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Department of Grants and Community Development reports HUD drawdowns, reimbursement improvements and staff concerns about federal funding stability
Summary
DGCD told council it has improved reimbursement speed for subrecipients, listed fund balances across HUD programs (CDBG, HOME, ESG, HOPWA) and warned of uncertainty in federal funding for FY 2026. Commissioner Deborah London and staff provided data on reimbursements and fund balances and answered council queries about federal communications.
The Department of Grants and Community Development reported to council that it is reimbursing subrecipients faster than federal requirements and provided a detailed accounting of balances across HUD entitlement programs, while warning of uncertainty in future federal appropriations.
Deborah London, Commissioner of the Department of Grants and Community Development, told the council her department is "averaging 22 or less" days to reimburse subrecipients, exceeding the 2 CFR requirement of 30 days. London provided line-item totals for reimbursements made through May 16 and updated grant balances by fiscal year. She said the city recently received its FY 2025 HUD allocation and gave the planned terms for each grant: "CDBG funds will be good for 7 years. The HOME funds will be good for 8 years. The HOPWA funds will be good for 3 years and the ESG funds will be good for 2 years."
London reported cumulative reimbursements and balances (figures given to council and recorded in the presentation) and said the department served nearly 17,798 residents in the last program year, with a majority under 30% of area median income. She flagged disruptions in federal communications and previously frozen drawdowns: "We used to have daily, weekly, biweekly communications and conversations, and they're just not happening," London said, adding that HUD has been slow to respond to routine operational questions.
Councilors asked about specifics. Council member Jason Dozier and others requested outcome metrics for local business grant programs; London and DGCD staff said the department will supply follow-up data on program outcomes and noted the department had launched a notice of funding availability (NOFA) for competitive awards that will close the following day.
Why it matters: DGCD is the city's steward for HUD entitlement funds and related federal programs; reimbursement speed affects cashflow for social-service providers and housing developers. London said the federal funding outlook for FY 2026 was uncertain, noting that proposed federal budgets had suggested cuts to CDBG and HOME programs.
Next steps: DGCD will continue processing reimbursements, finalize the FY 2025 grant agreements, complete the 2025 NOFA review and bring recommended awards to the mayor's office and council for approval. The department will provide requested outcome statistics to council members.
