City closes owner-occupied CDBG program after rehabilitating 13 homes; federal cuts could threaten future funding

City staff and the Panhandle Area Development District (PAD) reported the city’s owner-occupied CDBG project is complete, with 13 owner-occupied homes receiving rehabilitation work under the grant. David Welenco, PAD grant manager, told the council the program provided up to $25,000 per qualifying homeowner and that nearly all completed projects approached that maximum.

Why it matters: The program funds repairs that keep older homes safe and habitable for seniors and lower-income households. Welenco said the 13 completed homes were largely senior or single-parent households, and the program helped with siding, windows, doors and bringing basements up to code. He estimated roughly $330,000 was spent on the rehabilitation work for Scottsbluff homes, with additional administrative and construction management costs added to the grant total.

Welenco warned the council that a proposed federal “skinny budget” under discussion at the time included proposals to eliminate CDBG. He said the owner-occupied rehab program delivers visible community benefits—improved housing stock and work for local contractors—and rural areas would be hard hit if CDBG were eliminated.

Program details: The PAD received about 20 applications in the Scottsbluff area and approved 13 projects; the program operates as a five-year declining-lien model where loans are reduced by 20% per year and forgiven after five years so long as homeowners do not sell. Welenco said the awards frequently reached the $25,000 cap, noting that construction costs have risen since prior program cycles.