Killeen council approves reprogramming of HOME funds to boost tenant-based rental assistance, removes counseling requirement

The City of Killeen on Monday approved an ordinance to substantially amend multiple annual action plans and reprogram leftover HOME Investment Partnerships (HOME) funds for tenant-based rental assistance (TBRA), and to remove a requirement in the 2024 consolidated plan that TBRA recipients receive services from HUD-certified housing counselors.

City staff said the reprogramming is intended to meet U.S. Department of Housing and Urban Development (HUD) expenditure rules and to help the city spend HOME balances before HUD recaptures funds. "Reprogramming home funds will allow for the use in the HOME housing program, specifically tenant based rental assistance," said Miss McNair, Community Development staff, during the presentation.

The change also eliminates a program condition in the consolidated plan that required TBRA recipients to attend HUD-certified housing counseling. Miss McNair told the council that "HUD certified housing counseling is not required under tenant based assistance unless the jurisdiction elects to include it," and that Killeen currently has only one agency certified to provide that counseling. She said the counseling requirement would lengthen wait times and could increase the risk that households would become unstable or face eviction; removing it would allow the city "to assist households expeditiously and address the immediate need for assistance."

Public commenters urged coordination and targeted use of the funds. John Hong, president of the Central Texas Home Builders Association, said housing leaders, developers, council members and city management should "come together as a community to fix some of these things and get more affordable housing," and urged cooperation on projects in Killeen's north side. Another commenter, who identified herself as Melissa Bridal, raised concerns about outreach and participation: she said some Hispanic organizations had not been invited to community planning meetings and recommended postponing submission to HUD until a consolidated revision could be prepared to avoid repeated amendments.

Miss McNair outlined the next step: if approved, staff will submit the substantial amendment to HUD no later than Aug. 15, 2025. During the presentation staff listed year-specific HOME balances and said the citizen comment period ran from June 9 until the meeting date; staff reported receiving no comments on the amendment. The staff presentation included several year-by-year amounts and stated a total for reprogramming (amounts as stated by staff during the meeting).

Council action: Councilmember Sagal moved to approve the ordinance, the motion was seconded and passed by a 6–0 vote. The motion passed as a formal ordinance to adopt the substantial amendment to reprogram HOME funds to TBRA activities and to remove the HUD-certified housing counseling requirement from the consolidated plan as a condition of receiving TBRA.

The ordinance and staff presentation distinguished discussion (how HOME funds may be used and federal underwriting requirements for housing development) from the formal action the council took to adopt the amendment. Staff emphasized that HOME-funded development must meet HUD underwriting and capacity requirements, that HOME dollars can be used for rental or owner-occupied affordable housing development or TBRA, and that HOME dollars cannot be used to fund police homeless outreach teams.

Council members and staff also discussed whether HOME funds could support small or "tiny" house developments, and McNair said such development is allowable under HOME provided projects meet HUD underwriting, capital-stacking and developer capacity requirements.

Ending: With the council's approval, staff will submit the amendment to HUD and implement the reprogramming as described; HUD review and execution of HUD agreements were listed as the next administrative steps by staff.