Lacey commission opens first public hearing on 2025 CDBG program, outlines timeline and priorities

The Lacey Human Services Commission opened a public hearing June 5 on the city’s Community Development Block Grant program, hearing a staff overview of federal eligibility rules, timeline milestones and a preliminary funding estimate for the city.

Michelle Chavez, the city’s human services coordinator, told the commission the program must follow U.S. Department of Housing and Urban Development (HUD) rules and national objectives and that the city has to certify each project’s eligibility before spending CDBG funds. Chavez said the city’s estimated CDBG allocation is $348,393 and described the statutory limits the federal program imposes on spending and administrative costs.

The presentation matters because CDBG funds may be used for capital improvement projects — including parks, sidewalks and ADA curb projects — or for limited public services. Chavez told the commission the program must meet one of HUD’s three national objectives: benefit to low- and moderate-income persons, prevention of slum or blight, or addressing an urgent need. She explained federal rules cap public service spending and allow up to 20% for administration but recommended the commission start with capital projects because the city has limited admin capacity this first year.

Commissioners saw a staff list of potential capital projects that staff said would benefit census tracts already certified as 51% or more low- and moderate-income. Chavez said typical ineligible uses include general government operating expenses, improvements to police or city halls, political activity and new permanent residential construction. She also summarized the certification steps: initial staff review, consultation with HUD when eligibility is unclear, and documentary evidence that each project meets a HUD national objective and is an eligible activity.

Chavez outlined the schedule required by HUD: the consolidated plan draft will be released for public review on June 26, the commission will hold a second public hearing on June 26, a 30-day public comment period will run from June 26 to July 22, and the draft will go to the city council on July 22 with an anticipated final council action in early August. Chavez also contrasted CDBG with the city’s separate human services grant program: the human services program is more flexible for service spending, while CDBG is more prescriptive and administratively intensive.

Commissioners asked clarifying questions about eligible capital projects, neighborhood certification by census tract, and administrative capacity. There were no members of the public who signed up to speak, and Chavez closed the hearing at 5:43 p.m.

The commission will continue work on a draft consolidated plan and return to the commission and council later in June and July as required by HUD’s entitlement timetables.