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Council briefed on CDBG entitlement process and $348,000 estimated allocation
Summary
City staff told council May 20 that Lacey will become an entitlement community for HUD Community Development Block Grant (CDBG) funds, that the initial FY allocation is approximately $348,000, and recommended starting with capital projects to limit administrative burden while staff builds program capacity.
City staff on May 20 presented a briefing to the Lacey City Council on the Community Development Block Grant (CDBG) entitlement process, an estimated first allocation of roughly $348,000 and a compressed schedule to meet federal requirements.
Shannon and Michelle Chavez (human services coordinator) told the council the city is transitioning to entitlement status under the U.S. Department of Housing and Urban Development and must produce a consolidated plan, an annual action plan and a community participation plan. Staff emphasized the administrative lift required and proposed a conservative first‑year approach.
Michelle Chavez said the city's initial allocation was higher than early estimates: "We found out on May 14 we'll be getting closer to 348,000," she said. Chavez explained CDBG national objectives and eligible activities: funds must primarily benefit low‑ and moderate‑income persons, prevent or eliminate slums and blight, or address urgent needs. Up to 20% of an allocation may be used for administration and up to 15% for public services; a majority of funds typically support capital (brick‑and‑mortar) projects.
Chavez and staff recommended beginning with city capital projects within pre‑qualified low‑ and moderate‑income census tracts to limit the administrative complexity and to stretch the small allocation for visible infrastructure needs. Staff presented potential project types, including sidewalk upgrades near priority areas, park improvements, ADA ramps and improvements to community facilities that serve low‑income neighborhoods.
Staff outlined a compressed timeline: public outreach and Human Services Commission review in June, a draft consolidated plan and annual action plan for council review in July, and final council action proposed for August 5 so the city can meet HUD deadlines and begin programming funds in October. Chavez said the county and HUD contacts have been briefed and were comfortable with the accelerated schedule.
Council members asked about combining CDBG with other grants, whether CDBG could be used as match for state programs and the administrative burden of managing multiple smaller awards. Staff said CDBG can sometimes be combined with other sources depending on grant rules, but federal requirements add compliance steps and environmental review that increase administrative costs.
Staff said no action was requested at the May 20 meeting; the briefing sets the stage for an August council decision and for future public hearings and community engagement as the city finalizes its consolidated plan.
