the city submitted its plan to HUD in the week before the meeting. Staff said they will supply a summary sheet for each CDBG proposal to help commissioners apply the program’s rules during scoring. The commission may optionally score proposals individually and share composite scores to inform the Sept. deliberations; staff encouraged commissioners to bring any individual scores to the September meeting to aid discussion. Staff also described reporting and compliance requirements for rental acquisition projects: units acquired with CDBG assistance are subject to a period of affordability, annual reporting on tenant income and rent levels, and ongoing city monitoring. Staff said that if an awarded project does not proceed in the HUD time frame, staff can recommend recapture and reallocation of funds to projects that can meet deadlines. Ending: Staff urged commissioners to attend an applicant workshop this week (first time using new application software, Neighborly) and to contact staff with questions; staff will post summaries and staff scores in the August packet as a starting point for commission recommendations in September.