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IRA reviews HOME/CDBG allocations, readies draft action plan for Common Council and HUD review
Summary
The Ithaca Urban Renewal Agency reviewed grant, loan, and lease reports, discussed a slightly higher-than-expected HOME/CDBG allocation, and described next steps for submitting the HUD action plan and working through outstanding project issues including St. John's reintegration project and a canceled Beacon Island project.
The Ithaca Urban Renewal Agency reviewed its grant, loan and lease reports and discussed next steps for the 2025 HOME and Community Development Block Grant (CDBG) action plan during the May meeting.
Nels, an IRA staff member, told the board the agency’s actual 2025 HOME and CDBG allocation was about $59,000 higher than anticipated and roughly on par with last year’s funding. The agency’s draft action plan — which will include funding adjustments that restore projects previously scaled back — is slated for submission to the Common Council and then to the U.S. Department of Housing and Urban Development (HUD). Nels said the Common Council had held a public hearing and “voted unanimously to bring it forward to the June 4 meeting,” at which the council will consider formal approval; HUD then has 45 days to review the submitted action plan.
IRA staff described how the additional funds would be distributed. Several housing projects, including the housing scholarship program and a security deposit assistance program, were restored to full funding. The board was shown a larger increase reserved for a remaining housing project at 209 West State Street.
Staff reviewed several individual project issues. The St. John’s Community Center sober‑living reintegration project has completed improvements but has reported only four beneficiaries so far; staff said St. John’s is working through state licensing, staffing and building‑code issues in efforts to increase occupancy toward a target of at least eight beneficiaries. Agency staff said the facility is historically authorized as nine bedrooms but is seeking state approval for an 11‑bedroom configuration; zoning and fire‑code issues related to parking and occupancy remain under review by zoning staff and the fire marshal.
Staff also said the OAR (organization name provided in the packet) has outstanding documentation required to enter into an agreement, causing a delay, and that a Beacon Island project had been canceled; the agency is tracking those funds for reallocation into 2025 projects until formal transfer occurs.
On program performance, staff reported loans are current and most leases are current; one lease tied to a former RIB site is one month past due and the city will take over the property for a pump station project. Staff also noted that some HOME/CDBG projects will not reach HUD’s snapshot spend‑down test by June 1, and that IRA staff intend to work with HUD to explain the pipeline and timing of expenditures.
Board members asked clarifying questions about the HUD review timeline and whether HUD could change dollar allocations during review. Nels said HUD’s 45‑day review focuses on approving the proposed action plan and narrative, including outreach and consultation documentation, and that it is unlikely HUD would change the dollar allocation unless there were a large nationwide change in funding. IRA staff said they expect to submit by June 16 and that HUD usually provides formal notice in September or October.
The board received the reports and did not take new formal funding votes at the meeting; staff said they will finalize numbers for the draft action plan for Council consideration.
