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City proposes shifting CDBG‑CV funds from small‑business loans to public improvements; 30‑day comment period set
Summary
City staff proposed an amendment to the five‑year consolidated plan and the FY2021 annual action plan to reallocate remaining CDBG‑CV (CARES Act) funds from microenterprise/small‑business loans to public improvements intended to increase preparedness for future pandemics; a 30‑day public comment period and June 10 public hearing were announced.
City staff presented a proposed amendment to the city's five‑year consolidated plan and the FY2021 annual action plan at the May 6 South Ogden City Council work session, asking the council to approve a shift of remaining CDBG‑CV (CARES Act) funds from small‑business assistance to public‑improvement projects.
The change matters because Community Development Block Grant Coronavirus (CDBG‑CV) funds are federally restricted and must be authorized in the consolidated plan to be eligible for HUD-funded activities. Staff said the funds must be spent before May 2026 and that unused business‑loan demand has declined as other emergency assistance sources filled need during the pandemic.
“This is not the con plan we've been talking about recently… In 2021, the city received additional grant money from the CARES Act fund. This was called CDBG CV,” Jeremy Smith said during the presentation. Smith explained that staff propose moving leftover CDBG‑CV money into public improvements that could help the city prepare for or respond to future public‑health emergencies (examples included sidewalks, trails or other design changes to support social distancing).
Staff described the proposed budget shift in the amendment as moving available CDBG‑CV dollars into a $500,000 public‑improvements line with remaining funds allocated to administration. The staff presentation said previous allocations had included roughly $426,197 to microenterprise loans and a similar amount to small‑business loans, with about $94,007 allocated for administration; most business loan dollars were not fully spent.
The citizen advisory committee reviewed and approved the proposed amendment on April 30, staff said. The council work session materials set a 30‑day public comment period beginning May 7 and ending June 7, with a public hearing scheduled for June 10. If the council approves the amendment after the hearing, staff will submit the change to HUD.
Jeremy Smith told the council that specific candidate projects for the public‑improvements category had not been finalized; he said the work must meet CDBG‑CV eligibility requirements and demonstrate a connection to pandemic preparedness or response, such as infrastructure that supports social distancing.
The item at the work session was a presentation and request to proceed with the citizen‑participation steps; the council did not vote on the amendment at the May 6 meeting.
