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IRA adjusts recommended CDBG/HOME allocations after CHDO set‑aside clarification for State Street project
Summary
Staff told the committee that a required HOME Community Housing Development Organization (CHDO) set‑aside for an INHS project required reallocating funds among recommended projects, changing several line items in the draft plan.
City staff reported a technical correction to the Neighborhood Investment recommended plan after discovering a HOME program requirement: a CHDO set‑aside is required for projects led by a certified Community Housing Development Organization (CHDO). The requirement reduced available CDBG funds and prompted IRA to adjust allocations among projects.
Staff said the City of Ithaca has one CHDO (Ithaca Neighborhood Housing Services, INHS) and that HOME regulations generally require an entitlement community to reserve 15% of HOME funds for CHDO‑eligible activities. Because the matrix the committee reviewed did not include the CHDO set‑aside, the IRA made adjustments to ensure the CHDO requirement could be met for the 209 West State Street project.
As a result, IRA kept an earlier $100,000 commitment to the State Street project but split the funding between HOME and CDBG categories so the CHDO set‑aside requirement is met. To balance the budget, staff said IRA increased HOME funding for the West Court Street Habitat project and made modest reductions in other projects, such as security deposits and learning web support, to accommodate the required CHDO allocation.
Staff said they tried to keep IRA allocations as close as possible to the Neighborhood Investment committee’s recommendations while complying with the HOME rule. The staff report stressed these are anticipated numbers pending HUD award notification and that the final plan remains subject to the CDBG/HOME entitlement award and federal requirements.
